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06/14/2022CITY OF GRAND TERRACE CITY COUNCIL AGENDA ● JUNE 14, 2022 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 COMMENTS FROM THE PUBLIC The public is encouraged to address the City Council on any matter posted on the agenda or on any other matter within its jurisdiction. If you wish to address the City Council, please complete a Request to Speak card located at the front entrance and provide it to the City Clerk. Speakers will be called upon by the Mayor at the appropriate time and each person is allowed three (3) minutes speaking time. If you would like to participate telephonically and speak on an agenda item, you can access the meeting by dialing the following telephone number and you will be placed in the waiting room, muted until it is your turn to speak: *67 1-669-900-9128 Enter Meeting ID: 833 3575 9914 Password: 479366 The City wants you to know that you can also submit your comments by email to ccpubliccomment@grandterrace-ca.gov. To give the City Clerk adequate time to print out your comments for consideration at the meeting, please submit your written comments prior to 5:00 p.m.; or if you are unable to email, please call the City Clerk’s Office at (909) 824-6621 x230 by 5:00 p.m. If you wish to have your comments read to the City Council during the appropriate Public Comment period, please indicate in the Subject Line “FOR PUBLIC COMMENT” and list the item number you wish to comment on. Comments that you want read to the City Council will be subject to the three (3) minute time limitation (approximately 350 words). Pursuant to the provisions of the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The City Council may direct staff to investigate and/or schedule certain matters for consideration at a future City Council meeting. PLEASE NOTE: Copies of staff reports and supporting documentation pertaining to each item on this agenda are available for public viewing and inspection at City Hall, 1st Floor Lobby Area and 2nd Floor Reception Area during regular business hours and on the City’s website www.grandterrace-ca.gov. For further information regarding agenda items, please contact the office of the City Clerk at (909) 824-6621 x230, or via e-mail at dthomas@grandterrace-ca.gov. Any documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection in the City Clerk’s office at City Hall located at 22795 Barton Road during normal business hours. In addition, such documents will be posted on the City’s website at www.grandterrace-ca.gov. AMERICANS WITH DISABILITIES ACT In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office, (909) 824-6621 x230 at least 48 hours prior to the advertised starting time of the meeting. This will enable the City to make reasonable arrangements to ensure accessibility to this meeting. Later requests will be accommodated to the extent feasible. Agenda Grand Terrace City Council June 14, 2022 City of Grand Terrace Page 2 CALL TO ORDER Convene City Council Invocation Pledge of Allegiance Roll Call Attendee Name Present Absent Late Arrived Mayor Darcy McNaboe    Mayor Pro Tem Bill Hussey    Council Member Sylvia Robles    Council Member Doug Wilson    Council Member Jeff Allen    A. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA B. SPECIAL PRESENTATIONS - NONE C. CONSENT CALENDAR The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the City Council at one time without discussion. Any Council Member, Staff Member, or Citizen may request removal of an item from the Consent calendar for discussion. 1. Waive Full Reading of Ordinances on Agenda DEPARTMENT: CITY CLERK 2. Approval of Minutes – Regular Meeting – 05/24/2022 DEPARTMENT: CITY CLERK 3. Approval of the April-2022 Check Register in the Amount of $422,580.52 RECOMMENDATION: Approve the Check Register No. 04302022 in the amount of $422,580.52 as submitted, for the month ending April 30, 2022. DEPARTMENT: FINANCE Agenda Grand Terrace City Council June 14, 2022 City of Grand Terrace Page 3 4. Letter of Support for the Community Assistance, Recovery and Empowerment Court Concept (CARE Court) RECOMMENDATION: That the City Council Consider its Support for the Community Assistance, Recovery and Empowerment Court and Authorize the Mayor to Sign the Letter of Support on Behalf of the City Council DEPARTMENT: CITY MANAGER D. PUBLIC COMMENT This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law, the City Council may not discuss or act on any item not on the agenda, but may briefly respond to statements made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting. E. PUBLIC HEARINGS - NONE F. UNFINISHED BUSINESS 5. Adoption of the Fiscal Year 2022-23 Budget RECOMMENDATION: 1. Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING THE ANNUAL BUDGET FOR FISCAL YEAR 2022-2023. DEPARTMENT: FINANCE G. NEW BUSINESS 6. Revised Special Events Ordinance RECOMMENDATION: That the City Council rescind the existing Grand Terrace Municipal Code (GTMC) 8.50 Special Events and adopt the revised code to the Grand Terrace Municipal Code (GTMC) 8.50 DEPARTMENT: CITY MANAGER Agenda Grand Terrace City Council June 14, 2022 City of Grand Terrace Page 4 7. Discussion Regarding the City's Unfunded Pension & OPEB Liabilities RECOMMENDATION: Receive direction for ways to address the City's unfunded Pension & OPEB Liabilities. DEPARTMENT: FINANCE 8. Consideration of Entering into an Agreement with Multi-Bank Securities, Inc. & Opening a Custodial Agreement with Pershing LLC RECOMMENDATION: It is recommended the City Council authorize the Interim Finance Director to purchase negotiable certificates of deposits and other authorized investments from Multi-Bank Securities and open a custodial account with Pershing LLC. The authorized signers on the account would be the City Manager Konrad Bolowich and Interim Finance Director Terry Shea. DEPARTMENT: FINANCE 9. Approval of Annual Appropriations Limit for Fiscal Year 2022-23, Including Adoption of the Price Factor and Population Change Factor for the Appropriations Limit Calculation RECOMMENDATION: 1. Approve the selection of the Change in Per Capita Personal Income of 7.55% as the Price Factor for the Fiscal Year 2022-23 Appropriations Limit Calculation; and 2. Approve the selection of the Change in County of San Bernardino Population of 0.14% as the Population Change Factor for the Fiscal Year 2022-2023 Appropriations Limit Calculation; and 3. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2022-23, INCLUDING ADOPTION OF THE PRICE FACTOR AND POPULATION CHANGE FACTOR FOR THE APPROPRIATIONS LIMIT CALCULATION DEPARTMENT: FINANCE 10. Approval of Amendment No. 2 to the Professional Services Agreement for Interim Finance Director and Administration Services with Rogers, Anderson, Malody and Scott, LLP RECOMMENDATION: 1. Approve Amendment No. 2 to the Professional Services Agreement for Interim Finance Director and Administration Services with Rogers, Anderson, Malody and Scott, LLP, which increases the contract sum by $60,000 for a total contract sum of $277,500. 2. Authorize the Mayor to execute Amendment No. 2, subject to the City Attorney’s approval as to form. DEPARTMENT: CITY MANAGER Agenda Grand Terrace City Council June 14, 2022 City of Grand Terrace Page 5 H. REQUESTS FOR FUTURE AGENDA ITEMS BY CITY COUNCIL - NONE I. CITY COUNCIL COMMUNICATIONS Council Member Jeff Allen Council Member Doug Wilson Council Member Sylvia Robles Mayor Pro Tem Bill Hussey Mayor Darcy McNaboe J. CITY MANAGER COMMUNICATIONS K. CLOSED SESSION - NONE L. ADJOURN The Next Regular City Council Meeting will be held on Tuesday, June 28, 2022 at 6:00 PM. Any request to have an item placed on a future agenda must be made in writing and submitted to the City Clerk’s office and the request will be processed in accordance with Council Procedures. CITY OF GRAND TERRACE CITY COUNCIL MINUTES ● MAY 24, 2022 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 CALL TO ORDER Convene City Council INVOCATION The Invocation was given by Pastor Rex Arnold of Centerpoint Church. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Grand Terrace resident, Lloyd Dodd. Attendee Name Title Status Arrived Darcy McNaboe Mayor Present Bill Hussey Mayor Pro Tem Present Sylvia Robles Council Member Present Doug Wilson Council Member Present Jeff Allen Council Member Present Konrad Bolowich City Manager Present Adrian Guerra City Attorney Present Debra Thomas City Clerk Present Terry Shea Interim Finance Director Present A. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA None. B. SPECIAL PRESENTATIONS The City Council presented Grand Terrace resident, Lloyd Dodd, and the Knights of Columbus with the Pledge of Allegiance Proclamation. Lieutenant Bryan Lane, of the San Bernardino County Sheriff’s Department gave a PowerPoint presentation on the 2021 Annual Crime Report for the City of Grand Terrace. C.2 Packet Pg. 6 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 2 4 , 2 0 2 2 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council May 24, 2022 City of Grand Terrace Page 2 C. CONSENT CALENDAR RESULT: APPROVED [UNANIMOUS] MOVER: Sylvia Robles, Council Member SECONDER: Jeff Allen, Council Member AYES: McNaboe, Hussey, Robles, Wilson, Allen 1. Approval of Minutes – Regular Meeting – 05/10/2022 APPROVE THE REGULAR MEETING MINUTES OF MAY 10, 2022 2. Approve National Day of Prayer and Mental Health Month Proclamations APPROVE NATIONAL DAY OF PRAYER AND MENTAL HEALTH MONTH PROCLAMATIONS 3. City Department Monthly Activity Report - March 2022 RECEIVE AND FILE. 4. Second Reading and Adoption of Ordinances of the City Council of the City of Grand Terrace, California, Establishing Objective Standards for Implementation of Senate Bill No. 9 Pertaining to Urban Lot Splits and Two-Unit Developments and Updating the City's Regulations for Accessory Dwelling Units and Junior Accessory Dwelling Units 1. DIRECT THE CITY ATTORNEY TO READ BY TITLE ONLY, WAIVE FURTHER READING AND ADOPT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE ESTABLISHING REGULATIONS FOR URBAN LOT SPLITS AND TWO-UNIT DEVELOPMENTS IN ACCORDANCE WITH SENATE BILL 9 WHICH ALSO FINDS AND DETERMINES THAT THIS ORDINANCE IS NOT A “PROJECT” FOR PURPOSES OF CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO GOVERNMENT CODE SECTIONS 65852.21(J) AND 66411.7(N); AND 2. DIRECT THE CITY ATTORNEY TO READ BY TITLE ONLY, WAIVE FURTHER READING AND ADOPT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE ADOPTING AMENDMENTS TO REGULATIONS OF ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS, WHICH ALSO FINDS AND DETERMINES THAT THIS ORDINANCE IS EXEMPT FROM CEQA REVIEW PURSUANT TO PUBLIC RESOURCES CODE SECTION 21080.17. 5. Council "Top Priorities" 2022-23 Fiscal Year Review and Update Log PROVIDE STAFF WITH DIRECTION AND OR RECEIVE AND FILE REPORT 6. Approve Purchase of Laserfiche Quick Field & Zone OCR Validation Pack to the City's Current Electronic Content Management System 1. APPROVE THE PURCHASE OF LASERFICHE QUICK FIELD & ZONE OCR VALIDATION PACK TO THE CITY'S CURRENT ELECTRONIC MANAGEMENT SYSTEM (ONE-TIME COST OF $20,410.70), AND RELATED MAINTENANCE (ADDITIONAL ANNUAL COST OF $4,500); AND C.2 Packet Pg. 7 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 2 4 , 2 0 2 2 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council May 24, 2022 City of Grand Terrace Page 3 2. AUTHORIZE THE CITY MANAGER TO SIGN RELATED DOCUMENTS RELATED TO THE ABOVE-MENTIONED PURCHASE SUBJECT TO CITY ATTORNEY APPROVAL AS TO FORM. 7. Award and Approval of Contract for Traffic Signal Maintenance and On-Call Emergency Services 1. ADOPT A RESOLUTION REJECTING THE BID BY BEAR ELECTRICAL SOLUTIONS AS NON-RESPONSIVE. 2. AWARD AND APPROVE A CONTRACTOR AGREEMENT TO ST. FRANCIS ELECTRIC, LLC. FOR TRAFFIC SIGNAL MAINTENANCE AND ON-CALL EMERGENCY SERVICES IN THE AMOUNT OF $20,000 PER YEAR WITH AN INITIAL TERM OF 3 YEARS AND 2 OPTIONS TO EXTEND OF 1 YEAR EACH. 3. AUTHORIZE CITY MANAGER TO EXECUTE THE CONTRACTOR AGREEMENT WITH ST. FRANCIS ELECTRIC, LLC AND TO EXECUTE THE 2 OPTIONS TO EXTEND, SUBJECT TO THE CITY ATTORNEY’S APPROVAL AS TO FORM. 8. Resolutions Calling & Giving Notice of a General Municipal Election on November 8, 2022, and Requesting Consolidation of the Municipal Election with the State-Wide General Election on November 8, 2022; and Establishing Candidate Statement Regulations 1. ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, CALLING AND GIVING NOTICE OF THE HOLDING OF A GENERAL MUNICIPAL ELECTION ON TUESDAY, NOVEMBER 8, 2022, FOR THE ELECTION OF CERTAIN OFFICERS AND REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN BERNARDINO TO CONSOLIDATE THE GENERAL MUNICIPAL ELECTION WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THE SAME DATE PURSUANT TO ELECTIONS CODE SECTION 10403 RELATING TO GENERAL LAW CITIES 2. ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ESTABLISHING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO CANDIDATES STATEMENTS SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022 9. Consultant Agreement for Voter Opinion Research, Education and Outreach Services Relating to Potential Transient Occupancy Tax Ballot Measure 1. APPROVE AN AGREEMENT BETWEEN THE CITY AND DESMOND & LOUIS, INC. TO PROVIDE VOTER OPINION RESEARCH, EDUCATION, AND INFORMATION OUTREACH FOR A POTENTIAL BALLOT MEASURE TO BE PLACED ON THE NOVEMBER 2022 GENERAL MUNICIPAL ELECTION IN THE AMOUNT OF $47,000, FOR A TERM OF 1 YEAR WITH 2 EXTENSIONS OF 1 C.2 Packet Pg. 8 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 2 4 , 2 0 2 2 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council May 24, 2022 City of Grand Terrace Page 4 YEAR EACH. 2. AUTHORIZE THE CITY MANAGER TO SIGN THE AGREEMENT, SUBJECT TO CITY ATTORNEY APPROVAL AS TO FORM. 10. Consideration of Resolutions Initiating Proceedings to Levy & Increase (As Previously Authorized by Property Owners) Annual Assessments for Fiscal Year 2022-2023 for the City of Grand Terrace Landscape & Lighting Assessment District 89-1 (“District”); Preliminarily Approving the Related Engineer’s Report; and Setting and Declaring the City Council’s Intention to Conduct a Public Hearing on July 12, 2022, at 6:00 P.M. or Soon Thereafter as Feasible, and to Levy, Increase (As Previously Authorized by Property Owners), and Collect Annual Assessments Related Thereto 1. ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972, INITIATING PROCEEDINGS TO LEVY AND INCREASE (AS PREVIOUSLY AUTHORIZED BY PROPERTY OWNERS) ANNUAL ASSESSMENTS FOR THE 2022-2023 FISCAL YEAR FOR THE CITY OF GRAND TERRACE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1 AND ORDERING THE ENGINEER TO BE PREPARED AND FILE A REPORT IN ACCORDANCE WITH ARTICLE IV OF CHAPTER 1 OF SAID ACT; AND 2. ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, GIVING PRELIMINARY APPROVAL OF THE ENGINEERS REPORT FOR LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1, AND THE LEVY, INCREASE (AS PREVIOUSLY AUTHORIZED BY PROPERTY OWNERS), AND COLLECTION OF ANNUAL ASSESSMENTS RELATED THERETO FOR FISCAL YEAR 2022-2023; AND 3. ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, SETTING AND DECLARING ITS INTENTION TO CONDUCT A PUBLIC HEARING ON JULY 12, 2022, AT 6:00 P.M. OR SOON THEREAFTER AS FEASIBLE, ON LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1, AND INTENTION TO LEVY, INCREASE (AS PREVIOUSLY AUTHORIZED BY PROPERTY OWNERS), AND COLLECT ANNUAL ASSESSMENTS RELATED THERETO FOR FISCAL YEAR 2022-2023 11. Resolution Adoption Declaring the City Council's Intention to Conduct and Setting a Public Hearing on July 12, 2022, Relating to Solid Waste, Recycle, Disposal Service, and Waste Collection Rate Increases ADOPT RESOLUTION NO. 2022-__ DECLARING THE CITY COUNCIL’S INTENTION TO CONDUCT AND SETTING A PUBLIC HEARING ON JULY 12, 2022, AT 6:00 P.M., OR AS SOON THEREAFTER AS FEASIBLE, IN THE CITY COUNCIL CHAMBERS LOCATED AT 22795 BARTON ROAD, GRAND TERRACE CALIFORNIA TO HEAR MATTERS PERTAINING TO PROPOSED SOLID WASTE, RECYCLE, DISPOSAL SERVICE, AND WASTE COLLECTION RATE INCREASES. C.2 Packet Pg. 9 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 2 4 , 2 0 2 2 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council May 24, 2022 City of Grand Terrace Page 5 12. Approve a Capital Improvement Program for FY 2022/23 through 2026/27 and Adopt Resolution for SB 1: RMRA Projects for FY 2022/23 APPROVE AN UPDATED 5 YEAR CAPITAL IMPROVEMENT PLAN FOR FISCAL YEARS 2022/23 THROUGH 2026/27 ADOPT A RESOLUTION ADOPTING THE LIST OF PROJECTS FOR FISCAL YEARS 2022/23 THROUGH 2026/27 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 D. PUBLIC COMMENT Johan Gallo, Grand Terrace expressed his concern and opposition regarding any marijuana dispensary locating in the City of Grand Terrace. Juanita Odenbaugh, Grand Terrace expressed her appreciation to the City Manager for following up with West Coast Arborists’ installation of a wall at the business location however is still concerned regarding debris located on the adjacent property and the infestations it brings. She also has concerns that the development located in her neighborhood is violating its CUP. Bobbie Forbes, Grand Terrace stated that the street in the neighborhood where the new development is located is all black and there is nothing that indicates there is a 100 foot drop six inches from the roadway. She asked that the reflector signs be re-installed as it is a dangerous condition. She would like the City to address lost and found pet signs. E. PUBLIC HEARINGS - NONE F. UNFINISHED BUSINESS - NONE G. NEW BUSINESS 13. Adoption of Resolutions Submitting a Transient Occupancy Tax to the City’s Voters at the November 8, 2022, Election Adrian Guerra, City Attorney gave the staff report and PowerPoint presentation for this item. PUBLIC COMMENT Bobbie Forbes, Grand Terrace is concerned that the general public will not understand what a TOT tax measure is and how it affects the community. She also believes that C.2 Packet Pg. 10 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 2 4 , 2 0 2 2 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council May 24, 2022 City of Grand Terrace Page 6 there will be protests by the community if the City Council allows a hotel to be located in the city. ADOPT THE FOLLOWING RESOLUTIONS: 1. A RESOLUTION SUBMITTING THE TRANSIENT OCCUPANCY TAX TO THE CITY’S VOTERS AT THE NOVEMBER 8, 2022, ELECTION. 2. A RESOLUTION AUTHORIZING PRIMARY ARGUMENTS (AND SETTING PRIORITIES FOR CHOOSING THEREOF) AND DIRECTING THE CITY ATTORNEY TO DRAFT AN IMPARTIAL ANALYSIS CONCERNING THE TRANSIENT OCCUPANCY TAX. 3. A RESOLUTION AUTHORIZING REBUTTAL ARGUMENTS CONCERNING THE TRANSIENT OCCUPANCY TAX. RESULT: APPROVED [UNANIMOUS] MOVER: Doug Wilson, Council Member SECONDER: Jeff Allen, Council Member AYES: McNaboe, Hussey, Robles, Wilson, Allen 14. Introduction of the FY2022-23 Proposed Budget Konrad Bolowich, City Manager gave the staff report and PowerPoint presentation for this item. 1. REVIEW THE PROPOSED BUDGET FOR FISCAL YEAR 2022-23; AND 2. BEGIN BUDGET DELIBERATIONS FOR THE PROPOSED BUDGET FOR FISCAL YEAR 2022-23 ON JUNE 14, 2022. RESULT: NO ACTION TAKEN H. REQUESTS FOR FUTURE AGENDA ITEMS BY CITY COUNCIL - NONE I. CITY COUNCIL COMMUNICATIONS Council Member Jeff Allen Council Member Jeff Allen commented on committee meetings and events that he attended. Click here to view the report. Council Member Doug Wilson Council Member Doug Wilson commented on committee meetings and events that he attended. Click here to view the report. C.2 Packet Pg. 11 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 2 4 , 2 0 2 2 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council May 24, 2022 City of Grand Terrace Page 7 Council Member Sylvia Robles Council Member Sylvia Robles commented on committee meetings and events that she attended. Click here to view the report. Mayor Pro Tem Bill Hussey Mayor Pro Tem Bill Hussey commented on committee meetings and events that he attended. Click here to view the report. Mayor Darcy McNaboe Mayor Darcy McNaboe commented on committee meetings and events that she attended. Click here to view the report. J. CITY MANAGER COMMUNICATIONS Konrad Bolowich, City Manager announced the following upcoming events: • Grand Terrace Community Day - June 4, 2022 @ 3:00 p.m., Richard Rollins Park • Movies in the Park - June 4, 2022 @ 8:00 p.m., Richard Rollins Park • Rabies Vaccination Clinic - June 12, 2022 @ 8:00 a.m., City of Grand Terrace Dog Park • Grand Terrace High School Parade - May 26, 2022 @ 5:30 p.m. winding through the streets of the city to Grand Terrace High School K. CLOSED SESSION - NONE L. ADJOURN Mayor McNaboe adjourned the Regular Meeting of the City Council at 7:40 p.m. The Next Regular Meeting of the City Council will be held on Tuesday, June 14, 2022, at 6:00 p.m. _________________________________ Darcy McNaboe, Mayor _________________________________ Debra Thomas, City Clerk C.2 Packet Pg. 12 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 2 4 , 2 0 2 2 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) AGENDA REPORT MEETING DATE: June 14, 2022 Council Item TITLE: Approval of the April-2022 Check Register in the Amount of $422,580.52 PRESENTED BY: Terry Shea, Interim Finance Director RECOMMENDATION: Approve the Check Register No. 04302022 in the amount of $422,580.52 as submitted, for the month ending April 30, 2022. 2030 VISION STATEMENT: This staff report supports Goal #1, “Ensuring Our Fiscal Viability”, through the continuous monitoring of expenditure budgets, allocations and operational costs. BACKGROUND: The check register for the month of April-2022 has been prepared in accordance with Government Code §37202 and is hereby submitted for City Council’s approval. The check register lists all vendor payments for the respective month, along with a brief description of the type of goods or services purchased and the account code(s) associated with each payment. The check registers list all payments made to vendors and employee reimbursements during the month of April-2022. The attached index to the Check Register is a guideline account list only and is not intended to replace the comprehensive chart of accounts used by the City and Grand Terrace Successor Agency. Expenditure account number formats are XX-XXX-XXX [Fund-Department-Account]. Expenditures may be made from trust/agency accounts (Fund 23-XXX-) or temporary clearing accounts which do not have a budgetary impact. DISCUSSION: CHECK REGISTER A total of $422,580.52 in accounts payable checks and/or wires were issued during the period for services, reimbursements, supplies and contracts and are detailed in the individual monthly register. Below is a table that lists payments larger than $10,000 for the month of April-2022. C.3 Packet Pg. 13 Payments larger than $10,000: Check No. Payee Description Amount 78978 ARROWHEAD CREDIT UNION MAR-APR 2022 VISA CHARGES $16,348.29 78997 RIVERSIDE HIGHLAND WATER CO FEB & MAR WATER USAGE $13,523.54 78998 RAMS JAN 2022 INTERIM FINANCE DIRECTOR SVCS $12,000.00 78999 SB COUNTY SHERIFF APR 2022 LAW ENFORCEMENT SVCS $189,109.00 79028 SB COUNTY SHERIFF JUL-SEP 2021 SHERIFF OVERTIME, GAS & VEHICLE MAINT $61,264.83 79035 WILLDAN MAR 2022 PLAN CHECK/INSPECTION FEES, PW ENGINEERING FEES $17,226 16777179 CA PUB EMPLPYEE RETIRE SYSTEM MAY 2022 PERS HEALTH INSURANCE $18,605.95 TOTAL PAYMENTS LARGER THAN $10,000 $328,077.61 PAYROLL Payroll costs for the month: Pay Per. Period Start Period End Pay Date Amount APR-22 21 From 03/19/2022 to 04/01/2022 04/07/2022 $50,881.90 22 From 04/02/2022 to 04/15/2022 04/21/2022 $50,065.30 $100,947.20 FISCAL IMPACT: All disbursements (including payroll) were made in accordance with the Approved Budget for Fiscal Year 2021-22 in the amount of: Description Amount APR-22 Check Register $422,580.52 Payroll $100,947.20 $523,527.72 ATTACHMENTS: • Check Register Account Index (PDF) • April Check Register (PDF) C.3 Packet Pg. 14 APPROVALS: Terry Shea Completed 05/31/2022 3:05 PM City Manager Completed 05/31/2022 3:40 PM City Council Pending 06/14/2022 6:00 PM C.3 Packet Pg. 15 CITY OF GRAND TERRACE FY2020-21 GRAND TERRACE CIVIC CENTER 22795 BARTON ROAD GRAND TERRACE, CA 92313 CHECK REGISTER Account Index Darcy McNaboe, Mayor Bill Hussey, Mayor Pro Tem Sylvia Robles, Council Member Doug Wilson, Council Member Jeff Allen, Council Member The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6:00 pm. C.3.a Packet Pg. 16 At t a c h m e n t : C h e c k R e g i s t e r A c c o u n t I n d e x ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) Fund No.Fund Name Dept No.Department Cost Center Acct No.General Account Numbers 09 CHILD CARE FUND 110 CITY COUNCIL 110 SALARIES/WAGES 10 GENERAL FUND 120 CITY MANAGER 115 OVERTIME 11 STREET FUND 125 CITY CLERK 120 COUNCIL STIPENDS 12 STORM DRAIN FUND 140 FINANCE 138 MEDICARE / SUI 13 PARK FUND 160 CITY ATTORNEY 139 EMPLOYEES' BENEFIT PLAN 14 AB 3229 COPS FUND 172 BUILDING & SAFETY 140 RETIREMENT 15 AIR QUALITY IMPROVEMENT FUND 175 PUBLIC WORKS 142 HEALTH/LIFE INSURANCE 16 GAS TAX FUND 180 COMMUNITY EVENTS 143 WORKERS' COMPENSATION 17 TRAFFIC SAFETY FUND 185 RENTAL INSPECTION PROGRAM 210 OFFICE EXPENSE 18 TRANS. DEV. ACT (T D A FUND)187 ENFORCEMENT PROGRAM 211 POSTAGE & MAILING 19 FACILITIES DEVELOPMENT FUND 190 NON-DEPARTMENTAL 220 SPECIAL DEPARTMENTAL EXP 20 MEASURE I FUND 195 FACILITIES MAINTENANCE 230 ADVERTISING 21 WASTE WATER DISPOSAL FUND 370 PLANNING & DEVELOPMENT SVCS 235 COMMUNICATIONS 22 COMMUNITY DEV. BLOCK GRANT 380 MGT INFORMATION SYSTEMS 238 UTILITIES 25 SPRING MOUNTAIN RANCH FUND 410 LAW ENFORCEMENT 240 RENTS & LEASES 26 LSCPG/ LGHTG ASSESSMENT DIST.411 ASSET FORFEITURES 244 CUSTODIAL SERVICES 32 S/A CAPITAL PROJECTS FUND 430 RECREATION SERVICES 245 MAINT BLDG GRNDS EQUIPMNT 36 S/A 2011 TABS BOND PROCEEDS 441 CHILD CARE - NUTRITION GRANT 246 MAINT/OPER OF EQUIPMNT 45 CIP - COMMERCE WAY 445 CHILD CARE - TINY TOTS 250 PROFESSIONAL SERVICES 46 CIP - STREET IMPROVEMENTS 446 CHILD CARE - AFTER SCHOOL 251 BANKING SERVICE CHARGES 47 CIP - BARTON RD. BRIDGE PROJECT 447 CHILD CARE - PRE-SCHOOL 252 ROAD MAINTENANCE 48 CIP - CAPITAL PROJECTS FUND 450 PARKS MAINTENANCE 254 STREET SWEEPING 49 CIP - PARKS 461 COMMUNITY GRANTS 255 CONTRACTUAL SERVICES 50 CAPITAL PROJECT BOND PROCEEDS 500 AIR QUALITY PROGRAMS 256 ANIMAL SHELTERING SVCS 52 HOUSING AUTHORITY 510 STREET & SIGNAL LIGHTING 260 INSURANCE & SURETY BONDS 61 COMMUNITY BENEFITS FUND 573 LINE MAINTENANCE 265 MEMBERSHIPS & DUES 62 LIGHT UP GRAND TERRACE FUND 600 ZONE 1 13364 CANAL -TERR PINES 268 TRAINING 63 ILLEGAL FIREWORKS FUND 601 ZONE 3 TRACT 14471 PICO & ORIOLE 270 TRAVEL/CONFERENCES/MTGS 64 PUBLIC SAFETY FUND 602 ZONE 2 14264 FORREST CITY PHASE II 271 MILEAGE 65 SENIOR BUS PROGRAM FUND 603 ZONE 4 TRACT 17766 GREENBRIAR 625 NPDES 66 CAL RECYCLE GRANT 604 ZONE 5 TRACT 18793 PALOMINO 631 STORM DRAIN MAINTENANCE 67 PUBLIC EDUC & GOVT ACCESS (PEG)605 ZONE 6 TRACT 18071 JADEN 801 PLANNING COMMISSION 68 40TH YR CELEBRATION FUND 606 ZONE 7 TRACT 18604 TESORO/VAN BUREN 804 HISTORICAL & CULTURAL COMM. 69 COMMUNITY DAY FUND 625 NPDES 311 FACILITY IMPROVEMENTS 70 FIXED ASSED/EQUIP REPL FUND 631 STORM DRAIN MAINTENANCE 570 WASTEWATER TREATMENT 73 ACTIVE TRANS PRGM (ATP) GRANT 700 CAPITAL OUTLAY 400 OTHER COMMUNITY GRANTS 74 HIGHWAY SFTY IMPV PRGM (HSIP)705 EVERY 15 MINUTES 601 ELECTRICAL VEHICLE STATIONS 75 EMER MGMT PREP GRANT (EMPG)801 PLANNING COMMISSION 700 COMPUTER EQUIPMENT 76 ENHANCED INFRA FIN DIST (EIFD)804 HISTORICAL & CULTURAL COMMITTEE 701 CAPITAL IMPROVEMENT OTHER 77 SO CAL INCENTIVE PROJECT (SCIP)805 SENIOR CITIZENS PROGRAM 705 VEHICLES 90 COVID-19 EMERGENCY FUND 808 EMERGENCY OPERATIONS PROG.998 OVERHEAD COST ALLOCATION 95 DOG PARK ENDOWMENT FUND 999 TRANSFERS 999 TRANSFERS OUT City of Grand Terrace Check Register Index C.3.a Packet Pg. 17 At t a c h m e n t : C h e c k R e g i s t e r A c c o u n t I n d e x ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) CITY OF GRAND TERRACE FY2021-22 GRAND TERRACE CIVIC CENTER 22795 BARTON ROAD GRAND TERRACE, CA 92313 MONTHLY CHECK REGISTER For the Period Ending April 30, 2022 Darcy McNaboe, Mayor Bill Hussey, Mayor Pro Tem Sylvia Robles, Council Member Doug Wilson, Council Member Jeff Allen, Council Member The Grand Terrace City Council meets on the Second and Fourth Tuesday of each month at 6:00 pm. C.3.b Packet Pg. 18 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) Invoice # E 10-190-238-000-000 129.98 129.98 78974 04/07/2022 TIME WARNER CABLE 0228510062522 CITY HALL INTERNET - MAR-APR 22 03/25/2022 E 10-190-238-000-000 190.47 E 10-805-238-000-000 83.53 274.00 274.00 B 10-022-62-00 184.01 184.01 184.01 78973 04/07/2022 SPARKLETTS 9637116 040122 MAR2022 BOTTLED WATER SERVICES FOR CITY HALL & SENIOR CENTER04/01/2022 E 10-190-211-000-000 785.90 785.90 785.90 78972 04/07/2022 CINDY RUSHING 03302022 REFUND C. RUSHING FOR CALPERS RETIREMENT DEDUCTION TAKEN OUT OF SEVERANCE PAY03/30/2022 E 10-140-255-000-000 410.03 410.03 410.03 78971 04/07/2022 QUADIENT LEASING USA INC N9352355 FEB-MAY22 POSTAGE METER LEASE 04/02/2022 E 10-190-212-000-000 75.77 75.77 167.79 78970 04/07/2022 PAY PLUS SOLUTIONS INC 28221 CALPERS MONTHLY CHARGES - APRIL 2022 04/01/2022 03/15/2022 E 10-190-212-000-000 92.02 92.02 9008412937 01/15/22-02/14/22 CITYWIDE PHOTOCOPIER SERVICES02/25/2022 03/27/2022 E 10-805-245-000-000 160.83 160.83 160.83 78969 04/07/2022 KONICA MINOLTA BUS. SOLUTIONS 9008458750 02/15/22-03/14/22 CITYWIDE PHOTOCOPIER SERVICES Vendor Invoice Description Inv. Date Amount Paid Check Total 78968 04/07/2022 ADT COMMERCIAL LLC 911492798 4TH QTR4TH QUARTER SENIOR CENTER SECURITY MONITORING (04/14/22-07/13/22) Check Register CITY OF GRAND TERRACE As of 4/30/2022 Check #Date C.3.b Packet Pg. 19 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) Invoice #Vendor Invoice Description Inv. Date Amount Paid Check Total Check Register CITY OF GRAND TERRACE As of 4/30/2022 Check #Date 0153825032322 B 23-250-10-00 479.14 479.14 479.14 E 10-190-235-000-000 190.05 190.05 190.05 78977 04/15/2022 AMERICAN FIDELITY ASSURANCE CO 6049036 APR 2022 EMP PAID FLEX SPEND/DEP CARE 04/04/2022 E 10-190-211-000-000 4,000.00 4,000.00 4,000.00 78976 04/07/2022 VERIZON WIRELESS 9902615641 ALPR CARD LINE CHARGES FEB-MAR 2022 03/23/2022 109.99 239.97 78975 04/07/2022 USPS NEOPOST POSTAGE ON CALL 03182022 ACCT 74456587 POSTAGE METER 2022 03/18/2022 SR CENTER INTERNET - HSD3 - MAR-APR 2022 03/23/2022 E 10-805-238-000-000 109.99 C.3.b Packet Pg. 20 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) Invoice #Vendor Invoice Description Inv. Date Amount Paid Check Total Check Register CITY OF GRAND TERRACE As of 4/30/2022 Check #Date E 10-808-235-000-000 474.51 2,763.36 2,763.36 E 10-190-235-000-000 1,584.47 E 10-450-235-000-000 247.01 E 10-805-235-000-000 457.37 78979 04/15/2022 AT AND T APR 2022 AT&T APR 2022 AT&T 04/01/2022 E 16-900-257-000-000 ROAD MAINT 1,187.49 E 62-120-220-000-000 LIGHT UP GT 2,968.00 16,348.29 16,348.29 E 10-195-245-000-000 CITY HALL MAINT 39.07 E 10-370-270-000-000 TRAINING 455.00 E 10-450-245-000-000 PARK MAINT 4,672.43 E 10-185-272-000-000 VEHICLE MAINT 136.89 E 10-190-211-000-000 POSTAGE/MAILING 184.59 E 10-190-250-000-000 SAM RENEWAL - GRANTS 399.00 E 10-185-268-000-000 TRAINING 1,251.35 E 10-175-272-000-000 VEHICLE MAINT 2,321.60 E 10-185-210-000-000 OFFICE SUPPLIES 113.06 96.96E 10-185-218-000-000 SMALL TOOLS E 10-140-265-000-000 SEMINARS 350.00 E 10-172-268-000-000 MEMBERSHIP/DUES 438.00 E 10-175-246-000-000 MAINT SUPPLIES 122.82 E 10-120-250-000-000 BLUE MTN HIKE 294.60 E 10-125-270-000-000 CJPIA ACADEMY DINNER 121.52 E 10-140-210-000-000 OFFICE SUPPLIES 325.36 E 10-120-210-000-000 OFFICE SUPPLIES 45.24 E 10-120-220-000-000 ART SHOW POSTERS 790.50 E 10-120-230-000-000 ADVERTISING 34.81 78978 04/15/2022 ARROWHEAD CREDIT UNION MAR2022 VISA MAR-APR 2022 VISA CHARGES 04/02/2022 C.3.b Packet Pg. 21 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) Invoice #Vendor Invoice Description Inv. Date Amount Paid Check Total Check Register CITY OF GRAND TERRACE As of 4/30/2022 Check #Date E 10-190-211-000-000 39.05 39.05 39.05 E 10-450-255-000-000 950.00 950.00 950.00 78986 04/15/2022 FEDEX 7-717-33025 EXPRESS MAILING SERVICES - DOCUMENTS TO ATTORNEY04/07/2022 B 10-022-71-00 87.69 87.69 87.69 78985 04/15/2022 EZ SUNNYDAY LANDSCAPE 2438 RIGHT OF WAY LANDSCAPING BI MONTHLY MAINT04/04/2022 E 10-450-245-000-000 146.80 146.80 146.80 78984 04/15/2022 EYEMED FIDELITY SECURITY LIFE 165213684 APR 2022 EMPLOYEE PAID VISION INSURANCE 04/01/2022 E 10-195-245-000-000 83.41 83.41 83.41 78983 04/15/2022 DOG WASTE DEPOT 476790 DOG WASTE BAGS FOR DOG PARK 04/08/2022 E 10-125-230-000-000 220.15 220.15 220.15 78982 04/15/2022 COUNTY OF RIVERSIDE TLMA ADM TL0000016274 FEB. 2022 TRAFFIC SIGNAL MONITORING - MAIN ST & MICHIGAN03/29/2022 E 10-380-250-000-000 780.00 780.00 780.00 78981 04/15/2022 CITY NEWSPAPER GROUP 36271 GT 03.10.22 NOTICE OF PUBLIC HEARING - ZONING CODE AMENDMENT03/08/2022 78980 04/15/2022 BENSON PRODUCTIONS 1583 MARCH 2022 - AUDIO/VISUAL SVCS FOR CITY COUNCIL & PLANNING COMM04/12/2022 C.3.b Packet Pg. 22 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) Invoice #Vendor Invoice Description Inv. Date Amount Paid Check Total Check Register CITY OF GRAND TERRACE As of 4/30/2022 Check #Date 8811646 E 10-450-245-000-000 16.87 16.87 705.83 E 10-450-245-000-000 50.66 50.66 5520320 SUPPLIES FOR PARKS 03/23/2022 E 10-195-245-000-000 26.81 E 10-450-245-000-000 98.51 125.32 6030546 SUPPLIES FOR PARKS 03/22/2022 E 10-195-245-000-000 97.86 E 10-450-245-000-000 129.61 227.47 5271614 SUPPLIES FOR CITY HALL AND PARKS 03/23/2022 E 10-175-246-000-000 70.65 E 10-450-245-000-000 214.86 285.51 4270932 SUPPLIES FOR CITY HALL AND PARKS 03/14/2022 225.00 625.00 78989 04/15/2022 HOME DEPOT CREDIT SERVICE 3270569 SUPPLIES FOR PUBLIC WORKS AND PARKS 03/25/2022 E 10-450-245-000-000 400.00 400.00 APRIL 2022 GOPHER CONTROL AT DOG PARK 03/25/2022 E 10-450-245-000-000 225.00 E 10-450-245-000-000 51.51 51.51 51.51 78988 04/15/2022 GOPHER PATROL 9229750 APRIL 2022 GOPHER CONTROL AT PICO PARK 04/04/2022 78987 04/15/2022 FRUIT GROWERS SUPPLY 92295966 FY2021-2022 IRRIGATION SUPPLIES FOR PARKS & GROUNDS04/01/2022 C.3.b Packet Pg. 23 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) Invoice #Vendor Invoice Description Inv. Date Amount Paid Check Total Check Register CITY OF GRAND TERRACE As of 4/30/2022 Check #Date INVOICE 22-4 E 10-172-210-000-000 95.89 95.89 E 10-175-210-000-000 104.31 104.31 235137580001 FY 2021-22 OFFICE SUPPLIES 03/31/2022 E 10-190-224-000-000 175.50 175.50 175.50 78995 04/15/2022 OFFICE DEPOT 234685847001 FY 2021-22 OFFICE SUPPLIES 03/28/2022 E 10-370-250-202-000 3,544.00 3,544.00 3,544.00 78994 04/15/2022 OCCUPATIONAL HEALTH CENTERS CA 74926200 PRE-EMPL PHYSICAL: TREVOR GREELEY - 04/04/202204/04/2022 543.68 1,906.73 78993 04/15/2022 MICHAEL BAKER INTERNATIONAL 1144270 MAR 2022 CEQA AND ENVIRONMENTAL REVIEW AND ENTITLEMENT SUPPORT04/08/2022 E 10-625-220-000-000 1,363.05 1,363.05 NPDES SERVICES FOR OCT.-DEC.2021 03/29/2022 E 10-625-220-000-000 543.68 E 10-195-257-000-000 187.23 187.23 187.23 78992 04/15/2022 LYNN MERRILL Invoice 22-5 NPDES SERVICES FOR JAN.-FEB. 2022 03/29/2022 E 10-185-218-000-000 64.55 64.55 64.55 78991 04/15/2022 LOMA LINDA HEAT AND A C INC 25924 HVAC REPAIRS AT FIRE STATION 23.03/23/2022 78990 04/15/2022 KRISTIN JAMES 208200442064 UNIFORM PURCHASE FOR KRISTIN JAMES 03/22/2022 C.3.b Packet Pg. 24 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) Invoice #Vendor Invoice Description Inv. Date Amount Paid Check Total Check Register CITY OF GRAND TERRACE As of 4/30/2022 Check #Date E 26-601-239-000-000 490.29 E 26-605-238-000-000 302.70 13,523.54 13,523.54 E 10-450-238-000-000 7,792.20 E 10-805-238-000-000 1,575.46 E 26-600-239-000-000 848.50 B 10-015-60-00 69.20 E 10-175-238-000-000 568.23 E 10-190-238-000-000 1,876.96 101.98 101.98 78997 04/15/2022 RIVERSIDE HIGHLAND WATER CO FEB-MAR 2022 RHWC01/31/2022-04/13/2022 RIVERSIDE HIGHLAND WATER CO04/13/2022 E 10-175-210-000-000 32.21 E 10-185-210-000-000 32.21 E 10-370-210-000-000 37.56 E 10-172-210-000-000 9.85 9.85 538.66 78996 04/15/2022 PRINT PRO PLUS 82756 BUSINESS CARDS FOR J.JAIMES, A.MARTIN, L.HOLTZEN03/31/2022 E 10-370-210-000-000 63.24 63.24 235432382001 FY 2021-22 OFFICE SUPPLIES 03/31/2022 E 10-175-210-000-000 8.21 E 10-190-210-000-000 72.40 80.61 235235533001 FY 2021-22 OFFICE SUPPLIES 03/24/2022 E 10-370-210-000-000 88.98 88.98 235440094001 FY 2021-22 OFFICE SUPPLIES 03/21/2022 E 10-120-210-000-000 95.78 95.78 235137172001 FY 2021-22 OFFICE SUPPLIES 03/31/2022 235225862001 FY 2021-22 OFFICE SUPPLIES 03/24/2022 C.3.b Packet Pg. 25 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) Invoice #Vendor Invoice Description Inv. Date Amount Paid Check Total Check Register CITY OF GRAND TERRACE As of 4/30/2022 Check #Date E 16-900-220-000-000 100.75 100.75 100.75 E 10-450-245-000-000 9,308.94 9,308.94 9,308.94 79003 04/15/2022 UNDERGROUND SERVICE ALERT 320220300 APRIL 2022 MONTHLY DATABASE MAINTENANCE FEE04/01/2022 E 10-450-238-000-000 319.98 319.98 319.98 79002 04/15/2022 TOT LOT PROS 2102 EMERGENCY REPAIR OF RICHARD ROLLINS PARK PLAYGROUND EQUIPMENT04/07/2022 E 16-510-255-000-000 111.00 111.00 674.85 79001 04/15/2022 TIME WARNER CABLE 0262246040322 RICHARD ROLLINS PARK INTERNET - APR-MAY 202204/03/2022 E 16-510-255-000-000 563.85 563.85 171033123 MARCH 2022 RESPONSE SIGNAL LIGHT MAINTENANCE03/31/2022 189,109.00 189,109.00 79000 04/15/2022 ST FRANCIS ELECTRIC 171033122 MARCH 2022 ROUTINE SIGNAL LIGHT MAINTENANCE03/31/2022 E 10-410-255-000-000 5,166.67 E 10-410-256-000-000 171,488.16 E 14-411-256-000-000 12,454.17 E 10-120-250-000-000 12,000.00 12,000.00 12,000.00 78999 04/15/2022 SB COUNTY SHERIFF 21450 APRIL 2022 LAW ENFORCEMENT SERVICES 03/31/2022 78998 04/15/2022 ROGERS ANDERSON MALODY SCOTT 70163 JAN 2022 PROFESSIONAL SERVICES FOR INTERIM FINANCE DIRECTOR01/31/2022 C.3.b Packet Pg. 26 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) Invoice #Vendor Invoice Description Inv. Date Amount Paid Check Total Check Register CITY OF GRAND TERRACE As of 4/30/2022 Check #Date E 10-140-255-000-000 100.00 100.00 135531 GT STREET SWEEPING INVOICE FOR FEB 2022 04/11/2022 E 10-140-255-000-000 127.24 127.24 135838 GT STREET SWEEPING INVOICE FOR FEB 2022 03/31/2022 E 10-140-255-000-000 249.50 249.50 135293 GT CITATION PROCESSING FEES - FEB 2022 03/31/2022 E 10-185-255-000-000 606.39 606.39 606.39 79008 04/29/2022 DATA TICKET INC 136386 GT STREET SWEEPING INVOICE FOR MAR 2022 04/11/2022 E 10-125-230-000-000 284.92 284.92 284.92 79007 04/29/2022 COUNTY OF RIVERSIDE AN0000002441 MARCH 2022 ANIMAL SHELTERING SERVICES 04/20/2022 E 10-140-241-000-000 158.00 158.00 487.00 79006 04/29/2022 CITY NEWSPAPER GROUP 36412 GT 03.31.22 HISTORICAL AND CULTURAL ACTIVITIES COMMITTEE VACANCY03/29/2022 E 10-140-241-000-000 329.00 329.00 05/01/2022 - B15 MAY 2022 RENT FOR UNIT B15 04/16/2022 E 20-100-245-000-000 960.00 960.00 960.00 79005 04/29/2022 A STORAGE PLACE 05/01/2022 - B3334MAY 2022 RENT FOR UNIT B3334 04/16/2022 79004 04/15/2022 WEST COAST ARBORISTS INC 183640 FEB. 2022 CITYWIDE TREE MAINTENANCE 02/28/2022 C.3.b Packet Pg. 27 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) Invoice #Vendor Invoice Description Inv. Date Amount Paid Check Total Check Register CITY OF GRAND TERRACE As of 4/30/2022 Check #Date E 10-450-245-000-000 51.51 51.51 E 10-450-246-000-000 882.88 882.88 882.88 79013 04/29/2022 FRUIT GROWERS SUPPLY 92299728 FY2021-2022 SOAP FOR PARKS 04/19/2022 E 10-190-211-000-000 39.05 39.05 39.05 79012 04/29/2022 FIRST LINEAGE SITE SVCS 102044 BOOM LIFT TO INSTALL AND REPLACE LIGHT BULB AT VETERANS FREEDOM PARK04/20/2022 E 26-605-255-000-000 650.00 650.00 4,295.00 79011 04/29/2022 FEDEX 7-732-20016 EXPRESS MAILING SERVICES - DOCUMENTS TO FIDELITY NATIONAL TITLE04/21/2022 E 26-601-255-000-000 80.00 3,645.00 2601 APR 2022 TRACT 18070 JADEN 04/19/2022 E 10-195-245-000-000 200.00 E 10-450-255-000-000 3,215.00 E 26-600-255-000-000 150.00 B 10-022-70-00 436.05 436.05 436.05 79010 04/29/2022 EZ SUNNYDAY LANDSCAPE 2603 APRIL 2022 PARKS AND PARKWAY MAINTENANCE04/19/2022 E 10-185-255-000-000 23.00 23.00 557.06 79009 04/29/2022 DENTAL HEALTH SERVICES 2205059 MAY 2022 EMPLOYEE PAID DENTAL INSURANCE04/16/2022 E 10-140-255-000-000 57.32 57.32 136065 GT CODE ENFORCEMENT CITATION PROCESSING - FEB 202203/06/2022 135531 GT STREET SWEEPING INVOICE FOR FEB 2022 04/11/2022 C.3.b Packet Pg. 28 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) Invoice #Vendor Invoice Description Inv. Date Amount Paid Check Total Check Register CITY OF GRAND TERRACE As of 4/30/2022 Check #Date E 10-190-212-000-000 137.36 137.36 137.36 E 16-900-255-000-000 1,237.50 1,237.50 2,737.50 79018 04/29/2022 KONICA MINOLTA BUS. SOLUTIONS 9008531273 03/15/2022-04/14/2022 CITYWIDE PHOTOCOPIER SERVICES04/14/2022 E 16-900-255-000-000 1,500.00 1,500.00 74355 NOVEMBER 2022 ON-CALL ENGINEERING SERVICES12/09/2021 E 10-110-142-000-000 282.15 282.15 282.15 79017 04/29/2022 INTERWEST CONSULTING GROUP 75152 DEC. 2022 ON-CALL ENGINEERING SERVICES 01/12/2022 E 10-631-255-000-000 1,711.50 1,711.50 1,711.50 79016 04/29/2022 WILLIAM HUSSEY APR2022 BH HLTH REIMAPR 2022 BH HEALTH REIMBURSEMENT 04/12/2022 E 10-450-245-000-000 225.00 225.00 225.00 79015 04/29/2022 HOUSTON AND HARRIS PCS INC 22-24389 HYDRO-WASH CLEANING OF CLARIFIER IN MAINTENANCE YARD03/22/2022 E 10-450-245-000-000 9.03 9.03 100.30 79014 04/29/2022 GOPHER PATROL 9196563 APRIL 2022 GOPHER CONTROL AT DOG PARK 04/15/2022 E 10-450-245-000-000 39.76 39.76 92299161 IRRIGATION SUPPLIES TJ AUSTIN PARK SPRINKLER REPAIR04/15/2022 92299994 IRRIGATION SUPPLIES FOR TREE PLANTING ON MT VERNON04/20/2022 C.3.b Packet Pg. 29 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) Invoice #Vendor Invoice Description Inv. Date Amount Paid Check Total Check Register CITY OF GRAND TERRACE As of 4/30/2022 Check #Date PAYDATE 04212022 ARS 89.40 268.20 B 10-022-68-00 89.40 89.40 PAYDATE 04212022 ARS RETIREMENT 04/21/2022 B 10-022-68-00 89.40 B 10-022-68-00 89.40 89.40 PAYDATE 04072022 ARSPAYDATE 04072022 ARS RETIREMENT 04/07/2022 E 10-110-142-000-000 672.79 672.79 672.79 79022 04/29/2022 MIDAMERICA ADMIN RETIREMENT PAYDATE 03242022 ARSPAYDATE 03242022 ARS RETIREMENT 03/24/2022 79021 04/29/2022 DARCY MCNABOE MAY2022 DM HLTH REIMMAY 2022 DM HEALTH REIMBURSEMENT 04/22/2022 E 16-175-142-000-000 9.21 E 65-425-142-000-000 3.80 853.17 853.17 E 10-185-142-000-000 24.75 E 10-370-142-000-000 9.66 E 10-450-142-000-000 12.49 E 10-140-142-000-000 14.45 E 10-172-142-000-000 25.11 E 10-175-142-000-000 21.73 B 10-022-66-00 681.21 E 10-120-142-000-000 42.70 E 10-125-142-000-000 8.06 E 10-140-250-000-000 3,220.00 3,220.00 3,220.00 79020 04/29/2022 LINCOLN NATIONAL LIFE INSURANC LCLN MAY 2022 MAY 2022 LIFE/AD&D/DEP LIFE/WI/LTD 05/01/2022 79019 04/29/2022 LANCE SOLL AND LUNGHARD LLP 49680 2021 SINGLE AUDIT - FIELDWORK PHASE COMPLETE04/14/2022 C.3.b Packet Pg. 30 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) Invoice #Vendor Invoice Description Inv. Date Amount Paid Check Total Check Register CITY OF GRAND TERRACE As of 4/30/2022 Check #Date E 10-110-142-000-000 170.10 170.10 170.10 79025 04/29/2022 SYLVIA ROBLES APR2022 SR MED REIMBAPR 2022 SR MEDICARE REIMBURSEMENT 04/21/2022 R 10-450-01 80.00 E 10-450-245-000-000 31.89 789.60 789.60 E 10-185-218-000-000 90.52 E 10-190-226-000-000 57.00 R 10-200-05 420.00 E 10-120-270-000-000 49.19 E 10-140-270-000-000 40.00 E 10-172-272-000-000 21.00 E 10-370-210-000-000 24.86 24.86 565.37 79024 04/29/2022 PETTY CASH 04192022 REPLENISH PETTY CASH FEB 2022 - APR 2022 04/19/2022 E 10-190-210-000-000 40.71 40.71 236533466002 FY 2021-22 OFFICE SUPPLIES 04/04/2022 E 10-190-210-000-000 109.06 109.06 236533466001 FY 2021-22 OFFICE SUPPLIES 04/01/2022 E 10-172-210-000-000 138.97 138.97 235588503001 FY 2021-22 OFFICE SUPPLIES 04/08/2022 E 10-190-210-000-000 251.77 251.77 235462041001 FY 2021-22 OFFICE SUPPLIES 04/07/2022 79023 04/29/2022 OFFICE DEPOT 238083657001 FY 2021-22 OFFICE SUPPLIES 04/12/2022 C.3.b Packet Pg. 31 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) Invoice #Vendor Invoice Description Inv. Date Amount Paid Check Total Check Register CITY OF GRAND TERRACE As of 4/30/2022 Check #Date E 10-190-238-000-000 84.00 84.00 84.00 79030 04/29/2022 SPARKLETTS 16179154 040922 APR2022 WATER FILTRATION SYSTEM RENTAL 04/09/2022 E 10-175-250-000-000 17.15 E 10-370-250-000-000 17.16 34.31 34.31 E 10-410-250-000-000 1,025.64 1,025.64 61,264.83 79029 04/29/2022 SO CAL LOCKSMITH 53015 LOCKS FOR PLANNING & DEVELOPMENT AND MAINTENANCE04/14/2022 E 10-410-250-000-000 11,282.04 11,282.04 21384 2021 OVERTIME - FIREWORKS DETAIL 04/01/2022 E 10-410-220-000-000 10,854.71 E 10-410-250-000-000 9,042.64 19,897.35 21386 JUL-SEP 2021 Q1 OVERTIME - QUALITY OF LIFE 04/01/2022 E 10-410-250-000-000 29,059.80 29,059.80 21382 JULY-SEPT 2021 Q1 GAS & VEHICLE MAINT & SHERIFF OVERTIME04/01/2022 E 10-370-210-000-000 2.00 2.00 2.00 79028 04/29/2022 SB COUNTY SHERIFF 21383 JUL-SEP 2021 Q1 SHERIFF OVERTIME 04/01/2022 E 10-187-258-000-000 4,791.28 4,791.28 4,791.28 79027 04/29/2022 SB COUNTY ASSESSOR 108994 APR 2022 MONTHLY ASSESSOR PARCEL MAP 04/13/2022 79026 04/29/2022 SAN BERNARDINO COUNTY FIRE DEP GT422CC APRIL-JUNE 2022 HOUSEHOLD HAZARDOUS WASTE SERVICES04/01/2022 C.3.b Packet Pg. 32 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) Invoice #Vendor Invoice Description Inv. Date Amount Paid Check Total Check Register CITY OF GRAND TERRACE As of 4/30/2022 Check #Date E 10-172-250-100-000 1,134.00 1,134.00 E 10-172-250-100-000 3,590.00 3,590.00 00417239 MARCH 2022 INSPECTION SVCS - PROJECT 111131.00-GT-PERMIT INSPECTION04/18/2022 E 25-600-255-000-000 11,620.00 11,620.00 002-26624 MARCH 2022 PLAN CHECK/ INSPECTION SVCS -PW & BLDG& SAFETY04/06/2022 E 16-900-220-000-000 45.87 45.87 45.87 79035 04/29/2022 WILLDAN 00336085 MARCH 2022 ON-CALL ENGINEERING SERVICES04/12/2022 E 16-900-229-000-000 292.96 292.96 746.66 79034 04/29/2022 UNDERGROUND SERVICE ALERT 18DSBFEE3269 JULY 2019 UNDERGROUND DIGGING 04/13/2022 E 16-900-229-000-000 453.70 453.70 851199 GENERAL MANAGEMENT SUPPLIES AND STREET04/14/2022 E 10-190-238-000-000 109.53 109.53 403.30 79033 04/29/2022 TRAFFIC MANAGEMENT PRODUCTS 851198 GENERAL MANAGEMENT SUPPLIES AND STREET04/14/2022 E 10-805-238-000-000 293.77 293.77 0197046041622 CITY HALL CABLE - APR-MAY 2022 04/16/2022 B 10-022-72-00 343.04 343.04 343.04 79032 04/29/2022 TIME WARNER CABLE 0007245040722 SR CTR CABLE/INTERNET BLDG3 - APR-MAY 202204/07/2022 79031 04/29/2022 TEAMSTERS LOCAL 1932 009 MAY 2022 MEMBERSHIP DUES 04/13/2022 C.3.b Packet Pg. 33 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) Invoice #Vendor Invoice Description Inv. Date Amount Paid Check Total Check Register CITY OF GRAND TERRACE As of 4/30/2022 Check #Date 00417223 E 10-190-140-000-000 5,114.34 5,114.34 5,114.34 B 10-022-62-00 7,089.66 7,089.66 7,089.66 16757258 04/13/2022 CALPERS REPLACEMENT BENEFIT 100000016757258 2022 REPLACEMENT BENEFIT CONTRIBUTION PART 203/30/2022 B 10-022-62-00 6,771.50 6,771.50 6,771.50 16744314 04/25/2022 PUBLIC EMPLOYEES RETIREMENT PAYDTE 04072022 PERSRETIREMENT CONTRIBUTIONS FOR PAY DATE 04/07/202204/07/2022 16712865 04/13/2022 PUBLIC EMPLOYEES RETIREMENT PAYDTE 03242022 PERSRETIREMENT CONTRIBUTIONS FOR PAY DATE 03/24/202203/24/2022 E 10-190-238-000-000 1,921.52 E 10-805-238-000-000 100.95 2,022.47 2,022.47 B 23-250-20-00 367.56 367.56 367.56 1020709 04/12/2022 SO CA GAS COMPANY MAR2022 GAS SERVICEMAR 2022 GAS SERVICE 04/11/2022 378.00 17,226.00 454161 04/27/2022 AMERICAN FIDELITY ASSURANCE CO D454161 MAY 2022 - EMPLOYEE CANCER & ACCIDENT INSURANCE05/01/2022 504.00 00417218 MARCH 2022 INSPECTION SVCS - PROJECT 110771.00 - GT-11731 TRAILER YARD04/18/2022 E 10-172-250-100-000 378.00 MARCH 2022 INSPECTION SVCS - PROJECT 111009.00-GT-VB GRADING04/18/2022 E 10-172-250-100-000 504.00 C.3.b Packet Pg. 34 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) Invoice #Vendor Invoice Description Inv. Date Amount Paid Check Total Check Register CITY OF GRAND TERRACE As of 4/30/2022 Check #Date B 10-022-63-00 1,280.00 B 10-022-64-00 70.64 1,350.64 1,350.64 18,605.95 18,605.95 16782734 04/25/2022 CALPERS 457 PLAN PAYDATE 04072022 457EFT PAYMENT CALPERS ACH CONFIRM #100209405904/07/2022 E 10-450-142-000-000 1,011.36 E 16-175-142-000-000 722.40 E 65-425-142-000-000 722.40 E 10-185-142-000-000 1,444.80 E 10-190-142-000-000 2,882.13 E 10-370-142-000-000 1,444.80 E 10-140-142-000-000 722.40 E 10-172-142-000-000 577.92 E 10-175-142-000-000 1,300.32 B 10-022-61-00 4,910.79 E 10-120-142-000-000 2,144.23 E 10-125-142-000-000 722.40 16777179 04/25/2022 CA PUB EMPLOYEES RETIRE SYSTEM 05012022 HPERS MAY 2022 PERS HEALTH INSURANCE ACH 100209409104/14/2022 B 10-022-63-00 1,280.00 B 10-022-64-00 70.64 1,350.64 1,350.64 16775103 04/13/2022 CALPERS 457 PLAN PAYDATE 03242022 457EFT PAYMENT CALPERS ACH CONFIRM #100208744003/24/2022 C.3.b Packet Pg. 35 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) Invoice #Vendor Invoice Description Inv. Date Amount Paid Check Total Check Register CITY OF GRAND TERRACE As of 4/30/2022 Check #Date 1,726.80 1,726.80 Total Checks:422,580.52 E 10-370-235-000-000 20.44 E 10-805-238-000-000 761.44 E 65-425-235-000-000 40.89 E 10-172-235-000-000 50.89 E 10-175-240-000-000 699.62 E 10-185-235-000-000 153.52 E 65-425-272-000-000 1,291.98 3,484.16 3,484.16 ########04/21/2022 VERIZON WIRELESS 9903044663 MAR-APR 2022 MONTHLY PHONE CHARGES 04/01/2022 E 10-172-272-000-000 40.00 E 10-175-272-000-000 1,885.11 E 10-185-272-000-000 267.07 80078407 04/12/2022 WEX BANK 80078407 MAR-APR 2022 VEHICLE FUEL CHEVRON 04/06/2022 E 26-604-238-000-000 56.95 E 26-605-238-000-000 45.81 8,225.60 8,225.60 E 26-601-238-000-000 53.34 E 26-602-238-000-000 73.86 E 26-603-238-000-000 12.31 E 10-450-238-000-000 759.89 E 16-510-238-000-000 6,614.93 E 26-600-238-000-000 65.66 E 10-172-238-000-000 17.11 E 10-175-238-000-000 17.10 E 10-190-238-000-000 508.64 19243118 04/11/2022 SO CA EDISON COMPANY MAR 2022 EDISONMAR 2022 ENERGY USAGE 03/30/2022 C.3.b Packet Pg. 36 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) C.3.b Packet Pg. 37 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) This page left intentionally blank. C.3.b Packet Pg. 38 At t a c h m e n t : A p r i l C h e c k R e g i s t e r ( A p r r - 2 0 2 2 C h e c k R e g i s t e r i n t h e A m o u n t o f $ 4 2 2 , 5 8 0 . 5 2 ) AGENDA REPORT MEETING DATE: June 14, 2022 Council Item TITLE: Letter of Support for the Community Assistance, Recovery and Empowerment Court Concept (CARE Court) PRESENTED BY: Konrad Bolowich, City Manager RECOMMENDATION: That the City Council Consider its Support for the Community Assistance, Recovery and Empowerment Court and Authorize the Mayor to Sign the Letter of Support on Behalf of the City Council 2030 VISION STATEMENT: This staff report supports Goal #4, Work Collaboratively with Community Groups, Private and Public Sector Agencies to Facilitate the Delivery of Services Benefitting Youth, Seniors and Our Community. BACKGROUND: The Community Assistance, Recovery and Empowerment (CARE) Court is a new proposal to get people with mental health and substance use disorder the support and care they need. CARE Court is aimed at helping the thousands of Californians who are suffering from untreated disorders that too often lead to homelessness, incarceration, institutionalization, or premature death. California is taking a new approach to act early and get people the support they need and address underlying needs. CARE Court includes accountability for everyone with court orders for services. Information regarding this program has been attached to this staff report for your review. DISCUSSION: On June 9, 2022, the Inland Empire Regional Office of Governor Gavin Newsom reached out to the City of Grand Terrace regarding SB 1338, CARE Court Act and asked that a letter of support, that is being circulated by Mayor Aquanetta Warren, be considered by the City Council. If the City Council supports this legislation, it is recommended that the City Council authorize the Mayor to sign the letter of support on behalf of the City Council. The letter of support has been attached to this staff report for your review. FISCAL IMPACT: None. ATTACHMENTS: C.4 Packet Pg. 39 • CARE Court Overview (PDF) • Funding Backgrounder- CARE Court (PDF) • May Revise-CARE Court Investments (PDF) • FAQ (PDF) • Fontana CARE Court Letter 6-9-2022 (PDF) APPROVALS: Konrad Bolowich Completed 06/09/2022 5:18 PM City Manager Completed 06/09/2022 5:18 PM City Council Pending 06/14/2022 6:00 PM C.4 Packet Pg. 40 CARE COURTGovernor Newsom’s Proposal to Get People with Mental Health &Substance Use Disorders the Support they Need ●Community Assistance,Recovery and Empowerment (CARE)Court is a new proposal to get people with mental health and substance use disorders the support and care they need. ●CARE Court is aimed at helping the thousands of Californians who are suffering from untreated schizophrenia spectrum or psychotic disorders that too often lead to homelessness,incarceration, institutionalization, or premature death. ●California is taking a new approach to act early and get people the support they need and address underlying needs - and we’re doing it without taking away people’s rights. ●CARE Court includes accountability for everyone –on the individual and on local governments – with court orders for services. SPONSORING NEW CARE COURT LEGISLATION ●In March the Governor unveiled the CARE Court framework,and engaged the public and stakeholders in community roundtables across the state and listening sessions with diverse stakeholders. ●Legislation was introduced by Senator Umberg,Orange County and Senator Eggman,San Joaquin County (SB 1338).Legislative hearings which started in April,will continue to engage the public - including people living with mental illness,families,local government,community behavioral health care providers, first responders, judges, and more - and further develop CARE Court. ●To meet the urgent needs for care and housing we see in our communities,families,and streets, CARE Court must be enacted by July 1,and local partners can begin implementation in the following months. FOCUSING UNPRECEDENTED FUNDING ON RESULTS ●Behavioral health is now funded at a record $11.6 billion each year -up 70%from $6.7 billion eight years ago.Funding comes from five major sources,including Prop 63 Mental Health Services Act, Medi-Cal and non-Medical Behavioral Health,and Realignment in 1991 and 2011.See CalHHS Funding Backgrounder for more details. ●Housing and homelessness investments totaled a historic $12 billion in last year’s budget.An additional $2 billion is proposed this year -with $1.5 billion focused on Behavioral Health Bridge Housing that will be prioritized to serve people in CARE Court. ●The Governor’s May Revision to the Budget will include costs for the new Care Court process, including judges and appointed counsel. HOW CARE COURT WORKS Updated April 25, 2022 C.4.a Packet Pg. 41 At t a c h m e n t : C A R E C o u r t O v e r v i e w ( S B 1 3 3 8 C A R E C o u r t A c t ) CARE Court connects a person struggling with untreated mental illness –and often also substance use challenges –with a court-ordered Care Plan for up to 24 months.Each plan is managed by a care team in the community and can include clinically prescribed,individualized interventions with several supportive services, medication,and a housing plan.The client-centered approach also includes a public defender and supporter to help make self-directed care decisions in addition to their full clinical team,as well as opportunities for early engagement and settlement agreements for treatment plans. CARE Court is designed on the evidence that many people can stabilize,begin healing,and exit homelessness in less restrictive,community-based care settings.It's a long-term strategy to positively impact the individual in care and the community around them.The plan advances an upstream diversion from more restrictive conservatorships or incarceration. The CARE Court response can be initiated by family,county and community-based social services,behavioral health providers,or first responders.Individuals exiting a short-term involuntary hospital hold or a misdemeanor arrest may be especially good candidates for CARE Court.The Care Plan can be ordered for up to 12 months, with periodic review hearings and subsequent renewal for up to another 12 months. CARE Court is based on accountability for all.Participants who do not successfully complete Care Plans may, under current law,be hospitalized or referred to conservatorship -with a new presumption that no suitable alternatives to community care are available.All counties across the state will participate in CARE Court under the proposal.If local governments do not meet their specified duties under court-ordered Care Plans,the court will have the ability to order sanctions and,in extreme cases,appoint a receiver to ensure services are provided. Updated April 25, 2022 C.4.a Packet Pg. 42 At t a c h m e n t : C A R E C o u r t O v e r v i e w ( S B 1 3 3 8 C A R E C o u r t A c t ) April 20, 2022 Funding Backgrounder: California’s Behavioral Health Approach and Funding CARE (Community Assistance, Recovery, and Empowerment) Court is a new process to assist people living with under or untreated schizophrenia spectrum or other psychotic disorders who lack medical decision-making capacity, many of whom are unhoused. CARE Court empowers Californians in crisis to access the care, treatment, and housing plan they need in their community. It includes accountability for both individuals and local governments with court orders for needed services. Counties can tap into multiple funding sources to provide the court ordered care and treatment. *Counties received Medi-Cal behavioral health funding for all years reflected. Estimates are included for 2014-15 and 2022-23 to provide an overall view of growth in this funding over the period reflected. *Data between 2014-15 and 2020-21 represent actuals, except 2014-15 Medi-Cal Behavioral Health costs, which are an estimate. Data for 2021-22 and 2022-23 are estimates. *Medi-Cal non-specialty mental health managed care state costs of $406 million in 2014-15 and $529.1 million in 2022-23 are not included in this graph. Also, not included in the graph are Medi-Cal carved-out psychotropic medications. For reference, psychotropic medications were estimated to be $1.1 billion in 2017-18. Additionally, No Place Like Home Program actual expenditures of $590 million in 2018-19 and $622 million in 2019-20, and estimated expenditures of $202 million in 2021-22 and $400 million in 2022-23 are not included in this graph. Not all Non-Medi-Cal Behavioral Health (Federal Block Grants) are available to counties. The below represents many of the recent investments designed to support the public community behavioral health system, however the list is not exhaustive (amounts reflected in the graph above are denoted with an asterisk*): Housing and Homelessness CARE Court builds on significant new investments, including Governor Newsom’s $14 billion multi-year investment to provide 55,000 new housing units and treatment slots. The Governor’s approach focuses on quickly rehousing unsheltered individuals with behavioral health issues, all while new units come online, while also transforming Medi-Cal to provide more behavioral health services to people struggling the most. Part of the $14 billion investment reflects the following: C.4.b Packet Pg. 43 At t a c h m e n t : F u n d i n g B a c k g r o u n d e r - C A R E C o u r t ( S B 1 3 3 8 C A R E C o u r t A c t )  Behavioral Health Continuum Infrastructure Program: $2.2 billion to support competitive grants to qualified entities to construct, acquire, and rehabilitate real estate assets or to invest in mobile crisis infrastructure to expand the community continuum of behavioral health treatment resources.  Community Care Expansion Program: $805 million for acquisition, construction, and rehabilitation to preserve and expand adult and senior care facilities that serve SSI/SSP and Cash Assistance Program for Immigrants. This program supports seniors and adults who are at risk of or experiencing homelessness, including those who have behavioral health conditions. It expands the state’s housing and care continuum, facilitating better treatment outcomes and preventing the cycle of homelessness or unnecessary institutionalization.  Behavioral Health Bridge Housing Program: $1.5 billion to address the immediate housing and treatment needs of people experiencing unsheltered homelessness with serious behavioral health conditions by providing time-limited operational supports in various bridge housing settings, including existing assisted living settings. Children and Youth  Children and Youth Behavioral Health Initiative: $4.7 billion (including $480.5 million in the Behavioral Health Continuum Infrastructure Program, described above, targeted to individuals 25 years of age and younger) to help transform the state’s behavioral health system into an innovative ecosystem in which all children and youth 25 years of age and younger, regardless of payer, are screened, supported, and served for emerging and existing behavioral health needs. Behavioral Health Workforce  Care Economy Workforce: $1.7 billion for Care Economy Workforce investments, including funding to recruit and train 25,000 new community health workers as well as additional psychiatric providers.  *Peer Support: $31.3 million federal funds to add peer support specialist services as a covered Medi-Cal benefit in the public behavioral health delivery system. Substance Use Disorder  Opioid Settlements Funds: $86 million to support opioid abatement programs, including, but not limited to, distribution of naloxone to homeless service providers, operation of a web-based statewide addiction treatment locator platform, support of vocational rehabilitation employment services, provider training on opioid treatment, and education and outreach campaigns. Behavioral Health Crisis Continuum  *Behavioral Health Crisis Continuum: $20 million one-time federal funds in 2021-22 to expand capacity to the 13 accredited crisis call centers in California. In 2022, the California Health and Human Services Agency is starting a planning process to develop a clear strategy for how all the components of the behavioral health crisis continuum interact, including connections between prevention efforts like hotlines and peer support services, 9-8-8 mental health crisis call centers, and mobile crisis response at the local level.  *Medi-Cal Mobile Crisis Benefit: $1.4 billion to add qualifying community-based mobile crisis intervention services as a Medi-Cal covered benefit available to eligible Medi-Cal beneficiaries exclusively through the Medi-Cal behavioral health delivery system. Qualifying community- based mobile crisis intervention services will be available 24 hours a day, 7 days a week, and provided by a multidisciplinary mobile crisis team to Medi-Cal beneficiaries in the community. C.4.b Packet Pg. 44 At t a c h m e n t : F u n d i n g B a c k g r o u n d e r - C A R E C o u r t ( S B 1 3 3 8 C A R E C o u r t A c t ) pilot a new approach of designating youth suicide and youth suicide attempts as a reportable public health event, which would trigger screening and resource connections at the local level for the impacted community. Support Wellness and Build Resilience of Children, Youth, and Parents: • Wellness and Mindfulness Programs—$85 million over two years for grants for wellness and mindfulness programs in schools and communities and expansion of parent support and training programs. • Video Series—$15 million to develop and distribute a video series for parents to build their knowledge, tools and capacity to support the behavioral health of their children. • Career Development—$25 million to identify and support the early career development of 2,500 highly talented and culturally diverse high school students interested in mental health careers. • Assessment and Intervention—$75 million for next generation digital supports for remote and metaverse based mental health assessment and intervention. COMMUNITY ASSISTANCE, RECOVERY AND EMPOWERMENT (CARE) COURT CARE Court is a new court process to deliver community-based behavioral health services and supports to Californians living with untreated schizophrenia spectrum or other psychotic disorders. CARE Court is intended to serve as an upstream intervention for the most severely impaired Californians to prevent avoidable psychiatric hospitalizations, incarceration, and Lanterman-Petris-Short Mental Health Conservatorship. The May Revision includes the following investments to administer CARE Court: • Supporter Program—$10 million General Fund ongoing to the Department of Aging for the CARE Court Supporter Program to help the participant understand, consider, and communicate decisions by providing the tools to make self-directed choices to the greatest extent possible. • Training and Technical Assistance—$15.2 million General Fund in 2022-23, $1.1 million General Fund annually between 2023-24 and 2026-27, and $1.3 million General Fund HEALTH AND HUMAN SERVICES VersionnumberIb0Q8YQOCB2aqltd 72 MAY REVISION — 2022-23 C.4.c Packet Pg. 45 At t a c h m e n t : M a y R e v i s e - C A R E C o u r t I n v e s t m e n t s ( S B 1 3 3 8 C A R E C o u r t A c t ) annually ongoing for the Department of Health Care Services to provide training and technical assistance to counties, data collection, and evaluation. • Judicial Branch—$39.5 million General Fund in 2022-23 and $37.7 million ongoing for the Judicial Branch to conduct CARE Court hearings and provide resources for self-help centers. The Administration continues to work with counties to estimate costs associated with this new court process. OPIOID RESPONSE Building on the Governor’s Budget opioid response investments, the May Revision includes an additional one-time $41.8 million Opioid Settlements Fund in 2022-23 resulting from additional projected settlement proceeds. The May Revision allocates the additional funding as follows: • Workforce Training—$29.1 million for substance use disorder provider workforce training at the Department of Health Care Services, for a total of $51.1 million for this program. • Naloxone Distribution—$10 million for the naloxone distribution project targeting unhoused populations, for a total of $15 million for this program. • Public Awareness Campaign—$2.7 million for a public awareness campaign targeted towards youth opioid education and awareness and fentanyl risk education at the California Department of Public Health, for a total of $40.8 million for this program. SUPPORT FOR AGING AND COMMUNITY LIVING To further the Administration’s goals of advancing inclusive, equitable communities for individuals of all ages and abilities and their families, the May Revision includes $36.3 million General Fund in 2022-23 and ongoing funding to continue the implementation of the Master Plan for Aging. The May Revision proposes investments in the following programs to further support home and community living: VersionnumberIb0Q8YQOCB2aqltd HEALTH AND HUMAN SERVICES MAY REVISION — 2022-23 73 C.4.c Packet Pg. 46 At t a c h m e n t : M a y R e v i s e - C A R E C o u r t I n v e s t m e n t s ( S B 1 3 3 8 C A R E C o u r t A c t ) Frequently Asked Questions I. Care Plan 1. The CARE plan definition says it is an individualized plan, created by respondent, supporter, their counsel, and county BH. Why then are we allowing the courts to order the plan modified “to better meet the needs of the parties?” What parties? How do the courts know what is better for the respondent? Assisted Outpatient Therapy (AOT)explicitly prohibits a court from ordering any services that are not in the written plan submitted by the licensed mental health treatment provider. Would this go against the respondent’s advance directive? The CARE plan is an individualized, clinically appropriate range of behavioral health related services and supports provided by a county behavioral health agency, including, but not limited to, clinical care, stabilization medications, and a housing plan, pursuant to Welfare and Insitutions Code section 5982. The Court may determine that the CARE plan does not include all required elements to address the behavioral health needs of the respondent. Sec 5976 clarifies that modifications to the CARE Plan to better meet the needs of the parties must be within the scope of county behavioral health services. If the CARE participant has an existing psychiatric advance directive in place, it will be considered. It is far more likely that the participant will work with the supporter, the behavioral health team and others, if desired, to develop a psychiatric advance directive prior to CARE Court graduation. 2. In the CARE plan definition, should there be a more robust menu of services, like in Welfare and Insitutions Code section 5348 for AOT? The CARE plan is an individualized, clinically appropriate range of behavioral health related services and supports provided by a county behavioral health agency, including, but not limited to, clinical care, stabilization medications, and a housing plan, pursuant to Section 5982. Though not required, counties are encouraged to employ medically necessary, evidence-based practices and promising practices supported with community-defined evidence, which may include assertive community treatment, peer support services, and psychoeducation. 3. Under the CARE plan (see Welfare and Insitutions Code section 5982 (b) (2)) it talks about medication being prescribed by a licensed behavioral health care C.4.d Packet Pg. 47 At t a c h m e n t : F A Q ( S B 1 3 3 8 C A R E C o u r t A c t ) provider. Not all licensed providers can prescribe medication. Do we need a clarification that this does not expand scope? It is not our intention to expand scope of practice and that can be clarified. II. Eligibility Criteria 1. One of the criteria for CARE is that the respondent “currently lacks medical decision-making capacity.” However, this proposal allows for an affirmation or affidavit by a BH professional who had examined the respondent within three months and states it applies to a respondent who meets or is likely to meet the diagnostic criteria. How does a three-month old examination qualify as “current?” Also, does not “likely to meet” contradict “current?” The affidavit submitted in the petition must be within 90 days, but as Welfare and Insitutions Code section 5977 (d) stipulates there is an evaluation review hearing where the court reviews the clinical evaluation conducted by county behavioral health as well as any other evidence from all interested individuals, including, but not limited to, evidence from the petitioner, the county behavioral health agency, the respondent, and the supporter. If the court finds that the evaluation and other evidence demonstrate clear and convincing evidence that the respondent meets the CARE criteria, the court is required to order the county behavioral health agency, the respondent, the respondent’s counsel and supporter to jointly develop a CARE plan. 2. Why can only one previous 14-day involuntary hold for intensive treatment within the last 90 days qualify you for CARE? Welfare and Insitutions Code section 5972 outlines the criteria for when the court may order a respondent to participate in CARE proceedings if the court finds, by clear and convincing evidence. 1. The person is 18 years of age or older. 2. The person has a diagnosis of schizophrenia spectrum or other psychotic disorder, as defined in the most current version of the Diagnostic and Statistical Manual of Mental Disorders. 3. The person is not clinically stabilized in on-going treatment with the county behavioral health agency. 4. The person currently lacks medical decision-making capacity. Sections 5973 and 5974 outline who can submit a petition and what kind of information and evidence it must include. All petitions must include facts that C.4.d Packet Pg. 48 At t a c h m e n t : F A Q ( S B 1 3 3 8 C A R E C o u r t A c t ) support the petitioner’s belief that the respondent meets the CARE criteria, including identification of the county behavioral health agency with responsibility for providing care to the respondent, if known. In addition, the petitioner must provide either an affidavit as described in section 5972 OR evidence that the respondent was detained for intensive treatment pursuant to Article 4 (commencing with Section 5250) of Chapter 2 of Part 1 within the previous 90 days. As summarized in the question above, a full evaluation review hearing, including a clinical evaluation, as well as hearing other evidence, must be conducted prior to the court issuing an order for a CARE plan to be developed, unless stipulated to by the parties. The language, as currently drafted, should be amended for clarity. 3. Why is a court allowed to refer a person to CARE who is the subject of AOT or conservatorship proceedings? Shouldn’t that be the decision of a treating mental health professional—to determine which program is the most clinically appropriate for the person? We would envision county behavioral health or the individual and their Counsel advising the judge in AOT or LPS conservatorship proceedings on the appropriateness of referral to CARE Court. 4. Is “Schizophrenia spectrum or other psychotic disorders” too narrow? Do you see “other specified psychotic disorder “and “unspecified psychotic disorder” as opening this up? More generally, what is the population we are talking about here? A diagnosis within the disorder class of schizophrenia spectrum or other psychotic disorders is one of the four criteria for CARE Court outlined in Welfare and Insitutions Code section 5972. CARE Court is specifically designed to target psychotic disorders that interfere with a person’s ability to understand reality or make rational decisions due to symptoms of hallucinations, delusions and disorganized thinking, which are the characteristic symptoms of Schizophrenia and Schizoaffective disorders. Like other brain diseases such as neurocognitive diseases (dementias), this category of disease can interfere with an individual’s medical decision-making capacity, and that is the focus of CARE Court. By including “other psychotic disorders” in the qualifying diagnoses, the program is inclusive of other individuals experiencing psychotic symptoms who may not C.4.d Packet Pg. 49 At t a c h m e n t : F A Q ( S B 1 3 3 8 C A R E C o u r t A c t ) have received a formal diagnosis of schizophrenia but who lack medical decision-making capacity due to psychotic symptoms. CARE Court focuses on diseases that impact insight and decision making to avoid conflating these illnesses with other illnesses that may impact functioning but do not interfere with an individual’s ability to make medical decisions for themselves. Those served by CARE Court are most likely to benefit from antipsychotic medications to reduce the symptoms of hallucinations, delusions, and disorganization that cause impaired insight and judgment in individuals living with Schizophrenia spectrum and other psychotic disorders. 5. Is this intended for persons who currently lack decision-making capacity, or for persons who are experiencing mental illness but have not yet reached incapacity/are coming off a hold and have stabilized? If it is the former, how can the person meaningfully participate in a settlement agreement/help devise a care plan/give legal consent to a settlement as contemplated by the language? If it is the latter, what is the basis for mandating a person’s participation, unless it is provided as a diversion option for persons charged with a misdemeanor? Medical decision-making capacity is one of the four criteria outlined in Welfare and Insitutions Code section 5972. Medical decision-making capacity is a functional assessment regarding a particular decision that evaluates four key components: an ability to express a treatment choice, an ability to express an understanding of causal relationships and outcome probabilities, an ability to appreciate the nature of the illness, treatment options and likely individualized direct outcomes, and an ability to rationally discuss the risks and benefits of treatment options and the reasoning behind a choice. CARE Court is intended for individuals who lack medical decision-making capacity because their illness is untreated or undertreated, and therefore may require a court ordered CARE plan to secure that treatment, but who can still be supported in making choices about aspects of their care such as preferred medications, psychosocial interventions, and housing environment and who can still regain decision-making capacity through that care. Medical decision-making capacity is distinct from the LPS criteria for a psychiatric hold in which the individual must be a danger to self, danger to others, or be gravely disabled. 6. If the petitioner is the family member, what evidence does the petitioner need to provide or present to demonstrate prima facie evidence that the respondent lacks medical decision capacity? Alternatively, is it the goal to provide that if you have C.4.d Packet Pg. 50 At t a c h m e n t : F A Q ( S B 1 3 3 8 C A R E C o u r t A c t ) been subject of a 5250, you are deemed to have lacked medical decision-making authority? The criteria for CARE Court participation is outlined in section 5972, including facts (f) and evidence (g). For the petition, the petitioner can provide as evidence (g) either the affirmation or affidavit of a qualified behavioral health professional or that respondent has been subject to a hold for intensive treatment pursuant to 5250. Through the evaluation review hearings, the individual still would be evaluated to determine if they lack medical decision-making capacity, unless the parties stipulate otherwise. 7. Is there a way to allow persons who believe they need mental health services to opt in on a more voluntary basis? For example, persons who are coming out of 5150/5250/5270 holds or conservatorships and who want wraparound services? The legislation does not provide for a self-petition process—but this is something that should be considered. With regard to it being on a voluntary basis, the CARE Court settlement agreement process creates a pathway for those who are subject to a petition to enter treatment and services that the county behavioral health agency provides, without a court order. In addition, individuals and counties notified of a petition for CARE Court can directly engage in a treatment plan, and then at the Initial Hearing may be found not to meet the criteria for CARE Court due to current provision of and engagement in treatment. III. Court Process 1. On the court process, the initial CARE hearing is required no later than 14 days from the date of the petition being filed. In AOT, the requirement is within 5 days. Why are we almost tripling the timeframe for this proposal when we are dealing with the most severely mentally ill—given also that, the CARE process allows for various 14-day extensions before the 1-yr clock even starts? The timing is a result of one of the key differences between AOT and CARE Court – individuals can file directly with the court. To elaborate, in AOT only a county can file and it often takes a county weeks, and sometimes months, to investigate, offer services, and examine the individual before a petition for AOT is filed, so the short time frame between the AOT petition and the first hearing is appropriate. In CARE court, the petition can be filed by a range of designated people, so the petition needs some time for review by the court and for engagement of the parties before proceeding to the Initial Hearing. In CARE Court, the steps of engagement and evaluation happen after petition, through notice and engagement of county behavioral health, the respondent, counsel, C.4.d Packet Pg. 51 At t a c h m e n t : F A Q ( S B 1 3 3 8 C A R E C o u r t A c t ) and supporter, which occurs within 5 days of petition; the Initial hearing, within 14 days of petition; and the subsequent Case Management conference hearing. 2. If the respondent stabilizes at any point throughout the process of the petition, does the petition end? Likewise, if at any time during the 1-yr CARE treatment plan the respondent stabilizes, can they petition to have the court-ordered treatment end? The CARE plan will continue for up to one year to support long term stability of the participant and to provide sufficient time for the CARE plan goals to be realized and a graduation plan to be completed. The respondent may propose modifications to the plan and an earlier graduation. 3. For IST misdemeanants who otherwise are not eligible for mental health diversion, would it make more sense to mirror the new care court referral to what currently exists in the law for AOT or conservatorship referral? These provisions should be consistent. 4. Would there need to be a Riese hearing on capacity or is that wrapped up in the “Evaluation hearing?” There is no Riese hearing as part of CARE Court because no medications are forcibly administered. Additionally, CARE Court does not allow for a psychiatric hold where Riese hearings typically take place. 5. The timeframe for the process—stretching over many weeks—suggests there is no imminent destabilization or need for care, as compared to AOT/5150, which happens much more quickly. If the goal is to bring in destabilized persons, should the timeline be tightened up ? As discussed above, the timing of the CARE court process is more lengthy than the AOT court process because we are allowing a direct petition to the court to begin court supervision of services earlier. That said, alternative timeframes can be considered. 6. Should a CARE plan be specifically mentioned within a settlement agreement under section 5977 (c)? Yes. The settlement agreement should at a minimum include the required Care plan elements. C.4.d Packet Pg. 52 At t a c h m e n t : F A Q ( S B 1 3 3 8 C A R E C o u r t A c t ) 7. If an agreement is made under section 5977 (c) (3) are we basically skipping down to (f)? Does that need to be explicit? We anticipate clarifying that the matter can be terminated after the 60 day hearing if both parties are participating in the settlement agreement. 8. Are there going to be hearsay issues given the People v. Sanchez (2016) ruling? We would imagine that People v. Sanchez would limit an expert witness’s use of hearsay in their testimony– as it has in LPS and AOT. 9. Is there a risk of abuse if a person can be brought in with just a petition and prima facie evidence of eligibility, especially because non-experts are permitted to file the petition? AOT requires a concerned person to go through the county and the county decides whether to bring the petition, does this provide better protections? The petition requires both facts which support the petitioner’s belief that the person who is the subject of the petition meets each criteria and supporting evidence, through either an affidavit from a qualified mental health professional that the person meets, or is likely to meet, the criteria or evidence that the person who is the subject of the petition had a section 5250 hold within the last 90 days. The petition shall be signed under the penalty of perjury. The court may dismiss a case with prejudice if finds that the filing was not in good faith. 10. There is no clinical evaluation until after the target of the petition is in the system and has been required to try to reach a settlement agreement. Should there be an evaluation earlier? How can there be a settlement agreement without an evaluation? If the subject of the petition does not believe they meet the CARE Court criteria they may decline their option of entering into the settlement agreement and move to the evaluation. 11. Welfare and Insitutions Code section 5976 states that the target of the petition is entitled to counsel, but does not specify that counsel must be provided if they cannot afford it, as with LPS proceedings. Is the intent to provide counsel? Yes. Section 5977 requires the court to appoint counsel in all cases, not based on whether the individual can afford counsel. 12. How does the settlement agreement work? Is it essentially a voluntary CARE court treatment plan? Could this be made clearer? C.4.d Packet Pg. 53 At t a c h m e n t : F A Q ( S B 1 3 3 8 C A R E C o u r t A c t ) The settlement agreement is a treatment plan entered into by both the respondent and county behavioral health with court supervision, but not court orders. 13. Should the court order the settlement negotiations and the development of a treatment plan to run simultaneously? There seems to be a lot of time before the health department is figuring out what the target of the petition needs, or even before there’s an evaluation. County behavioral health should begin engaging the subject of the petition as early as possible to offer treatment, including upon receipt of notice of a petition. If an individual is clinically stabilized in on-going treatment with the county behavioral health agency, the parties may no longer meet the criteria for CARE Court and the case may be dismissed at the Initial hearing; or they may more promptly enter into a settlement agreement at the Case Management Conference hearing. 14. The timeline for an adopted CARE plan is a status conference at 60 days after implementation, plus regular conferences set at least every 180 days. In a yearlong plan, this means the default is only two status conferences; should there be greater court oversight? The goal is to limit court involvement if the individual is doing well in the community and the county is providing services– which is why deference has been given to the court. That said, language should be added that clearly lays out how a hearing can be requested in between status conferences. 15. The bill requires notice to be provided to the respondent’s counsel. How will the family member know who is the respondent’s counsel? The court will be appointing counsel in every case–likely the public defender in the vast majority of counties. Information on service requirements, including addresses for the entities to be served, will need to be included in the court’s self-help center. 16. Should we require the Judicial Council to develop forms – specifically for a petitioner who is a family member – to make it easier for them to know how to do this? Yes–the intent is to have the Judicial Council develop accessible forms. IV. Psychiatric Advance Directive 1. How are Psychiatric Advance Directives currently working in practice? Consenting to care ahead of time that you may refuse in the moment is very C.4.d Packet Pg. 54 At t a c h m e n t : F A Q ( S B 1 3 3 8 C A R E C o u r t A c t ) different from the inverse, which is more common for advance directives. Any info from the MHSOAC on their pilot? U.S. Centers for Medicare and Medicaid Services clarified over 15 years ago that Psychiatric Advance Directives (PAD)s should be part of psychiatric care but only 27 states have enacted laws and policies recognizing PADS. Advance directives are commonly used for physical health conditions and efforts have been underway for over a decade to increase their use for psychiatric conditions. The National Resource Center on Psychiatric Advance Directives (NRC) provides the following definition, “PADS are relatively new legal instruments that may be used to document a competent person’s specific instructions or preferences regarding future mental health treatment. Psychiatric advance directives are used to plan for the possibility that someone may lose the capacity to give or withhold informed consent to treatment during acute episodes of psychiatric illness”. PADs can help expand the use of Supportive Decision Making tools. PADs are not intended to be used to require on-going medication or involuntary inpatient care. A PAD allows a person in a mental health crisis to retain their decision- making capacity by choosing supporters to help advocate for their choices. While California may not yet have specific legal statute regarding PADs there are efforts underway to develop what will work best for California. The Mental Health Services Oversight and Accountability Commission has a learning collaborative with several counties to study and develop standardized templates, training, technology and potentially enabling legislation to support accessibility and sustainability of PADs. The administration looks forward to further engaging in these efforts. V. Respondent Placement and Housing 1. This proposal is silent, as is AOT, on this point, but where is the respondent throughout this whole process? Are they being held? Are they at an inpatient facility? Are they released? Provided with housing? CARE Court does not include any locked or custodial commitments. Instead, it is an outpatient model that seeks to support housing stability. For participants who are unhoused, counties may utilize local, state, federal and other housing and homelessness funding to serve CARE participants. Additionally, the proposed $1.5 billion for Behavioral Health Bridge Housing funding would be prioritized to serve CARE Court participants per Sec 5983 (b). C.4.d Packet Pg. 55 At t a c h m e n t : F A Q ( S B 1 3 3 8 C A R E C o u r t A c t ) 2. Article Five requires the care plan to include a Housing Plan, with language specifying it includes the needs of the respondent and the resources considered in support of an appropriate placement. It goes on to say counties may offer appropriate housing placements in the region as “early as is feasible in the engagement process.” Does the respondent continue to remain unhoused as they move through the Care COURT process depending on the resources available and the county’s ability to identify an appropriate housing option? Could the respondent complete the care court process without their housing needs ever being met if there was a “housing plan” in place but not an actual placement made? In the 2021 Budget Act, the state made a $12 billion investment to prevent and end homelessness which included funding to create new community based residential settings and long-term stable housing for people with severe behavioral health conditions. While CARE Court does not create a right to housing, the legislation recognizes the importance of housing in finding stability and staying connected to treatment. To this end, the Governor’s proposed 2022- 2023 budget includes $1.5 billion to support Behavioral Health Bridge Housing, which would fund clinically enhanced bridge housing settings that would be prioritized to serve CARE Court participants, per Sec 5983 (b). 3. Regarding the housing plan, what is a “region?” Counties are being permitted to offer appropriate housing placements “in the region.” Does that mean that someone from Sacramento County may be placed as far east as Lake Tahoe? Individuals who are served by CARE Court will have diverse housing needs on a continuum ranging from clinically enhanced interim or bridge housing, licensed adult and senior care settings, supportive housing, to housing with family and friends. Housing placement should meet the individual needs of the CARE Court participant, including their geographic preferences to the extent possible. In order to support on-going connection to treatment, identifying housing that is near to treatment and other community resources will support the success of the participant. Particularly in rural areas of the state, the most appropriate and near placements may be in the region, but not the county. 4. If courts are not required to order and counties are not being required to provide housing, doesn’t that negate this whole CARE proposal? Isn’t the purpose to ensure a respondent has a care plan, a supporter, and appropriate housing? While CARE Court does not provide a right to housing, the 2021 Budget Act made a $12 billion investment to prevent and end homelessness which included C.4.d Packet Pg. 56 At t a c h m e n t : F A Q ( S B 1 3 3 8 C A R E C o u r t A c t ) funding to create new community based residential settings and long-term stable housing for people with severe behavioral health conditions. In addition, the Governor’s proposed 2022- 2023 budget includes $1.5 billion to support Behavioral Health Bridge Housing, which would fund clinically enhanced bridge housing settings that would be prioritized to serve CARE Court participants, per Sec 5983 (b). 5. Does this structure mean the individual has to comply with stabilization medication and specialty mental health treatment to access housing? If so, how does this align with housing first principles as currently defined and practiced? CARE Court holds the county and the individual accountable to a CARE plan and supports connection to housing as described above. Counties may leverage local, state, federal, and philanthropic resources to support housing placements for CARE Court participants. Nothing in the statute makes housing contingent on CARE Court participation. 6. Does it change the prioritization of limited housing resources available? Would someone be more likely to access housing if they go through CARE Court than other county/city/continuum of care processes? The Governor’s proposed 2022- 2023 budget includes $1.5 billion to support Behavioral Health Bridge Housing, which would fund clinically enhanced bridge housing settings that would be prioritized to serve CARE Court participants per Sec 5983 (b). This is the only fund source that would statutorily require prioritization of CARE Court participants, though other funds sources for housing are available to serve this population and may also be prioritized at the local level as applicable. 7. If someone does to access housing early on in the CARE court process but then struggle with their treatment plan and fall of their medication, do they lose their housing? Nothing in the statute makes housing contingent on CARE Court participation. VI. Post -Hearing Process 1. What happens when a respondent has had two consecutive CARE episodes and they still have not improved? Likewise, if at any time during the first or second year the treating mental health provider does not believe the respondent will improve, what happens? C.4.d Packet Pg. 57 At t a c h m e n t : F A Q ( S B 1 3 3 8 C A R E C o u r t A c t ) CARE is a new approach and is designed to provide meaningful connection to treatment and services for up to 24 months. If, at any time during the proceedings, the court determines by a preponderance of evidence that the respondent is not participating in CARE proceedings, after the respondent receives notice, or is not adhering to their CARE plan, the court may terminate the respondent’s participation in the CARE program. The court may utilize existing legal authority pursuant to Article 4 (commencing with Section 5200) of Chapter 2 of Part 1, to ensure the respondent’s safety. The subsequent proceedings may use the CARE proceedings as a rebuttable presumption that no suitable community alternatives are available to treat the individual. 2. What happens if after one year (or even two years), a respondent improves and is doing well, but they know that without CARE they will not be able to maintain stability, even with targeted outpatient treatment? Upon successful completion and graduation by the Court, the participant remains eligible for ongoing treatment, supportive services, and housing in the community to support long term recovery. A PAD can remain in place for any future crises. 3. At the 11-month review – what does “successfully completed participation” mean? This is an evidentiary status hearing. The CARE participant, supporter, counsel, and county behavioral health agency can present evidence, and the court will hear recommendations from the county behavioral health agency. The participant may request graduation or reappointment to CARE court process. If the respondent requests to be graduated from, or times out of, the CARE court process, the court will officially graduate the respondent and terminate its jurisdiction with a graduation plan which successfully completes participation. 4. Where is the authority to reappoint for an additional year if someone is unsuccessful? A clear standard as to when the program can be extended needs to be added to the language. 5. Should CARE court be limited to the one year, not extended, unless the person chooses to do so voluntarily after successful completion? If they do not succeed at the one year or fail earlier, they would be returned to criminal court for continued proceedings. Rationale is because under regular diversion a misdemeanant’s term in a program is a maximum of one year and similarly if a person serves a term in custody the max is anywhere from 6 months to a year. C.4.d Packet Pg. 58 At t a c h m e n t : F A Q ( S B 1 3 3 8 C A R E C o u r t A c t ) Since this would be attached to a criminal case, the maximum terms should be the same. CARE Court should allow for an additional 12 months. This issue may be addressed by terminating the criminal case once the individual is accepted into the program– as is currently done for AOT. 6. What happens if a person is complying with treatment but is not showing progress or considered “successful?” We consider participation in treatment success. To the extent that the individual has a subsequent mental health crisis, a PAD may be relied upon, or the court may utilize existing legal authority pursuant to Article 4 (commencing with Section 5200) of Chapter 2 of Part 1, to ensure the respondent’s safety. 7. What is the plan for someone who has not complied with a CARE plan but has not destabilized to the point of needing 5150 care, and who did not participate as part of a diversionary program? Is there a basis for imposing consequences? CARE Court does not create new standards or change existing legal authority pursuant to Article 4 (commencing with Section 5200) of Chapter 2 of Part 1. The county should continue to engage any patients who are terminated from CARE Court and are not subject to existing legal authority. 8. What happens if a CARE court participant moves jurisdictions, or becomes homeless? Is there a possibility of allowing a court to order housing, if the lack thereof is what has kept the person from stabilizing in the past? WIC 5982 outlines that counties may offer appropriate housing placements in the region as early as feasible in the engagement process but, as currently drafted, does not allow the court to order housing or to require the county to provide housing. If a person moves jurisdictions, existing rules for behavioral health services continuity should apply. VII. Support Person 1. Will the supporters be trained in engaging with people with MH/SUD conditions? Likewise, if a respondent decides on a supporter not provided by the Dept of Aging, shouldn’t that supporter receive some kind of training if they will be guiding the respondent through court proceedings, meetings, etc.? Is the Dept of Aging the correct entity to train supporters? C.4.d Packet Pg. 59 At t a c h m e n t : F A Q ( S B 1 3 3 8 C A R E C o u r t A c t ) Supporters will be trained in strategies to engage individuals with severe mental illness. A key department responsibility will be to effectively train supporters on supported decision making with individuals who have behavioral health conditions and on the use of psychiatric advance directives. As Welfare and Institutions code 5980 describes this training will be developed with input from peers, family members, disability groups, providers, and other relevant stakeholders. Self-direction is a critical element of CARE. Welfare and Institutions code 5980(c) explains that if a respondent chooses their own supporter, that person may serve as a supporter without compensation. Volunteer supporters will be provided with required, accessible training that includes, at a minimum, a description of their role, expectations, and conflicts of interest. Respondent may also choose not to have a supporter. With a focus on individual empowerment and access to services in the home and community, California Department of Aging (CDA) has long focused on person- centered advocacy and support programs for older and disabled adults, including the Long-Term Care Ombudsmen program for residents of nursing homes and assisted living facilities, the Friendship Line for behavioral health support, and, more recently, the Office of the Patient Representative that represents the wishes of incapacitated individuals in long-term care facilities. In July, subject to final budget approval of the Governor’s January budget proposal, CDA will be hiring a Conservator/Public Guardian liaison that will work with local Public Guardian/Public Conservator offices to help strengthen probate conservatorships for adults with diminished capacity to make financial and personal care decisions. The supporter program compliments CDA’s focus on advocacy and empowerment of older and disabled adults. 2. If the supporter is required to assist the respondent with understanding the entire CARE process, shouldn’t the supporter be required to attend court proceedings rather than just being allowed to attend? The supporter should attend and that clarification in the language would be helpful 3. Why the Department of Aging? Would the office of patient’s rights in DHCS make more sense? Will CDA decide the contract specifications if the role is contracted out? Is a competitive process envisioned? As stated above, CDA has expertise in managing person-centered advocacy and support programs with expert community-based organizations that effectively C.4.d Packet Pg. 60 At t a c h m e n t : F A Q ( S B 1 3 3 8 C A R E C o u r t A c t ) serve vulnerable older and disabled adults, including preserving the rights of unrepresented and vulnerable people. They are the appropriate entity to develop and administer a State Supported Decision Making program, in partnership with expert community-based organizations. The Office of Patients’ Rights within DHCS has the responsibility to ensure that mental health laws, regulations, and policies for the rights of mental health service recipients are observed in licensed mental health facilities. As Welfare and Institutions code 5980 outlines CDA may enter into a technical assistance and training agreement to provide trainings either directly to supporters or to the contracted entities who will be responsible for hiring and matching supporters to respondents. CDA will seek stakeholder input on contract specifications and contract award criteria. The Supporter program contracts shall include labor standards. 4. If supporters are being bound to “existing obligations and prohibitions,” who is ensuring that a supporter not trained/provided by Dept of Aging knows all this? As the program is developed, that will be incorporated into the training envisioned for volunteer Supporters. 5. For the supporter, if someone does volunteer, should there be some written commitment to serve in this role like in 5350(e) (2)? As the program is developed, that will be incorporated into the training envisioned for volunteer Supporters. 6. Who sets the qualifications and compensation? Who is the employer? What about possible conflict of interest? Welfare and Institutions Code section 5980 outlines that CDA will develop the Supporter program and will do so with support and input from peers, family members, disability groups, providers, and other relevant stakeholders. CDA intends to contract with community-based organizations at the state, regional or local level who will serve as the employer of the supporters. CDA will be responsible for addressing any potential conflicts of interest for CDA funded supporters or contracted entities. 7. The language allows contracted entities to “match” the supporter and has the court appointing a supporter within 5 days of filing. Does CDA or the contractor provide name(s) to the court or to the respondent first? Does the respondent have a choice? C.4.d Packet Pg. 61 At t a c h m e n t : F A Q ( S B 1 3 3 8 C A R E C o u r t A c t ) Self-direction and choice are critical elements of CARE Court. Reasonable and feasible strategies will be employed to provide Supporter choice to the respondent, recognizing limitations due to the immediate need to have a supporter available in the 5-day period and in every county in California. Respondents can also decline a supporter. VIII. Evaluation and Accountability 1. Like we are seeing with LPS, we need specific and robust reporting requirements, should those be included here for technical assistance piece. A robust data collection, evaluation, and accountability framework will be added to the legislation. This will include demographic data to mitigate against and remedy racial, ethnic, and other inequities in behavioral health and housing. C.4.d Packet Pg. 62 At t a c h m e n t : F A Q ( S B 1 3 3 8 C A R E C o u r t A c t ) Rick Herrick Mayor, Big Bear Lake _________________________ Sue Himmelrich Mayor, City of Santa MonicaCity of Big Bear Lake Mayor, City of Upland ___________________________ Jeffrey Koji Maloney Mayor, City of Alhambra _________________________ C.4.e Packet Pg. 63 At t a c h m e n t : F o n t a n a C A R E C o u r t L e t t e r 6 - 9 - 2 0 2 2 ( S B 1 3 3 8 C A R E C o u r t A c t ) AGENDA REPORT MEETING DATE: June 14, 2022 Council Item TITLE: Adoption of the Fiscal Year 2022-23 Budget PRESENTED BY: Terry Shea, Interim Finance Director RECOMMENDATION: 1. Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING THE ANNUAL BUDGET FOR FISCAL YEAR 2022-2023. 2030 VISION STATEMENT: This staff report supports City Council Goal #1 “Ensure our Fiscal Viability” through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations. BACKGROUND: In prior years, staff has submitted, for City Council’s review and approval, the proposed budget for the upcoming year. Once approved, this document has served as the City’s financial plan for the following year and acts as the basis for budgetary control. For Fiscal Year (FY) 2021-22, City Council approved a one-year budget, with any adjustments submitted for the FY2021-22 budget, during the current year. The City moved towards multi-year budgeting prior to the FY 2020-21 but shifted back to the annual budget process due to the COVID-19 (novel coronavirus) pandemic, staff thought it prudent and recommended to City Council that the City return to a one-year budget process as it is difficult to project any revenues during this uncertainty. It is the City’s hope that when this crisis is over and the City can resume its regular business activities, staff will return to the submittal of a two-year budget for City Council review and approval. The shift back to an annual budget allows the City to: 1. Improve financial management. 2. Greater flexibility to respond to our confusing and uncertain environment. 3. Greater ability to shift resources because of service level demands and 4. Quickly Reallocation and redeploy resources. DISCUSSION: F.5 Packet Pg. 64 The major revenues in the City of Grand Terrace increased during COVID-19, primarily because of consumer demand at food and drug stores. In addition, demand for building and construction supplies remained brisk. Retail sales, along with license fees and collection of franchise fees, are projected to lead to a positive outcome for FY 2021-22. GENERAL FUND FISCAL YEAR 2021-22 Table 1 reflects the FY2021-22 Year-End Revenue and Expenditure projections. Table 1 City of Grand Terrace FY 2021-22 General Fund Revenue and Expenditure Report 2021-22 2021-22 Adj Budget 06-22-21 Projections 04-27-2022 Property Tax $3,989,040 $1,985,232 Residual Receipts - RPTTF $176,900 $2,603,817 Proceeds from Sale of Property $1,798,700 $2,070,601 Franchise Fees $620,000 $644,000 Licenses, Fees & Permits $490,000 $329,822 Sales Tax $988,000 $1,110,053 Intergovernmental Revenue/Grants $31,220 $66,492 Charges for Services $141,100 $73,229 Fines & Forfeitures $66,300 $44,274 Miscellaneous $0 $14,885 Use of Money & Property $34,660 $28,416 Wastewater Receipts $318,349 $318,349 Total Revenues $8,654,269 $9,289,170 Salaries $1,552,512 $1,356,254 Benefits $1,149,757 $1,044,541 Materials & Supplies $224,770 $218,657 Professional/Cont. Services $3,674,258 $3,743,232 Equipment $0 $3,000 Lease of Facility/Equipment $19,600 $17,615 Utilities $176,448 $199,166 Overhead Cost Allocation ($84,950) ($84,950) F.5 Packet Pg. 65 City of Grand Terrace FY 2021-22 General Fund Revenue and Expenditure Report 2021-22 2021-22 Adj Budget 06-22-21 Projections 04-27-2022 Capital Projects $0 $113,922 Debt Service $0 $0 Transfers Out $110,000 $110,000 Total Expenditures $6,822,395 $6,721,437 Revenues $8,654,269 $9,289,170 Expenditures ($6,822,395) ($6,721,437) Projected Surplus $1,831,874 $2,567,733 FISCAL YEAR 2022-23 The City continues to receive optimistic sales tax projections that build on the success from prior and current year sales tax growth. Staff continues to meet with our property and sales tax consultants (HdL) to monitor quarterly sales tax trends. Revenues: 1. Sales Tax projections: HdL projected higher sales tax revenues for FY2022-23 in the amount of $1,125,400 and 2. Property Tax projections: Were provided by HdL with the Successor Agency being dissolved with no RPTTF funds being received in the amount of $2,916,400; and 3. Property Tax VLF swap projections were provided by HDL in the amount of $1,564,895. Expenditures: 1. The General Fund must absorb the Child Care’s portion of the unfunded accrued liability (UAL), plus the annual increase added by CalPERS to the UAL. The total UAL for FY2022-23 which includes the Child Care’s portion is $597,858 2. For the Sheriff’s Department the City Council approved a Contract extension with a 1.616% increase at its May 10, 2022 Council Meeting. The Contract amount is $2,305,996. The increase is $36,680. 3. General Fund Maintenance of Effort: The City receives Measure “I” funds (1/2 cent sales tax collected throughout San Bernardino County for transportation improvements - $300k) and Road Maintenance and Rehabilitation Program (RMRP) funds ($283k) into the RMRA Fund for use on local street and road systems. The term “Maintenance of Effort” (MOE) generally refers to a requirement placed upon state and federally funded grant programs that requires F.5 Packet Pg. 66 local cities and counties to maintain general fund spending for streets and roads either through a certain percentage or formula, which may include the local agency’s history of past spending on street rehabilitation and/or maintenance. 4. The FY2022-23 Budget includes the addition of one full-time employee and one intern. Table 2 summarizes the FY2022-23 Proposed Budget: City of Grand Terrace FY 2022-23 Proposed General Fund Revenue and Expenditure Report 2022-23 Proposed 05-24-2022 Revenues Property Tax $4,481,295 Franchise Fees $635,000 Licenses, Fees & Permits $665,400 Sales Tax $1,125,400 Intergovernmental Revenue/Grants $60,500 Charges for Services $178,000 Fines & Forfeitures $66,300 Miscellaneous $26,710 Use of Money & Property $34,660 Wastewater Receipts $318,349 Transfers In $50,000 Total Revenues $7,641,614 Expenditures by Department Salaries $1,482,899 Benefits $1,356,069 Materials & Supplies $323,605 Professional/Contractual Services $4,198,568 Lease of Facility/Equipment $12,000 Utilities $229,448 Overhead Cost Allocation ($81,950) Transfers Out $110,700 Total Expenditures $7,631,339 F.5 Packet Pg. 67 City of Grand Terrace FY 2022-23 Proposed General Fund Revenue and Expenditure Report 2022-23 Proposed 05-24-2022 Revenues $7,641,614 Expenditures ($7,631,339) Fund Balance $10,275 While the revenue and expenses of FY 2022-23 significantly exceed those in the prior year, staff’s goal is to return to pre-COVID-19 staffing levels to ensure we can operate and maintain city facilities that allow residents to fully utilize the assets of the community. The projected Fund Balance is equal to or more than the revenue received from the liquidation of assets, this is consistent with the City Council’s policy to not fund ongoing expenses with one-time revenue. Revenues, $7,641,614 Expenditures, $7,631,339 Proposed Surplus, $10,275 Revenue, Expenditure and Fund Balance FY 2022-23 Revenues Expenditures Proposed Surplus F.5 Packet Pg. 68 CITY-WIDE PROPOSED FY2022-23 BUDGET The total Proposed Budget for FY2022-23 is $12,549,976 in revenues and $14,216,068 in expenditures. The City’s Proposed Budget, which is presented for City Council’s review and consideration, • Supports the City’s mission, vision, core values and goals by preserving and protecting the community and its exceptional quality of life; and PROPOSED BUDGET BY FUND FY 2022-23 The next two tables show the Citywide Proposed Revenues and Expenditure budgets by fund: Table 3 (Proposed Revenues) City of Grand Terrace FY 2022-23 Proposed Revenue Summary by Fund 2020-21 2020-21 2021-22 2021-22 2022-23 Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget GENERAL FUNDS 10 GENERAL FUND $5,980,995 $6,307,123 $8,654,269 $9,289,170 $7,641,614 61 COMMUNITY BENEFITS FUND $20,000 $10,082 $20,000 $20,000 $20,000 62 LIGHT UP GRAND TERRACE $10,000 $5,535 $10,000 $13,885 $10,000 63 GT ILLEGAL FIREWORKS ENFORCEMENT $500 $1 $3,500 $0 $2,000 64 PUBLIC SAFETY FUND $0 $52 $0 $105 $0 69 COMMUNITY DAY FUND $0 $0 $10,000 $0 $10,000 68 40TH YEAR BIRTHDAY CELEBRATION FND $0 $0 $8 $0 $0 70 EQUIP REPLACEMENT RESERVE FUND $0 $2 $0 $4 $0 DEVELOPMENT IMPACT FEES (DIF) 11 STREET FUND $48,000 $3,550 $88,000 $0 $88,000 12 STORM DRAIN FUND $13,250 $43,007 $800 $0 $800 13 PARK FUND $69,400 ($165) $800 $0 $800 19 FACILITIES FUND $20,000 $3,483 $20,000 $0 $20,600 SPECIAL REVENUE FUNDS F.5 Packet Pg. 69 City of Grand Terrace FY 2022-23 Proposed Revenue Summary by Fund 2020-21 2020-21 2021-22 2021-22 2022-23 Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget 14 SLESF (AB3229 COPS) $100,050 $157,100 $160,00 $161,330 $160,000 15 AIR QUALITY IMPROVEMENT FUND $58,000 $15,971 $15,500 $16,400 $16,400 16 GAS TAX FUND $650,800 $369,137 $725,200 $377,000 $437,700 17 TRAFFIC SAFETY FUND $6,000 $4,454 $4,000 $4,500 $4,500 20 MEASURE "I" FUND $193,000 $281,718 $248,600 $312,000 $300,400 25 SPRING MOUNTAIN RANCH $3,000 $1,696 $53,000 $354,200 $52,000 26 LNDSCP & LGTG ASSESSMENT DIST $47,648 $55,643 $57,325 $32,990 $57,325 56 ROAD MAINT & REHAB ACCT $238,000 $230,963 $239,000 $246,000 $282,600 67 PUBLIC, EDUCATIONAL & GOVT ACCESS $21,500 $24,025 $21,500 $10,811 $19,300 76 EIFD - ENHANCED INFRAST FIN DIST $0 $0 $0 $0 $0 90 COVID-19 FEMA REIMBURSEMENT FUND $193,425 $153,449 $0 $0 $0 91 SB COUNTY COVID-19 $153,425 $153,425 $0 $0 $0 93 COVID – INFRASTRUCTURE $267,700 $274,200 $0 $0 $0 94 ARPA $0 $0 $0 $1,505,180 $1,505,180 ENTERPRISE FUND 21 WASTEWATER DISPOSAL FUND $10,000 $13,576 $4,000 $0 $4,000 GRANT FUNDS 22 CDBG - COMM DEV BLOCK GRANT $47,876 $59,930 $69,934 $5,474 $60,140 65 SENIOR BUS PROGRAM FUND $37,450 $59,680 $156,765 $39,361 $152,665 66 CAL RECYCLE GRANT $5,000 $18 $0 $0 $0 73 ACTIVE TRANSPORTATION PRGRM FUND $100,000 $0 $0 $0 $0 74 HIGHWAY SAFETY IMPROV PROGRAM $185,000 36,2000 $44,000 $325,394 $44,000 75 EMERMGMT PREP GRANT $0 $0 $0 $9,000 $0 77 SO CAL INCENTIVE PROJ (SCIP) GRANT $0 $0 $0 $0 $0 92 CDBG – COVID $141,010 $0 $141,000 $0 $0 SUCCESSOR AGENCY 31 S/A RDA REVENUE FUND $2,065,200 $283,438 $0 $0 $0 32 S/A CAPITAL PROJECTS FUND $33,100 $0 $0 $0 $0 33 S/A DEBT SERVICE FUND $2,032,100 $0 $0 $0 $0 F.5 Packet Pg. 70 City of Grand Terrace FY 2022-23 Proposed Revenue Summary by Fund 2020-21 2020-21 2021-22 2021-22 2022-23 Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget 36 2011 TABS A & B BOND PROCEEDS $0 $76 $0 $0 $0 CAPITAL PROJECT FUNDS 45 CIP - COMMERCE WAY $0 $1,893 $0 $0 $0 46 CAPITAL IMPROVEMENTS - STREETS $445,000 $456,999 $0 $0 $0 47 CAP.PRJ. BARTON/COLTON BRIDGE $0 $0 $0 $0 $0 48 CAPITAL PROJECTS FUND $0 $0 $0 $0 $0 49 CAPITAL PROJECTS FUND- PARKS $100,000 $576 $1,412,000 $0 $1,589,952 52 HOUSING AUTHORITY $50,000 $2,059 $65,000 $0 $65,000 95 DOG PARK ENDOWMENT FUND $0 $0 $0 $0 $0 $13,346,429 $9,008,896 $12,224,193 $12,722,800 $12,549,976 Table 4 (Proposed Expenditures) City of Grand Terrace FY 2022-23 Proposed Expense Summary by Fund 2020-21 2020-21 2021-22 2021-22 2022-23 Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget GENERAL FUNDS 10 GENERAL FUND $6,410,228 $6,331,328 $6,822,395 $6,721,437 $7,631,339 61 COMMUNITY BENEFITS FUND $10,000 $1,385 $20,000 $3,685 $20,000 62 LIGHT UP GRAND TERRACE $10,000 $5,915 $10,000 $15,850 $10,000 63 GT ILLEGAL FIREWORKS ENFORCEMENT $250 $0 $3,500 $0 $2,000 64 PUBLIC SAFETY FUND $0 $0 $0 $0 $0 69 COMMUNITY DAY FUND $0 $0 $10,000 $20,000 $20,000 68 40TH YEAR BIRTHDAY CELEBRATION FND $0 $0 $0 $0 $0 70 EQUIP REPLACEMENT RESERVE FUND $0 $0 $0 $0 $0 DEVELOPMENT IMPACT FEES (DIF) F.5 Packet Pg. 71 City of Grand Terrace FY 2022-23 Proposed Expense Summary by Fund 2020-21 2020-21 2021-22 2021-22 2022-23 Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget 11 STREET FUND $0 $0 $0 $0 $0 12 STORM DRAIN FUND $0 $0 $0 $0 $0 13 PARK FUND $0 $0 $0 $0 $0 19 FACILITIES FUND $60,425 $204,835 $0 $0 $0 SPECIAL REVENUE FUNDS 14 SLESF (AB3229 COPS) $150,000 $157,872 $150,000 $150,000 $160,550 15 AIR QUALITY IMPROVEMENT FUND $13,000 $5,000 $13,000 $3,860 $0 16 GAS TAX FUND $558,000 $428,537 $722,075 $447,481 $363,416 17 TRAFFIC SAFETY FUND $4,000 $0 $4,000 $10,000 $4,000 20 MEASURE "I" FUND $250,000 $293,651 $119,272 $63,000 $119,272 25 SPRING MOUNTAIN RANCH $50,000 $4,720 $50,000 $25,000 $50,000 26 LNDSCP & LGTG ASSESSMENT DIST $48,584 $14,670 $66,009 $41,083 $56,238 56 ROAD MAINT & REHAB ACCT $202,000 $202,000 $0 $202,000 $0 67 PUBLIC, EDUCATIONAL & GOVT ACCESS $21,500 $0 $21,500 $0 $19,300 76 EIFD - ENHANCED INFRAST FIN DIST $0 $0 $0 $0 $0 90 COVID-19 FEMA REIMBURSEMENT FUND $193,000 $123,180 $0 $0 $0 91 SB COUNTY COVID-19 $153,425 $153,426 $0 $0 $0 92 CDBG – COVID $141,010 $0 $141,000 $0 $0 93 COVID – INFRASTRUCTURE $267,700 $274,200 $0 $0 $0 94 ARPA $0 $0 $0 $160,000 $2,832,000 ENTERPRISE FUND 21 WASTEWATER DISPOSAL FUND $7,000 $88,570 $0 $0 $0 GRANT FUNDS 22 CDBG - COMM DEV BLOCK GRANT $69,934 $30,385 $69,934 $35,000 $60,140 65 SENIOR BUS PROGRAM FUND $159,915 $62,924 $121,067 $70,623 $146,825 66 CAL RECYCLE GRANT $5,000 $0 $0 $0 $0 73 ACTIVE TRANSPORTATION PRGRM FUND $0 $0 $0 $3 $0 74 HIGHWAY SAFETY IMPROV PROGRAM $497,064 $442,564 $44,000 $4,768 $44,000 75 EMER MGMT PREP GRANT $0 $0 $0 $9,000 $0 F.5 Packet Pg. 72 City of Grand Terrace FY 2022-23 Proposed Expense Summary by Fund 2020-21 2020-21 2021-22 2021-22 2022-23 Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget 77 SO CAL INCENTIVE PROJ (SCIP) GRANT $0 $0 $0 $0 $0 SUCCESSOR AGENCY 31 S/A RDA REVENUE FUND $301,438 $0 $0 $0 $0 32 S/A CAPITAL PROJECTS FUND $18,000 $388,132 $0 $0 $0 33 S/A DEBT SERVICE FUND $283,438 $887,367 $0 $296,825 $0 36 2011 TABS A & B BOND PROCEEDS $0 $0 $0 $0 $0 CAPITAL PROJECT FUNDS 45 CIP - COMMERCE WAY $839,594 $65 $839,594 $65 $839,594 46 CAPITAL IMPROVEMENTS - STREETS $427,040 $456,893 $0 $0 $0 47 CAP.PRJ. BARTON/COLTON BRIDGE $0 $18,623 $0 $4,500 $0 48 CAPITAL PROJECTS FUND $0 $0 $0 $0 $0 49 CAPITAL PROJECTS FUND- PARKS $89,592 $37,495 $1,624,000 $5,000 $1,804,606 52 HOUSING AUTHORITY $118,950 $21,734 $69,248 $52,763 $32,789 95 DOG PARK ENDOWMENT FUND $0 $0 $0 $0 $0 $11,360,087 $10,635,471 $10,920,594 $8,341,943 $14,216,068 Budget Schedule The proposed schedule leading to adoption of the FY2022-23 is as follows: Table 5 Description Date Budget Introduction Tuesday, May 24th Budget Deliberations by Department and Fund Tuesday, June 14th Budget Adoption Tuesday, June 28yh FISCAL IMPACT: F.5 Packet Pg. 73 Fiscal impacts of the FY2022-23 Proposed Budget are identified in the FY2022-23 Proposed Budget Summary (which is being made available in the City Clerk’s office). ATTACHMENTS: • 2022-xx Adopt FY2022-23 Budgt Resolution (DOCX) • Attachedment A to FY2022-23 Resolutions (PDF) APPROVALS: Terry Shea Completed 06/03/2022 3:50 PM City Manager Completed 06/07/2022 1:47 PM City Council Pending 06/14/2022 6:00 PM F.5 Packet Pg. 74 CC Reso No. 2020-21 Page 1 of 2 June 23, 2020 RESOLUTION NO. 2022-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING THE ANNUAL BUDGET FOR FISCAL YEAR 2022-2023 RECITALS WHEREAS, a Proposed Budget for Fiscal Year 2022-2023 was introduced during a regularly scheduled City Council meeting on May 24, 2022; and WHEREAS, continued deliberations for the Annual Budget for Fiscal Year 2022- 2023 was continued during a regularly scheduled City Council meeting on June 14, 2022; and WHEREAS, the City Manager has heretofore submitted to the City Council a Proposed Budget for the City for Fiscal Year 2022-2023, a copy of which, as may have been amended by the City Council, is on file in the City Clerk’s Department and is available for public inspection; and WHEREAS, the said Proposed Budget contains estimates of the services, activities and projects comprising the budget, and contains expenditure requirements and the resources available to the City; and WHEREAS, the said Proposed Budget contains the estimates of uses of fund balance as required to stabilize the delivery of City services during periods of operational deficits; and WHEREAS, the City Council authorizes payment of expenses incurred by means of a check register prepared by the Finance Department and approved at regular meetings of City Council; and WHEREAS, said expenses are recurring in nature, the amounts having been previously approved by ordinance or resolution or otherwise entailing normal, administrative expenses including tax deposits, utility costs, storage fees and related costs of doing business; and WHEREAS, the City Council has made such revisions to the Proposed Budget as so desired; and WHEREAS, the Proposed Budget conforms with the City’s 2030 Vision and 2014- 2020 Strategic Plan; and WHEREAS, the Proposed Budget, as herein approved, will enable the City Council to make adequate financial plans and will ensure that City officers can administer their respective functions in accordance with such plans. F.5.a Packet Pg. 75 At t a c h m e n t : 2 0 2 2 - x x A d o p t F Y 2 0 2 2 - 2 3 B u d g t R e s o l u t i o n ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) CC Reso No. 2020-21 Page 2 of 2 June 23, 2020 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: 1. The Proposed Budget, with summaries listed as Attachment A to this Resolution and as on file in the City Clerk’s Department and as may have been amended by the City Council, is hereby approved and adopted as the Annual Budget of the City of Grand Terrace for Fiscal Year 2022-2023. 2. The amounts of proposed expenditures, which include the uses of fund balance specified in the approved budget, are hereby appropriated for the various budget programs and units for said fiscal years. 3. If any section, subsection, sentence, clause, phrase, or portion of this Resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council of the City of Grand Terrace hereby declares that it would have adopted this Resolution and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. 4. The City Clerk shall certify to the adoption of this Resolution. 5. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED by the City Council of Grand Terrace at a regular meeting held on the 14th day of June 2022. ________________________________ Darcy McNaboe Mayor ATTEST: __________________________________ Debra L. Thomas City Clerk APPROVED AS TO FORM: __________________________________ Adrian R. Guerra City Attorney F.5.a Packet Pg. 76 At t a c h m e n t : 2 0 2 2 - x x A d o p t F Y 2 0 2 2 - 2 3 B u d g t R e s o l u t i o n ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) City of Grand Terrace FY2022-23 Proposed Budget General Fund Revenue and Expense by Category & Department F.5.b Packet Pg. 77 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 2020-21 2020-21 2021-22 2021-22 2022-23 Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget Revenues Property Tax $2,082,593 $2,197,948 $3,989,040 $1,985,232 $2,078,595 Residual Receipts - RPTTF $1,798,163 $1,354,741 $176,900 $2,603,817 $2,402,700 Proceeds from Sale of Property $0 $0 $1,798,700 $2,070,601 $0 Franchise Fees $445,000 $613,598 $620,000 $644,000 $635,000 Licenses, Fees & Permits $329,090 $439,948 $490,000 $329,822 $665,400 Sales Tax $750,000 $1,064,567 $988,000 $1,110,053 $1,125,400 Intergovernmental Revenue/Grants $20,000 $54,606 $31,220 $66,492 $60,500 Charges for Services $100,300 $138,916 $141,100 $73,229 $178,000 Fines & Forfeitures $70,000 $73,219 $66,300 $44,274 $66,300 Miscellaneous $0 $20,091 $0 $14,885 $26,710 Use of Money & Property $67,500 $31,140 $34,660 $28,416 $34,660 Waste Water Receipts $318,349 $318,349 $318,349 $318,349 $318,349 Transfers In $0 $0 $0 $0 $50,000 Residual Receipts - Sr Ctr $0 $0 $0 $0 $0 Gas Tax $0 $0 $0 $0 $0 Total Revenues $5,980,995 $6,307,123 $8,654,269 $9,289,170 $7,641,614 Expenditures by Category Salaries $1,094,006 $1,088,247 $1,552,512 $1,356,254 $1,482,899 Benefits $1,118,326 $964,910 $1,149,757 $1,044,541 $1,356,069 Materials & Supplies $190,955 $206,360 $224,770 $218,657 $323,605 Professional/Contractual Services $3,572,540 $3,646,766 $3,674,258 $3,743,232 $4,198,568 Equipment $1 $0 $0 $3,000 $0 Lease of Facility/Equipment $19,323 $17,513 $19,600 $17,615 $12,000 Utilities $143,858 $168,416 $176,448 $199,166 $229,448 Overhead Cost Allocation ($81,950)($68,192)($84,950)($84,950)($81,950) Capital Projects $213,419 $90,615 $0 $113,922 $0 Debt Service $0 $15,968 $0 $0 $0 Transfers Out $139,750 $200,725 $110,000 $110,000 $110,700 Total Expenditures $6,410,228 $6,331,328 $6,822,395 $6,721,437 $7,631,339 Revenues $5,980,995 $6,307,123 $8,654,269 $9,289,170 $7,641,614 Expenditures by Category ($6,410,228)($6,331,328)($6,822,395)($6,721,437)($7,631,339) Surplus or Approved Use of Fund Balance ($429,233)($24,205)$1,831,874 $2,567,733 $10,275 City of Grand Terrace FY 2022-23 Proposed General Fund Revenue and Expenditure Report by CATEGORY F.5.b Packet Pg. 78 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 2020-21 2020-21 2021-22 2021-22 2022-23 Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget Revenues Property Tax $2,082,593 $2,197,948 $3,989,040 $1,985,232 $2,078,595 Residual Receipts - RPTTF $1,798,163 $1,354,741 $176,900 $2,603,817 $2,402,700 Proceeds from Sale of Property $0 $0 $1,798,700 $2,070,601 $0 Franchise Fees $445,000 $613,598 $620,000 $644,000 $635,000 Licenses, Fees & Permits $329,090 $439,948 $490,000 $329,822 $665,400 Sales Tax $750,000 $1,064,567 $988,000 $1,110,053 $1,125,400 Intergovernmental Revenue/Grants $20,000 $54,606 $31,220 $66,492 $60,500 Charges for Services $100,300 $138,916 $141,100 $73,229 $178,000 Fines & Forfeitures $70,000 $73,219 $66,300 $44,274 $66,300 Miscellaneous $0 $20,091 $0 $14,885 $26,710 Use of Money & Property $67,500 $31,140 $34,660 $28,416 $34,660 Waste Water Receipts $318,349 $318,349 $318,349 $318,349 $318,349 Transfers In $0 $0 $0 $0 $50,000 Residual Receipts - Sr Ctr $0 $0 $0 $0 $0 Gas Tax $0 $0 $0 $0 $0 Total Revenues $5,980,995 $6,307,123 $8,654,269 $9,289,170 $7,641,614 Expenditures by Department City Council $67,752 $49,579 $76,621 $51,169 $119,528 City Manager $730,259 $724,500 $847,763 $843,228 $690,294 City Clerk $177,880 $182,410 $234,763 $217,816 $287,126 Finance $351,842 $412,336 $480,364 $412,721 $579,427 City Attorney $209,002 $284,199 $210,000 $255,502 $210,000 Planning & Dev. Svcs $901,450 $778,980 $1,064,523 $904,829 $1,213,342 Public Works $690,707 $692,973 $659,645 $705,494 $1,008,751 Non-Departmental $1,021,260 $1,035,841 $807,776 $1,026,157 $1,136,875 Public Safety $2,260,076 $2,170,510 $2,440,940 $2,304,521 $2,385,996 Total Expenditures $6,410,228 $6,331,328 $6,822,395 $6,721,437 $7,631,339 Revenues $5,980,995 $6,307,123 $8,654,269 $9,289,170 $7,641,614 Expenditures by Department ($6,410,228)($6,331,328)($6,822,395)($6,721,437)($7,631,339) Surplus or Approved Use of Fund Balance ($429,233)($24,205)$1,831,874 $2,567,733 $10,275 City of Grand Terrace FY 2022-23 Proposed General Fund Revenue and Expenditure Report by DEPARTMENT F.5.b Packet Pg. 79 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) This page left intentionally blank. F.5.b Packet Pg. 80 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) City of Grand Terrace FY2022-23 Proposed Budget Citywide Revenue and Expense Report F.5.b Packet Pg. 81 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) This page left intentionally blank. F.5.b Packet Pg. 82 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 2019-20 Actual 2020-2021 Actuals 2021-22 Projections 2022-23 Proposed Budget Revenues Property Tax $2,391,099 $2,536,916 $2,018,222 $2,135,920 Residual Receipts - RPTTF $1,911,591 $1,354,741 $2,603,817 $2,402,700 Proceeds from Sale of Property $3,720 $0 $2,070,601 $0 Franchise Fees $549,823 $613,598 $644,000 $635,000 Licenses, Fees & Permits $721,146 $506,169 $700,957 $834,800 Sales Tax $1,084,319 $1,345,899 $1,422,053 $1,425,400 Intergovernmental Revenue/Grants $640,731 $1,042,373 $2,355,182 $3,930,637 Charges for Services $135,639 $139,090 $73,229 $181,000 Fines & Forfeitures $71,795 $77,643 $48,774 $72,800 Miscellaneous $13,636 $20,091 $18,235 $39,710 Use of Money & Property $269,705 $52,569 $28,521 $45,660 Waste Water Receipts $318,349 $318,349 $318,349 $318,349 Transfers In $18,917,742 $723,043 $113,860 $160,700 Residual Receipts - Sr Ctr $1,440 $0 $0 $0 Gas Tax $294,195 $278,415 $307,000 $367,300 Total Revenues $27,324,930 $9,008,896 $12,722,800 $12,549,976 Expenditures by Category Salaries $1,495,553 $1,247,091 $1,550,637 $1,584,779 Benefits $900,532 $1,016,098 $1,109,875 $1,409,032 Materials & Supplies $259,893 $210,593 $224,472 $479,405 Professional/Contractual Services $5,148,798 $4,224,073 $4,256,515 $8,033,171 Equipment $186,263 $0 $3,000 $0 Lease of Facility/Equipment $13,392 $17,513 $17,615 $17,000 Utilities $205,409 $254,091 $290,718 $324,708 Overhead Cost Allocation $2 $2 ($3,000)$0 Capital Projects $139,037 $1,808,969 $279,425 $2,207,273 Debt Service $26,782 $1,133,998 $296,825 $0 Transfers Out $18,750,101 $723,043 $315,860 $160,700 Total Expenditures $27,125,762 $10,635,471 $8,341,943 $14,216,068 Revenues $27,324,930 $9,008,896 $12,722,800 $12,549,976 Expenditures by Category ($27,125,762)($10,635,471)($8,341,943) Surplus or Approved Use of Fund Balance $199,168 ($1,626,575)$4,380,857 ($14,216,068) ($1,666,092) City of Grand Terrace FY 2022-23 Proposed Citywide Revenue and Expenditure Report F.5.b Packet Pg. 83 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) This page left intentionally blank. F.5.b Packet Pg. 84 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) City of Grand Terrace FY2022-23 Proposed Budget Revenue and Expense Summary by Fund F.5.b Packet Pg. 85 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 2020-21 2020-21 2021-22 2021-22 2022-23 Ty pe Fund Comb 1 Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget R 10 R10 General Fund Rev $5,980,995 $6,307,123 $8,654,269 $9,289,170 $7,641,614 E 10 E10 General Fund Exp $6,410,228 $6,331,328 $6,822,395 $6,721,437 $7,631,339 ($429,233)($24,205)$1,831,874 $2,567,733 $10,275 R 11 R11 Street Fund (DIF)Rev $48,000 $3,550 $88,000 $0 $88,000 E 11 E11 Street Fund (DIF)Exp $0 $0 $0 $0 $0 $48,000 $3,550 $88,000 $0 $88,000 R 12 R12 Storm Drain Fund (DIF)Rev $13,250 $43,007 $800 $0 $800 E 12 E12 Storm Drain Fund (DIF)Exp $0 $0 $0 $0 $0 $13,250 $43,007 $800 $0 $800 R 13 R13 Park Fund (DIF)Rev $69,400 ($165)$800 $0 $800 E 13 E13 Park Fund (DIF)Exp $0 $0 $0 $0 $0 $69,400 ($165)$800 $0 $800 R 14 R14 SLESF (AB3229 COPS)Rev $100,050 $157,100 $160,000 $161,330 $165,000 E 14 E14 SLESF (AB3229 COPS)Exp $150,000 $157,872 $150,000 $150,000 $160,550 ($49,950)($772)$10,000 $11,330 $4,450 R 15 R15 Air Quality Improvement Fund Rev $58,000 $15,971 $15,500 $16,400 $16,400 E 15 E15 Air Quality Improvement Fund Exp $13,000 $5,000 $13,000 $3,860 $0 $45,000 $10,971 $2,500 $12,540 $16,400 R 16 R16 Gas Tax Fund Rev $650,800 $369,137 $725,200 $377,000 $437,700 E 16 E16 Gas Tax Fund Exp $558,000 $428,537 $722,075 $447,481 $363,416 $92,800 ($59,400)$3,125 ($70,481)$74,285 R 17 R17 Traffic Safety Fund Rev $6,000 $4,454 $4,000 $4,500 $4,500 E 17 E17 Traffic Safety Fund Exp $4,000 $0 $4,000 $10,000 $4,000 $2,000 $4,454 $0 ($5,500)$500 R 19 R19 Facilities Fund (DIF)Rev $20,000 $3,483 $20,000 $0 $20,600 E 19 E19 Facilities Fund (DIF)Exp $60,425 $204,835 $0 $0 $0 ($40,425)($201,352)$20,000 $0 $20,600 R 20 R20 Measure "I" Fund Rev $193,000 $281,718 $248,600 $312,000 $300,400 E 20 E20 Measure "I" Fund Exp $250,000 $293,651 $119,272 $63,000 $119,272 ($57,000)($11,933)$129,328 $249,000 $181,128 R 21 R21 Wastewater Disposal Fund Rev $10,000 $13,576 $4,000 $0 $4,000 E 21 E21 Wastewater Disposal Fund Exp $7,000 $88,570 $0 $0 $0 $3,000 ($74,994)$4,000 $0 $4,000 R 22 R22 Community Dev Block Grant (CDBG)Rev $47,876 $59,930 $69,934 $5,474 $60,140 E 22 E22 Community Dev Block Grant (CDBG)Exp $69,934 $30,385 $69,934 $35,000 $60,140 ($22,058)$29,545 $0 ($29,526)$0 R 25 R25 Spring Mtn Ranch Mitigation Fund Rev $3,000 $1,696 $53,000 $354,200 $52,000 E 25 E25 Spring Mtn Ranch Mitigation Fund Exp $50,000 $4,720 $50,000 $25,000 $50,000 ($47,000)($3,024)$3,000 $329,200 $2,000 R 26 R26 Landscape & Lighting Assmnt Rev $47,648 $55,643 $57,325 $32,990 $57,325 E 26 E26 Landscape & Lighting Assmnt Exp $48,584 $14,670 $66,009 $41,083 $56,238 ($936)$40,973 ($8,684)($8,093)$1,087 R 31 R31 Sugg Agcy RDA Obligation Fund Rev $2,065,200 $283,438 $0 $0 $0 E 31 E31 Sugg Agcy RDA Obligation Fund Exp $301,438 $0 $0 $0 $0 $1,763,762 $283,438 $0 $0 $0 R 32 R32 Succ Agcy Capital Projects Fund Rev $33,100 $0 $0 $0 $0 E 32 E32 Succ Agcy Capital Projects Fund Exp $18,000 $388,132 $0 $0 $0 $15,100 ($388,132)$0 $0 $0 City of Grand Terrace FY2022-23 Proposed Budget F.5.b Packet Pg. 86 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 2020-21 2020-21 2021-22 2021-22 2022-23 Ty pe Fund Comb 1 Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget City of Grand Terrace FY2022-23 Proposed Budget R 33 R33 Succ Agcy Debt Service Fund Rev $2,032,100 $0 $0 $0 $0 E 33 E33 Succ Agcy Debt Service Fund Exp $283,438 $887,367 $0 $296,825 $0 $1,748,662 ($887,367)$0 ($296,825)$0 R 36 R36 2011 TABs A & B Bond Proceeds Rev $0 $76 $0 $0 $0 E 36 E36 2011 TABs A & B Bond Proceeds Exp $0 $0 $0 $0 $0 $0 $76 $0 $0 $0 R 45 R45 CIP - Commerce Way Rev $0 $1,893 $0 $0 $0 E 45 E45 CIP - Commerce Way Exp $839,594 $65 $839,594 $65 $839,594 ($839,594)$1,828 ($839,594)($65)($839,594) R 46 R46 Capital Improvements: Streets Rev $445,000 $456,999 $0 $0 $0 E 46 E46 Capital Improvements: Streets Exp $427,040 $456,893 $0 $0 $0 $17,960 $106 $0 $0 $0 R 47 R47 Capital Projects: Barton-Colton Bridge Rev $0 $0 $0 $0 $0 E 47 E47 Capital Projects: Barton-Colton Bridge Exp $0 $18,623 $0 $4,500 $0 $0 ($18,623)$0 ($4,500)$0 R 48 R48 Capital Projects Fund Rev $0 $0 $0 $0 $0 E 48 E48 Capital Projects Fund Exp $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 R 49 R49 Capital Projects Fund: Parks Rev $100,000 $576 $1,412,000 $0 $1,589,952 E 49 E49 Capital Projects Fund: Parks Exp $89,592 $37,495 $1,624,000 $5,000 $1,804,606 $10,408 ($36,919)($212,000)($5,000)($214,654) R 52 R52 Housing Authority Rev $50,000 $2,059 $65,000 $0 $65,000 E 52 E52 Housing Authority Exp $118,950 $21,734 $69,248 $52,763 $32,789 ($68,950)($19,675)($4,248)($52,763)$32,211 R 56 R56 Road Maintenance & Rehab Rev $238,000 $230,963 $239,000 $246,000 $282,600 E 56 E56 Road Maintenance & Rehab Exp $202,000 $202,000 $0 $202,000 $0 $36,000 $28,963 $239,000 $44,000 $282,600 R 61 R61 Community Benefits Fund (Gen Fund)Rev $20,000 $10,082 $20,000 $20,000 $20,000 E 61 E61 Community Benefits Fund (Gen Fund)Exp $10,000 $1,385 $20,000 $3,685 $20,000 $10,000 $8,697 $0 $16,315 $0 R 62 R62 Light Up Grand Terrace Fund (Gen Fund)Rev $10,000 $5,535 $10,000 $13,885 $10,000 E 62 E62 Light Up Grand Terrace Fund (Gen Fund)Exp $10,000 $5,915 $10,000 $15,850 $10,000 $0 ($380)$0 ($1,965)$0 R 63 R63 Illegal Fireworks Enf (Gen Fund)Rev $500 $1 $3,500 $0 $2,000 E 63 E63 Illegal Fireworks Enf (Gen Fund)Exp $250 $0 $3,500 $0 $2,000 $250 $1 $0 $0 $0 R 64 R64 Public Safety Fund (Gen Fund)Rev $0 $52 $0 $105 $0 E 64 E64 Public Safety Fund (Gen Fund)Exp $0 $0 $0 $0 $0 $0 $52 $0 $105 $0 R 65 R65 Senior Bus Program Fund Rev $37,450 $59,680 $156,765 $39,361 $152,665 E 65 E65 Senior Bus Program Fund Exp $159,915 $62,924 $121,067 $70,623 $146,825 ($122,465)($3,244)$35,698 ($31,262)$5,840 R 66 R66 Cal Recycle Grant Rev $5,000 $18 $0 $0 $0 E 66 E66 Cal Recycle Grant Exp $5,000 $0 $0 $0 $0 $0 $18 $0 $0 $0 R 67 R67 Public Education & Government Access (PEG)Rev $21,500 $24,025 $21,500 $10,811 $19,300 E 67 E67 Public Education & Government Access (PEG)Exp $21,500 $0 $21,500 $0 $19,300 F.5.b Packet Pg. 87 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 2020-21 2020-21 2021-22 2021-22 2022-23 Ty pe Fund Comb 1 Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget City of Grand Terrace FY2022-23 Proposed Budget $0 $24,025 $0 $10,811 $0 R 68 R68 40th Year Birthday Celebration Fund (Gen Fund)Rev $0 $0 $0 $0 $0 E 68 E68 40th Year Birthday Celebration Fund (Gen Fund)Exp $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 R 69 R69 Community Day Fund (Gen Fund)Rev $0 $0 $10,000 $0 $10,000 E 69 E69 Community Day Fund (Gen Fund)Exp $0 $0 $10,000 $20,000 $20,000 $0 $0 $0 ($20,000)($10,000) R 70 R70 Equipment Replacement Reserve (Gen Fund)Rev $0 $2 $0 $0 $0 E 70 E70 Equipment Replacement Reserve (Gen Fund)Exp $0 $0 $0 $0 $0 $0 $2 $0 $0 $0 R 73 R73 Active Transportation Program (ATP)Rev $100,000 $0 $0 $0 $0 E 73 E73 Active Transportation Program (ATP)Exp $0 $0 $0 $3 $0 $100,000 $0 $0 ($3)$0 R 74 R74 Highway Safety Improvement Program (HSIP)Rev $185,000 $36,200 $44,000 $325,394 $44,000 E 74 E74 Highway Safety Improvement Program (HSIP)Exp $497,064 $442,564 $44,000 $4,768 $44,000 ($312,064)($406,364)$0 $320,626 $0 R 75 R75 EMER MGMT PREP GRANT (EMPG) FUNDRev $0 $0 $0 $9,000 $0 E 75 E75 EMER MGMT PREP GRANT (EMPG) FUNDExp $0 $0 $0 $9,000 $0 $0 $0 $0 $0 $0 R 76 R76 Enhanced Infrastructure Finance District (EIFD)Rev $0 $0 $0 $0 $0 E 76 E76 Enhanced Infrastructure Finance District (EIFD)Exp $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 R 77 R77 So Cal Incentive Project (SCIP) Grant Rev $0 $0 $0 $0 $0 E 77 E77 So Cal Incentive Project (SCIP) Grant Exp $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 R 90 R90 COVID-19 FEMA Reimbursement Fund Rev $193,425 $153,449 $0 $0 $0 E 90 E90 COVID-19 FEMA Reimbursement Fund Exp $193,000 $123,180 $0 $0 $0 $425 $30,269 $0 $0 $0 R 91 R91 SB COUNTY CORONA VIRUS RELIEF Rev $153,425 $153,425 $0 $0 $0 E 91 E91 SB COUNTY CORONA VIRUS RELIEF Exp $153,425 $153,426 $0 $0 $0 $0 ($1)$0 $0 $0 R 92 R92 CDBG Covid Rev $141,010 $0 $141,000 $0 $0 E 92 E92 CDBG Covid Exp $141,010 $0 $141,000 $0 $0 $0 $0 $0 $0 $0 R 93 R93 Covid - Infrastructure Rev $267,700 $274,200 $0 $0 $0 E 93 E93 Covid - Infrastructure Exp $267,700 $274,200 $0 $0 $0 $0 $0 $0 $0 $0 R 94 R94 ARPA Rev $0 $0 $0 $1,505,180 $1,505,180 E 94 E94 ARPA Exp $0 $0 $0 $160,000 $2,832,000 $0 $0 $0 $1,345,180 ($1,326,820) R 95 R95 Dog Park Endowment Fund Rev $0 $0 $0 $0 $0 E 95 E95 Dog Park Endowment Fund Exp $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 R Total Revenue $13,346,429 $9,008,896 $12,224,193 $12,722,800 $12,549,976 E Total Expense $11,360,087 $10,635,471 $10,920,594 $8,341,943 $14,216,068 $1,986,342 ($1,626,575)$1,303,599 $4,380,857 ($1,666,092) F.5.b Packet Pg. 88 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) City of Grand Terrace FY2022-23 Proposed Budget Revenue and Expense Summaries F.5.b Packet Pg. 89 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) Fund Fund Title 2019-20 Actual 2020-21 Actuals 2021-22 Projected 2022-23 Proposed Budget GENERAL FUNDS 10 GENERAL FUND $6,480,870 $6,307,123 $9,289,170 $7,641,614 61 COMMUNITY BENEFITS FUND $20,377 $10,082 $20,000 $20,000 62 LIGHT UP GRAND TERRACE $13,006 $5,535 $13,885 $10,000 63 GT ILLEGAL FIREWORKS ENFORCEMENT $6 $1 $0 $2,000 64 PUBLIC SAFETY FUND $326 $52 $105 $0 69 COMMUNITY DAY FUND $5 $0 $0 $10,000 68 40TH YEAR BIRTHDAY CELEBRATION FND $0 $0 $0 $0 70 EQUIP REPLACEMENT RESERVE FUND $15 $2 $0 $0 DEVELOPMENT IMPACT FEES (DIF) 11 STREET FUND $92,272 $3,550 $0 $88,000 12 STORM DRAIN FUND $4,231 $43,007 $0 $800 13 PARK FUND $2,254 ($165)$0 $800 19 FACILITIES FUND $36,675 $3,483 $0 $20,600 SPECIAL REVENUE FUNDS 14 SLESF (AB3229 COPS)$157,324 $157,100 $161,330 $165,000 15 AIR QUALITY IMPROVEMENT FUND $12,255 $15,971 $16,400 $16,400 16 GAS TAX FUND $417,236 $369,137 $377,000 $437,700 17 TRAFFIC SAFETY FUND $5,314 $4,454 $4,500 $4,500 20 MEASURE "I" FUND $254,068 $281,718 $312,000 $300,400 25 SPRING MOUNTAIN RANCH $223,598 $1,696 $354,200 $52,000 26 LNDSCP & LGTG ASSESSMENT DIST $46,483 $55,643 $32,990 $57,325 56 ROAD MAINTENANCE & REHAB ACCT $304,810 $230,963 $246,000 $282,600 67 PUBLIC, EDUCATIONAL & GOVT ACCESS $23,180 $24,025 $10,811 $19,300 76 EIFD - ENHANCED INFRAST FIN DIST $0 $0 $0 $0 90 COVID-19 FEMA REIMBURSEMENT FUND $0 $153,449 $0 $0 91 SB COUNTY CORONA VIRUS RELIEF $0 $153,425 $0 $0 93 COVID - INFRASTRUCTURE $0 $274,200 $0 $0 94 ARPA $0 $0 $1,505,180 $1,505,180 ENTERPRISE FUND 21 WASTEWATER DISPOSAL FUND $38,590 $13,576 $0 $4,000 GRANT FUNDS 22 CDBG - COMM DEV BLOCK GRANT $42,164 $59,930 $5,474 $60,140 65 SENIOR BUS PROGRAM FUND $33,982 $59,680 $39,361 $152,665 66 CAL RECYCLE GRANT $1,073 $18 $0 $0 73 ACTIVE TRANSPORTATION PRGRM FUND $0 $0 $0 $0 74 HIGHWAY SAFETY IMPROV PROGRAM $0 $36,200 $325,394 $44,000 75 EMER MGMT PREP GRANT (EMPG)$0 $0 $9,000 $0 77 SO CAL INCENTIVE PROJ (SCIP) GRANT $178,900 $0 $0 $0 92 CDBG - COVID $0 $0 $0 $0 SUCCESSOR AGENCY 31 S/A RDA REVENUE FUND $292,285 $283,438 $0 $0 32 S/A CAPITAL PROJECTS FUND $11,113 $0 $0 $0 33 S/A DEBT SERVICE FUND $18,282,143 $0 $0 $0 36 2011 TABS A & B BOND PROCEEDS $79,832 $76 $0 $0 CAPITAL PROJECT FUNDS 45 CIP - COMMERCE WAY $12,628 $1,893 $0 $0 46 CAPITAL IMPROVEMENTS - STREETS $139,177 $456,999 $0 $0 47 CAP.PRJ. BARTON/COLTON BRIDGE $0 $0 $0 $0 48 CAPITAL PROJECTS FUND $1,186 $0 $0 $0 49 CAPITAL PROJECTS FUND- PARKS $402,946 $576 $0 $1,589,952 52 HOUSING AUTHORITY $14,206 $2,059 $0 $65,000 95 DOG PARK ENDOWMENT FUND $0 $0 $0 $0 $27,624,530 $9,008,896 $12,722,800 $12,549,976 Cityof Grand Terrace FY 2022-23 Proposed Revenue Summary by Fund F.5.b Packet Pg. 90 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) Fund Fund Title 2019-20 Actual 2020-21 Actuals 2021-22 Projected 2022-23 Proposed Budget GENERAL FUNDS 10 GENERAL FUND $6,106,120 $6,331,328 $6,721,437 $7,631,339 61 COMMUNITY BENEFITS FUND $7,997 $1,385 $3,685 $20,000 62 LIGHT UP GRAND TERRACE $13,535 $5,915 $15,850 $10,000 63 GT ILLEGAL FIREWORKS ENFORCEMENT $236 $0 $0 $2,000 64 PUBLIC SAFETY FUND $0 $0 $0 $0 69 COMMUNITY DAY FUND $0 $0 $20,000 $20,000 68 40TH YEAR BIRTHDAY CELEBRATION FND $0 $0 $0 $0 70 EQUIP REPLACEMENT RESERVE FUND $0 $0 $0 $0 DEVELOPMENT IMPACT FEES (DIF) 11 STREET FUND $40,457 $0 $0 $0 12 STORM DRAIN FUND $0 $0 $0 $0 13 PARK FUND $100,000 $0 $0 $0 19 FACILITIES FUND $0 $204,835 $0 $0 SPECIAL REVENUE FUNDS 14 SLESF (AB3229 COPS)$157,274 $157,872 $150,000 $160,550 15 AIR QUALITY IMPROVEMENT FUND $54,353 $5,000 $3,860 $0 16 GAS TAX FUND $527,924 $428,537 $447,481 $363,416 17 TRAFFIC SAFETY FUND $0 $0 $10,000 $4,000 20 MEASURE "I" FUND $28,432 $293,651 $63,000 $119,272 25 SPRING MOUNTAIN RANCH $80,600 $4,720 $25,000 $50,000 26 LNDSCP & LGTG ASSESSMENT DIST $16,181 $14,670 $41,083 $56,238 56 ROAD MAINTENANCE & REHAB ACCT $914 $202,000 $202,000 $0 67 PUBLIC, EDUCATIONAL & GOVT ACCESS $0 $0 $0 $19,300 76 EIFD - ENHANCED INFRAST FIN DIST $4,725 $0 $0 $0 90 COVID-19 FEMA REIMBURSEMENT FUND $30,268 $123,180 $0 $0 91 SB COUNTY CORONA VIRUS RELIEF $0 $153,426 $0 $0 92 CDBG - COVID $0 $0 $0 $0 93 COVID - INFRASTRUCTURE $0 $274,200 $0 $0 94 ARPA $0 $0 $160,000 $2,832,000 ENTERPRISE FUND 21 WASTEWATER DISPOSAL FUND $88,570 $88,570 $0 $0 GRANT FUNDS 22 CDBG - COMM DEV BLOCK GRANT $53,724 $30,385 $35,000 $60,140 65 SENIOR BUS PROGRAM FUND $67,315 $62,924 $70,623 $146,825 66 CAL RECYCLE GRANT $937 $0 $0 $0 73 ACTIVE TRANSPORTATION PRGRM FUND $0 $0 $3 $0 74 HIGHWAY SAFETY IMPROV PROGRAM $21,685 $442,564 $4,768 $44,000 75 EMER MGMT PREP GRANT (EMPG)$0 $0 $9,000 $0 77 SO CAL INCENTIVE PROJ (SCIP) GRANT $178,900 $0 $0 $0 SUCCESSOR AGENCY 31 S/A RDA REVENUE FUND $1,527,676 $0 $0 $0 32 S/A CAPITAL PROJECTS FUND $11,111 $388,132 $0 $0 33 S/A DEBT SERVICE FUND $918,551 $887,367 $296,825 $0 36 2011 TABS A & B BOND PROCEEDS $16,941,138 $0 $0 $0 CAPITAL PROJECT FUNDS 45 CIP - COMMERCE WAY $36,384 $65 $65 $839,594 46 CAPITAL IMPROVEMENTS - STREETS $139,986 $456,893 $0 $0 47 CAP.PRJ. BARTON/COLTON BRIDGE $2,650 $18,623 $4,500 $0 48 CAPITAL PROJECTS FUND $1,186 $0 $0 $0 49 CAPITAL PROJECTS FUND- PARKS $13,495 $37,495 $5,000 $1,804,606 52 HOUSING AUTHORITY $26,829 $21,734 $52,763 $32,789 95 DOG PARK ENDOWMENT FUND $0 $0 $0 $0 $27,199,153 $10,635,471 $8,341,943 $14,216,068 Cityof Grand Terrace FY 2022-23 Proposed Expenditure Summary by Fund F.5.b Packet Pg. 91 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) This page left intentionally blank. F.5.b Packet Pg. 92 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) City of Grand Terrace FY2022-23 Proposed Budget Revenue and Expense Summarized by Category F.5.b Packet Pg. 93 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) General Fund Development Impact Fees Special Revenue Funds Revenues Property Tax $2,078,595 $0 $57,325 Residual Receipts - RPTTF $2,402,700 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $635,000 $0 $0 Licenses, Fees & Permits $665,400 $103,000 $66,400 Sales Tax $1,125,400 $0 $300,000 Intergovernmental Revenue/Grants $60,500 $0 $1,972,080 Charges for Services $178,000 $3,000 $0 Fines & Forfeitures $68,300 $0 $4,500 Miscellaneous $36,710 $0 $0 Use of Money & Property $34,660 $4,200 $2,800 Waste Water Receipts $318,349 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $80,000 $0 $70,000 Gas Tax $0 $0 $367,300 Total Revenues $7,683,614 $110,200 $2,840,405 Expenditures Salaries $1,482,899 $0 $50,366 Benefits $1,356,069 $0 $25,879 Materials & Supplies $323,605 $0 $155,000 Professional/Contractual Services $4,250,568 $0 $2,906,500 Equipment $0 $0 $0 Lease of Facility/Equipment $12,000 $0 $0 Utilities $229,448 $0 $95,080 Capital Projects $0 $0 $240,000 Debt Service $0 $0 $0 Transfers Out $110,700 $0 $50,000 Overhead Cost Allocation ($81,950)$0 $81,950 Total Expenditures $7,683,339 $0 $3,604,776 Impact to Fund Balance Revenues $7,683,614 $110,200 $2,840,405 Expenditures $7,683,339 $0 $3,604,776 Net - Increase to or (Use of) Fund Balance $275 $110,200 ($764,371) City of Grand Terrace FY 2022-23 Proposed Revenue & Expense Report by Fund Type F.5.b Packet Pg. 94 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 21 52 Enterprise Fund Grant Funds Successor Agency Revenues Property Tax $0 $0 $0 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $0 $0 $0 Sales Tax $0 $0 $0 Intergovernmental Revenue/Grants $0 $243,105 $0 Charges for Services $0 $0 $0 Fines & Forfeitures $0 $0 $0 Miscellaneous $0 $3,000 $0 Use of Money & Property $4,000 $0 $0 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $10,700 $0 Gas Tax $0 $0 $0 Total Revenues $4,000 $256,805 $0 Expenditures Salaries $0 $45,441 $0 Benefits $0 $24,584 $0 Materials & Supplies $0 $800 $0 Professional/Contractual Services $0 $79,140 $0 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $5,000 $0 Utilities $0 $0 $0 Capital Projects $0 $96,000 $0 Debt Service $0 $0 $0 Transfers Out $0 $0 $0 Overhead Cost Allocation $0 $0 $0 Total Expenditures $0 $250,965 $0 Impact to Fund Balance Revenues $4,000 $256,805 $0 Expenditures $0 $250,965 $0 Net - Increase to or (Use of) Fund Balance $4,000 $5,840 $0 City of Grand Terrace FY 2022-23 Proposed Revenue & Expense Report by Fund Type F.5.b Packet Pg. 95 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 70 Capital Project Funds Housing Authority TOTAL Revenues Property Tax $0 $0 $2,135,920 Residual Receipts - RPTTF $0 $0 $2,402,700 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $635,000 Licenses, Fees & Permits $0 $0 $834,800 Sales Tax $0 $0 $1,425,400 Intergovernmental Revenue/Grants $1,589,952 $65,000 $3,930,637 Charges for Services $0 $0 $181,000 Fines & Forfeitures $0 $0 $72,800 Miscellaneous $0 $0 $39,710 Use of Money & Property $0 $0 $45,660 Waste Water Receipts $0 $0 $318,349 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $160,700 Gas Tax $0 $0 $367,300 Total Revenues $1,589,952 $65,000 $12,549,976 Expenditures Salaries $0 $6,073 $1,584,779 Benefits $0 $2,500 $1,409,032 Materials & Supplies $0 $0 $479,405 Professional/Contractual Services $772,927 $24,036 $8,033,171 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $17,000 Utilities $0 $180 $324,708 Capital Projects $1,871,273 $0 $2,207,273 Debt Service $0 $0 $0 Transfers Out $0 $0 $160,700 Overhead Cost Allocation $0 $0 $0 Total Expenditures $2,644,200 $32,789 $14,216,068 Impact to Fund Balance Revenues $1,589,952 $65,000 $12,549,976 Expenditures $2,644,200 $32,789 $14,216,068 Net - Increase to or (Use of) Fund Balance ($1,054,248)$32,211 ($1,666,092) City of Grand Terrace FY 2022-23 Proposed Revenue & Expense Report by Fund Type F.5.b Packet Pg. 96 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) City of Grand Terrace FY2022-23 Proposed Budget Revenue and Expense Detailed by Category and Fund F.5.b Packet Pg. 97 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 10 61 62 General Fund Community Benefits Fund Light Up Grand Terrace Revenues Property Tax $2,078,595 $0 $0 Residual Receipts - RPTTF $2,402,700 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $635,000 $0 $0 Licenses, Fees & Permits $665,400 $0 $0 Sales Tax $1,125,400 $0 $0 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $60,500 $0 $0 Charges for Services $178,000 $0 $0 Fines & Forfeitures $66,300 $0 $0 Miscellaneous $26,710 $0 $0 Use of Money & Property $34,660 $0 $0 Waste Water Receipts $318,349 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $50,000 $20,000 $10,000 Total Revenues $7,641,614 $20,000 $10,000 Expenditures Salaries $1,482,899 $0 $0 Benefits $1,356,069 $0 $0 Materials & Supplies $323,605 $0 $0 Professional/Contractual Services $4,198,568 $20,000 $10,000 Equipment $0 $0 $0 Lease of Facility/Equipment $12,000 $0 $0 Utilities $229,448 $0 $0 Capital Projects $0 $0 $0 Debt Service $0 $0 $0 Transfers Out $110,700 $0 $0 Overhead Cost Allocation ($81,950)$0 $0 Total Expenditures $7,631,339 $20,000 $10,000 Impact to Fund Balance Revenues $7,641,614 $20,000 $10,000 Expenditures $7,631,339 $20,000 $10,000 Net - Increase to or (Use of) Fund Balance $10,275 $0 $0 GENERAL FUNDS City of Grand Terrace FY 2022-23 Proposed Revenue & Expense Report by Fund F.5.b Packet Pg. 98 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 63 64 68 GT Illegal Fireworks Enforcement Public Safety Fund 40th Year Birthday Celebration Fund Revenues Property Tax $0 $0 $0 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $0 $0 $0 Sales Tax $0 $0 $0 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $0 $0 $0 Charges for Services $0 $0 $0 Fines & Forfeitures $2,000 $0 $0 Miscellaneous $0 $0 $0 Use of Money & Property $0 $0 $0 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $0 Total Revenues $2,000 $0 $0 Expenditures Salaries $0 $0 $0 Benefits $0 $0 $0 Materials & Supplies $0 $0 $0 Professional/Contractual Services $2,000 $0 $0 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $0 Utilities $0 $0 $0 Capital Projects $0 $0 $0 Debt Service $0 $0 $0 Transfers Out $0 $0 $0 Overhead Cost Allocation $0 $0 $0 Total Expenditures $2,000 $0 $0 Impact to Fund Balance Revenues $2,000 $0 $0 Expenditures $2,000 $0 $0 Net - Increase to or (Use of) Fund Balance $0 $0 $0 GENERAL FUNDS City of Grand Terrace FY 2022-23 Proposed Revenue & Expense Report by Fund F.5.b Packet Pg. 99 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 69 70 Community Day Fund Equipment Replacement Reserve TOTAL Revenues Property Tax $0 $0 $2,078,595 Residual Receipts - RPTTF $0 $0 $2,402,700 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $635,000 Licenses, Fees & Permits $0 $0 $665,400 Sales Tax $0 $0 $1,125,400 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $0 $0 $60,500 Charges for Services $0 $0 $178,000 Fines & Forfeitures $0 $0 $68,300 Miscellaneous $10,000 $0 $36,710 Use of Money & Property $0 $0 $34,660 Waste Water Receipts $0 $0 $318,349 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $80,000 Total Revenues $10,000 $0 $7,683,614 Expenditures Salaries $0 $0 $1,482,899 Benefits $0 $0 $1,356,069 Materials & Supplies $0 $0 $323,605 Professional/Contractual Services $20,000 $0 $4,250,568 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $12,000 Utilities $0 $0 $229,448 Capital Projects $0 $0 $0 Debt Service $0 $0 $0 Transfers Out $0 $0 $110,700 Overhead Cost Allocation $0 $0 ($81,950) Total Expenditures $20,000 $0 $7,683,339 Impact to Fund Balance Revenues $10,000 $7,683,614 Expenditures $20,000 $7,683,339 Net - Increase to or (Use of) Fund Balance ($10,000)$275 GENERAL FUNDS City of Grand Terrace FY 2022-23 Proposed Revenue & Expense Report by Fund F.5.b Packet Pg. 100 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 11 12 13 Street Fund Storm Drain Fund Park Fund Revenues Property Tax $0 $0 $0 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $83,000 $0 $0 Sales Tax $0 $0 $0 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $0 $0 $0 Charges for Services $3,000 $0 $0 Fines & Forfeitures $0 $0 $0 Miscellaneous $0 $0 $0 Use of Money & Property $2,000 $800 $800 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $0 Total Revenues $88,000 $800 $800 Expenditures Salaries $0 $0 $0 Benefits $0 $0 $0 Materials & Supplies $0 $0 $0 Professional/Contractual Services $0 $0 $0 Equipment $0 $0 $0 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $0 Capital Projects $0 $0 $0 Debt Service $0 $0 $0 Transfers Out $0 $0 $0 Overhead Cost Allocation $0 $0 $0 Total Expenditures $0 $0 $0 Impact to Fund Balance Revenues $88,000 $800 $800 Expenditures $0 $0 $0 Net - Increase to or (Use of) Fund Balance $88,000 $800 $800 City of Grand Terrace FY 2022-23 Proposed Revenue & Expense Report by Fund DEVELOPMENT IMPACT FEES F.5.b Packet Pg. 101 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 19 Facilities Fund Total Revenues Property Tax $0 $0 Residual Receipts - RPTTF $0 $0 Proceeds from Sale of Property $0 $0 Franchise Fees $0 $0 Licenses, Fees & Permits $20,000 $103,000 Sales Tax $0 $0 Gas Tax $0 $0 Intergovernmental Revenue/Grants $0 $0 Charges for Services $0 $3,000 Fines & Forfeitures $0 $0 Miscellaneous $0 $0 Use of Money & Property $600 $4,200 Waste Water Receipts $0 $0 Residual Receipts - Sr Ctr $0 $0 Transfers In $0 $0 Total Revenues $20,600 $110,200 Expenditures Salaries $0 $0 Benefits $0 $0 Materials & Supplies $0 $0 Professional/Contractual Services $0 $0 Lease of Facility/Equipment $0 $0 Utilities $0 $0 Utilities $0 $0 Capital Projects $0 $0 Debt Service $0 $0 Transfers Out $0 $0 Overhead Cost Allocation $0 $0 Total Expenditures $0 $0 Impact to Fund Balance Revenues $20,600 $110,200 Expenditures $0 $0 Net - Increase to or (Use of) Fund Balance $20,600 $110,200 City of Grand Terrace FY 2022-23 Proposed Revenue & Expense Report by Fund DEVELOPMENT IMPACT FEES F.5.b Packet Pg. 102 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 14 15 16 Supplemental Law Enforcement Svcs Fund (SLESF) Air Quality Improvement Fund Gas Tax Fund Revenues Property Tax $0 $0 $0 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $0 $16,400 $0 Sales Tax $0 $0 $0 Gas Tax $0 $0 $367,300 Intergovernmental Revenue/Grants $165,000 $0 $0 Charges for Services $0 $0 $0 Fines & Forfeitures $0 $0 $0 Miscellaneous $0 $0 $0 Use of Money & Property $0 $0 $400 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $70,000 Total Revenues $165,000 $16,400 $437,700 Expenditures Salaries $0 $0 $50,366 Benefits $0 $0 $25,879 Materials & Supplies $0 $0 $5,000 Professional/Contractual Services $160,000 $0 $151,770 Equipment $0 $0 $0 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $82,000 Capital Projects $0 $0 $0 Debt Service $0 $0 $0 Transfers Out $0 $0 $0Overhead Cost Allocation $550 $0 $48,400 Total Expenditures $160,550 $0 $363,416 Impact to Fund Balance Revenues $165,000 $16,400 $437,700 Expenditures $160,550 $0 $363,416 Net - Increase to or (Use of) Fund Balance $4,450 $16,400 $74,285 SPECIAL REVENUE FUNDS City of Grand Terrace FY 2022-23 Proposed Revenue & Expense Report by Fund F.5.b Packet Pg. 103 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 17 20 25 Traffic Safety Fund Measure "I" Fund Spring Mountain Ranch Mitigation Fund Revenues Property Tax $0 $0 $0 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $0 $0 $50,000 Sales Tax $0 $300,000 $0 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $0 $0 $0 Charges for Services $0 $0 $0 Fines & Forfeitures $4,500 $0 $0 Miscellaneous $0 $0 $0 Use of Money & Property $0 $400 $2,000 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $0 Total Revenues $4,500 $300,400 $52,000 Expenditures Salaries $0 $0 $0 Benefits $0 $0 $0 Materials & Supplies $0 $0 $0 Professional/Contractual Services $4,000 $46,272 $0 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $0 Utilities $0 $0 $0 Capital Projects $0 $40,000 $0 Debt Service $0 $0 $0 Transfers Out $0 $0 $50,000 Overhead Cost Allocation $0 $33,000 $0 Total Expenditures $4,000 $119,272 $50,000 Impact to Fund Balance Revenues $4,500 $300,400 $52,000 Expenditures $4,000 $119,272 $50,000 Net - Increase to or (Use of) Fund Balance $500 $181,128 $2,000 SPECIAL REVENUE FUNDS City of Grand Terrace FY 2022-23 Proposed Revenue & Expense Report by Fund F.5.b Packet Pg. 104 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 26 67 76 Landscape & Lighting Assessment Dist Public, Educational & Gov't Access (PEG) Enhanced Infrastructure Fin Dist (EIFD) Revenues Property Tax $57,325 $0 $0 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $0 $0 $0 Sales Tax $0 $0 $0 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $0 $19,300 $0 Charges for Services $0 $0 $0 Fines & Forfeitures $0 $0 $0 Miscellaneous $0 $0 $0 Use of Money & Property $0 $0 $0 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $0 Total Revenues $57,325 $19,300 $0 Expenditures Salaries $0 $0 $0 Benefits $0 $0 $0 Materials & Supplies $0 $0 $0 Professional/Contractual Services $43,158 $19,300 $0 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $0 Utilities $13,080 $0 $0 Capital Projects $0 $0 $0 Debt Service $0 $0 $0 Transfers Out $0 $0 $0 Overhead Cost Allocation $0 $0 $0 Total Expenditures $56,238 $19,300 $0 Impact to Fund Balance Revenues $57,325 $19,300 $0 Expenditures $56,238 $19,300 $0 Net - Increase to or (Use of) Fund Balance $1,087 $0 $0 SPECIAL REVENUE FUNDS City of Grand Terrace FY 2022-23 Proposed Revenue & Expense Report by Fund F.5.b Packet Pg. 105 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 56 94 RMRA Fund ARPA Fund TOTAL Revenues Property Tax $0 $0 $57,325 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $0 $0 $66,400 Sales Tax $0 $0 $300,000 Gas Tax $0 $0 $367,300 Intergovernmental Revenue/Grants $282,600 $1,505,180 $1,972,080 Charges for Services $0 $0 $0 Fines & Forfeitures $0 $0 $4,500 Miscellaneous $0 $0 $0 Use of Money & Property $0 $0 $2,800 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $70,000 Total Revenues $282,600 $1,505,180 $2,840,405 Expenditures Salaries $0 $0 $50,366 Benefits $0 $0 $25,879 Materials & Supplies $0 $150,000 $155,000 Professional/Contractual Services $0 $2,482,000 $2,906,500 Equipment $0 $0 $0 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $95,080 Capital Projects $0 $200,000 $240,000 Debt Service $0 $0 $0 Transfers Out $0 $0 $50,000 Overhead Cost Allocation $0 $0 $81,950 Total Expenditures $0 $2,832,000 $3,604,776 Impact to Fund Balance Revenues $282,600 $1,505,180 $2,840,405 Expenditures $0 $2,832,000 $3,604,776 Net - Increase to or (Use of) Fund Balance $282,600 ($1,326,820)($764,371) SPECIAL REVENUE FUNDS City of Grand Terrace FY 2022-23 Proposed Revenue & Expense Report by Fund F.5.b Packet Pg. 106 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 21 Waste Water Disposal Fund TOTAL Revenues Property Tax $0 $0 Residual Receipts - RPTTF $0 $0 Proceeds from Sale of Property $0 $0 Franchise Fees $0 $0 Licenses, Fees & Permits $0 $0 Sales Tax $0 $0 Gas Tax $0 $0 Intergovernmental Revenue/Grants $0 $0 Charges for Services $0 $0 Fines & Forfeitures $0 $0 Miscellaneous $0 $0 Use of Money & Property $4,000 $4,000 Waste Water Receipts $0 $0 Residual Receipts - Sr Ctr $0 $0 Transfers In $0 $0 Total Revenues $4,000 $4,000 Expenditures Salaries $0 $0 Benefits $0 $0 Materials & Supplies $0 $0 Professional/Contractual Services $0 $0 Equipment $0 $0 Lease of Facility/Equipment $0 $0 Utilities $0 $0 Capital Projects $0 $0 Debt Service $0 $0 Transfers Out $0 $0 Overhead Cost Allocation $0 $0 Total Expenditures $0 $0 Impact to Fund Balance Revenues $4,000 $4,000 Expenditures $0 $0 Net - Increase to or (Use of) Fund Balance $4,000 $4,000 City of Grand Terrace FY 2022-23 Proposed Revenue & Expense Report by Fund ENTERPRISE FUND F.5.b Packet Pg. 107 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) This page left intentionally blank. F.5.b Packet Pg. 108 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 22 65 66 Community Dev Block Grant (CDBG) Senior Bus Program Cal Recycle Grant Revenues Property Tax $0 $0 $0 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $0 $0 $0 Sales Tax $0 $0 $0 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $60,140 $138,965 $0 Charges for Services $0 $0 $0 Fines & Forfeitures $0 $0 $0 Miscellaneous $0 $3,000 $0 Use of Money & Property $0 $0 $0 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $10,700 $0 Total Revenues $60,140 $152,665 $0 Expenditures Salaries $0 $45,441 $0 Benefits $0 $24,584 $0 Materials & Supplies $0 $800 $0 Professional/Contractual Services $60,140 $19,000 $0 Equipment $0 $0 $0 Lease of Facility/Equipment $0 $5,000 $0 Utilities $0 $0 $0 Capital Projects $0 $52,000 $0 Debt Service $0 $0 $0 Transfers Out $0 $0 $0 Overhead Cost Allocation $0 $0 $0 Total Expenditures $60,140 $146,825 $0 Impact to Fund Balance Revenues $60,140 $152,665 $0 Expenditures $60,140 $146,825 $0 Net - Increase to or (Use of) Fund Balance $0 $5,840 $0 GRANT FUNDS City of Grand Terrace FY 2022-23 Proposed Revenue & Expense Summary by Fund Category F.5.b Packet Pg. 109 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 73 74 92 Active Transportation Program (ATP) Highway Safety Improv Program (HSIP) Community Dev Block Grant - COVID 19 (CDBG) Revenues Revenues Property Tax $0 $0 $0 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $0 $0 $0 Sales Tax $0 $0 $0 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $0 $44,000 $0 Charges for Services $0 $0 $0 Fines & Forfeitures $0 $0 $0 Miscellaneous $0 $0 $0 Use of Money & Property $0 $0 $0 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $0 Total Revenues $0 $44,000 $0 Expenditures Expenditures Salaries $0 $0 $0 Benefits $0 $0 $0 Materials & Supplies $0 $0 $0 Professional/Contractual Services $0 $0 $0 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $0 Utilities $0 $0 $0 Capital Projects $0 $44,000 $0 Debt Service $0 $0 $0 Transfers Out $0 $0 $0 Overhead Cost Allocation $0 $0 $0 Total Expenditures $0 $44,000 $0 Impact to Fund Balance Impact to Fund Balance Revenues $0 $44,000 $0 Expenditures $0 $44,000 $0 Net - Increase to or (Use of) Fund Balance $0 $0 $0 GRANT FUNDS GRANT FUNDS City of Grand Terrace City of Grand Terrace FY 2022-23 Proposed Revenue & Expense Summary by Fund Category FY 2022-23 Proposed Revenue & Expense Summary by Fund Category F.5.b Packet Pg. 110 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 77 So. Cal Incentive Project (SCIP) TOTAL Revenues Property Tax $0 $0 Residual Receipts - RPTTF $0 $0 Proceeds from Sale of Property $0 $0 Franchise Fees $0 $0 Licenses, Fees & Permits $0 $0 Sales Tax $0 $0 Gas Tax $0 $0 Intergovernmental Revenue/Grants $0 $243,105 Charges for Services $0 $0 Fines & Forfeitures $0 $0 Miscellaneous $0 $3,000 Use of Money & Property $0 $0 Waste Water Receipts $0 $0 Residual Receipts - Sr Ctr $0 $0 Transfers In $0 $10,700 Total Revenues $0 $256,805 Expenditures Salaries $0 $45,441 Benefits $0 $24,584 Materials & Supplies $0 $800 Professional/Contractual Services $0 $79,140 Equipment $0 $0 Lease of Facility/Equipment $0 $5,000 Utilities $0 $0 Capital Projects $0 $96,000 Debt Service $0 $0 Transfers Out $0 $0 Overhead Cost Allocation $0 $0 Total Expenditures $0 $250,965 Impact to Fund Balance Revenues $0 $256,805 Expenditures $0 $250,965 Net - Increase to or (Use of) Fund Balance $0 $5,840 GRANT FUNDS City of Grand Terrace FY 2022-23 Proposed Revenue & Expense Summary by Fund Category F.5.b Packet Pg. 111 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) This page left intentionally blank. F.5.b Packet Pg. 112 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 45 46 47 Capital Improvements - Commerce Way Capital Improvements - Streets Capital Projects Barton-Colton Bridge Revenues Property Tax $0 $0 $0 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $0 $0 $0 Sales Tax $0 $0 $0 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $0 $0 $0 Charges for Services $0 $0 $0 Fines & Forfeitures $0 $0 $0 Miscellaneous $0 $0 $0 Use of Money & Property $0 $0 $0 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $0 Total Revenues $0 $0 $0 Expenditures Salaries $0 $0 $0 Benefits $0 $0 $0 Materials & Supplies $0 $0 $0 Professional/Contractual Services $772,927 $0 $0 Equipment $0 $0 $0 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $0 Capital Projects $66,667 $0 $0 Debt Service $0 $0 $0 Transfers Out $0 $0 $0 Overhead Cost Allocation $0 $0 $0 Total Expenditures $839,594 $0 $0 Impact to Fund Balance Revenues $0 $0 $0 Expenditures $839,594 $0 $0 Net - Increase to or (Use of) Fund Balance ($839,594)$0 $0 City of Grand Terrace FY 2022-23 Proposed Revenue & Expense Report Fund CAPITAL PROJECT FUNDS F.5.b Packet Pg. 113 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 48 49 Capital Projects Fund Capital Projects Fund - Parks Total Revenues Property Tax $0 $0 $0 Residual Receipts - RPTTF $0 $0 $0 Proceeds from Sale of Property $0 $0 $0 Franchise Fees $0 $0 $0 Licenses, Fees & Permits $0 $0 $0 Sales Tax $0 $0 $0 Gas Tax $0 $0 $0 Intergovernmental Revenue/Grants $0 $1,589,952 $1,589,952 Charges for Services $0 $0 $0 Fines & Forfeitures $0 $0 $0 Miscellaneous $0 $0 $0 Use of Money & Property $0 $0 $0 Waste Water Receipts $0 $0 $0 Residual Receipts - Sr Ctr $0 $0 $0 Transfers In $0 $0 $0 Total Revenues $0 $1,589,952 $1,589,952 Expenditures Salaries $0 $0 $0 Benefits $0 $0 $0 Materials & Supplies $0 $0 $0 Professional/Contractual Services $0 $0 $772,927 Lease of Facility/Equipment $0 $0 $0 Utilities $0 $0 $0 Utilities $0 $0 $0 Capital Projects $0 $1,804,606 $1,871,273 Debt Service $0 $0 $0 Transfers Out $0 $0 $0 Overhead Cost Allocation $0 $0 $0 Total Expenditures $0 $1,804,606 $2,644,200 Impact to Fund Balance Revenues $0 $1,589,952 $1,589,952 Expenditures $0 $1,804,606 $2,644,200 Net - Increase to or (Use of) Fund Balance $0 ($214,654)($1,054,248) City of Grand Terrace FY 2022-23 Proposed Revenue & Expense Report Fund CAPITAL PROJECT FUNDS F.5.b Packet Pg. 114 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) 52 Housing Authority TOTAL Revenues Property Tax $0 $0 Residual Receipts - RPTTF $0 $0 Proceeds from Sale of Property $0 $0 Franchise Fees $0 $0 Licenses, Fees & Permits $0 $0 Sales Tax $0 $0 Gas Tax $0 $0 Intergovernmental Revenue/Grants $65,000 $65,000 Charges for Services $0 $0 Fines & Forfeitures $0 $0 Miscellaneous $0 $0 Use of Money & Property $0 $0 Waste Water Receipts $0 $0 Residual Receipts - Sr Ctr $0 $0 Transfers In $0 $0 Total Revenues $65,000 $65,000 Expenditures Salaries $6,073 $6,073 Benefits $2,500 $2,500 Materials & Supplies $0 $0 Professional/Contractual Services $24,036 $24,036 Equipment $0 $0 Lease of Facility/Equipment $0 $0 Utilities $180 $180 Capital Projects $0 $0 Debt Service $0 $0 Transfers Out $0 $0 Overhead Cost Allocation $0 $0 Total Expenditures $32,789 $32,789 Impact to Fund Balance Revenues $65,000 $65,000 Expenditures $32,789 $32,789 Net - Increase to or (Use of) Fund Balance $32,211 $32,211 City of Grand Terrace FY 2022-23 Proposed Revenue & Expense Report by Fund HOUSING AUTHORITY F.5.b Packet Pg. 115 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) This page left intentionally blank. F.5.b Packet Pg. 116 At t a c h m e n t : A t t a c h e d m e n t A t o F Y 2 0 2 2 - 2 3 R e s o l u t i o n s ( A d o p t i o n o f t h e F i s c a l Y e a r 2 0 2 2 - 2 3 B u d g e t ) AGENDA REPORT MEETING DATE: June 14, 2022 Council Item TITLE: Revised Special Events Ordinance PRESENTED BY: Konrad Bolowich, City Manager RECOMMENDATION: That the City Council rescind the existing Grand Terrace Municipal Code (GTMC) 8.50 Special Events and adopt the revised code to the Grand Terrace Municipal Code (GTMC) 8.50 2030 VISION STATEMENT: This staff report supports Goal #4, Develop and Implement Successful Partnerships by Working Collaboratively with Community Groups. BACKGROUND: The Grand Terrace Municipal Code (GTMC) currently addresses the issue of special events in Chapter 8.50 which was adopted in 1997. The structure of the ordinance addresses Aerial Displays, Street Events and Special Events. The Special Events section treats all types of events in a similar nature. Larger community wide events such as a circus or a commercial carnival with rides are treated the same as smaller events with only localized impacts. All events have long lead times for application. All events require extensive documentation and background checks. Several portions of the existing ordinance contradict current First Amendment statutes. The existing ordinance does not adequately address food preparation and sales. DISCUSSION: The intent of the revision is to maintain the ability for the community to enjoy special events. The proposed language clearly defines the criteria for events and ties these criteria to impacts on life, safety, and quality of life in the community. The revisions also provide an avenue for smaller events to be permitted in a more reasonable and expeditious manner while also addressing site capacity issues for larger events The revised ordinance addresses a broader spectrum of events providing appropriate guidance for the different types of events while preserving First Amendment rights. The ordinance also addresses food preparation and sales relative to the event, allowing such activities that enhance community involvement while balancing health safety and community needs. ENVIRONMENTAL IMPACT G.6 Packet Pg. 117 This project is exempt from CEQA. FISCAL IMPACT: None. ATTACHMENTS: • Ordinance No. XXX - Comprehensive Special events Ordinance Update rev 6-8 (PDF) APPROVALS: Konrad Bolowich Completed 06/08/2022 3:52 PM Finance Completed 06/08/2022 3:52 PM City Manager Completed 06/08/2022 3:53 PM City Council Pending 06/14/2022 6:00 PM G.6 Packet Pg. 118 01247.0001/786274.13 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, REPEALING AND REPLACING CHAPTER 8.50 (SPECIAL EVENTS) OF TITLE 8 (HEALTH & SAFETY) OF THE GRAND TERRACE MUNICIPAL CODE, WHICH UPDATES THE CITY’S SPECIAL EVENT REGULATIONS. WHEREAS, the City Council of the City of Grand Terrace recognizes the substantial community benefit that may result from community events, which can provide cultural enrichment and economic vitality and can enhance community identity. WHEREAS, the sale of food and/or beverages at community events can impact public health, safety, and welfare of event patrons, residents and other visitors, such as impacts relating to traffic, food safety, sanitation, and overcrowding. WHEREAS, the City Council wishes to update the City’s coordinated processes for managing community events to ensure the public health, safety, and welfare of event patrons, residents and other visitors, and to provide for fees and procedures required to administer the permit process. WHEREAS, with this ordinance, the City Council does not intend to change the rules for ordinary use of public property. NOW THEREFORE, THE CITY COUNCIL OF THE CITY GRAND TERRACE DOES ORDAIN AS FOLLOWS: SECTION 1. The facts set forth in the Recitals of this Ordinance are true and correct, and incorporated herein. SECTION 2. Chapter 8.50 (Special Events) of Title 5 (Health & Safety) is repealed and replaced as follows: “Chapter 8.50 - SPECIAL EVENTS 8.50.010 Title. This chapter shall be known as the Special Events Ordinance. 8.50.020 Purpose. A. It is the purpose of this chapter to provide for the issuance of Special Event Permits to regulate large, organized events on the public streets and public property of the City; on private property to the extent that such events have a significant impact on neighboring properties and/or public property; and to provide for fees, charges, and procedures required to administer the permit process. This ordinance shall not be interpreted to require picnics and impromptu G.6.a Packet Pg. 119 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 2 of 17 gatherings at public parks or private properties to obtain a permit. Large groups who wish to reserve specific areas in public parks may do so through such City department as may be designated by the City Manager of the City. B. It is further the purpose of this chapter to provide for expedited procedures for Free Speech Special Events, while also providing for the protection and preservation of public spaces and public resources. 8.50.030 Definitions. The following words and phrases when used in this chapter shall mean: “Amplified sound” means music or speech projected or transmitted by electronic equipment, including, but not limited to, an amplifier, loudspeakers, or similar devices. “Annual event” means an event recurring each year at approximately the same date. “Applicant” means the event sponsor or the sponsor’s authorized agent who completes the permit application and acts as primary contact for a Special Event. “City-partnered event” means an event organized and run by a non-profit organization in conjunction with the City, where the City provides sponsorship or partnership and retains control over how the event(s) is run and/or publicized. “City-run event” means an event organized and run by the City. “City Manager” means the City Manager of the City of Grand Terrace, and shall include his/her designee. “Director” means the Director of the City’s Community Development Department or such other person as the City Manager may designate. “Event Participants” means persons in attendance at an event, including spectators, vendors, event staff, City staff, and all others present for the purpose of the event. Any persons in attendance at an event for the purpose of protesting the event shall not be considered Event Participants. “Fair/carnival” means a traveling enterprise offering amusements, or a gathering of buyers and sellers, held at a temporary location for one or more days. G.6.a Packet Pg. 120 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 3 of 17 “Free speech” means speech and expressive conduct protected by the First Amendment of the United States Constitution or by Article 1, Section 2 of the California Constitution. “Free Speech Special Event” means an event at which the expression of free speech rights is the principal purpose of the event, and that satisfies one or more of the following: (i) the event is covered by Section 8.50.080; (ii) the event requires the use of amplified sound; (iii) the event may interfere with traffic or obstruct ingress or egress to a property or structure; or (iv) the event will use any structure or equipment that requires a health & safety inspection. Examples of Free Speech Special Events include, but are not limited to: a protest, speech, or rally that requires traffic control; individual street performers. “Indigent person” means: (1) a person who is receiving benefits pursuant to the Supplemental Security Income (SSI) and State Supplemental Payments (SSP) programs (Sections 12200 to 12205, inclusive, of the California Welfare and Institutions Code), the California Work Opportunity and Responsibility to Kids Act (CalWORKs) program (Chapter 2, commencing with Section 11200 of Part 3 of Division 9 of the California Welfare and Institutions Code), the Food Stamp program (7 U.S.C. Section 2011 et seq.) or Section 17000 of the Welfare and Institutions Code; (2) a person whose monthly income is 125% or less of the current monthly poverty line annually established by the Secretary of Health and Human Services pursuant to the Omnibus Budget Reconciliation Act of 1981, as amended. “Mixed Free Speech Special Event“ means an event that has both a free speech component and a commercial component, or that is open to the public for entertainment or cultural purposes; Mixed Free Speech Special Events are not dependent on current events and require time and logistical support to organize and include, but are not limited to: (i) a circus; (ii) outdoor theater; (iii) an art fair. “Parade” means a public procession, typically celebrating a special day or event and including marching bands and floats, in the public right-of-way. “Race/run” means an organized competitive event upon a public street, sidewalk, walkway, or other publicly owned property including City parks, in which persons participate by walking, running, riding a bicycle or horse, or operating a wheelchair. “Recurring event” means an event that will occur repeatedly within a one- year period. “Special Event” includes, but is not limited to, any of the following one-time or recurring or annual events: (i) A commercial event (e.g., a fair, carnival, farmers market). G.6.a Packet Pg. 121 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 4 of 17 (ii) A spectator sport (e.g., volleyball, hockey, basketball, baseball, soccer). (iii) Any organized athletic event (e.g., races, runs, soccer games, baseball games). (iv) A community event (e.g., park clean-up, a hike, or nature walk). (iv) Parades. (v) Any Mixed Free Speech Special Event. (vi) Any event covered by Section 8.50.040. (vii) Any event that: (a) will use amplified sound, (b) may interfere with traffic, ingress, or egress; or (c) will use structures or equipment that require health & safety inspections. “Sponsor” means the person or group responsible for or organizing the Special Event. “Spontaneous Event” means a Free Speech Event occasioned by news or events coming into public knowledge 4 business days or fewer prior to such event. “Transportation management/parking plan” means a plan developed by the special event sponsor to identify and mitigate traffic/parking impacts associated with a special event. 8.50.040 Special Event Permit required. A. Special Events 1. Special Events on public property or private property require a Special Event Permit, pursuant to Sections 8.50.060 and 8.50.070, when any of the following applies: a. where the anticipated attendance exceeds the occupancy limits (e.g., as determined by a certificate of occupancy) of a public property. The occupancy limits of City-owned properties shall be available for review at City Hall; b. where the Special Event has public health and safety impacts (including, but not limited to, impacts relating to health and sanitation) that G.6.a Packet Pg. 122 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 5 of 17 are greater than what the underlying infrastructure of the subject site can accommodate; c. where the underlying approved or conditionally approved use for a property does not include Special Events; d. The proposed Special Event requires any permit to be issued by any other governmental agency, such as a building permit, fire safety permit, or health permit; e. where the proposed Special Event may impede, obstruct, impair, or interfere with the free use of any public street, highway, alley, sidewalk, or other public right-of-way, or with ingress or egress to the same; or f. where the proposed Special Event requires the use of any public street, highway, alley, sidewalk, or other public right-of-way. 2. No food or beverages may be sold at any Special Event except in the following circumstances: a. nonprofit or educational events; b. an event in which food is an integral part of the event, such as food fairs, farmers’ markets, a fairs or carnivals, or other similar events; c. the location of the Special Event provides an area for the sale of food, beverages, and/or merchandise, such as a concession stand, snack bar, food court, or other similar areas; d. where Vehicle Code Section 22455 is applicable; e. where Chapter 9.05 is applicable; or f. when sale of food and/or beverages is otherwise permitted pursuant to applicable law. B. Free Speech Special Events on public property require a Free Speech Special Event Permit pursuant to and shall be subject to the alternative permitting provisions of Section 8.50.080. G.6.a Packet Pg. 123 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 6 of 17 8.50.050 Exemptions and waivers. A. City-run events and City-partnered events do not require Special Event Permits. B. Permits for nonprofit or educational events, may be subject to reduced or waived fees, as determined by City Council resolution. 8.50.060 Special Event Permit application. A. Special Event Permit Application Required. An application must be submitted to the City by the Special Event Sponsor along with an application fee and an administrative review fee (if applicable) in the amounts established by City Council resolution. An Indigent Person who is unable to pay the application fee due to such indigence may not be required to pay the fee in accordance with administrative regulations or guidelines adopted pursuant to this chapter. Application for indigent status shall be made at the time of submission of the permit application and shall be accompanied by such relevant information and documentation as may, in the opinion of the Director, be reasonably necessary to verify such status. B. Application Form and Contents. An application for a Special Event Permit shall be on a City form and signed by the Applicant who is at least 18 years of age, and contain all of the following information: 1. The name, address, email address, mailing address, and daytime telephone number of each of the following: a. The Applicant and the Sponsor, if different from the Applicant (also include evening telephone number), b. An alternate person to contact if an emergency arises and the Applicant is unavailable (also include evening telephone number), c. If applicable: the president, chair or other head of the sponsor organization; nonprofit documentation (also include written documentation of the authority under which the Applicant is applying on behalf of the organization), and G.6.a Packet Pg. 124 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 7 of 17 d. The person who will be present and in charge of the event on the day of the event and their contact information during the event. 2. The requested event date, including the dates and times for set-up and clean-up, and the starting and finishing time of the event. Also include two alternative dates. 3. The estimated number of Event Participants and the estimated number of Special Event employees and/or volunteers 4. A site plan identifying the proposed event and staging locations, including specific street closures or street routes, if any, or park area requested and parking areas. 5. A site map showing emergency exit routes. 6. Any City equipment or personnel requested. 7. A description of the planned event. 8. A description of how the event will be promoted and any prior history of promotions for similar events, including references. 9. The proposed distribution or, if permitted pursuant to Section 8.50.040(A)(2), sale of any food or beverage, including alcoholic beverages. If alcoholic beverages are included, provide all applicable licenses and registrations allowing the sale of alcoholic beverages at the event. All such distribution or sale of any food or beverages shall comply with all applicable law. 10. The type and estimated number of vehicles, animals, or structures that will be used. 11. A description and location of any sound amplification equipment proposed to be used. 12. The location of electrical generators, stages, tents, canopies, cooking apparatus and lights. 13. The location of mechanical rides, jump houses, or other amusement attractions. 14. The location of any water, first aid, or comfort station(s) to be provided. G.6.a Packet Pg. 125 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 8 of 17 15. For each application for a Parade: (i) the time when the units of the Parade will begin to assemble, (ii) the proposed assembly point for the Parade, (iii) the proposed Parade route, (iv) the interval space to be maintained between units of the Parade, and (v) the number, type and size of floats or other vehicles. 16. For a commercial or Mixed Free Speech event, a layout showing the locations of booths, stages, audience, tables and chairs, food court, portable bathrooms, emergency exits (as applicable). 17. A preliminary security plan and any monitors to be employed during the event. 18. Any other information which the Director reasonably requires to evaluate the particular Special Event Permit application. In addition, the Director can waive application requirements that the Director determines are inapplicable. 19. A parking and transportation plan as deemed necessary by the Director, based on the anticipated number of Event Participants and the availability of parking at the proposed location. 20. For Recurring Events, the Applicant shall also include the following information: i. The frequency of the proposed recurring event, including if available a schedule with proposed dates and times. Proposed schedules may be submitted as soon as available, but no later than 15 days prior to the start of the events. ii. The minimum and maximum number of anticipated Event Participants for each event. 21. If a Special Event primarily caters to children, then the Director may require that the Applicant conduct and submit background checks for all Special Event staff. 8.50.070 Processing of Special Event Permit applications. Special Event Permits will be processed based on the following: A. Submission timelines. G.6.a Packet Pg. 126 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 9 of 17 1. Special Events. An application for a Special Event Permit shall be filed at least 30 days prior to the date of a proposed Special Event with anticipated attendance of 50 or fewer Event Participants, and at least 60 days prior to the date of a proposed Special Event with anticipated attendance of greater than 50 Event Participants. 2. Hikes and nature walks. Notwithstanding anything to the contrary in Subsection A.1, above, Special Event Permit applications for hikes and nature walks in any of the City’s trails may be submitted 15 days prior to the proposed event. 3. Recurring Special Event Permits. Notwithstanding anything to the contrary in Subsection A.1, above, a Special Event Permit application for recurring events must be submitted no later than 60 days prior to the start of the Recurring Special Events. These permits shall only authorize the same type of recurring event during the year, and is not intended to be a blanket event permit for the Applicant or Sponsor. 4. Requested dates and times at specific locations on public property shall be reserved on a first come first served basis. If the date or time requested is not available, the Director shall inform the Applicant within 5 business days and shall suggest alternative dates and times. Applications for events occurring more than 12 months from the date of the application shall not be accepted. B. The Director shall meet with the Applicant or Sponsor to review the application to determine whether additional information is required and discuss applicable conditions and potential fees and costs. In reviewing the application, the Director shall consult with such other City departments and outside local agencies as the Director determines to be appropriate. C. The Director shall make a decision on the application, set any conditions and fees, and issue the permit. For Special Events with anticipated attendance of at least 50 Event Participants, a decision on the Special Event Permit shall be made by the Director no later than 15 calendar days following the submission of a completed application. For Special Events with anticipated attendance over 50 Event Participants, a decision on the Special Event Permit shall be made by the Director no later than 30 days following submission of a completed application. G.6.a Packet Pg. 127 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 10 of 17 D. In deciding whether to approve, or approve with conditions, the Director shall make each of the following findings: 1. The Special Event, as proposed, does not pose a threat to health and safety. 2. The use of sheriff and/or fire resources to support the event will not deny reasonable sheriff and fire protection to the City. 3. The Special Event will not adversely interfere with previously City-approved and/or scheduled construction, maintenance or other activities. 4. The Special Event will not adversely impact the health or safety of surrounding properties; or the impacts can be significantly mitigated by way of reasonable permit conditions. Adverse impacts include, but are not limited to, noise, traffic, parking, trash, and damage to public property, infrastructure, or facilities. 5. There will be negligible adverse impact on the condition of parks and open space areas; proposed mitigation by the event Sponsor will be considered. 6. The Special Event shall not adversely impede the public’s reasonable use of City streets, sidewalks, walkways, trails, and City parks. E. Conditions. 1. The Director may include in a Special Event Permit reasonable terms or conditions as to the time, place, and manner of the Special Event, notice requirements, compliance with health and sanitary regulations, public health and safety requirements, emergency services requirements, security payment of the Special Event Permit fee, reimbursement of direct expenses incurred by the City, and a clean-up/damage deposit. 2. Additional permits or security fees may be required by other state or federal agencies or federal, state, or local laws. 3. In order to accommodate other concurrent events, the rights of abutting owners and the needs of the public to use streets or parks, the conditions may include, but not be limited to, reasonable adjustments in the date, time, G.6.a Packet Pg. 128 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 11 of 17 route or location of the proposed event; accommodations of pedestrian or vehicular traffic using the street; accommodations of public access to City parks and the City’s trails; and limitations on the duration of the event. 4. If applicable, conditions relating to the use of amplified sound to minimize the interference with the quiet enjoyment of neighboring properties. 5. If applicable, conditions relating to maintaining the public property in the same or better condition after the Special Event. Conditions may address collection of trash, access to rest facilities, prohibiting access to protected habitat, etc. 6. The Director may require a Special Event Permit Sponsor a deposit in an amount determined by the City to reimburse the City for the cost of repairs needed to public property because of the Special Event. F. Recurring Events. The Director may require a trial period before approving all planned events. In no case shall recurring events be authorized for more than one year at the time of application. G. An application for a Special Event Permit can be denied on any of the following grounds: 1. The Applicant is unable to comply with the reasonable terms or conditions as to the time, place, and manner of the Special Event, health and sanitary regulations, public health and safety regulations, and emergency services requirements that would be imposed upon the Special Event. 2. Applicant’s provision of false or misleading information; 3. Conflict with other planned events in the area; 4. Previous Special Event Permit violations by the Applicant or Sponsor; 5. Inability to make all the findings for approval set forth above; or 6. The public property location requested is not eligible for Special Events. G.6.a Packet Pg. 129 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 12 of 17 H. CEQA Review. The Director will designate a staff person knowledgeable in the California Environmental Quality Act to perform an environmental review of the proposed special event. I. Applicant’s Acceptance. The Applicant shall notify the Director in writing of their acceptance forthwith after written notice of the decision. Once the Applicant submits a written acceptance of the Director’s decision in a form required by the Director, the Special Event Permit shall be approved. 8.50.080 Free Speech Special Event Permit application. A. The following application procedures apply to a Free Speech Special Event only. Parades and Mixed Free Speech Events shall be subject to the Special Event Permit provisions of Section 8.50.040 through 8.50.070. B. A Free Speech Special Event requires a Free Speech Special Event Permit when: 1. The proposed event may impede, obstruct, impair or interfere with the free use of any public street, highway, alley, sidewalk, or other public right-of-way, or with ingress or egress to the same; or 2. The proposed event requires the use of any public street, highway, alley, sidewalk, or other public right-of-way; or 3. The anticipated attendance exceeds the occupancy limits (e.g., as determined by a certificate of occupancy) of a public property. The occupancy of City-owned properties can be reviewed at City Hall; or 4. The proposed event requires any permit to be issued by any other governmental agency, such as a building permit, fire safety permit, or health permit; or 5. Notwithstanding anything to the contrary in this chapter, Special Event Permits and Free Speech Special Event Permits are not required for Spontaneous Events. The Sponsor of a Spontaneous Event shall provide the Director with advance notification to the extent practicable, as well as the following information: the type of event; the date, time, and duration of the proposed event; the location of the event and/or route, including which public spaces or public right-of-ways may be obstructed or closed; and anticipated participation. G.6.a Packet Pg. 130 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 13 of 17 C. A Free Speech Special Event application shall include the following information: 1. A description of the proposed event; 2. The street or other public property and the specific area or areas thereof to be utilized in connection with the proposed event; 3. The manner in which the public property will be utilized; 4. The date or dates and the specific times of the proposed event, including set-up and tear-down; 5. The name, address and telephone number of the sponsor of the proposed event; 6. The name, address and telephone number of the person or persons to be contacted regarding the application or the permit; 7. Anticipated participation, including any animals that may be in attendance. D. Timing of application. The Applicant shall file a complete application for a Free Speech Special Event Permit with the Director as soon as possible, but no later than 5 business days before the proposed event. The Director shall review the Free Speech Special Event Permit application to establish reasonable conditions to address health and safety only, notification of the decision, and appeal from the decision. E. Director’s Decision. The Director shall render a decision in accordance with the findings set forth herein within two business days following the filing of the completed application. 1. The event, as proposed, will not pose a threat to health and safety; 2. The use of sheriff and/or fire protection resources to support the event will not deny reasonable sheriff and fire protection to the City; 3. The event will not interfere with previously City-approved and/or scheduled construction or maintenance, or with a previously permitted special event; 4. No consideration was given to the message of the event, G.6.a Packet Pg. 131 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 14 of 17 the content of speech, the identity or associational relationships of the Applicant, or to any assumptions or predictions as to the amount of hostility which may be aroused in the public by the content of the speech or message conveyed by the event. 5. The event is in compliance with the attendance and other limitations as provided in Section 8.50.040. 6. There will be minimal or no adverse impact on the condition of parks and open space areas, proposed measures to mitigate any adverse impacts shall be taken into consideration. F. Notification of Decision. The Director shall notify the Applicant in writing (and orally, if possible) of the decision, including a statement of the reasons for any conditions or the grounds for a denial. If a change in the time or location of the proposed event would allow approval of the application, the Director shall propose an alternative to the Applicant. Any conditions shall be directed G.. Free Speech Special Events will not be required to comply with any of the following as a condition of receiving a permit: 1. Any fee or charge required by the City. 2. Any insurance or proof of insurance covering the Free Speech Event, its organizers, or Event Participants, including the requirements of Section 8.50.150. 3. Any requirement of indemnification or agreement to hold harmless, including the requirements of Section 8.50.140. I. Appeal. Any decision relating to the issuance of a Free Speech Special Events Permit may be appealed to the City Manager. The appeal must be in writing and must be submitted to the City Manager’s Office within two business days of the Director’s decision. The City Manager shall decide the appeal within one business day. The City Manager’s decision shall be final. J. Judicial Review. Decisions regarding a Free Speech Special Event Permit are eligible for expedited judicial review pursuant to Section 1094.8 of the Code of Civil Procedure. G.6.a Packet Pg. 132 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 15 of 17 8.50.090 Administrative Regulations. The City Manager may establish administrative policies and procedures for the purpose of implementing this code as necessary. 8.50.100 Special Event Permit fees and charges. A. Special Event Permit fees and charges are established by resolution of the City Council. The application fee must be submitted with the application. Other costs for City services shall be invoiced to the Applicant no later than 10 calendar days after the expiration date of the permit. The Applicant shall pay all fees and charges within 30 calendar days of invoice otherwise late fees shall apply. B. In addition to the payment of any applicable non-refundable permit application fees, all Applicants or sponsors shall be responsible for paying for all City departmental, San Bernardino County Sheriff, or San Bernardino County Fire Protection District service charges incurred in connection with or due to the permittee’s activities under the permit. 8.50.110 Revocation. A Special Event Permit can be revoked by the Director for any of the following reasons: A. Failure to comply with any permitting requirements or conditions of approval; B. Knowingly providing false, misleading, or fraudulent information; C. Failing to pay required fees, charges, or deposits; D. Failing to agree to the indemnification provisions or failing to provide proof of insurance to the extent required; or E. The event materially changes after a permit has been approved. F. If the Applicant/Sponsor violates any applicable law in the preparation for or operation of the Special Event. 8.50.120 Enforcement. A. Violations of this chapter shall be charged to the Applicant and/or Sponsor of the event pursuant to Chapters 1.06 and 1.16 of this Code, as well as any other remedies available to the City G.6.a Packet Pg. 133 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 16 of 17 at law or equity. B. In addition to the penalties provided for in Chapters 1.06 and 1.16 of this Code, Sponsors, Applicants, or Event Participants of an event may be cited and/or ejected from the public property for violations of this chapter after notice and an opportunity to cure the violation. C. Notwithstanding any approval given pursuant to this chapter, any county sheriff, fire official or building official is granted the authority to stop or prevent any immediate threat to the public health or safety, including the right to issue a cease and desist order for all or any part of the Special Event or any Special Event. 8.50.130 Appeal. A. A decision regarding a Special Event Permit application may be appealed in writing to the City Manager within 10 calendar days of the Director’s decision for Special Events. B. The City Manager shall make a decision on the appeal within 10 calendar days of receipt of the appeal for Special Events. C. The decision of the City Manager shall be final, and is subject to judicial review pursuant to Section 1094.5 and 1094.6 of the Code of Civil Procedure. 8.50.140 Hold harmless. As a condition to the issuance of any permit under this chapter, the Applicant/Sponsor shall agree to defend, indemnify, and hold harmless the City, its elected and appointed officials, employees and agents, against losses and liabilities incurred from the conduct of the permittee, or its officers, employees, and agents, or claims or liabilities caused by, or arising out of any activities authorized by any such permit. 8.50.150 Insurance requirements for special events. The Applicant shall provide general liability insurance in the amount deemed reasonable by the city, naming the City, its elected and appointed officials, employees, and agents, as an additional insured. Limits of coverage will be determined by the City’s Risk Manager at the time of application. Certificates of insurance are to be submitted to the City for approval 14 calendar days prior to the day of the event. Acceptability of insurance is subject to approval by the City’s Risk Manager. This requirement does not apply to Free Speech Events.” G.6.a Packet Pg. 134 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 17 of 17 SECTION 3. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remainder of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional. SECTION 4. EFFECTIVE DATE. This ordinance shall be effective on the thirtieth (30th) day after the day of its adoption. SECTION 5. CERTIFICATION. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be posted in the manner required by law. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the ____ day of _______, 2022. _____________________________ Darcy McNaboe Mayor ATTEST: ____________________________ Debra Thomas City Clerk APPROVED AS TO FORM: ____________________________ Adrian R. Guerra City Attorney G.6.a Packet Pg. 135 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) AGENDA REPORT MEETING DATE: June 14, 2022 Council Item TITLE: Discussion Regarding the City's Unfunded Pension & OPEB Liabilities PRESENTED BY: Terry Shea, Interim Finance Director RECOMMENDATION: Receive direction for ways to address the City's unfunded Pension & OPEB Liabilities. 2030 VISION STATEMENT: This staff report supports Goal #1, Ensuring Fiscal Viability by addressing funding options to reduce pension and OPEB costs. BACKGROUND: The City of Grand Terrace has unfunded long-term liabilities for employee pension costs with CalPERS and Other Post-Employment Benefits (OPEB) for retiree health care benefits. We are looking for alternative ways to increase the funded ratio and reduce our annual costs for CalPERS and to fund the OPEB Plan. CalPERS is making the following changes which will directly affect the unfunded liability amounts and employer contributions, lowering the discount rate from 7% to 6.8% and shortening the amortization period for the UAL from 30 years to 20 years. Unfunded Pension Liability CalPERS For CalPERS, the City has three plans, Miscellaneous Plan, PEPRA Miscellaneous Plan, and the Miscellaneous Second Tier Plan. Per the CalPERS Actuarial Valuation dated June 30, 2020, the unfunded liability and funded ratio for each of the Plans is as follows: Misc.PEPRA Second Plan Plan Tier Plan Unfunded Accrued Liability 5,526,787$ 56,733$ 53,849$ Funded Ratio 67.70%88.50%91.20% June 30, 2020 Valuations The annual costs for each of the Plans is made up of the Normal Cost and the Unfunded Accrued Liability (UAL). For Fiscal Year 2022-23 those costs are as follows: G.7 Packet Pg. 136 Misc.PEPRA Second Plan Plan Tier Plan Total Normal Cost 7,731$ 47,544$ 31,938$ 87,213$ UAL Contribution 579,800 10,202 7,856 597,858 587,531$ 57,746$ 39,794$ 685,071$ The Normal Costs are based on the City’s payroll and are reasonable and within the City’s annual budget. We need to have a way to reduce the UAL payment or find an alternative way to fund it annually. I have attached Schedules for each of the Plans which shows the current amortization schedules and two alternative schedules based on a 15 Year and a 10 Year amortization schedule. For the Miscellaneous Plan with a 15-year amortization period there is an estimated savings of $606,245 and with a 10- year amortization period there is an estimated savings of $1,741,469. DISCUSSION: Reasons to Prefund • Greater expected rate of return (discount rate) which lowers your liabilities. • Investment flexibility with Section 115 Trust compared to restrictions on general fund investments (Govt. Code 53216). • Contributions into trust are “assets” that offset liabilities on the financial statements. • Can help with the City’s credit ratings. • OPEB assets are accessible for OPEB expenses at any time. • Prefunding has no downside other than market fluctuation (like pension). ALTERNATIVES: Additional Discretionary Employer Contributions CalPERS allows employers to make additional discretionary payments (ADPs) at any time and in any amount. These optional payments serve to reduce the UAL and future required contributions and can result in significant long-term savings. The ADPs can be used to stabilize annual contributions as a fixed dollar amount, percent of payroll or percent of revenue. The schedules as mentioned above are an example of how the ADPs reduce the City’s costs. IRS Section 115 Trust Governmental entities can establish an IRS Section 115 Trust, these are irrevocable and must be used for pension or OPEB obligations. A couple of the companies that G.7 Packet Pg. 137 provide the Section 115 Trusts have IRS Private Letter Rulings on their Plans. This would provide the City with an alternative to sending funds to CalPERS that will allow for greater local control over assets, investment by a professional fund management team selected and monitored by the City, with future excess contributions transferred to CalPERS at the City’s discretion to reduce the City’s Net Pension Liability. These programs can be established as a multiple employer trust so that public agencies regardless of size can join the program to receive the necessary economies of scale to keep administrative fees low and avoid any setup costs. The trust permits the City, under federal and state law, to invest in a more diversified array of investments to maximize investment returns long term. Funding Plans • Pension Obligation Bonds • Use one-time revenue sources • Lower the minimum General Fund Reserve level percentage • Contribute a certain percentage of any given year’s realized General Fund surplus • Annual appropriation in each year’s budget Unfunded Other Post Employment Benefit Plan The City’s OPEB Plan currently does not have any plan assets and is a pay as you go. We budget and make the retiree medical premiums each fiscal year. California Employers’ Retiree Benefit Trust Fund (CERBT) The CERBT is Section 115 trust fund dedicated to prefunding OPEB for all eligible California Public Agencies. By joining this trust fund, California public agencies can help finance future costs in a large part from investment earnings provided by CalPERS. Prefunding provides the following benefits: • Contribute to preserving a positive credit rating • Generate investment income from employer-controlled contributions to pay for future retiree benefits • Reduce future employer cash flow requirements and budget dependency with investment income • Reduce the OPEB Liability reported on the City’s annual financial statements • Having plan assets allows the use of a higher discount rate which in turns lowers G.7 Packet Pg. 138 the reported liability The money earned can be used on annual basis to make the retiree medical payments and can free up additional funds for the General Fund budget. FISCAL IMPACT: The fiscal impact is not known at this time. ATTACHMENTS: • Miscellaneous Plan (PDF) • PEPRA Miscellaneous Plan (PDF) • Miscellaneous Second Tier Plan (PDF) • FYE2021 GASB 75 RF OPEB Valuation_City of Grand Terrace (PDF) APPROVALS: Terry Shea Completed 06/03/2022 3:48 PM Finance Completed 06/06/2022 4:00 PM City Manager Completed 06/08/2022 3:57 PM City Council Pending 06/14/2022 6:00 PM G.7 Packet Pg. 139 G.7.a Packet Pg. 140 At t a c h m e n t : M i s c e l l a n e o u s P l a n ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) G.7.a Packet Pg. 141 At t a c h m e n t : M i s c e l l a n e o u s P l a n ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) G.7.a Packet Pg. 142 At t a c h m e n t : M i s c e l l a n e o u s P l a n ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) G.7.a Packet Pg. 143 At t a c h m e n t : M i s c e l l a n e o u s P l a n ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) G.7.a Packet Pg. 144 At t a c h m e n t : M i s c e l l a n e o u s P l a n ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) G.7.b Packet Pg. 145 At t a c h m e n t : P E P R A M i s c e l l a n e o u s P l a n ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) G.7.b Packet Pg. 146 At t a c h m e n t : P E P R A M i s c e l l a n e o u s P l a n ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) G.7.b Packet Pg. 147 At t a c h m e n t : P E P R A M i s c e l l a n e o u s P l a n ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) G.7.b Packet Pg. 148 At t a c h m e n t : P E P R A M i s c e l l a n e o u s P l a n ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) G.7.b Packet Pg. 149 At t a c h m e n t : P E P R A M i s c e l l a n e o u s P l a n ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) G.7.c Packet Pg. 150 At t a c h m e n t : M i s c e l l a n e o u s S e c o n d T i e r P l a n ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) G.7.c Packet Pg. 151 At t a c h m e n t : M i s c e l l a n e o u s S e c o n d T i e r P l a n ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) G.7.c Packet Pg. 152 At t a c h m e n t : M i s c e l l a n e o u s S e c o n d T i e r P l a n ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) G.7.c Packet Pg. 153 At t a c h m e n t : M i s c e l l a n e o u s S e c o n d T i e r P l a n ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) G.7.c Packet Pg. 154 At t a c h m e n t : M i s c e l l a n e o u s S e c o n d T i e r P l a n ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) Valuation Date: June 30, 2019 Measurement Date: June 30, 2021 Reporting Date: June 30, 2021 CITY OF GRAND TERRACE VAN IWAARDEN ASSOCIATES ONE HUNDRED SOUTH FIFTH STREET, SUITE 1900 MINNEAPOLIS, MN 55402 612.596.5960 toll free:888.596.5960 WWW.VANIWAARDEN.COM Actuarial Valuation of Other Postemployment Benefits (OPEB) November 17, 2021 Under GASB Statement No. 75 For Fiscal Year Ending June 30, 2021 G.7.d Packet Pg. 155 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) This page intentionally left blank G.7.d Packet Pg. 156 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) ................................. ..................................... ................................ ............................. ...................... ............... ................. .................................. ................................ .......... .................................. ................................. Basis for Calculations ................................ Summary of Plan Provisions and Actuarial Assumptions ..................... ...................................... ..................................19 Summary of Actuarial Methods Important Notices Glossary of Selected Terms 13 17 14 16 CITY OF GRAND TERRACE Actuarial Valuation of Other Postemployment Benefits (OPEB) for Fiscal 2021 1 Table of Contents Page Introduction and Summary Introduction and Certification 3 Notes to Financial Statements 4 Summary of Results Changes in Net OPEB Liability Sensitivity of the Net OPEB Liability Schedules of Required Supplementary Information 8 Schedule of Contributions 7 5 6Summary of Deferred Outflows and Deferred Inflows Significant Assumptions Used to Measure the Total OPEB Liability Schedule of Changes in Net OPEB Liability and Related Ratios 11Calculation of Interest Cost and Investment (Gain) or Loss for OPEB Expense 9 10 Supporting Calculations Calculation of OPEB Expense 12Schedule of Amortizations Projected Benefit Payments G.7.d Packet Pg. 157 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) Purposes of the valuation Significant dates Valuation date (census) Measurement date (assets and liabilities) Measurement period Reporting date (fiscal year end) ▪Obligations and funded status of the plan, Actuarial Valuation of Other Postemployment Benefits (OPEB) for Fiscal 2021 CITY OF GRAND TERRACE 1 Introduction and Certification This report includes OPEB financial reporting information determined under Governmental Accounting Standards Board Statement No.75 (GASB 75)for the City of Grand Terrace (the City). GASB 75 standardizes OPEB disclosure requirements and requires plans and employers to provide additional details about their OPEB obligations. The information to be disclosed includes: The valuation, measurement and reporting dates are: Changes from the prior valuation Changes to the plan provisions and actuarial assumptions reflected in this valuation are described towards the end of this report.The City has confirmed that there have been no significant changes in the plan provisions or census since the fiscal 2020 valuation. June 30, 2021 June 30, 2019 June 30, 2021 July 1, 2020 to June 30, 2021 A complete summary of the data, assumptions,methods,and plan provisions supporting this interim GASB 75 report can be found in the fiscal 2020 actuarial valuation report dated February 26, 2021. ▪The annual GASB 75 accounting expense, and ▪Other disclosure information. We have not made any adjustments for events occurring after the measurement date. The Important Notices section of this report discusses several considerations for this actuarial valuation and its results.We highly recommend that anyone relying on this valuation’s content read the Important Notices so they understand the limitations of actuarial results. The language of this report includes a number of technical terms which have special meanings. The glossary at the end of the report is provided to enhance understanding of these terms;many of them are defined there. G.7.d Packet Pg. 158 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) L/D/C/R:4/yq/gng/emk v.11/17/2021 November 17, 2021 The undersigned credentialed actuary is a consulting actuary for Van Iwaarden Associates,is a Member of the American Academy of Actuaries,and meets the Academy's Qualification Standards to render the actuarial opinion contained herein.I am available to answer questions on the material contained in the report or to provide explanations or further detail,as may be appropriate.I am not aware of any material direct or indirect financial interest or relationship that could create a conflict of interest or impair the objectivity of our work. Gina N. Ganab, ASA, EA, MAAA Consulting Actuary 2 Introduction and Certification (continued) CITY OF GRAND TERRACE Actuarial certification To the best of our knowledge,this report is complete and accurate and all costs and liabilities under the plan were determined in accordance with generally accepted actuarial principles and practices. Upon receipt of the valuation report,the City should notify us if you disagree with any information contained in the report or if you are aware of any information that would affect the results that has not been communicated to us. The report will be deemed final and acceptable to the City unless you immediately notify us otherwise. The actuarial assumptions and methods are the responsibility of the employer.We have reviewed the assumptions and believe that they are reasonable estimates of future plan experience, both individually and in the aggregate. The calculations reported herein are consistent with our understanding of GASB 75. Actuarial Valuation of Other Postemployment Benefits (OPEB) for Fiscal 2021 G.7.d Packet Pg. 159 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) 5. 242,567$ 194,631$ N/A¹ 1 The City does not currently calculate an ADC. D.Actuarially Determined Contribution (ADC)N/A¹ Liability Discount Rate CITY OF GRAND TERRACE Active employees electing coverage 18 Retirees waiving coverage Active employees waiving coverage 3 A. 1. 6/30/2019 Actuarial Valuation of Other Postemployment Benefits (OPEB) for Fiscal 2021 16 Summary of Results Participants eligible for OPEB 2. Valuation Date 2 0 0.0% Accounting Expense (see page 10) 2.45% Plan Fiduciary Net Position (assets) 1,700,064 3.1,964,307 C. 1.92% Net OPEB Liability (1. - 2.) 0.0%4.Funded Percent (2. / 1.) 3.Retirees electing coverage Fiscal Year Ending 2. 6/30/2020 1. 8 4. 44 1,700,064$ 6/30/2021 1,964,307$ Total Funded Status 5. B. Total OPEB Liability 0 $1,964 $1,700 $0 $0 $0 $500 $1,000 $1,500 $2,000 $2,500 Fiscal 2021 Fiscal 2020 Th o u s a n d s OPEB Liabilities and Assets ($1,000s) Total OPEB Liability Fiduciary Net Position G.7.d Packet Pg. 160 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) Changes for the year: Service cost Interest Changes of assumptions Changes of benefit terms Employee contributions Employer contributions² Net investment income Other additions Benefit payments² Administrative expense Other deductions Net changes 2 Benefit payments equal $27,789 explicit subsidy payments to retirees and $35,092 implicit subsidy costs incurred during the measurement period ending 6/30/2021. - 264,243 1 Due to the difference between expected and actual benefit payments during the measurement period ending 6/30/2021. 264,243 1,964,307$ - - - 62,881 - - 1,964,307$ - - - - -$ (62,881) - (62,881) - - - - - - (62,881) - - 136,171 - - 4CITY OF GRAND TERRACE Net OPEB Liability (c) = (a) - (b) 1,700,064$ -$ Changes in Net OPEB Liability Plan Fiduciary Net Position (b) Actuarial Valuation of Other Postemployment Benefits (OPEB) for Fiscal 2021 Increase (Decrease) for the Measurement Year Total OPEB Liability (a) 1,700,064$ Balance for fiscal year ending 6/30/2021 Balance for fiscal year ending 6/30/2020 Differences between expected and actual experience¹ 136,171 - - 147,070 (601) 44,484 - - 147,070 44,484 (601) G.7.d Packet Pg. 161 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) 1% decrease in Discount Rate (0.92%) Current Discount Rate (1.92%) 1% increase in Discount Rate (2.92%) 1% decrease in Trend Rates Current Trend Rates 1% increase in Trend Rates CITY OF GRAND TERRACE 5 Actuarial Valuation of Other Postemployment Benefits (OPEB) for Fiscal 2021 Sensitivity of the Net OPEB Liability to Changes in the Discount Rate Total OPEB Liability Plan Fiduciary Net Position Net OPEB Liability Sensitivity of the Net OPEB Liability to Changes in the Trend Rates (a)(b)(c) = (a) - (b) 2,264,992$ -$ 2,264,992$ 1,964,307 2,123,351 1,964,307 - 1,964,307 1,718,749 - 1,718,749 2,123,351 - 1,845,254$ -$ 1,964,307 - (a)(b) Total OPEB Liability Plan Fiduciary Net Position Net OPEB Liability (c) = (a) - (b) 1,845,254$ G.7.d Packet Pg. 162 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) Summary of Deferred Outflows/Inflows C. Net difference between projected and actual investment earnings D. Contributions between measurement date and reporting date E. Total Future recognition Actuarial Valuation of Other Postemployment Benefits (OPEB) for Fiscal 2021 A. Difference between expected and actual liability Summary of Deferred Outflows and Deferred Inflows Inflows 524$ CITY OF GRAND TERRACE 6 Outflows 88,963$ Amounts reported as deferred (inflows) outflows of resources related to OPEBs will be recognized in OPEB expense as follows: 51,013 See page 12 for amortization schedules and development of deferred outflows/inflows. 2022 B. Change of assumptions - 13,547 - 238,819 327,782$ N/A N/A 14,071$ 2024 55,687 313,711$ 53,406 2023 Year ended 57,611 47,997 Thereafter 47,997 2026 2025 G.7.d Packet Pg. 163 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) See pages 14 to 16 for more details on actuarial assumptions and methods. Actuarial Valuation of Other Postemployment Benefits (OPEB) for Fiscal 2021 CITY OF GRAND TERRACE 7 Significant Assumptions Used to Measure the Total OPEB Liability Discount rate 1.92% Long-term expected investment return N/A Inflation rate 2.25% Mortality Based on assumptions for Public Agency Miscellaneous members published in the December 2017 CalPERS Experience Study.These tables include 15 years of static mortality improvement using 90% of scale MP-2016. Healthcare cost trend rate 6.4%for FY2020,gradually decreasing over several decades to an ultimate rate of 3.8% in FY2076 and later years. G.7.d Packet Pg. 164 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) Total OPEB Liability Service cost Interest Differences between expected and actual experience Changes of assumptions Changes of benefit terms Benefit payments Net change in total OPEB liability Total OPEB Liability - beginning of year Total OPEB Liability - end of year Plan Fiduciary Net Position (FNP, assets) Employee contributions Employer contributions Net investment income Other additions Benefit payments Administrative expense Other deductions Net change in plan fiduciary net position Plan Fiduciary Net Position - beginning of year Plan Fiduciary Net Position - end of year Net OPEB Liability - end of year FNP as a percentage of the Total OPEB Liability OPEB-eligible payroll for the measurement period Net OPEB Liability as a % of eligible payroll 136,171 121,299 - (62,881) 264,243 355,425 - - - (46,213) - - 1,700,064$ 62,881 1,700,064 1,964,307$ 46,213 -$ -$ (46,213) - 6/30/2020 1,344,639 147,070$ (601) 50,131 119,429 6/30/2021 110,779$ Actuarial Valuation of Other Postemployment Benefits (OPEB) for Fiscal 2021 8CITY OF GRAND TERRACE Schedule of Changes in Net OPEB Liability and Related Ratios¹ Fiscal Year Ending 44,484 1,700,064$ 182.5% 1,076,159$ 1,300,021$ 0.0% 1,964,307$ 0.0% 130.8% -$ - - - (62,881) - - - -$ - 1 The employer must disclose a 10-year history of the schedule of changes in Net OPEB Liability and related ratios. G.7.d Packet Pg. 165 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) Actuarially determined contribution (ADC)² Contributions in relation to the ADC Contribution deficiency (excess) OPEB-eligible payroll for reporting period (fiscal year) Contributions as a percent of payroll N/A N/A 2 Per GASB 75 paragraph 57c.,these disclosures are only required if the employer calculates an Actuarially Determined Contribution (ADC). The City does not currently calculate an ADC. N/A 1 The employer must disclose a 10-year history of the contribution and payroll schedules. N/A 9 Schedule of Contributions1 N/A CITY OF GRAND TERRACE N/A N/A N/A N/A Actuarial Valuation of Other Postemployment Benefits (OPEB) for Fiscal 2021 Fiscal Year Ending 6/30/2020 N/A 6/30/2021 G.7.d Packet Pg. 166 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) Service cost Interest cost Current period benefit changes Employee contributions Projected earnings on OPEB plan investments Administrative expenses paid from the trust Other changes in fiduciary net position Recognition of assumption changes Total OPEB expense (sum of A. through J.) C. A. I. B. H. K. G. 194,631$ - 35,857 18,488 - - 15,156 15,233 - - J. 242,567$ Recognition of net difference between projected and actual investment earnings Recognition of expected vs. actual experience 110,779$ 6/30/2021 147,070$ 44,484 - - - - - 10CITY OF GRAND TERRACE Calculation of OPEB Expense - D. E. F. Actuarial Valuation of Other Postemployment Benefits (OPEB) for Fiscal 2021 50,131 Fiscal Year Ending 6/30/2020 - G.7.d Packet Pg. 167 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) Interest cost A. Total OPEB Liability at beginning of measurement year B. Service cost C. Benefit payments D. Discount rate at beginning of measurement year E. Interest cost ((A. + B. + ½ x C.) x D.) Projected OPEB plan investment earnings B. Time-weighted cash flows D. Projected OPEB plan investment earnings ((A. + B.) x C.) Investment (gain) or loss A. Projected OPEB plan investment earnings B. Actual OPEB plan investment earnings C. Investment (gain) or loss (A. - B.) C. Expected investment return at beginning of measurement year 11CITY OF GRAND TERRACE Calculation of Interest Cost and Investment (Gain) or Loss for OPEB Expense Actuarial Valuation of Other Postemployment Benefits (OPEB) for Fiscal 2021 A. Fiduciary Net Position at beginning of measurement year, Fiscal Year Ending 6/30/2021 6/30/2020 -$ 1,700,064$ 147,070 (62,881) 44,484$ 1,344,639$ 110,779 (46,213) 50,131$ -$ -$ 2.45%3.50% -$ - -$ N/AN/A -$ -$ -$ - - - G.7.d Packet Pg. 168 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) Actuarial Valuation of Other Postemployment Benefits (OPEB) for Fiscal 2021 (7,970)$ 10,986$ 15,156$ N/A 15,472$ 17,369$ -$ -$ Initial Amortization Period N/A N/A Current Year Amortization 5.70 Unrecognized Amount 136,171$ (45,427)$ 62,620$ Initial Deferred (Inflow)/Outflow Fiscal Year Initial Amortization Period 7.84 225,272$ 88,439$ 119,429$ 2020 Subtotal 2021 (601)$ (524)$ 7.84 -$ -$ -$ (77)$ -$ 15,233$ N/A 5.84 N/A -$ Schedule of Amortizations: Assumption Changes N/A 6.84 Remaining Amortization Period 2.70 5.84 6.84 Remaining Amortization Period 1.70 Unrecognized Amount Schedule of Amortizations: Investment (Gains) and Losses N/A -$ -$ 2018 2019 N/A Fiscal Year Current Year Amortization 2021 -$ 121,299$ 2018 2019 2020 2021 Subtotal -$ 2018 Initial Deferred (Inflow)/Outflow 35,857$ -$ -$ -$ 118,802$ 2020 -$ 7.84 (13,547)$ 29,662$ 90,355$ 5.70 -$ -$ 2019 Unrecognized Amount N/A N/A -$ Remaining Amortization Period Current Year Amortization N/A 7.84 N/A 88,963$ Subtotal -$ -$ 12CITY OF GRAND TERRACE Schedule of Amortizations: Liability Experience (Gains) and Losses Initial Deferred (Inflow)/Outflow Initial Amortization Period Fiscal Year G.7.d Packet Pg. 169 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) Employer-Paid Premiums Explicit Subsidy Current Retirees Notes: Implicit Subsidy Current Retirees Future Retirees TotalTotal Future Retirees 36,575 31,791 39,827 37,777 28,678 9,022 9,641 12,076 16,599 20,386 21,684 28,474 27,037 35,222 16,166 17,824 21,363 15,701 18,779 22,508 13,007 7,432 1,296$ 3,258 6,032 8,847 13,788 19,364 15,563 19,977 60,163 66,128 72,189 77,849 80,066 85,017 86,014 91,868 98,811 104,181 111,207 117,923 123,781 125,114 128,762 92,361 96,372 158,839 154,519 137,161 143,644 147,413 156,331 113,821 101,862 126,686 121,773 107,602 30,020$ 30,882 37,023 31,452 33,362 35,164 1,858$ 4,448 38,467 37,989$ 24,325 17,707 11,669 12,345 31,878$ 35,330 39,442 45,846 54,396 78,751 7,990 12,484 20,386 9,022 27,037 35,222 28,474 12,076 7,774 - - - - - 6,211 6,696 63,324 69,552 26,301 30,897 44,118 55,925 88,660 - - - - - - - - - - 167,913 169,358 175,988 176,277 169,835 36,575 39,827 7,432 9,373 130,981 133,132 135,462 139,142 142,947 147,113 152,908 155,581 163,757 9,373 - - 21,684 16,599 9,641 2048 45,048 43,745 42,321 40,771 2045 2046 2047 2041 2042 24,269 35,345 26,596 31,135 28,895 45,734 44,018 2039 2040 2038 2044 33,292 39,090 37,280 2043 21,945 19,657 17,438 15,316 The projections are based on current participants and do not include any future entrants (closed group projections). 2049 2050 2051 31,791 37,777 28,678 - - 2052 - - 2031 2032 2035 2036 CITY OF GRAND TERRACE Actuarial Valuation of Other Postemployment Benefits (OPEB) for Fiscal 2021 2037 2033 2034 2027 2028 2029 2030 13 Projected Benefit Payments 2025 2026 Year Ending 6/30 2022 2023 2024 25,575 22,259 39,285$ 27,583 7,216 45,932 23,739 20,516 - 38,655 40,284 41,896 41,697 42,886 27,193 23,940 15,701 26,133 17,824 21,363 18,779 22,508 13,007 50,171 19,232 45,079 G.7.d Packet Pg. 170 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) Valuation date (census) Measurement date (assets and liabilities) Measurement period July 1, 2020 to June 30, 2021 Reporting date (fiscal year end) Funding Policy GASB 75 Amortization Method 14 Actuarial Valuation of Other Postemployment Benefits (OPEB) for Fiscal 2021 CITY OF GRAND TERRACE A.Liability Measurement Method GASB 75 requires that "The total OPEB liability should be determined by (a)an actuarial valuation as of the measurement date or (b)the use of update procedures to roll forward to the measurement date amounts from an actuarial valuation as of a date no more than 30 months and 1 day earlier than the employer’s most recent fiscal year-end." Summary of Actuarial Methods D. June 30, 2019 Liabilities in this report were calculated as of the valuation date and rolled forward to the measurement date using standard actuarial roll-forward techniques per GASB 75 option (b) above. C. B.Actuarial Cost Method Liabilities are based on the Entry Age Normal level percent of pay cost method. In this method, the actuarial Present Value of Benefits (PVB) for each individual is allocated as a level percent of pay from entry age (hire age, for most employees) to the last age with any future benefits. The portion of the PVB allocated to the valuation year is called the Normal Cost (NC). The portion of the PVB allocated to past years is called the Actuarial Accrued Liability (AAL) or the Total OPEB Liability (TOL). Investment Gains and Losses: Each year's gain or loss is straight-line amortized over 5 years, if applicable. Effects of Assumption Changes and Experience Gains and Losses: Each change is straight-line amortized over a period equal to the average of the expected remaining service lives of all members (i.e., active employees and terminated/retired members) that are provided with OPEB through the plan. Pay-as-you-go method under which contributions to the plan are generally made at the same time and in the same amount as retiree benefits and expenses become due. June 30, 2021 June 30, 2021 G.7.d Packet Pg. 171 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) • • Each of these input models are described in greater detail in the fiscal 2020 GASB 75 actuarial valuation report dated February 26, 2021. The model is intended to convert the information input above to usable actuarial valuation results.We have reviewed the ProVal® software's output for reasonableness,and have independently checked sample one-person output where appropriate, but have otherwise relied on it. Other models used in this actuarial valuation include: Internal per capita claims cost model used to estimate average expected claims costs at different participant ages Healthcare trend rate model based on the “Getzen” model published by the Society of Actuaries (v2021_b) 1.Information inputs including the data, assumptions,methods and plan provisions outlined in this report, 2.Processing by the ProVal®software developed by Winklevoss Technologies, and 3.Our report template which translates the ProVal®output into valuation results. To the extent that census data was collected as of a date later than June 30, 2019,we have assumed that it is reasonably representative of the plan census on the valuation date and used it with only minor adjustments. G.Models Used The results in this report are based on an actuarial valuation model with three components as outlined in Actuarial Standard of Practice No.56 -Modeling (ASOP 56): F.Covered Payroll Covered OPEB-eligible payroll information for the measurement year ending June 30, 2021 was provided by the City. E.Data Methods The census data used in this report is the same data used in the fiscal 2020 GASB 75 actuarial valuation report dated February 26, 2021. CITY OF GRAND TERRACE 15 Actuarial Valuation of Other Postemployment Benefits (OPEB) for Fiscal 2021 Summary of Actuarial Methods (continued) G.7.d Packet Pg. 172 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) Demographic and Other Assumptions 1.92%2.45%Discount Rate Index rate for 20-year, tax-exempt municipal bonds¹ (Fidelity 20-Year Municipal GO AA Index) used in discount rate determination CITY OF GRAND TERRACE 16 Actuarial Valuation of Other Postemployment Benefits (OPEB) for Fiscal 2021 Summary of Plan Provisions and Actuarial Assumptions B. The liabilities calculated in this report are based on the same census data,plan provisions, assumptions,and methods described in the fiscal 2020 GASB 75 actuarial valuation report dated February 26, 2021, with the exception of the changes listed below. A.Plan Provisions No changes Economic Assumptions Measurement Date June 30, 2020June 30, 2021 1.92%2.45% 1 The municipal bond index rate was updated to reflect rates as of the June 30, 2021 measurement date. C.No changes G.7.d Packet Pg. 173 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) An actuarial valuation is only a snapshot of a plan’s estimated financial condition at a single point in time. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following:retiree group benefits program experience differing from that anticipated by the assumptions;changes in assumptions;increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period); and changes in retiree group benefits program provisions or applicable law. Retiree group benefits models necessarily rely on the use of approximations and estimates,and are sensitive to changes in these approximations and estimates. Small variations in these approximations and estimates may lead to significant changes in actuarial measurements. Actuarial Measurement Changes Actuarial valuations are extremely complex and it’s possible that data,computer coding,and mathematical errors could occur during the valuation process. Errors in a valuation discovered after its preparation may be corrected by revising the current valuation or in a subsequent year's valuation. CITY OF GRAND TERRACE 17 Purpose and Scope of the Valuation Assumptions and Methods Since modeling all possible future outcomes is not possible or practical,the valuation is based on a single set of data, assumptions,methods,and plan provisions which satisfy current GASB 75 accounting requirements.We may also use estimates or simplifications to model future events in an efficient and cost- effective manner,so long as we believe that these simplifying techniques do not affect the reasonableness of the valuation results. The City is responsible for the assumptions,methods,and funding policies used to prepare the valuation. The assumptions used in this report are among a wide range of possibilities (each of which may be considered reasonable),but have been chosen as a single “best estimate”.A different set of reasonable assumptions would produce different results.This report does not include analysis of the effect of alternative assumptions because that is beyond the limited scope of our engagement.If the City is interested in analyzing the effect of different assumption sets on the valuation results,then we suggest a sensitivity analysis to be performed at a later date. Actuarial Valuation of Other Postemployment Benefits (OPEB) for Fiscal 2021 Important Notices This valuation has been prepared exclusively for the City and solely to provide GASB 75 accounting information.It is important to recognize that calculations performed for other purposes (such as benefit design,investment policy,or plan funding)may yield significantly different results.This report may not be used for any other purpose,and Van Iwaarden Associates is not responsible for the consequences of any unauthorized use.Its content may not be modified, incorporated into or used in other material,or otherwise provided, in whole or in part, to any other person or entity, without our permission. G.7.d Packet Pg. 174 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) Accuracy of Substantive Plan Information and Census Data For purposes of this valuation,we have assumed that the City has validated our summary of the substantive plan provisions and has provided us with any relevant information on interpretation of the plan provisions and changes to the plan terms since the prior valuation. The City is solely responsible for the validity,accuracy and comprehensiveness of this information.If any data or plan provisions supplied are not accurate and complete,the valuation results may differ significantly. CITY OF GRAND TERRACE 18 Actuarial Valuation of Other Postemployment Benefits (OPEB) for Fiscal 2021 Important Notices (continued) The legislative and regulatory environments have many implications for OPEB plans.Changes to current rules and implementation of new legislation are difficult to predict but could have a dramatic impact on the value of future plan benefits.These include changes to government medical programs,such as Medicare and the Affordable Care Act.Future changes to these programs will be reflected if/when they become law. Impact of Legislative Changes G.7.d Packet Pg. 175 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) Actuarial Valuation of Other Postemployment Benefits (OPEB) for Fiscal 2021 Long-Term Expected Investment Return -the assumed long-term asset return expected to be earned by the OPEB investments. CITY OF GRAND TERRACE 19 Glossary of Selected Terms This section provides the definitions of applicable terminology in the actuarial valuation,with references to the Governmental Accounting Standards (GASB) No. 75. Actuarial Cost Method -the method used to allocate OPEB liability costs between past,current,and future years. Measurement Date -the date as of which the Total OPEB Liability and Fiduciary Net Position (assets)are measured. Net OPEB Liability -the difference between the actuarial accrued liability (Total OPEB Liability)and OPEB assets (Fiduciary Net Position). Actuarial Present Value of Benefits -the amount of money needed today to cover the promised benefits for the current participant group, if all actuarial assumptions are exactly met. Discount Rate - the interest rate used to adjust liabilities and obligations for the time value of money. Fiduciary Net Position - The value of assets reported by the plan/employer. GASB Statement No.75 -the Governmental Accounting Standards Board Statement Number 75 Accounting and Financial Reporting for OPEB Plans. Explicit Subsidy - OPEB expressly provided by employer. Implicit Subsidy or Implicit Rate Subsidy -the difference between the actual and apparent cost of OPEB coverage.The actual cost for early retirees is higher than the average per-person premium for the active/retiree group.Plans in which retirees pay the average active/retiree rate (the apparent cost)give rise to an implicit rate subsidy: the employer pays the difference between the actual and apparent cost. Total OPEB Liability -the portion of the actuarial present value which is not attributable to future service costs, determined under the actuarial cost method. Valuation Date -the date as of which liabilities are calculated.Liabilities may be "rolled forward" from the Valuation Date to the Measurement Date. Net Position Restricted for OPEB - accounting terminology for OPEB plan assets. Reporting Date - the plan's or employer's fiscal year end. Service Cost -the portion of the actuarial present value which is allocated to the current year by the actuarial cost method. G.7.d Packet Pg. 176 At t a c h m e n t : F Y E 2 0 2 1 G A S B 7 5 R F O P E B V a l u a t i o n _ C i t y o f G r a n d T e r r a c e ( U n f u n d e d L i a b i l i t i e s D i s c u s s i o n ) AGENDA REPORT MEETING DATE: June 14, 2022 Council Item TITLE: Consideration of Entering into an Agreement with Multi-Bank Securities, Inc. & Opening a Custodial Agreement with Pershing LLC PRESENTED BY: Terry Shea, Interim Finance Director RECOMMENDATION: It is recommended the City Council authorize the Interim Finance Director to purchase negotiable certificates of deposits and other authorized investments from Multi-Bank Securities and open a custodial account with Pershing LLC. The authorized signers on the account would be the City Manager Konrad Bolowich and Interim Finance Director Terry Shea. 2030 VISION STATEMENT: This staff report supports Goal #1, Ensuring Fiscal Viability by increasing investment earnings. BACKGROUND: The City is currently using the Local Agency Investment Fund (LAIF) administered by the California State Treasurer and has approximately $2.9 million invested. In addition to LAIF the City is using California Asset Management Program (CAMP) which is a California Joint Powers Authority established to provide CA public agencies with professional investment services. The current balance with CAMP is approximately 1.05 million. Both LAIF and CAMP are pooled funds with other public agencies and are dollar in and dollar out funds. These are good for short-term as funds can be received by the next day if needed for current expenditures. The current rates of return are .523% for LAIF and .90% for CAMP. The City’s investments are governed by the City’s Investment Policy which was adopted by the City Council and is in accordance with the California Government Code, Sections 53601 et. Seq. DISCUSSION: Staff is proposing opening an account with Multi-Bank Securities, Inc. which will allow the City to purchase authorized investments from more than one broker dealer. To transact these investments, it is also necessary to establish a separate custodial account with Pershing LLC. Current CD rates available are from 2.10% to 3.35% depending on the number of years. All CD’s will be below the FDIC insured amount of $250,000 and will conform to the City’s Investment Policy. G.8 Packet Pg. 177 FISCAL IMPACT: There is no charge to the City to open the accounts, purchase investments or hold the investment for the City. With increase in the rate of return the City should earn additional investment income. ATTACHMENTS: • MBS User Agreement (PDF) • MBS Due Diligence (PDF) • Cash Account Application (PDF) • 2022-xx - Investment Resolution (DOCX) APPROVALS: Terry Shea Completed 06/06/2022 9:58 AM Finance Completed 06/06/2022 9:58 AM City Manager Completed 06/06/2022 2:58 PM City Council Pending 06/14/2022 6:00 PM G.8 Packet Pg. 178 G.8.a Packet Pg. 179 At t a c h m e n t : M B S U s e r A g r e e m e n t ( A p p r o v e I n v e s t m e n t B r o k e r ) G.8.a Packet Pg. 180 At t a c h m e n t : M B S U s e r A g r e e m e n t ( A p p r o v e I n v e s t m e n t B r o k e r ) G.8.a Packet Pg. 181 At t a c h m e n t : M B S U s e r A g r e e m e n t ( A p p r o v e I n v e s t m e n t B r o k e r ) G.8.a Packet Pg. 182 At t a c h m e n t : M B S U s e r A g r e e m e n t ( A p p r o v e I n v e s t m e n t B r o k e r ) G.8.a Packet Pg. 183 At t a c h m e n t : M B S U s e r A g r e e m e n t ( A p p r o v e I n v e s t m e n t B r o k e r ) G.8.a Packet Pg. 184 At t a c h m e n t : M B S U s e r A g r e e m e n t ( A p p r o v e I n v e s t m e n t B r o k e r ) G.8.a Packet Pg. 185 At t a c h m e n t : M B S U s e r A g r e e m e n t ( A p p r o v e I n v e s t m e n t B r o k e r ) Please send all correspondence to Corporate Headquarters: Multi-Bank Securities, Inc. 1000 Town Center, Suite 2300 • Southfield, MI 48075 • www.mbssecurities.com Proudly Veteran-Owned! The information provided in the following pages has been prepared to meet or exceed your regulatory requirements. Member of FINRA & SIPC; MSRB Registered. MBS 2021 Muni DD E eConnectDirect.pdf 03.18.21 Contents 1 SIPC Protection 2 Business 3 Audited Financials 4 State Registrations 5 Investment Policy 6 Compliance 7 Pershing 8 eConnectDirect® 9 Biography 10 References 11 Veteran-Owned 2021 Municipal Due Diligence PETER YANEZ PYANEZ@MBSSECURITIES.COM VICE PRESIDENT 2400 EAST COMMERCIAL BLVD SUITE 812 FT. LAUDERDALE, FL 33308 PHONE/FAX: +1 (855) 928-0111 G.8.b Packet Pg. 186 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) This page is intentionally left blank. G.8.b Packet Pg. 187 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 3 Address Phone Fax 1000 Town Center, Suite 2300Southfield, Michigan 48075 (800) 967-9045(248) 291-1100 (248) 291-1101 www.mbssecurities.com 2400 East Commercial Boulevard, Suite 812Ft. Lauderdale, Florida 33308 (800) 967-9045(954) 351-6930 (954) 351-9197 Member of FINRA & SIPC; MSRB Registered. Proudly Veteran-Owned! Dear Valued Customers and Prospective Clients, Thank you for your interest in Multi-Bank Securities, Inc. (MBS). We understand you have numerous options for your investment needs and we appreciate you taking the time to learn more about our Firm. Our goal is to deliver quality services and sound financial solutions to our customers by dedicating our resources exclusively to the fixed-income sector. Here are a few ways our customers experience the MBS difference: Stability: MBS is a privately held, fixed-income securities broker-dealer with a 33-year history of serving public funds investors. We work with more than 5,000 institutions nationwide and have several offices across the country to serve your needs. Veteran Status: We are a veteran-owned firm and were certified as a Service-Disabled Veteran-Owned Business (SDVOB) by the National Veteran Business Development Council (NVBDC). Investment Products: Our goal is to consistently provide sound financial solutions to your investment objectives. MBS specializes in a broad selection of investment products and services, including an array of U.S. Treasuries, agencies and CDs. We traded $215 billion in principal amount for our clients in 2020. Underwriting: MBS is proud to be an approved underwriter of agency debt for Fannie Mae, Freddie Mac, Farmer Mac, the Federal Home Loan Banks and the Federal Farm Credit Banks. MBS is also an active underwriter of certificates of deposit for banks and credit union. Proprietary Technology: MBS offers a proprietary online investment platform, eConnectDirect®. This tool lets you compare offerings from hundreds of dealers at once, select investments online and manage your portfolio. Value-Added Services: We offer an array of value-added services to our clients, including third-party safekeeping through Pershing LLC (Pershing), a BNY Mellon Company, and portfolio analytics. 2020 was an unprecedented year, and one of the things I have personally missed the most is the ability to travel and meet our customers in person. I hope this year will bring a return to normalcy. In the meantime, I want to personally assure you that we have taken necessary steps to continue providing uninterrupted customer service and broad market visibility. We have weathered many different economic challenges over our three decades in the industry, and we are always prepared and available to serve you. I hope you will find that this document addresses everything you need to complete your due diligence on our Firm. We have included information on both MBS and our clearing firm, Pershing. We also encourage you to learn more about our Firm’s FINRA broker-dealer status at www.finra.org – our CRD number is 22098. Please do not hesitate to reach out to me or your account representative if you have any questions or require additional information. You can contact me directly at (800) 967-9055 or davemac@mbssecurities.com. Sincerely, David T. Maccagnone Chairman and Chief Executive Officer Multi-Bank Securities, Inc. G.8.b Packet Pg. 188 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) This page is intentionally left blank. G.8.b Packet Pg. 189 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 5 Member of FINRA & SIPC; MSRB Registered. 1 The following information is provided to support your due diligence requirements: SIPC PROTECTION ................................................................................................................................7-8 Evidence of SIPC Protection .................................................................................................................7 VETERAN-OWNED BUSINESS .............................................................................................................9-12 National Veteran Business Development Council Certification .............................................................9 New York State Service-Disabled Veteran-Owned Business Certification ............................................10 Disabled Veteran Business Enterprise Certification .............................................................................11 AUDITED FINANCIALS ......................................................................................................................13-24 Statement of Compliance With SEC Annual Report Filing Requirements .............................................13 A Copy of the Most Recently Audited Financial Statement .................................................................15 Independent Auditor’s Report .............................................................................................................16 Statement of Financial Condition .......................................................................................................17 Notes to Statement of Financial Condition .........................................................................................18 STATE REGISTRATIONS ......................................................................................................................25-26 A Copy of the Multi-Bank Securities, Inc. Registration Statement ........................................................25 INVESTMENT POLICY ........................................................................................................................27-30 Agreement That Specifies the Type of Securities Your Institution Purchases .........................................27 Investment Policy Recommendations and Guidelines.........................................................................29 COMPLIANCE ....................................................................................................................................31-42 Compliance Information ....................................................................................................................31 Privacy Policy .....................................................................................................................................33 Business Continuity ............................................................................................................................35 Statement Regarding SEC, FINRA or State Securities Sanctions ...........................................................36 BrokerCheck Response .......................................................................................................................37 AML and CIP: Test Procedures and Internal Audit ...............................................................................38 Code of Ethical Business Conduct ......................................................................................................40 IT Security ..........................................................................................................................................41 Confirmation of Insurance ..................................................................................................................42 PERSHING .........................................................................................................................................43-76 Pershing Statement of Financial Condition .........................................................................................43 Pershing Auditor’s SOC1 Certification Letter .......................................................................................68 Protection of Client Assets ..................................................................................................................73 BNY Mellon Insurance Coverage .......................................................................................................75 eConnectDirect® .................................................................................................................................77-78 eConnectDirect Investor Benefits .......................................................................................................77 BIOGRAPHY ............................................................................................................................................79 REFERENCES ............................................................................................................................................81 Multi-Bank Securities, Inc. is committed to providing you with the highest quality service available. We hope this packet will meet or exceed your due diligence needs and expectations. G.8.b Packet Pg. 190 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) This page is intentionally left blank. G.8.b Packet Pg. 191 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 7 Member of FINRA & SIPC; MSRB Registered. 2 G.8.b Packet Pg. 192 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) This page is intentionally left blank. G.8.b Packet Pg. 193 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 9 Member of FINRA & SIPC; MSRB Registered. 3 CE R T I F I C A T I O N Mu l t i - B a n k S e c u r i t i e s I n c . is h e r e b y g r a n t e d t o : Se p t e m b e r 1 8 , 2 0 2 0 Se p t e m b e r 2 4 , 2 0 2 1 52 3 1 1 0 , 5 2 3 1 2 0 Y4 L 5 1 2 Q Y Th e N a t i o n a l V e t e r a n B u s i n e s s D e v e l o p m e n t C o u n c i l c e r t i f i e s th a t t h e n a m e d e n t i t y h a s m e t a l l c r i t e r i a e s t a b l i s h e d t o b e re c o g n i z e d a s a S e r v i c e D i s a b l e d V e t e r a n O w n e d B u s i n e s s ( S D V O B ) Da t e E a r n e d Ce r t i f i c a t e C o d e Da t e E x p i r e s NA I C S C o d e s Ke i t h K i n g , C E O G.8.b Packet Pg. 194 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 10 Member of FINRA & SIPC; MSRB Registered. G.8.b Packet Pg. 195 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 11 Member of FINRA & SIPC; MSRB Registered. G.8.b Packet Pg. 196 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 12 Member of FINRA & SIPC; MSRB Registered. So u t h C e n t r a l T e x a s R e g i o n a l C e r t i f i c a t i o n A g e n c y o f Be x a r C o u n t y , T e x a s h e r e b y d u l y a f f i r m s t h a t : Mu l t i - B a n k S e c u r i t i e s , I n c . ha s s u c c e s s f u l l y m e t t h e e s t a b l i s h e d r e q u i r e m e n t s o f S C T R C A ' s B u s i n e s s E n t e r p r i s e C e r t i f i c a t i o n P r o g r a m t o b e ce r t i f i e d a s a *D I B E V B E Ce r t i f i e d N A I C S C o d e s NA I C S 5 2 3 1 2 0 : S E C U R I T I E S B R O K E R A G E S Ce r t i f i c a t i o n N u m b e r : 2 2 0 0 3 1 5 6 7 Ef f e c t i v e D a t e : M a r c h 1 2 , 2 0 2 0 Ex p i r a t i o n D a t e : M a r c h 3 1 , 2 0 2 2 Ch a r l e s J o h n s o n Ex e c u t i v e D i r e c t o r No t e : T h i s c e r t i f i c a t e i s t h e p r o p e r t y o f t h e S o u t h C e n t r a l T e x a s R e g i o n a l C e r t i f i c a t i o n A g e n c y a n d m a y b e r e v o k e d s h o u l d t h e a b o v e n a m e d f i r m g r a d u a t e f r o m o r f a i l s to c o m p l y w i t h S C T R C A ' s B u s i n e s s E n t e r p r i s e P r o g r a m . A C e r t i f i c a t i o n R e n e w a l A p p l i c a t i o n i s r e q u i r e d e v e r y t w o y e a r s . G.8.b Packet Pg. 197 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 13 Member of FINRA & SIPC; MSRB Registered. 4 G.8.b Packet Pg. 198 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 14 Member of FINRA & SIPC; MSRB Registered. G.8.b Packet Pg. 199 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 15 Member of FINRA & SIPC; MSRB Registered. G.8.b Packet Pg. 200 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 16 Member of FINRA & SIPC; MSRB Registered. G.8.b Packet Pg. 201 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 17 Member of FINRA & SIPC; MSRB Registered. G.8.b Packet Pg. 202 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 18 Member of FINRA & SIPC; MSRB Registered. G.8.b Packet Pg. 203 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 19 Member of FINRA & SIPC; MSRB Registered. G.8.b Packet Pg. 204 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 20 Member of FINRA & SIPC; MSRB Registered. G.8.b Packet Pg. 205 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 21 Member of FINRA & SIPC; MSRB Registered. G.8.b Packet Pg. 206 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 22 Member of FINRA & SIPC; MSRB Registered. G.8.b Packet Pg. 207 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 23 Member of FINRA & SIPC; MSRB Registered. G.8.b Packet Pg. 208 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) This page is intentionally left blank. G.8.b Packet Pg. 209 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 25 Member of FINRA & SIPC; MSRB Registered. Jurisdiction/SRO Category Status Status As Of Date AK Broker Dealer Approved 03/27/1997 AL Broker Dealer Approved 11/07/1994 AR Broker Dealer Approved 05/02/1997 AZ Broker Dealer Approved 10/11/2001 CA Broker Dealer Approved 03/30/1994 CO Broker Dealer Approved 04/23/1991 CT Broker Dealer Approved 08/20/1998 DC Broker Dealer Approved 03/30/1994 DE Broker Dealer Approved 10/11/1994 FINRA Broker Dealer Approved 12/23/1988 FL Broker Dealer Approved 02/05/1991 GA Broker Dealer Approved 02/28/1994 HI Broker Dealer Approved 04/05/1995 IA Broker Dealer Approved 03/31/1994 ID Broker Dealer Approved 03/20/1997 IL Broker Dealer Approved 07/13/1989 IN Broker Dealer Approved 03/24/1997 KS Broker Dealer Approved 05/04/1994 KY Broker Dealer Approved 03/08/1994 LA Broker Dealer Approved 09/07/1994 MA Broker Dealer Approved 07/25/1994 MD Broker Dealer Approved 03/11/1994 ME Broker Dealer Approved 05/24/1994 MI Broker Dealer Approved 08/31/1988 MN Broker Dealer Approved 09/02/1994 MO Broker Dealer Approved 05/02/2002 MS Broker Dealer Approved 03/04/1994 MT Broker Dealer Approved 02/14/1994 NC Broker Dealer Approved 08/02/1994 ND Broker Dealer Approved 04/25/1997 NE Broker Dealer Approved 11/02/1994 Data Current as of: Monday, March 1, 2021 CRD#: 22098Regulatory, State & Territory Registrations 5 G.8.b Packet Pg. 210 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 26 Member of FINRA & SIPC; MSRB Registered. Jurisdiction/SRO Category Status Status As Of Date NH Broker Dealer Approved 09/28/1995 NJ Broker Dealer Approved 11/09/1994 NM Broker Dealer Approved 08/02/1994 NV Broker Dealer Approved 05/23/1994 NY Broker Dealer Approved 06/05/1996 OH Broker Dealer Approved 11/21/1994 OK Broker Dealer Approved 06/04/1991 OR Broker Dealer Approved 04/04/1997 PA Broker Dealer Approved 03/07/1994 PR Broker Dealer Approved 02/10/2000 RI Broker Dealer Approved 03/02/1994 SC Broker Dealer Approved 08/04/1994 SD Broker Dealer Approved 03/04/1994 SEC Broker Dealer Approved 05/06/1988 TN Broker Dealer Approved 08/04/1994 TX Broker Dealer Approved 06/29/1990 UT Broker Dealer Approved 01/19/1994 VA Broker Dealer Approved 05/16/1994 VI Broker Dealer Approved 01/30/2012 VT Broker Dealer Approved 06/18/1997 WA Broker Dealer Approved 10/04/1989 WI Broker Dealer Approved 09/06/1991 WV Broker Dealer Approved 01/28/1994 WY Broker Dealer Approved 08/08/1994 DATA CURRENT AS OF: Monday, March 1, 2021 (Continued) CRD#: 22098 Regulatory, State & Territory Registrations G.8.b Packet Pg. 211 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 27 Address Phone Fax 1000 Town Center, Suite 2300Southfield, Michigan 48075 (800) 967-9045(248) 291-1100 (248) 291-1101 www.mbssecurities.com 2400 East Commercial Boulevard, Suite 812Ft. Lauderdale, Florida 33308 (800) 967-9045(954) 351-6930 (954) 351-9197 Member of FINRA & SIPC; MSRB Registered. Proudly Veteran-Owned! 6 March 1, 2021 To Whom It May Concern: This letter is to inform you that we at Multi-Bank Securities, Inc. (MBS) do not give accounting, regulatory, tax or legal advice. However, MBS makes every effort to recommend investments we feel are appropriate for our clients. It is our intention to maintain on file an investment policy from every one of our clients. If you have a written investment policy outlining the types of investments you can and cannot make, please forward it to us at your convenience. We have designed a system of controls to help reduce the risk of inappropriate investments for our clients. Sincerely, David T. Maccagnone Chairman and Chief Executive Officer Multi-Bank Securities, Inc. G.8.b Packet Pg. 212 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) This page is intentionally left blank. G.8.b Packet Pg. 213 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 29 Member of FINRA & SIPC; MSRB Registered. Municipal Investing Policy *There may be fees associated with other products/services offered by MBS.For institutional investors only, not intended for the investing public. © 2020 Multi-Bank Securities, Inc. Member of FINRA & SIPC; MSRB Registered. All Rights Reserved. Municipal Investing Policy.pdf 01.10.20 Proudly Veteran-Owned! (800) 967-9045 sales@mbssecurities.com www.mbssecurities.com Recommendations and Guidelines Your Investment Policy Since 1988, Multi-Bank Securities, Inc. (MBS) has been serving the investment needs of municipalities throughout the U.S. It is with great care that we recommend investment products we feel are appropriate and strictly adhere to your investment policy guidelines. We have systems in place to assist you in reducing the risk of making inappropriate investments. Maintenance of Your Investment Policy It is our policy to review and maintain a copy of your investment policy on file. Should your policy need reviewing, your MBS account representative is ready to help. Our team of highly skilled professionals is required to regularly complete continuing education to ensure a broad understanding of how fixed- income products impact the municipal market. They are well-versed in current regional, state and federal governmental investment statutes and policies. Developing Your Investment Policy Information about developing and evaluating an investment policy is available on the Multi-Bank Securities Institute website. This online resource focuses on educating and supporting investment professionals of all experience and skill levels. There is no cost associated with the website, but visitors will have to register to view the Public Funds Investor Guide.* Explore the site at http://institute.mbssecurities.com. National municipal organizations such as the Association of Public Treasurers of the United States & Canada (APT) and the Government Finance Officers Association (GFOA) also make sample investment policy guidelines and recommendations available to governmental entities. To receive a free copy, please contact your MBS account representative. *There may be fees associated with other products/services offered by MBS. G.8.b Packet Pg. 214 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) This page is intentionally left blank. G.8.b Packet Pg. 215 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 31 Member of FINRA & SIPC; MSRB Registered. 7 Important Compliance Information USA PATRIOT Act / Anti-Money Laundering / Bank Secrecy Act / CIP Rule / Know Your Customer Multi-Bank Securities, Inc. is committed to complying with the U.S. statutory and regulatory requirements designed to combat money laundering and terrorist financing. The USA PATRIOT Act requires all financial institutions to obtain certain identification documents or other information in order to comply with their Customer Identification Procedures (CIP). When you open an account, we will ask you for your name, address and other information that will allow us to satisfy our Know Your Customer requirements. We also may ask to see your driver’s license or other identifying documents. Until you provide the required information or documents, we may not be able to open an account or effect any transactions for you. For additional information, contact Chief Compliance Officer Merlin Elsner, our designated Anti-Money Laundering Compliance Officer, at 1-800-967-9008. The Customer Due Diligence Rule (CDD Rule) from FinCEN, effective May 11, 2018, requires that certain financial institutions are now obligated to disclose the ultimate beneficiary of the company upon new account opening. We will ask that you provide documentation on each individual that owns 25 percent of the equity interests in your institution, or any individual with significant responsibility to control, manage or direct your institution. We will ask for personal information on the CEO, CFO, COO, managing members, general partners, presidents, vice presidents, treasurers, et al. We will seek to retain sufficient information on any individual who regularly performs functions that demonstrate “control.” Under the definition provided by FinCEN, we will seek information on beneficial owners using Appendix A to CFR 1010.230 (Beneficial Owner Certification Form). Order Routing Order routing information for your specific orders is available upon request by contacting your account representative. You can also see the most recent quarterly routing information on our corporate website, www.mbssecurities.com, by clicking on Order Routing at the bottom of the home page. FINRA BrokerCheck Information The FINRA BrokerCheck program is available at www.finra.org and can be accessed by clicking on BrokerCheck at the top of the home page. The site gives background information, registration/license status and disciplinary history of brokers and firms. Securities Investor Protection Corporation (SIPC) Information about SIPC, including the SIPC brochure, can be obtained by calling SIPC at 1-202-371-8300 or visiting the SIPC website at www.sipc.org. G.8.b Packet Pg. 216 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 32 Member of FINRA & SIPC; MSRB Registered. Important Compliance Information (Continued) Municipal Securities Rulemaking Board (MSRB) Rule G-10 – Investor Education and Protection Multi-Bank Securities, Inc. is registered with the U.S. Securities and Exchange Commission and the Municipal Securities Rulemaking Board. The website address for the Municipal Securities Rulemaking Board is www.msrb.org. A brochure is posted on the website of the Municipal Securities Rulemaking Board. In addition to having investor education materials available, there are also descriptions of the protections provided by MSRB rules and how to file a complaint with FINRA’s Investor Complaint Center. Firm Contact Information If you have any concerns about your account, please contact Merlin Elsner at 1-800-967-9008. Updated March 2021 G.8.b Packet Pg. 217 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 33 Member of FINRA & SIPC; MSRB Registered. Privacy Policy Multi-Bank Securities, Inc. (MBS) respects your right to privacy. We are committed to securing the confidentiality and integrity of your personal information. We are proud of our privacy practices and want our current and prospective clients to understand what information we collect and how we use it. The examples contained within the Privacy Policy are illustrations and are not intended to be exclusive. If there are material changes to this policy, they will be posted on our website at www.mbssecurities.com. Why We Collect Your Information We gather your information about you and your accounts so we can (1) know who you are and thereby prevent unauthorized access to your information, (2) design and improve the products and services we offer, and (3) comply with the laws and regulations that govern the financial industry. What Information We Collect We may collect the following types of nonpublic personal information about you: • Information about your identity, such as your name, address and Taxpayer Identification Number. • Information about your transactions with us. • Information we receive from you from applications, forms or direct discussions with you. Sources From Which We Obtain Your Information We collect nonpublic personal information about MBS’s clients from the following sources: • Information we receive from you from applications, forms or direct discussions with you. • Information we may obtain via the internet. • Information we receive from our clearing firm or any third-party vendor for authentication purposes. What Information We Disclose Your securities account is carried by our clearing firm pursuant to clearing agreements. We may disclose to them all the information we collect regarding your account. Our clearing firm is contractually obligated to keep the information we have provided them confidential and use the information only for the services required and as allowed by applicable law or regulation. We also may disclose some nonpublic personal information about our customers or former customers to facilitate servicing your account or to our regulators upon proper request, except as permitted by law and noted above. Moreover, we will not release information about our customers or former customers, except as noted above, unless one of the following conditions is met: • We receive your prior written consent. • We believe the recipient to be you or your authorized representative. • We are required by law or regulation to release information to the recipient. G.8.b Packet Pg. 218 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 34 Member of FINRA & SIPC; MSRB Registered. Privacy Policy (Continued) Confidentiality and Security We maintain physical, electronic and procedural safeguards to protect your personal account information. We also restrict access to your personal and financial data to authorized associates who have a need for these records. We require all non-affiliated organizations to conform to our privacy standards and are contractually obligated to keep the provided information confidential and used only as requested. Furthermore, we will continue to adhere to the privacy policies and practices described in this notice even after your account is closed or becomes inactive. California Consumer Privacy Act (CCPA) If you are a California resident, you may have the right to (1) request access to certain personal information* we have collected about you, or (2) request that we delete certain personal information* we may have collected from you. To exercise any of these rights, please visit www.mbssecurities.com and click the CCPA link in the website footer. Updated March 2021 *Personal information request exceptions: The CCPA does not apply to personal information that may not be provided or deleted based on other laws, rules or regulations. G.8.b Packet Pg. 219 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 35 Member of FINRA & SIPC; MSRB Registered. Business Continuity Statement In the event of a disruption of service, if you cannot contact us as you usually do through your account representative or your branch office, call our alternative number, 1-800-967-5094, or visit our website at www.mbssecurities.com. If you cannot access us through either of these means, contact our clearing firm, Pershing LLC (Pershing), a BNY Mellon company, directly in one of the following ways: 1. Call 1-201-413-3635. Pershing will process limited trade-related transactions (option No. 1), cash disbursements (option No. 2) and security transfers (option No. 3) on your behalf. 2. Via facsimile at 1-201-413-5368. 3. Via postal service at Pershing LLC, P.O. Box 2065, Jersey City, NJ 07303-2065. Our Business Continuity Plan We plan to quickly recover and resume business operations after a significant business disruption and respond by safeguarding our employees and property, making a financial and operational assessment, protecting the Firm’s books and records, and allowing our customers to transact business. In short, our business continuity plan is designed to permit our Firm to resume operations as quickly as possible, given the scope and severity of the significant business disruption. Our business continuity plan addresses the following: data backup and recovery; all mission critical systems; financial and operational assessments; alternative communications with customers, employees and regulators; alternate physical location of employees; critical suppliers, contractors, banks and counter-party impact; regulatory reporting; and assuring our customers’ prompt access to their funds and securities if we are unable to continue our business. Our clearing firm, Pershing, backs up our important records in a geographically separate area. While every emergency situation poses unique problems based on external factors, such as time of day and the severity of the disruption, we have been advised by our clearing firm that its objective is to quickly restore its own operations and be able to complete existing transactions and accept new transactions and payments. Your orders and requests for funds and securities could be delayed during the restoration period. Varying Disruptions Significant business disruptions can vary in their scope, including the business district, the city or the entire region where one or more of our offices are located. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In the event of a disruption to one or more of our offices, we will transfer our operations to an appropriate location when needed and expect to recover and resume full business operations. In the event of a disruption affecting a larger area, we will transfer our operations to a location outside of the affected area when needed and expect to recover and resume full business operations in a timely manner. In either situation, we plan to continue normal business operations, transferring functionality to other offices within our Firm or to our clearing firm if necessary. We will notify our customers in the most prudent and expeditious method. If a significant business disruption is so severe that it prevents us from remaining in business, we will work with our clearing firm to assure our customers receive prompt access to their funds and securities. If you have questions about our business continuity planning, you can contact us at businesscontinuity@mbssecurities.com. Corporate Headquarters 1000 Town Center, Suite 2300, Southfield, MI 48075 1-800-967-9045 phone 1-248-291-1101 fax Updated March 2021 G.8.b Packet Pg. 220 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 36 Address Phone Fax 1000 Town Center, Suite 2300Southfield, Michigan 48075 (800) 967-9045(248) 291-1100 (248) 291-1101 www.mbssecurities.com 2400 East Commercial Boulevard, Suite 812Ft. Lauderdale, Florida 33308 (800) 967-9045(954) 351-6930 (954) 351-9197 Member of FINRA & SIPC; MSRB Registered. Proudly Veteran-Owned! March 1, 2021 To Whom It May Concern, This letter is to inform you that as of the date of this letter, (1) there are no current regulatory sanctions outstanding against Multi-Bank Securities, Inc. (MBS) nor any of its account representatives or officers, and (2) MBS has never had a regulatory customer complaint.* Additionally, MBS confirms we have an Anti-Money Laundering (AML) Program in place with policies and procedures that are reasonably designed to detect and prevent the use of our facilities and services for illegal purposes, including the laundering of monies, the financing of terrorist activities and the proliferation of weapons of mass destruction. This AML Program includes the designation of an AML officer, an ongoing AML employee training program and an annual independent audit to test the effectiveness of the AML Program. The Program is approved by the Board of Directors on an annual basis. We further attest that we are in compliance: 1. With the Bank Secrecy Act (BSA), as amended by the USA PATRIOT Act, including, without limitation, a system of internal controls for detection and prevention of money laundering and illegal activity, independent testing of the company’s BSA program, designation of a qualified individual for coordinating and monitoring day-to-day compliance, and training programs for all employees, officers and directors as appropriate. 2. With regulations and requirements of the Office of Foreign Assets Control (OFAC), including, without limitation, screening in OFAC-prohibited parties databases of all individuals involved in transactions by, through or with your institution, screening of OFAC embargoed country regulations for prevention of transactions involving countries subject to U.S. trade and economic sanctions, comparison of transactions on a daily basis, identification procedures and document retention. 3. With the Customer Identification Program requirements of the BSA, as amended by the USA PATRIOT Act, including, without limitation, risk-based procedures to verify customer identity, a risk assessment of our customer base and products, and due diligence for correspondent accounts 4. With “Know Your Customer” and monitoring requirements as necessary to ensure effective detection of suspicious transactions and procedures for the filing of Suspicious Activity Reports (SARs) and Currency Transactions Reports (CTRs). Sincerely, Merlin Elsner Chief Compliance Officer Multi-Bank Securities, Inc. *Based on information available through our regulators and/or supplied to us by our clearing firm. G.8.b Packet Pg. 221 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 37 Address Phone Fax 1000 Town Center, Suite 2300Southfield, Michigan 48075 (800) 967-9045(248) 291-1100 (248) 291-1101 www.mbssecurities.com 2400 East Commercial Boulevard, Suite 812Ft. Lauderdale, Florida 33308 (800) 967-9045(954) 351-6930 (954) 351-9197 Member of FINRA & SIPC; MSRB Registered. Proudly Veteran-Owned! Dear Multi-Bank Securities, Inc. Client, Thank you for performing your due diligence on Multi-Bank Securities, Inc. (MBS). We understand that this is a crucial part of building a trusting relationship with your broker, and we are more than happy to provide a response concerning your finding(s). There are four items on our BrokerCheck report we would like to further explain. The first incident was initiated by the State of Alabama on June 16, 1994. The incident occurred when MBS submitted a broker-dealer application to the State and incorrectly filled out the paperwork in the process. MBS paid a small fine, and Alabama vacated the denial order following the paperwork corrections. The second incident was initiated by the Vermont Securities Division on June 12, 1997. MBS was cited for transacting business as an unregistered broker-dealer in Vermont. We paid a small fine, became registered in the State of Vermont and conduct business there today. In the third incident, as the result of a sweep, FINRA found that our Firm failed to accurately report to TRACE certain inter-dealer transactions in a timely manner. The citation states, “Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to report the correct time of trade execution for transactions in Trade Reporting and Compliance Engine (TRACE)-eligible securitized products within 15 minutes of the time of execution to TRACE; and failed to show the correct time of execution on the memorandum of brokerage orders.” MBS paid a small fine without admitting or denying the facts as presented, and will continue to do business in the market of fixed-income securities. To prevent future events like this, we made changes to our supervisory policies and procedures to reduce redundant supervisory reviews. We reviewed and continue to review our inter-dealer relationships to ensure that trade times are reported, and to ensure that both parties contractually understand and agree to each transaction prior to creating a TRACE reporting obligation. Finally, as a result of our 2014 and 2016 regular cycle examinations, FINRA took the position that during a specific period of time, on a specific form, there was language that could be potentially confusing to some municipal entities with respect to the capacity in which the Firm would be acting relative to the Municipal Advisor Rule. Additionally, FINRA took the position that the Firm’s Risk Management Controls outside of the Written Supervisory Procedures caused the Written Supervisory Procedures to be inadequate, and that the Firm needed to make specific reference to a particular rule during the annual CEO certification of compliance systems and controls. We are proud of our customer compliance record and will continue to provide you the best in customer service. We thank you again for the opportunity to provide you with additional details. Should you have any questions or concerns, I can be reached directly at 1-800-967-9008, or by email at melsner@mbssecurities.com. Sincerely, Merlin Elsner Chief Compliance Officer Multi-Bank Securities, Inc. G.8.b Packet Pg. 222 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 38 Member of FINRA & SIPC; MSRB Registered. Multi-Bank Securities, Inc. Anti-Money Laundering Policy Test Procedures Executive Summary Multi-Bank Securities, Inc. (MBS) has in place an Anti-Money Laundering (AML) policy. Merlin Elsner is our Chief Compliance Officer. Senior management has approved the AML policy as written, and all questions are to be directed to Merlin Elsner. The company’s AML policy is available for review upon request. Merlin Elsner is responsible for ensuring the review of all new accounts and routine transactional surveillance. Additionally, the company’s clearing agent Pershing LLC (Pershing), a BNY Mellon company, also reviews each account entity and transaction. Many MBS accounts (credit unions, banks, municipalities and SEC-registered investment advisors) are exempt from full Customer Identification Procedures (CIP). MBS relies on the fact that each of these exempted institutional entities is independently audited to ensure AML program compliance. Whenever practical and/or available, MBS will review external AML policies and independent audit reports made available for compliance with appropriate rules and regulations. MBS engaged the company controller to perform the annual AML independent testing. The company controller operates fully independent of the Compliance Department and reports directly to the CEO. During the annual independent testing of our AML procedures, randomly selected accounts were checked against the Office of Foreign Asset Control (OFAC) list found at www.ustreas.gov/ofac. The controller verified that as of the most recent test (concluded Dec. 22, 2020), none of the randomly selected accounts were found on the OFAC list. The company controller, upon a review of the processed documentation of account opening files and ongoing review of transactions, found no material deficiencies for 2020. Day-to-Day Operations Philip Sheridan, or his designee, is responsible for making sure that new accounts have appropriate and sufficient information, including but not limited to names, addresses and Taxpayer Identification Numbers requested at the time of account opening. Operations will reject all accounts with improperly filled-out forms or forms missing material information. Pershing systems do not allow for customer accounts to be opened without proper identification information. Pershing is responsible for verifying new control lists against all existing accounts. They have assured us that they do this task regularly. MBS screens all accounts on a continuous basis through a third-party vendor established as best industry practice. Merlin Elsner, or his designee, is responsible for deposit and withdrawal review. He follows the AML policy instructions for verifying information and record-keeping. Reviews are performed in a timely manner utilizing in-house CRM reports as well as Pershing system reports to capture all information necessary for AML review. MBS does not accept money or securities from clients at any time. MBS account activity is reviewed systematically against a complex series of dynamic logical rules to screen for potential AML activity through the Pershing platform. This platform produces behavior-based reports, which are reviewed in addition to internal CRM reports. CRM reports are reviewed on a daily basis by executive management. This two- pronged approach ensures that MBS has in place an adequate policy to guard against and detect potential AML activity. Given the sophistication of MBS’s internal client account AML policies, MBS considers the risk of an actual AML incident to be extremely low. The risk rating of accounts at MBS is presented in a spectrum to be considered in the overall securities market, and while there may be differences in ratings within the Firm, the overall AML risk remains low when considering the overall market. Merlin Elsner is also responsible for ensuring the review of the biweekly Financial Crimes Enforcement Network (FinCEN) report and compares them to the MBS customer database in a timely fashion. Evidence of these report reviews is kept extremely confidential and is available for review upon request from FINRA and/ or the SEC. G.8.b Packet Pg. 223 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 39 Member of FINRA & SIPC; MSRB Registered. Multi-Bank Securities, Inc. Anti-Money Laundering Policy Test Procedures (Continued) MBS screens new accounts (banks, credit unions and municipalities are exempt) against the OFAC database. Pershing screens accounts and transaction beneficiaries against the report for all clearing transactions. MBS performs OFAC screening on an “ongoing” basis in addition to the initial account opening procedures. Merlin Elsner is responsible for AML training of new and existing employees. The company also holds employee meetings to cover sales practice and compliance issues. The company maintains attendance records and has the record book available for review as necessary. Employees must complete Firm Element continuing education training as well as the FINRA-required continuing education. Merlin Elsner coordinates compliance training for all MBS locations. The company has procedures in place to maintain files for at least six years. The company maintains documentation for two years on-site. The company also has an off-site storage facility to maintain previous years. The company controller personally verifies the packaging and storage of all relevant documents. The off- site storage facility is subject to an inspection by MBS and all associated files are stored in a safe and secure location with extremely limited access. Merlin Elsner is responsible for the Suspicious Activity Report (SAR). He is familiar with the SAR form and Bank Secrecy Act (BSA) e-filing procedures. He will file a SAR immediately as applicable. The company does not accept money from clients and therefore does not maintain a Currency Transaction Report (CTR). All customer checks must be payable to Pershing LLC and all money wires go directly to Pershing. Pershing will not accept funds that originate from outside of the U.S.; this includes, but is not limited to, checks and electronic transfers. Please contact me at 1-800-967-9008 with any questions related to this AML document. Merlin Elsner Chief Compliance Officer Multi-Bank Securities, Inc. G.8.b Packet Pg. 224 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 40 Member of FINRA & SIPC; MSRB Registered. Code of Ethical Business Conduct Mission Statement Multi-Bank Securities, Inc. is a fixed-income securities Firm focused on delivering value to the institutional markets. We seek to earn and preserve the respect, confidence and loyalty of our employees and customers through integrity, professionalism, investment expertise, progressive technology and exceptional personal service. Code of Ethical Business Conduct Our Code of Ethical Business Conduct outlines our principles, ethics and standards to help guide our employees. Every person at our Firm is valuable and fulfills a vital role. Each client’s objective can be successfully met when all departments work harmoniously with that singular goal in mind. The following are in addition to the rules required by FINRA and other regulatory authorities. Commitment: We have made a commitment to operate ethically and to lead with integrity. We are committed to maintain the trust of fellow employees, clients, business partners and other industry professionals. This commitment is embedded in our core values. Integrity: Is the sum of the collective actions of our employees and how those actions measure up every day to our fundamental values. We are obligated to demonstrate moral and sound judgment in all actions within the office environment and the public. Our reputation is a direct reflection of our culture. Respect: We support an environment that encourages respect. We do not make false or misleading statements about our customers, business partners or competitors, nor do we misrepresent facts in order to gain a competitive advantage or engage in illegal or unethical business practices. Professional Growth: Our representatives are instructed to familiarize themselves with all policies, laws and regulations that apply to their jobs – including but not limited to state statues, bylaws and investment policies –prior to conducting business. We support our representatives’ pursuit of professional licenses and certifications. Accurate Records: It is critical that we properly maintain records and uphold state statutes, bylaws and investment policies at the corporate level, as well as in personal files for each customer. These documents will be updated accordingly or as required by law. Employee Manual: The Employee Manual is provided to assist employees in being successful at their job. The manual outlines our expectations, employment practices and policies, including the Code of Conduct. It is the responsibility of every employee to be familiar with and understand the contents of the manual. A verification receipt is required to be executed by each employee. We should all work to create a positive and diverse workplace that is free from discrimination and harassment. We are committed to a zero-tolerance policy against harassment or threatening behavior of any kind. Travel: We strongly encourage building trust and rapport with customers and business partners. Representatives are supported and make every effort to attend board meetings and council/commissioner meetings, including state conferences and chapter meetings, locally and nationally. G.8.b Packet Pg. 225 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 41 Address Phone Fax 1000 Town Center, Suite 2300Southfield, Michigan 48075 (800) 967-9045(248) 291-1100 (248) 291-1101 www.mbssecurities.com 2400 East Commercial Boulevard, Suite 812Ft. Lauderdale, Florida 33308 (800) 967-9045(954) 351-6930 (954) 351-9197 Member of FINRA & SIPC; MSRB Registered. Proudly Veteran-Owned! Information Security Attestation Letter June 3, 2020 In December 2019, Multi-Bank Securities, Inc. (MBS) contracted a Qualified Security Assessor Company to perform an External Penetration Test on MBS’s internet-facing systems. The objective of this engagement was to identify vulnerabilities in MBS systems and network security that both internal and external adversaries could exploit. The security engagement occurred during the period from February 17 to February 21, 2020. The testing process began with an information gathering phase in which the vendor’s assessment team conducted steps designed to gather all pertinent information surrounding targeted environment. Automated and manual testing techniques were used to assess the target areas to gauge the level of business risk of any discovered vulnerabilities. It was the vendor’s overall opinion that MBS had taken the appropriate steps to reduce enterprise risk level and mitigate the probability of such an event. Based on the assessment, MBS has implemented sufficient security controls to ensure the continued operation of business processes. The existing security controls appear to adequately mitigate risks to business processes to ensure the collection of personally identifiable information and critical business data. As of this date, the chief information officer attests that no material changes or events, as they relate to this external vendor, have occurred. Moving forward, MBS will continue diligent efforts on improving its overall security posture. Should you have any questions regarding this matter, please feel free to contact me directly at 1-800-967-9008 or via email at merlin@mbssecurities.com. Sincerely, Merlin Elsner Chief Compliance Officer Multi-Bank Securities, Inc. G.8.b Packet Pg. 226 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 42 Member of FINRA & SIPC; MSRB Registered. CONFIRMATION OF INSURANCE NAMED INSURED BINDER DATE BINDER NO. Multi-Bank Securities, Inc. 1000 Town Center Drive, Suite 2300 Southfield, MI 48075 09/28/2020 n/a CLIENT CODE POLICY TYPE MULTSEC-01 Securities Dealers Bond Page 1 of 1 ACCOUNT SERVICER Abigail Escalera EFFECTIVE DATE EXPIRATION DATE POLICY NUMBER INSURER 11/1/2020 11/1/2021 ****0548 Federal Insurance Company COVERAGE DESCRIPTION AND AMOUNTS/LIMITS Coverage: Securities Dealer Blanket Bond Effective Date of Change: 11/01/2020 Description of Change: Renewal It is hereby understood and agreed that the renewal of coverage is bound effective 12:01 a.m. on November 1, 2020 for a one year period as follows: Limit of Liability: Deductible: One Year Premium: $3,000,000 per loss $20,000 per loss Terms and conditions remain the same This confirmation of insurance sets forth the general terms, conditions and subjectivities, if any, of placement effected by Alliant on your behalf and at your direction. This confirmation of insurance will be cancelled, superseded and replaced upon delivery of the insurer’s binder of coverage. The insurer’s binder will be in effect and control this placement until the receipt of the insurer’s formal policy/bond documentation. In addition to the fees and/or commissions received by Alliant for the placement of insurance in certain circumstances other parties, including other intermediaries, may earn and retain usual and customary commissions for their role in providing insurance products or services under their separate contracts with insurers and/or reinsurers. Further, in certain segments of our business, come of our compensation may be derived from supplemental or bonus commissions paid by insurers or intermediaries based on criteria designed by the insurer or intermediary, to value of the policies that we place with it in a particular period. Premium: Federal Insurance Company Confirmed By: Authorized Representative: Program At Alliant Refer To: Abigail Escalera Admitted: X Non-Admitted 32 Old Slip New York, NY 10005- 3504 Phone 800-221-5830 Fax 800-383-1852 G.8.b Packet Pg. 227 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 43 Member of FINRA & SIPC; MSRB Registered. 8 PERSHING LLC (An Indirect Wholly Owned Subsidiary of The Bank of New York Mellon Corporation) Statement of Financial Condition December 31, 2020 (With Report of Independent Registered Public Accounting Firm) G.8.b Packet Pg. 228 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) This page is intentionally left blank. G.8.b Packet Pg. 229 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 45 Member of FINRA & SIPC; MSRB Registered. PERSHING LLC (An Indirect Wholly Owned Subsidiary of The Bank of New York Mellon Corporation) Statement of Financial Condition December 31, 2020 Table of Contents Page Report of Independent Registered Public Accounting Firm Statement of Financial Condition 1 Notes to Statement of Financial Condition 2 G.8.b Packet Pg. 230 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) This page is intentionally left blank. G.8.b Packet Pg. 231 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 47 Member of FINRA & SIPC; MSRB Registered. KPMG LLP 345 Park Avenue New York, NY 10154-0102 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. Report of Independent Registered Public Accounting Firm To the Member and Board of Managers Pershing LLC: Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Pershing LLC (the Company) as of December 31, 2020, and the related notes (collectively, the financial statement). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2020, in conformity with U.S.generally accepted accounting principles. Basis for Opinion This financial statement is the responsibility of the Company’s management. Our responsibility is to express an opinion on this financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion. We have served as the Company’s auditor since 2007. New York, New York February 25, 2021 G.8.b Packet Pg. 232 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) This page is intentionally left blank. G.8.b Packet Pg. 233 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 49 Member of FINRA & SIPC; MSRB Registered. PERSHING LLC (An Indirect Wholly Owned Subsidiary of The Bank of New York Mellon Corporation) Statement of Financial Condition December 31, 2020 (Dollars in millions) Assets Cash and cash equivalents $ 302 Cash and qualified securities segregated for regulatory purposes (cash of $3,166 and 9,124 qualified securities with a contract value of $5,958) Collateralized financing agreements: Securities borrowed 8,889 Securities purchased under agreements to resell 1,171 Receivables: Customers 12,947 Broker-dealers and clearing organizations 2,794 Affiliates 216 Intangible assets 5 Financial instruments owned, at fair value 113 Other assets 665 Total assets $ 36,226 Liabilities and Member’s Equity Liabilities: Overdrafts payable $350 Collateralized financing agreements:Securities loaned 1,029 Securities sold under agreements to repurchase 5,470 Payables:Customers 22,276 Broker-dealers and clearing organizations 2,894 Affiliates 200 Financial instruments sold, not yet purchased, at fair value 1 Accounts payable, accrued expenses and other 522 Total liabilities 32,742 Member’s equity: Member’s contributions 1,013 Accumulated earnings 2,471 Total member’s equity 3,484 Total liabilities and member’s equity $ 36,226 See accompanying notes to statement of financial condition. 1 G.8.b Packet Pg. 234 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 50 Member of FINRA & SIPC; MSRB Registered. PERSHING LLC (An Indirect Wholly Owned Subsidiary of The Bank of New York Mellon Corporation) Notes to Statement of Financial Condition December 31, 2020 2 (continued) (1) Organization and Description of Business Pershing LLC (the Company) is a single member Delaware Limited Liability Company and a wholly owned subsidiary of Pershing Group LLC (the Parent), which is a wholly owned subsidiary of The Bank of New York Mellon Corporation (BNY Mellon). The Company is registered as a securities broker-dealer with the Securities and Exchange Commission (SEC) authorized to engage in fully disclosed and omnibus clearing, sales and trading and brokerage services. The Company is a member of the New York Stock Exchange, Inc. (NYSE), Financial Industry Regulatory Authority (FINRA), Chicago Board of Options Exchange, Inc., Securities Investor Protection Corporation (SIPC), and other regional exchanges. (2) Summary of Significant Accounting Policies The Company’s statement of financial condition is prepared in accordance with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect amounts reported in the statement of financial condition and accompanying footnotes. Management believes that the estimates utilized in the statement of financial condition are reasonable. Actual results could differ from these estimates. Market conditions could increase the risk and complexity of the judgments in these estimates. (a) Cash and Cash Equivalents The Company defines cash and cash equivalents as highly liquid investments with original maturities of three months or less. (b) Cash and Qualified Securities Segregated for Regulatory Purposes The Company defines cash and qualified securities segregated for regulatory purposes as deposits of cash or qualified securities that have been segregated in special reserve bank accounts for the benefit of customers and the proprietary accounts of brokers (PAB) under Rule 15c3-3 of the SEC. Restricted cash consists of excess client funds and totaled $3.2 billion at December 31, 2020. Restricted cash is included in Cash and qualified securities segregated for regulatory purposes on the statement of financial condition. (c) Collateralized Financing Agreements Securities borrowed and securities loaned are collateralized financing arrangements that are recorded at the amount of cash collateral advanced or received. For securities borrowed, the Company deposits cash or other collateral with the lender. For securities loaned, the Company receives cash collateral that typically exceeds the market value of securities loaned. Securities sold under agreements to repurchase (repurchase agreements) and securities purchased under agreements to resell (resale agreements) are treated as collateralized financing arrangements and are carried at their contract amount, the amount at which they will subsequently be resold or repurchased, plus related accrued interest. Repurchase and resale agreements are typically collateralized by cash or government and government agency securities and generally have terms G.8.b Packet Pg. 235 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 51 Member of FINRA & SIPC; MSRB Registered. PERSHING LLC (An Indirect Wholly Owned Subsidiary of The Bank of New York Mellon Corporation) Notes to Statement of Financial Condition December 31, 2020 3 (continued) from overnight up to three months. The Company nets certain repurchase agreements and resale agreements in the statement of financial condition in accordance with Accounting Standards Codification (ASC) Subtopic 210-20, Balance Sheet Offsetting. It is the Company’s policy to take possession of the underlying collateral, monitor its market value relative to the amounts due under the agreements and, when necessary, require prompt transfer of additional collateral or reduction in the loan balance in order to maintain contractual margin protection. In the event of counterparty default, the financing agreement provides the Company with the right to liquidate the collateral held. On January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses (“CECL”). Under CECL, the Company has elected to use the collateral maintenance provision practical expedient for its collateralized financing agreements. Collateralized financing agreements are reported net of the expected credit losses, which was not material at December 31, 2020. (d) Receivables and Payables – Broker-Dealers and Clearing Organizations Receivables from broker-dealers and clearing organizations include amounts receivable for securities not delivered by the Company to a purchaser by the settlement date (fails to deliver), deposits with clearing organizations and the Company’s introducing brokers’ margin loans. Payables to broker- dealers and clearing organizations include amounts payable for securities not received by the Company from a seller by the settlement date (fails to receive), clearing deposits from introducing brokers and amounts payable to the Company’s introducing brokers. On January 1, 2020, the Company adopted CECL. Under CECL, the Company has elected to use the collateral maintenance provision practical expedient for its margin loans. Margin loans are reported net of the expected credit losses, which was $102 thousand at December 31, 2020. (e) Revenue Recognition The Company’s clients are billed based on fee schedules that are agreed upon in each customer contract. Receivables from customers were $168.9 million at December 31, 2020. An allowance is maintained for accounts receivables which is generally based on the number of days outstanding. On January 1, 2020, the Company adopted CECL. Under CECL, a provision of $34 thousand was recorded as of December 31, 2020. Receivables from customers are included in other assets on the statement of financial condition Contract assets represent accrued revenues that have not yet been billed to the customers due to certain contractual terms other than the passage of time and were $7.4 million at December 31, 2020. Accrued revenues recorded as contract assets are usually billed on an annual basis. There were no impairments recorded on contract assets in 2020. Contract assets are included in other assets on the statement of financial condition. G.8.b Packet Pg. 236 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 52 Member of FINRA & SIPC; MSRB Registered. PERSHING LLC (An Indirect Wholly Owned Subsidiary of The Bank of New York Mellon Corporation) Notes to Statement of Financial Condition December 31, 2020 4 (continued) Contract liabilities represent payments received in advance of providing services under certain contracts were $7.7 million at December 31, 2020. Contract liabilities are included in accounts payable, accrued expenses and other on the statement of financial condition. Changes in contract assets and liabilities primarily relate to either party’s performance under the contracts. (f) Fair Value of Financial Instruments Owned and Sold Financial instruments owned and financial instruments sold, not yet purchased are stated at fair value. See Note 5 to statement of financial condition for disclosures with respect to ASC Topic 820. (g) Fixed Assets and Intangibles Fixed assets are recorded at cost, net of accumulated depreciation. Depreciation is recorded on a straight-line basis over the useful lives of the related assets, generally two to five years. Leasehold improvements are amortized on a straight-line basis over the lesser of the lease term or 10 years. For internal-use computer software, the Company capitalizes qualifying costs incurred during the application development stage. The resulting asset is amortized using the straight-line method over the expected life, which is generally five years. All other nonqualifying costs incurred in connection with any internal-use software projects are expensed as incurred. Identifiable intangible assets are amortized on a straight-line basis over their estimated useful life, which is generally 15 years from the date of acquisition and are assessed for impairment indicators pursuant to the provision of ASC Topic 350, Intangibles – Goodwill and Other, and ASC Topic 360, Property, Plant & Equipment. (h) Receivables and Payables - Customers Receivables from and payables to customers include amounts due on cash and margin transactions. Securities owned by customers are held as collateral for receivables. Customer securities transactions are recorded on a settlement date basis, which is generally two business days after trade date. Securities owned by customers, including those that collateralize margin or other similar transactions, are not reflected in the statement of financial condition. (i) Restricted Stock Units During the year, BNY Mellon issued restricted stock to employees, including certain Company employees. The Company accounts for this plan in accordance with ASC Topic 718, Compensation – Stock Compensation, and accordingly compensation cost is measured at the grant date based on the value of the award and is recognized over the vesting period. As of December 31, 2020, $23.5 million of total unrecognized compensation cost related to nonvested restricted stock is expected to be recognized over a period of approximately zero to four years. G.8.b Packet Pg. 237 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 53 Member of FINRA & SIPC; MSRB Registered. PERSHING LLC (An Indirect Wholly Owned Subsidiary of The Bank of New York Mellon Corporation) Notes to Statement of Financial Condition December 31, 2020 5 (continued) (j) Income Taxes The Company is included in the consolidated federal and combined state and local income tax returns filed by BNY Mellon. In addition, the Company files stand-alone tax returns in certain jurisdictions, including Pennsylvania. Income taxes are calculated using the modified separate return method, and the amount of current tax expense or benefit is either remitted to or received from BNY Mellon, pursuant to a tax sharing agreement between BNY Mellon and the Company. The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes, which generally requires the recognition of tax benefits or expenses on the temporary differences between the financial reporting and the tax basis of the assets and liabilities. If appropriate, deferred tax assets are adjusted by a valuation allowance, which reflects expectations of the extent to which such assets will be realized. In accordance with ASC 740, Income Taxes, the Company uses a two-step approach in recognizing and measuring its uncertain tax benefits whereby it is first determined if the tax position is more likely than not to be sustained under examination. If the tax position meets the more likely than not threshold, the position is then measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. A tax position that fails to meet the more likely than not recognition threshold will result in either a reduction of current or deferred tax assets, and/or recording of current or deferred tax liabilities. (k) Leases We determine if an arrangement is a lease at inception. Right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments. The ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date or at lease modification date for certain lease modifications. For all leases, we use a rate that represents a collateralized incremental borrowing rate based on similar terms and information available at lease commencement date or at the modification date for certain lease modifications in determining the present value of lease payments. In addition to the lease payments, the determination of an ROU asset may also include certain adjustments related to lease incentives and initial direct costs incurred. Options to extend or terminate a lease are included in the determination of the ROU asset and lease liability only when it is reasonably certain that we will exercise that option. ROU assets are reviewed for impairment when events or circumstances indicate that the carrying amount may not be recoverable. For all leases, we have elected to account for the contractual lease and non-lease components as a single lease component and include in the calculation of the lease liability. G.8.b Packet Pg. 238 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 54 Member of FINRA & SIPC; MSRB Registered. PERSHING LLC (An Indirect Wholly Owned Subsidiary of The Bank of New York Mellon Corporation) Notes to Statement of Financial Condition December 31, 2020 6 (continued) (3) Accounting Changes and New Accounting Guidance (a) Recently Adopted Accounting Standard The following Accounting Standard Update (“ASU”) issued by the FASB was adopted by the Company in 2020. ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued an ASU, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments. This ASU introduces a new current expected credit losses model, which applies to financial assets subject to credit losses and measured at amortized cost including cash, regulated cash and securities, certain receivables and certain off-balance sheet credit exposures. The standard requires a cumulative effect of initial application to be recognized in retained earnings at the date of initial application. The Company adopted the new standard on January 1, 2020. The Company has developed expected credit loss models and approaches that include consideration of multiple forecast scenarios and other methodologies. The impact to the Company was $312 thousand at December 31, 2020. (4) Receivables from and Payables to Broker-Dealers and Clearing Organizations Amounts receivable from and payable to broker-dealers and clearing organizations include the following (dollars in millions): Receivables: Brokers and dealers $1,928 Securities failed to deliver 358 Clearing organizations 508 Total receivables $2,794 Payables: Brokers and dealers $2,520 Securities failed to receive 374 Total payables $ 2,894 (5) Financial Instruments ASC Topic 820 applies to all financial instruments that are being measured and reported on a fair value basis. This includes those items currently reported in financial instruments owned, at fair value and financial instruments sold, not yet purchased, at fair value on the statement of financial condition. G.8.b Packet Pg. 239 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 55 Member of FINRA & SIPC; MSRB Registered. PERSHING LLC (An Indirect Wholly Owned Subsidiary of The Bank of New York Mellon Corporation) Notes to Statement of Financial Condition December 31, 2020 7 (continued) As defined in ASC Topic 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various methods including market and income approaches. Based on these approaches, the Company utilizes certain assumptions that market participants would use in pricing the asset or liability. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial instrument assets and liabilities carried at fair value have been classified and disclosed in one of the following three categories: Level 1 Quoted market prices in active markets for identical assets or liabilities. Level 2 Observable market based inputs or unobservable inputs that are derived from or corroborated by market data. Level 3 Unobservable inputs that are not corroborated by market data. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as listed equities. Level 2 includes those financial instruments that are valued using models or other valuation methodologies calibrated to observable market inputs. These models are primarily industry-standard models that consider various assumptions, including discount margins, credit spreads, discounted anticipated cash flows, the terms and liquidity of the instrument, the financial condition, operating results and credit ratings of the issuer or underlying company, the quoted market price of publicly traded securities with similar duration and yield, time value, yield curve, default rates, as well as other measurements. In order to be classified as Level 2, substantially all of these assumptions would need to be observable in the marketplace and can be derived from observable data or supported by observable levels at which transactions are executed in the marketplace. Level 3 comprises financial instruments whose fair value is estimated based on internally developed models or methodologies utilizing significant inputs that are unobservable from objective sources. The Company did not have any assets or liabilities classified as Level 3 at December 31, 2020. G.8.b Packet Pg. 240 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 56 Member of FINRA & SIPC; MSRB Registered. PERSHING LLC (An Indirect Wholly Owned Subsidiary of The Bank of New York Mellon Corporation) Notes to Statement of Financial Condition December 31, 2020 8 (continued) In determining the appropriate levels, the Company performed an analysis of the assets and liabilities that are subject to ASC Topic 820. The following tables present the financial instruments carried at fair value as of December 31, 2020 (dollars in millions): Assets at fair value as of December 31, 2020Level 1 Level 2 Level 3 Total Financial instruments owned, at fair valueMoney market funds $94 — — 94 Derivatives - foreign exchange — 19 — 19 Total assets at fair value $94 19 — 113 Liabilities at fair value as of December 31, 2020Level 1 Level 2 Level 3 Total Financial instruments sold, not yet purchasedEquity instruments $1 — — 1 Total liabilities at fair value $1 — — 1 Estimated Fair Value of Financial Instruments Not Carried at Fair Value The fair values of the other financial assets and liabilities are considered to approximate their carrying amounts because they have limited counterparty credit risk and are short-term, replaceable on demand, or bear interest at market rates. G.8.b Packet Pg. 241 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 57 Member of FINRA & SIPC; MSRB Registered. PERSHING LLC (An Indirect Wholly Owned Subsidiary of The Bank of New York Mellon Corporation) Notes to Statement of Financial Condition December 31, 2020 9 (continued) The table below presents the carrying value and fair value of Pershing LLC’s financial instruments which are not carried at fair value (dollars in millions). The table below therefore excludes items measured at fair value on a recurring basis presented in the table above. In addition, the table excludes the values of non-financial assets and liabilities. December 31, 2020 Estimated Carrying Level 1 Level 2 Level 3 fair value value Summary of financial instruments: Assets: Cash and cash equivalents $302 — — 302 302 Cash and qualified securities segregated 3,166 5,958 — 9,124 9,124 for regulatory purposes Securities borrowed — 8,889 — 8,889 8,889 Securities purchased under agreements to resell — 1,171 — 1,171 1,171 Receivables from customers — 12,947 — 12,947 12,947 Receivables from broker- dealers and clearing organizations — 2,794 — 2,794 2,794 Due from affiliates — 216 — 216 216 Other assets — 665 — 665 665 Total $3,468 32,640 — 36,108 36,108 Liabilities: Overdrafts payable $— 350 — 350 350 Securities loaned — 1,029 — 1,029 1,029 Securities sold under — 5,470 — 5,470 5,470 agreements to repurchase Payables to customers — 22,276 — 22,276 22,276 Payables to broker- dealers and clearing organizations — 2,894 — 2,894 2,894 Due to affiliates — 200 — 200 200 Accounts payable, accrued expenses other — 522 — 522 522 Total $— 32,741 — 32,741 32,741 Fair value can vary from period to period based on changes in a wide range of factors, including interest rates, credit quality, and market perceptions of value and as existing assets and liabilities run off and new transactions are entered into. G.8.b Packet Pg. 242 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 58 Member of FINRA & SIPC; MSRB Registered. PERSHING LLC (An Indirect Wholly Owned Subsidiary of The Bank of New York Mellon Corporation) Notes to Statement of Financial Condition December 31, 2020 10 (continued) Offsetting Assets and Liabilities The following table presents financial instruments that are either subject to an enforceable netting agreement or offset by collateral arrangements. There were no financial instruments subject to a netting agreement for which the Company is not currently netting (dollars in millions). Financial assets subject to enforceable master netting agreements Gross amounts Net assets December 31, 2020 Gross assets recognized offset in the statement of financial condition recognized on the statement of financial condition (1) Financial instruments Cash collateral received Net amount Securities borrowed $8,889 — 8,889 8,663 — 226 Securities purchased under 7,353 224 7,129 7,114 — 15 agreements to resell (2) Total financial assets subject to enforceable master netting agreement $16,242 224 16,018 15,777 — 241 Financial liabilities subject to enforceable master netting agreements Gross amounts Net liabilities Gross liabilities recognized offset in the statement of financial condition recognized on the statement of financial condition (1) Financial instruments Cash collateral pledged Net amount Securities loaned $1,029 — 1,029 978 — 51 Securities sold under agreements 5,694 224 5,470 5,470 — — to repurchase Total financial liabilities subject to enforceable master netting agreement $6,723 224 6,499 6,448 — 51 (1) The total amount reported in financial instruments is limited to the amount of the related instruments presented in the statement of financial condition and therefore any over-collateralization of these positions is not included. (2) Including qualified securities with a contract value of $5,958 recognized on the statement of financial condition. Gross amounts not offset Gross amounts not offset G.8.b Packet Pg. 243 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 59 Member of FINRA & SIPC; MSRB Registered. PERSHING LLC (An Indirect Wholly Owned Subsidiary of The Bank of New York Mellon Corporation) Notes to Statement of Financial Condition December 31, 2020 11 (continued) Repurchase Agreements and Securities Lending The following table presents the contract value of repurchase agreements and securities lending transactions accounted for as secured borrowings by the type of collateral provided to counterparties. Repurchase agreements and securities lending transactions accounted for as secured borrowings at December 31, 2020Remaining contractual maturity of the agreements Overnight and 30 days or (in millions)continuous Up to 30 days more Total Repurchase agreements: U.S. Treasury $1,440 $— $— $1,440 U.S. Government agencies 4 — — 4 State and political subdivisions 66 40 865 971 Agency RMBS 342 — 79 421 Non-agency RMBS — 10 8 18 Non-agency commercial MBS — 11 6 17 Commercial papper/CDs 7 — 124 131 Corporate bonds 190 218 1,436 1,844 Equity securities — 21 827 848 Total repurchase agreements $2,049 $300 $3,345 $5,694 Securities Lending: U.S. Treasury $11 $— $— $11 Agency RMBS 161 — — 161 Agency commercial MBS 20 — — 20 Corporate bonds 21 — — 21 Equity securities 816 — — 816 Total securities loaned $1,029 $— $— $1,029 Total borrowings $3,078 $300 $3,345 $6,723 The Company’s repurchase agreements and securities lending transactions primarily encounter risk associated with liquidity. The Company is required to pledge collateral based on predetermined terms within the agreements. If the Company were to experience a decline in the fair value of the collateral pledged for these transactions, additional collateral could be required to be provided to the counterparty, thereby decreasing the amount of assets available for other liquidity needs that may arise. As of December 31, 2020, the Company has $100 million of collateral related to repurchase agreements that had remaining contractual maturities that exceeded 90 days. G.8.b Packet Pg. 244 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 60 Member of FINRA & SIPC; MSRB Registered. PERSHING LLC (An Indirect Wholly Owned Subsidiary of The Bank of New York Mellon Corporation) Notes to Statement of Financial Condition December 31, 2020 12 (continued) (6) Fixed Assets Fixed assets are included in other assets on the statement of financial condition and consists of the following (dollars in millions): Capitalized software $270 Leasehold improvements 38 Computer software 29 Computer equipment 10 Other 82 Total 429 Less accumulated depreciation (299) Total fixed assets, net $ 130 (7) Leasing The Company has non-cancelable operating leases for office space that expire on various dates through 2037, some of which include options to extend or terminate the lease. The following table presents the statement of financial condition information related to operating leases. Statement of financial condition information December 31 ,2020 (dollar in thousands)Operating leases Right-of-use assets (a)$167.1 Lease liability (b)$194.0 Weighted average: Remaining lease term 15.2 year Discount rate (annualized)2.40% (a)Included in other assets on the statement of financial condition. (b) Operating lease liabilities are included in accounts payable, accrued expenses and other on the statement of financial condition. G.8.b Packet Pg. 245 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 61 Member of FINRA & SIPC; MSRB Registered. PERSHING LLC (An Indirect Wholly Owned Subsidiary of The Bank of New York Mellon Corporation) Notes to Statement of Financial Condition December 31, 2020 13 (continued) The following table presents cash flow information related to leases. Operating cash flows from finance leases $– Operating cash flows from operating leases 18.4 Financing cash flows from finance leases – The following table presents the maturities of lease liabilities. Maturities of lease liabilities Operating (in millions) leases For the year ended December 31 2021 10.0 2022 7.9 2023 15.4 2024 15.4 2025 15.4 Thereafter 172.1 Total lease payments 236.2 Less: Imputed interest 42.2 Total $194.0 (8) Third Party Bank Loans and Lines of Credit The Company has $350 million in uncommitted lines of credit with non-affiliated banks as of December 31, 2020. There were no borrowings against these lines of credit at December 31, 2020. Interest on such borrowings is determined at the time each loan is initiated. (9) Income Taxes The deferred income taxes reflect the tax effects of temporary differences between the financial reporting and tax bases of asset and liabilities.The Company has a gross deferred tax asset of $18.4 million and a gross deferred tax liability of $33.7 million at December 31, 2020.The deferred tax asset is primarily attributable to stock compensation, while the deferred tax liability is primarily attributable to internally developed software.The net deferred tax liability is $15.3 million.The Company has not recorded a valuation allowance because the Company believes it is more likely than not that the deferred tax assets will be realized. Federal and state taxes payable due to BNY Mellon of $26.3 million and $3.9 million, respectively, are included in affiliate payables on the statement of financial condition.State taxes receivable of $2.9 million are included in other assets on the statement of financial condition. Cash flow information Year-to-Date ended (in millions)December 31, 2020 Cash paid for amounts included in measurement of liabilities: G.8.b Packet Pg. 246 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 62 Member of FINRA & SIPC; MSRB Registered. PERSHING LLC (An Indirect Wholly Owned Subsidiary of The Bank of New York Mellon Corporation) Notes to Statement of Financial Condition December 31, 2020 14 (continued) BNY Mellon’s federal consolidated income tax returns are closed to examination through 2016. The New York State and New York City income tax returns are closed to examination through 2014. The Company’s New Jersey income returns are closed to examination through 2014. (10) Related Party Transactions The Company provides clearing, sales and trading, and brokerage related services to indirect wholly owned subsidiaries of BNY Mellon. Balances due from/to these affiliates related to these services were approximately $216.1 million and $61.3 million, respectively. They are included in receivables from affiliates and payables to affiliates, respectively, on the statement of financial condition. The Company had securities failed to deliver of $23.4 million and securities failed to receive of $63.0 million with affiliates. They are included in receivables from broker-dealers and clearing organizations and payables to broker-dealers and clearing organizations, respectively, on the statement of financial condition. The Company has $5.6 billion of unsecured loan facilities with the Parent. At December 31, 2020, there were no borrowings against the loan facilities. The Company also has loan agreements with two affiliates. At December 31, 2020, there were borrowings against the loans of approximately $36 million, which are included in payables to affiliates. Balances due to BNY Mellon for taxes, payroll, technology and leased equipment were $102.5 million and are included in payables to affiliates on the statement of financial condition. The Company maintains a collateralized financing arrangement with an affiliate associated with repurchase agreements, with the maximum facility of $200 million. At December 31, 2020, the Company did not have any affiliated repurchase agreement transactions. At December 31, 2020, the Company had not entered into securities lending agreements with another affiliate. For the year ended December 31, 2020, the Company leased furniture and fixtures and computer and other communications equipment from an affiliate. Additionally, the Company contracts through certain related parties acting in their role as agents to facilitate transactions between the Company and certain principal third parties for securities borrowed and tri-party repurchase or reverse repurchase transactions. Any risk assumed in these transactions is solely between the principal third parties and the Company. (11) Employee Benefit Plans BNY Mellon sponsors a 401(k) plan (the Plan) for its active employees. The Plan offers the Company’s employees the opportunity to plan, save and invest for their future financial needs. The Company makes periodic contributions to the Plan based on the discretion of management. (12) Pledged Assets and Guarantees Under the Company’s collateralized financing arrangements and other business activities, the Company either receives or provides collateral. In many cases, the Company is permitted to sell or repledge these securities held as collateral. At December 31, 2020, the fair value of securities received as collateral where the Company is permitted to sell or repledge the securities was $46,510 million and the fair value of the G.8.b Packet Pg. 247 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 63 Member of FINRA & SIPC; MSRB Registered. PERSHING LLC (An Indirect Wholly Owned Subsidiary of The Bank of New York Mellon Corporation) Notes to Statement of Financial Condition December 31, 2020 15 (continued) portion that had been sold or repledged was $25,243 million. The details of these sources and the uses of collateral are noted in the below tables (dollars in millions). Source of available collateral – received, borrowed or owned:Financial instruments owned, at fair value $93 Securities borrowed 8,704 Securities purchased under agreements to resell 7,338 Margin securities available to sell or re-pledge 30,375 Total source of collateral $46,510 Use of available collateral – re-pledged, loaned or sold:Financial instruments sold, not yet purchased, at fair value $1 Securities loaned 978 Securities sold under agreements to repurchase 5,955 Pledged to clearing corporations 1,435 Short sale covering 10,932 Qualified securities segregated for regulatory purposes 5,942 Total use of collateral $ 25,243 The Company also conducts a fully paid lending program, in which customers agree to make available their fully paid securities to be loaned to third parties in exchange for a fee. At December 31, 2020, the fair value of the securities borrowed under this program was $118 million and is included in securities borrowed and securities loaned on the statement of financial condition and included in the table above. Obligations under Guarantees The Company applies the disclosure and recognition requirements for guarantees in accordance with ASC Topic 460, Guarantees, whereby the Company will recognize a liability at the inception of a guarantee for obligations it has undertaken in issuing the guarantee, including its ongoing obligation to stand ready to perform over the term of the guarantee in the event that certain events or conditions occur. The Company provides guarantees to securities clearinghouses and exchanges. Under the standard membership agreement, members are required to guarantee the performance of other members. Under the agreements, if another member becomes unable to satisfy its obligations to the clearinghouse, other members would be required to meet shortfalls. The Company’s liability under these arrangements is not quantifiable or limited and could exceed the cash and securities it has posted as collateral. However, management believes the potential for the Company to be required to make payments under these arrangements is remote. Accordingly, no contingent liability is carried on the statement of financial condition for these arrangements. In connection with its securities clearing business, the Company performs securities execution, clearance and settlement services on behalf of other broker-dealer clients. Management believes the potential for the Company to be required to make unreimbursed payments relating to such services is remote due to the G.8.b Packet Pg. 248 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 64 Member of FINRA & SIPC; MSRB Registered. PERSHING LLC (An Indirect Wholly Owned Subsidiary of The Bank of New York Mellon Corporation) Notes to Statement of Financial Condition December 31, 2020 16 (continued) contractual capital requirements associated with clients’ activity and the regular review of clients’ capital. Accordingly, no contingent liability is carried on the statement of financial condition for these transactions. (13) Commitments and Contingences As of December 31, 2020, the Company had commitments with twenty clients to lend a maximum total of $1,154 million for various terms. These commitments consisted of outstanding loans of $1,081 million, and unfunded commitments totaling $73 million. The Company is involved in various legal proceedings arising in connection with the Company’s business activities. Based on currently available information and the advice of counsel, the Company believes that the aggregate results of all such proceedings will not have a material adverse effect on the Company’s financial condition. The Company intends to defend itself vigorously against all claims asserted against it. In accordance with applicable accounting guidance, the Company establishes reserves for litigation and settlements for which loss contingencies are both probable and estimable. The Company will continue to monitor all such matters and will adjust the reserve amounts as appropriate. Matters Related to R. Allen Stanford In late December 2005, Pershing LLC (“Pershing”) became a clearing firm for Stanford Group Co. (“SGC”), a registered broker-dealer that was part of a group of entities ultimately controlled by R. Allen Stanford (“Stanford”). Stanford International Bank, also controlled by Stanford, issued certificates of deposit (“CDs”). Some investors allegedly wired funds from their SGC accounts to purchase CDs. In 2009, the Securities and Exchange Commission charged Stanford with operating a Ponzi scheme in connection with the sale of CDs, and SGC was placed into receivership. Alleged purchasers of CDs have filed two putative class action proceedings against Pershing: one in November 2009 in Texas federal court, and one in May 2016 in New Jersey federal court. After dismissals, three lawsuits remain against Pershing in Louisiana and New Jersey federal courts, which were filed in January 2010, October 2015 and May 2016. The purchasers allege that Pershing, as SGC’s clearing firm, assisted Stanford in a fraudulent scheme and assert contractual, statutory and common law claims. In March 2019, a group of investors filed a putative class action against The Bank of New York Mellon in New Jersey federal court, making the same allegations as in the prior actions brought against Pershing. All the cases that have been brought in federal court against Pershing and the case brought against The Bank of New York Mellon have been consolidated in Texas federal court for discovery purposes. In July 2020, after being enjoined from pursuing claims before the Financial Industry Regulatory Authority, Inc. (“FINRA”), an investment firm filed an action against Pershing in Texas federal court. FINRA arbitration proceedings also have been initiated by alleged purchasers asserting similar claims. G.8.b Packet Pg. 249 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 65 Member of FINRA & SIPC; MSRB Registered. PERSHING LLC (An Indirect Wholly Owned Subsidiary of The Bank of New York Mellon Corporation) Notes to Statement of Financial Condition December 31, 2020 17 (continued) (14) Regulatory Requirements As a registered broker-dealer, the Company is subject to the Uniform Net Capital Rule under Rule 15c3-l of the Securities Exchange Act of 1934 and has elected to use the alternative method of computing regulatory net capital requirements provided for in that Rule. Under the alternative method, the required net capital may not be less than two percent of aggregate debit items arising from customer transactions or $1.5 million, whichever is greater. At December 31, 2020, the Company’s regulatory net capital of approximately $2.8 billion was 17.35% of aggregate debit items and in excess of the minimum requirement by approximately $2.46 billion. Advances to affiliates, repayment of borrowings, dividend payments to Parent and other equity withdrawals are subject to certain notification and other provisions of the Rule 15c3-1 and other regulatory bodies. Pursuant to Rule 15c3-3 of the SEC, the Company may be required to deposit in a Special Reserve Bank Account, cash or acceptable qualified securities for the exclusive benefit of customers. At December 31, 2020, the Company had approximately $8.4 billion of cash and acceptable qualified securities on deposit in such accounts. As a clearing broker, the Company is required to compute a reserve requirement for the proprietary accounts of broker-dealers (the PAB Reserve Formula). As of December 31, 2020, the Company had approximately $730 million of cash deposits and acceptable qualified securities in accounts designated for the exclusive benefit of PAB pursuant to Rule 15c3-3 of the SEC. (15) Financial Instruments and Related Risks (a) Customer Activities Certain market and credit risks are inherent in the Company’s business, primarily in facilitating customers’ trading and financing transactions in financial instruments. In the normal course of business, the Company’s customer activities include execution, settlement, and financing of various customer securities, which may expose the Company to both on and off-balance sheet risk in the event the customer is unable to fulfill its contractual obligations. The Company’s customer securities activities are transacted on either a cash or margin basis. In margin transactions, the Company extends credit to customers, which is collateralized by cash and/or securities in the customer’s account. In connection with these activities, the Company executes and clears customer transactions involving securities sold but not yet purchased and option contracts. The Company seeks to control risks associated with its customer activities by requiring customers to maintain margin collateral in compliance with various regulatory, exchange and internal guidelines. The Company monitors required margin levels daily; pursuant to such guidelines, the Company requires the customer to deposit additional collateral or to reduce positions, when necessary. Such transactions may expose the Company to significant off-balance sheet risk in the event the collateral is not sufficient to fully cover losses which customers may incur. In the event the customer fails to satisfy its obligations, the Company may be required to purchase or sell the collateral at prevailing market prices in order to fulfill the customer’s obligations. G.8.b Packet Pg. 250 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 66 Member of FINRA & SIPC; MSRB Registered. PERSHING LLC (An Indirect Wholly Owned Subsidiary of The Bank of New York Mellon Corporation) Notes to Statement of Financial Condition December 31, 2020 18 (continued) The Company’s customer financing and securities settlement activities may require the Company to pledge customer securities as collateral in support of various secured financing sources, such as securities loaned. Additionally, the Company pledges customer securities as collateral to satisfy margin deposits of the Options Clearing Corporation. In the event the counterparty is unable to meet its contractual obligation to return customer securities pledged as collateral, the Company may be exposed to the risk of acquiring the securities at prevailing market prices in order to satisfy its obligation. The Company controls this risk by monitoring the market value of securities pledged on a daily basis and by requiring adjustments of collateral levels in the event of excess market exposures. (b) Credit Risk As a securities broker and dealer, the Company is engaged in various securities trading and brokerage activities servicing a diverse group of domestic and foreign corporations, governments, and institutional and individual investors. A substantial portion of the Company’s transactions is executed with and on behalf of institutional investors including other broker-dealers, banks, U.S. government agencies, mutual funds, hedge funds and other financial institutions. Credit risk is the potential for loss resulting from the default by a counterparty of its obligations. Exposure to credit risk is generated by securities and currency settlements, contracting derivative and forward transactions with customers and dealers, and the holding in inventory of loans. The Company uses various means to manage its credit risk. The creditworthiness of all counterparties is analyzed at the outset of a credit relationship with the Company. These counterparties are subsequently reviewed on a periodic basis. The Company sets a maximum exposure limit for each counterparty, as well as for groups or classes of counterparties. Furthermore, the Company enters into master netting agreements when feasible and demands collateral from certain counterparties or for certain types of credit transactions. (c) Market Risk Market risk is the potential loss the Company may incur as a result of changes in the market or fair value of a particular financial instrument. All financial instruments are subject to market risk. The Company’s exposure to market risk is determined by a number of factors, including size, duration, composition and diversification of positions held, the absolute and relative level of interest rates and foreign currency exchange rates, as well as market volatility and liquidity. The Company manages market risk by setting and monitoring adherence to risk limits. Financial instruments sold, not yet purchased represent obligations of the Company to deliver the specified security at the contracted price and thereby, create a liability to purchase the security in the market at prevailing prices. Accordingly, these transactions result in off-balance sheet risk, as the Company’s ultimate obligation to satisfy the sale of financial instruments sold, not yet purchased may exceed the amount reflected in the statement of financial condition. (d) Operational Risk In providing a comprehensive array of products and services, the Company may be exposed to operational risk. Operational risk may result from, but is not limited to, errors related to transaction G.8.b Packet Pg. 251 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 67 Member of FINRA & SIPC; MSRB Registered. PERSHING LLC (An Indirect Wholly Owned Subsidiary ofThe Bank of New York Mellon Corporation) Notes to Statement of Financial Condition December 31, 2020 processing, breaches of internal control systems and compliance requirements, fraud by employees or persons outside the Company or business interruption due to systems failures or the other events. Operational risk may also include breaches of the Company’s technology and information systems resulting from unauthorized access to confidential information or from internal or external threats, such as cyber attacks. Operational risk also includes potential legal or regulatory actions that could arise as a result of noncompliance with applicable laws and/or regulatory requirements. In the case of an operational event, the Company could suffer a financial loss as well as damage to our reputation. (e)Financial Instruments with Off-Balance-Sheet Risk The Company may enter into various transactions involving derivatives and other off-balance sheet financial instruments. These financial instruments may include forward foreign exchange contracts that are used to meet the needs of customers. Generally, forward foreign exchange contracts represent future commitments to purchase or sell foreign currency at specific terms at specified future dates. (f)Impact of coronavirus pandemic on our business The coronavirus pandemic has had a significant effect on the global macroeconomic environment. Since March 2020, the vast majority of our employees have worked from home. They have been fully operational with minimal disruption to servicing our clients. Market volatility associated with the performance of global equity and fixed income markets and lower interest rates has had, and may continue to have, an impact on our business. The significant increases in market volatility also resulted in increased client activity. However, the heightened volumes and volatility experienced in the first quarter of 2020 declined over the remainder of 2020. Given the decrease in short-term interest rates, there was a significant increase in money market mutual fund fees that were waived, which reduced fee revenue.It is difficult to forecast the impact of the coronavirus, together with related public health measures, on our results with certainty because so much depends on how the health crisis evolves, its impact on the globaleconomy as well as actions taken by central banks and governments to support the economy and the availability, use and effectiveness of vaccines. (16) Subsequent Events The Company has evaluated subsequent events from December 31, 2020 through February 25, 2021, the date the Company’s financial statements are available to be issued. 19 G.8.b Packet Pg. 252 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 68 Member of FINRA & SIPC; MSRB Registered. Independent Service Auditor’s Report To the Audit Committee of The Bank of New York Mellon Corporation: Scope We have examined BNY Mellon | Pershing (“Pershing”)’s description of its system entitled “Pershing’s Description of its Introducing Firm Services, Prime Services, and Managed Accounts Operations System” for processing user entities’ transactions throughout the period October 1, 2019 to September 30, 2020 (the “description”) and the suitability of the design and operating effectiveness of the controls included in the description to achieve the related control objectives stated in the description, based on the criteria identified in “Pershing’s Assertion” (the “assertion”).The controls and control objectives included in the description are those that management of Pershing believes are likely to be relevant to user entities’ internal control over financial reporting, and the description does not include those aspects of the introducing firm services, prime services, and managed accounts operations system that are not likely to be relevant to user entities’ internal control over financial reporting. The information included in Section V, “Other Information Provided by BNY Mellon | Pershing,”is presented by management of Pershing to provide additional information and is not a part of Pershing’s description of its introducing firm services,prime services, and managed accounts operations system made available to user entities during the period October 1, 2019 to September 30, 2020.Information about Pershing’s management response details; NetX360 Report Center completeness and accuracy; Pershing’s enterprise resiliency overview including pandemic planning overview / COVID-19 impact; and SEC Rule 206(4)-2 “Custody of Funds or Securities of Clients by Investment Advisers” under the Investment Advisers Act of 1940 has not been subjected to the procedures applied in the examination of the description of the introducing firm services, prime services, and managed accounts operations system and of the suitability of the design and operating effectiveness of controls to achieve the related control objectives stated in the description of the introducing firm services, prime services, and managed accounts operations system, and, accordingly, we express no opinion on it. Pershing uses subservice organizations for market data, pricing of securities, portfolio accounting, locates, checks, disbursements, confirm and statement printing, and certain information technology services. Pershing also uses the services of BNY Mellon Technology to provide information technology infrastructure support and to administer centrally managed information technology controls for some of the Pershing systems. The description includes only the control objectives and related controls of Pershing and excludes the control objectives and related controls of the subservice organizations. The description also indicates that certain control objectives specified by Pershing can be achieved only if complementary subservice organization controls assumed in the design of Pershing’s controls are suitably designed and operating effectively, along with the related controls at Pershing. Our examination did not extend to controls of the subservice organizations and we have not evaluated the suitability of the design or operating effectiveness of such complementary subservice organization controls. The description indicates that certain control objectives specified in the description can be achieved only if complementary user entity controls assumed in the design of Pershing’s controls are suitably designed and operating effectively, along with related controls at Pershing. Our examination did not extend to such complementary user entity controls, and we have not evaluated the suitability of the design or operating effectiveness of such complementary user entity controls. KPMG LLP 345 Park Avenue New York, NY 10154-0102 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. G.8.b Packet Pg. 253 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 69 Member of FINRA & SIPC; MSRB Registered. Service organization’s responsibilities In Section II, Pershing has provided an assertion about the fairness of the presentation of the description and suitability of the design and the operating effectiveness of the controls to achieve the related control objectives stated in the description. Pershing is responsible for preparing the description and its assertion, including the completeness, accuracy, and method of presentation of the description and the assertion, providing the services covered by the description, specifying the control objectives and stating them in the description, identifying the risks that threaten the achievement of the control objectives, selecting the criteria stated in the assertion, and designing, implementing, and documenting controls that are suitably designed and operating effectively to achieve the related control objectives stated in the description. Service auditor’s responsibilities Our responsibility is to express an opinion on the fairness of the presentation of the description and on the suitability of the design and operating effectiveness of the controls to achieve the related control objectives stated in the description, based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether, in all material respects, based on the criteria in management’s assertion, the description is fairly presented and the controls were suitably designed and operating effectively to achieve the related control objectives stated in the description throughout the period October 1, 2019 to September 30, 2020. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. An examination of a description of a service organization's system and the suitability of the design and operating effectiveness of controls involve: •Performing procedures to obtain evidence about the fairness of the presentation of the description and the suitability of the design and operating effectiveness of the controls to achieve the related control objectives stated in the description, based on the criteria in management’s assertion •Assessing the risks that the description is not fairly presented and that the controls were not suitably designed or operating effectively to achieve the related control objectives stated in the description •Testing the operating effectiveness of those controls that management considers necessary to provide reasonable assurance that the related control objectives stated in the description were achieved •Evaluating the overall presentation of the description, suitability of the control objectives stated in the description, and suitability of the criteria specified by the service organization in its assertion Inherent limitations The description is prepared to meet the common needs of a broad range of user entities and their auditors who audit and report on user entities’ financial statements and may not, therefore, include every aspect of the system that each individual user entity may consider important in its own particular environment.Because of their nature, controls at a service organization may not prevent, or detect and correct, all misstatements in processing or reporting. Also, the projection to the future of any evaluation of the fairness of the presentation of the description, or conclusions about the suitability of the design or operating effectiveness of the controls to achieve the related control objectives stated in the description is subject to the risk that controls at a service organization may become ineffective. Description of tests of controls The specific controls tested and the nature, timing and results of those tests are listed in Section IV. G.8.b Packet Pg. 254 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 70 Member of FINRA & SIPC; MSRB Registered. Opinion In our opinion, in all material respects, based on the criteria described in Pershing’s assertion: a. The description fairly presents the introducing firm services, prime services, and managed accounts operations system that was designed and implemented throughout the period October 1, 2019 to September 30, 2020. b. The controls related to the control objectives stated in the description were suitably designed to provide reasonable assurance that the control objectives would be achieved if the controls operated effectively throughout the period October 1, 2019 to September 30, 2020, and subservice organizations and user entities applied the complementary controls assumed in the design of Pershing’s controls throughout the period October 1, 2019 to September 30, 2020. c. The controls operated effectively to provide reasonable assurance that the control objectives stated in the description were achieved throughout the period October 1, 2019 to September 30, 2020 if complementary subservice organization and user entity controls, assumed in the design of Pershing’s controls, operated effectively throughout the period October 1, 2019 to September 30, 2020. Restricted use This report, including the description of tests of controls and results thereof in Section IV, is intended solely for the information and use of management of Pershing, user entities of Pershing’s introducing firm services, prime services, and managed accounts operations system during some or all of the period October 1, 2019 to September 30, 2020, and their auditors who audit and report on such user entities’ financial statements or internal control over financial reporting and have a sufficient understanding to consider it, along with other information, including information about controls implemented by user entities themselves, when assessing the risks of material misstatement of user entities’ financial statements. This report is not intended to be and should not be used by anyone other than these specified parties. New York, New York December 2, 2020 G.8.b Packet Pg. 255 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 71 Member of FINRA & SIPC; MSRB Registered. January 4, 2021 To Whom It May Concern: We have reviewed the internal control environment of Pershing LLC (‘Pershing’) which is applicable to the Pershing business described in Pershing’s System and Organization Control Report (SOC1®) for the period of October 1, 2019 through September 30, 2020. The SOC1® Report includes the Independent Service Auditor’s Report, KPMG LLP, dated December 2, 2020. To the best of our knowledge there have been no significant changes to Pershing’s internal controls, as described in the SOC1® Report, for the period of October 1, 2020 through December 31, 2020 that would materially affect our internal control environment. Please note, we did not perform procedures to determine the operating effectiveness of the internal controls for the period of October 1, 2020 through December 31, 2020. Accordingly, we express no opinion on the operating effectiveness of any aspects of the controls, individually or in the aggregate. The information contained in this letter is confidential and proprietary to Pershing LLC and must be treated in accordance with the standard of care specified in your written agreement with Pershing LLC or its affiliate. You should not disclose this letter or provide a copy of it to any third party without the prior written consent of Pershing LLC. However, you may provide a copy of this letter to your independent auditors only for the purposes of their examination of the service performed by Pershing LLC as it relates to an audit of your financial statements and for no other purposes. Pershing LLC ®SOC1 is a registered trademark of the American Institute of Certified Public Accountants (AICPA), which reserves all rights. G.8.b Packet Pg. 256 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) This page is intentionally left blank. G.8.b Packet Pg. 257 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 73 Member of FINRA & SIPC; MSRB Registered. FINANCIAL STRENGTH—DECEMBER 31, 2020 Pershing’s core financial strength provides the first measure of protection for our global client assets. Our parent company, BNY Mellon, is a global investments company dedicated to helping its clients manage and service their financial assets and is one of the world’s largest global custodians. While financial strength does not protect against loss due to market fluctuation, our internal controls and regulatory oversight help maintain our stability and focus. BNY MELLON’S PERSHING • Over $2.0 trillion in global client assets1 • Net capital of over $2.0 billion2—well above the minimum requirement BNY MELLON• $41.1 trillion in assets under custody and/or administration • $2.2 trillion in assets under management 1 Pershing LLC and its global affiliates 2 Pershing LLC BNY Mellon’s Pershing has been a leading global provider of financial business solutions for more than 80 years and serves many of the world’s most respected financial organizations. We remain committed to the safekeeping, servicing, segregation and reporting of our global client assets. The Protection of Client Assets Remains at the Center of Our Focus Excess of SIPC Coverage Through Lloyd’s and Other Commercial Insurers SIPC Coverage Evaluation and Segregation of Assets Financial Strength ClientAssets Understanding the Protection of Client Assets 4TH QUARTER 2020 BNY MELLON’S PERSHING: STRENGTH, STABILITY AND FOCUS G.8.b Packet Pg. 258 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 74 Member of FINRA & SIPC; MSRB Registered. SEGREGATION AND CONTROL OF ASSETS Pershing protects client assets through rigorous internal control measures. An annual audit by a major independent audit firm and the audit team at our parent company, BNY Mellon, helps to monitor controls that are in place. In addition, a Service Organization Control report conducted by an independent audit firm provides additional evaluation of the design and operating effectiveness of Pershing’s internal controls. Clients’ fully-paid-for assets are segregated from our own, with quarterly vault inspections conducted. In addition, we segregate cash and/or qualifying securities in special reserve bank accounts for the exclusive benefit of clients, to protect clients’ funds in the unlikely event of Pershing’s failure and liquidation. Pershing is a broker-dealer registered with the U.S. Securities and Exchange Commission, all 50 states as well as the District of Columbia and Commonwealth of Puerto Rico, and certain foreign jurisdictions. SECURITIES INVESTOR PROTECTION CORPORATION (SIPC®) COVERAGE Pershing is a member of SIPC. Securities in your account protected up to $500,000. For details, please see www.sipc.org. EXCESS OF SIPC COVERAGE THROUGH UNDERWRITERS AT LLOYD’S AND OTHER COMMERCIAL INSURERS In addition to SIPC protection, Pershing provides coverage in excess of SIPC limits from certain underwriters in Lloyd’s insurance market and other commercial insurers. The excess of SIPC coverage is valid through February 10, 2022 for Pershing LLC accounts. It provides the following protection for Pershing LLC’s global client assets: • An aggregate loss limit of $1 billion for eligible securities over all client accounts • A per-client loss limit of $1.9 million for cash awaiting reinvestment—within the aggregate loss limit of $1 billion SIPC and the excess of SIPC coverage do not protect against loss due to market fluctuation. An excess of SIPC claim would only arise if Pershing failed financially and client assets for covered accounts—as defined by SIPC—cannot be located due to theft, misplacement, destruction, burglary, robbery, embezzlement, abstraction, failure to obtain or maintain possession or control of client securities, or to maintain the special reserve bank account required by applicable rules. ©2021 Pershing LLC. All rights reserved. Pershing LLC, member FINRA, NYSE, SIPC, is a subsidiary of The Bank of New York Mellon Corporation (BNY Mellon). Pershing Advisor Solutions LLC, member FINRA, SIPC, and BNY Mellon, N.A., member FDIC, are affiliates of Pershing LLC. Advisor Solutions refers to the brokerage services business of Pershing Advisor Solutions and the bank custody solutions business of BNY Mellon, N.A. Pershing LLC, Pershing Advisor Solutions LLC and BNY Mellon, N.A. Bank Custody Solutions do not provide investment advice. Affiliated investment advisory services, if offered, are provided by Lockwood Advisors, Inc. (Lockwood), a Pershing affiliate and an investment adviser registered in the United States under the Investment Advisers Act of 1940. Certain services may also be provided by Albridge Solutions, Inc., a Pershing affiliate. Trademark(s) belong to their respective owners. This material is for general information purposes only and is not intended to provide legal, tax, accounting, investment, financial or other professional advice on any matter. Pershing is not responsible for updating any information contained within this material and information contained herein is subject to change without notice. pershing.com One Pershing Plaza, Jersey City, NJ 07399 PER_3464_BRO_Strength and Stability_0121 OVR-PER-SSF-4Q20 G.8.b Packet Pg. 259 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 75 Member of FINRA & SIPC; MSRB Registered. All coverage is regularly reviewed and renewed prior to expiration dates. Our policies are stand-alone policies and loss limits are not combined. The insurance coverage listed provides protection for The Bank of New York Mellon Corporation and all other corporations, companies, firms, enterprises or entities which are subsidiaries of or affiliated with it and in which the named insured has more than 50% ownership. All carriers identified herein are rated A- or better by A.M. Best. Mail Insurance (Per Envelope Limit) Per Envelope Limit: Carrier: Coverage Type: Expiration: $100,000,000 non-negotiable $10,000,000 negotiable Chubb Group of Insurance Companies All risk of physical loss of property sent by registered mail or overnight courier. Continuous Bankers Professional Liability / Professional indemnity (E&O) Per Loss Limit: $100,000,000 Carrier: AXA XL, CNA, Axis, C V Starr, Nationwide, BNY Trade Insurance Ltd. Coverage Type: Losses due to errors or omissions Expiration: December 1, 2021 Directors and Officers Liability Per Loss Limit: Carrier: Coverage Type: Expiration: Corporate: $75,000,000 Individual: $75,000,000 AXA XL, AIG, Markel, AWAC & Nationwide Coverage for wrongful acts in respective capacities of Directors or Officers of the Company December 1, 2021 Financial Institutions Bond / Computer Crime Coverage Per Loss Limit: Carrier: Coverage Type: Expiration: $150,000,000 Lloyd’s of London a) Dishonesty of employees b) Forgery of securities, checks, drafts or other written instruments c) Loss or destruction of cash or securities on or off premises December 1, 2021 All Risk Money and Securities Coverage – J Form (On Premises and In Transit) Excess of the F. I. Bond Per Loss Limit: Carrier: Coverage Type: Expiration: $850,000,000 Lloyd’s of London Loss or destruction of cash or securities on or off premises (including securities of others held in custody or held at sub- custodian). December 1, 2021 G.8.b Packet Pg. 260 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 76 Member of FINRA & SIPC; MSRB Registered. All Risk Property Per Loss Limit: Carrier: Coverage Type: Expiration: Coverage Type: Per Loss Limit: Carrier: Expiration: $800,000,000 Lexington Insurance Company (AIG) Physical damage coverage for all real and personal property including Data Processing equipment, Business Interruption, Boiler and Machinery Service Interruption / Extra Expense, Earthquake / Flood, Fine Arts June 1, 2021 Terrorism $800,000,000 The Hamilton Insurance Company Corp June 1, 2021 Enterprise Privacy Liability (Cyber) Per Loss Limit: Coverage Type Expiration: $300,000,000 Third Party Liability $300,000,000 Extra Expense Lloyd’s of London, AIG, AXA XL and other insurers Privacy breach and internet liability December 1, 2021 Workers’ Compensation / Employers Liability (Domestic) Per Loss Limit: Carrier: Coverage Type Expiration: Statutory $1,000,000 – Limit for Employers Liability AIG Job related injuries April 1, 2021 Primary General Liability (Domestic) Per Loss Limit: Carrier: Coverage Type Expiration: $2,000,000 Chubb Third party bodily injury / property damage April 1, 2021 Primary Automobile Liability (Domestic) Per Loss Limit: Carrier: Coverage Type Expiration: $2,000,000 Chubb Third party bodily injury / property damage April 1, 2021 Excess / Umbrella Liability Per Loss Limit: Carrier: Coverage Type Expiration: $25,000,000 AIG & AWAC Liability coverage in excess of primary coverage April 1, 2021 This Fact Sheet, either in whole or in part, must not be reproduced or disclosed to others or used for purposes other than that for which it has been supplied without the prior written permission of BNY Mellon. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the Corporation as a whole or its various subsidiaries generally. Information Classification: Public G.8.b Packet Pg. 261 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 77 Member of FINRA & SIPC; MSRB Registered. © 2020 Multi-Bank Securities, Inc. All Rights Reserved. eConnectDirect® is a registered trademark of Multi-Bank Securities, Inc. Member of FINRA & SIPC; MSRB Registered. eCD Investor Benefits Munis.pdf 01.21.20 (800) 967-9052 sales@eConnectDirect.com www.eConnectDirect.com Powered by Multi-Bank Securities, Inc. is committed to helping municipalities achieve their investment goals with personal service, expertise and our proprietary online investment platform, eConnectDirect®. This web-based tool lets treasurers and finance directors compare fixed-income offerings from hundreds of dealers at once, making it quick and easy to find the most suitable investment in the market. Users can select their own investments and submit order requests online, or work side-by-side with their dedicated account representative on investment decisions. Investor Benefits • Increased Market Transparency• No Subscription Fees & Nothing to Download*• CD Insurance Scrub & User-Defined Filters• Free Safekeeping*• Third-Party Bank Ratings• Portfolio Analytics, Management Tools & Reports• Online Access to Statements, Balances, Confirms & More • Easy Navigation Across Multiple Products Asset Classes • U.S. Agencies• U.S. Treasuries• Certificates of Deposit• New-Issue and Secondary DTC Offerings• Municipal Bonds • Corporate Bonds To learn more about how eConnectDirect can help you save time and enhance your return on investment, visit www.eConnectDirect.com/video-tour/. *There may be fees associated with other products/services offered by Multi-Bank Securities, Inc. See the fixed-income markets more clearly than ever. Premier Corporate Partner of 9 G.8.b Packet Pg. 262 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) This page is intentionally left blank. G.8.b Packet Pg. 263 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) Address Phone Fax 1000 Town Center, Suite 2300Southfield, Michigan 48075 (800) 967-9045(248) 291-1100 (248) 291-1101 www.mbssecurities.com 2400 East Commercial Boulevard, Suite 812Ft. Lauderdale, Florida 33308 (800) 967-9045(954) 351-6930 (954) 351-9197 Member of FINRA & SIPC; MSRB Registered. Proudly Veteran-Owned! Peter Yanez Vice President CRD# 2371976 (855) 928-0111 phone/fax pyanez@mbssecurities.com Peter Yanez joined Multi-Bank Securities, Inc. (MBS) in January 2012 as an account executive serving the investment needs of local, state and regional government institutional clients. Today, he operates as a vice president based in the Firm’s Fort Lauderdale, Fla., office. Since joining MBS, Peter has garnered several awards in recognition of his service. He received the company’s New Account Leader Award in 2014, 2015 and 2016, which he earned by opening more accounts than the Firm's other account representatives. Peter also received the eConnectDirect® Account Representative of the Year award in 2014, 2015, 2016 and 2017. This award is given each year to the account representative that generates the most new accounts and most revenue on the eConnectDirect platform out of the Firm’s other account representatives nationwide. Prior to MBS, Peter spent more than a decade working in the financial industry with investment banking firms such as Dean Witter Reynolds (now Morgan Stanley), H.J. Meyers & Company and Prudential Bache Securities. In 1998, Peter became part owner of Herman Alexis & Company, one of the first minority- owned, fully-registered FINRA broker-dealer firms headquartered in Los Angeles. Today, he specializes in fixed-income securities such as U.S. government agencies, U.S. Treasuries, certificates of deposit and mortgage-backed securities. Peter attended Santa Monica College, in Santa Monica, Calif. prior to earning a FINRA General Securities Representative (Series 7) license, a Municipal Advisor Representative (Series 50) license and a Uniform Securities Agent State Law (Series 63) license. Peter is very active within the California government finance community, and he actively participates in annual conferences for the California Municipal Treasurers Association and the California Society of Municipal Finance Officers. In addition, Peter has been actively involved in soccer since childhood and is currently an AYSO coach for his son’s local youth division. G.8.b Packet Pg. 264 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) This page is intentionally left blank. G.8.b Packet Pg. 265 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) 2021 Due Diligence Packet 81 Address Phone Fax 1000 Town Center, Suite 2300Southfield, Michigan 48075 (800) 967-9045(248) 291-1100 (248) 291-1101 www.mbssecurities.com 2400 East Commercial Boulevard, Suite 812Ft. Lauderdale, Florida 33308 (800) 967-9045(954) 351-6930 (954) 351-9197 Member of FINRA & SIPC; MSRB Registered. Proudly Veteran-Owned! Multi-Bank Securities, Inc. has clients in all 50 U.S. states and territories. References are available upon request. 11 G.8.b Packet Pg. 266 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) This page is intentionally left blank. G.8.b Packet Pg. 267 At t a c h m e n t : M B S D u e D i l i g e n c e ( A p p r o v e I n v e s t m e n t B r o k e r ) G.8.c Packet Pg. 268 At t a c h m e n t : C a s h A c c o u n t A p p l i c a t i o n ( A p p r o v e I n v e s t m e n t B r o k e r ) G.8.c Packet Pg. 269 At t a c h m e n t : C a s h A c c o u n t A p p l i c a t i o n ( A p p r o v e I n v e s t m e n t B r o k e r ) RESOLUTION NO. 2022-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, USER AGREEMENT GOVERNING USE OF E-CONNECT-DIRECT BY THE CITY OF GRAND TERRACE WHEREAS, that a meeting of the City Council of the City of Grand Terrace organized under the laws of the State of California (Investor), which at said meeting a quorum was present and acting throughout, the following preamble and resolutions were adopted and have been and now are in full force and effect; and WHEREAS, the City of Grand Terrace is duly authorized and permitted by its Charter, Bylaws and/or investment policies to: SECTION 1. Engage in cash settlement transactions for the purchase of physical certificates of deposit(s) (CDs) purchased through eConnectDirect or through any introducing agent. SECTION 2. Engage in cash settlement transactions in the form of CDs held in safekeeping at federally insured financial institutions. SECTION 3. Engage in cash or DVP (delivery versus payment) settlement transactions in securities including, but not limited to debt instruments, bond debentures, notes and CDs; and other fixed-income securities, including but not limited to U.S. government agency bonds, corporate bonds, municipal bonds, mortgage- backed securities, collateralized mortgage obligations and Treasury bonds, notes and bills. SECTION 4. Receive on behalf of the Investor or deliver to the Investor or a designated third party, monies, bonds or other securities. SECTION 5. Sell, assign or endorse for transfer bonds or other securities registered in the name of the Investor. SECTION 6. Establish and maintain safekeeping accounts with Fedwire and ACH privileges from which account funds are directly spent, and the responsibility for which is entirely that of the Investor. Said privileges will be limited to the persons designated by the Investor. Each designated person can independently perform the prescribed privileges. NAME TITLE SIGNATURE Konrad Bolowich City Manager Terry Shea Interim Finance Director G.8.d Packet Pg. 270 At t a c h m e n t : 2 0 2 2 - x x - I n v e s t m e n t R e s o l u t i o n ( A p p r o v e I n v e s t m e n t B r o k e r ) NOW THEREFORE BE IT RESOLVED that the City of Grand Terrace can open an account or accounts in its name with a safekeeping agent, introducing broker, or federally insured financial institution offering CD rates through eConnectDirect or through any introducing agent and that the persons named above, or their successors in office, may, on behalf of the Investor or any one of them acting individually, be and they are hereby authorized to (1) give or submit orders in said account(s) for the purchase, sale or other disposition of CDs, bonds and other securities listed on eConnectDirect or offered by any introducing broker; (2) make, execute, deliver or submit directly or through the services of eConnectDirect any and all written endorsements and documents necessary to effectuate closure or the disbursements of funds of or from the Investor account; (3) may at any time while the account is open modify, amend, submit or enter into any other arrangement with the safekeeping agent of its CD or securities. This authorization to each of said officers is to remain in full force and effect until other written notice of revocation is submitted to the safekeeping agent(s) and MBS PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the _____ day of _______________ 2022. _______________________________ Darcy McNaboe Mayor ATTEST: _____________________________ Debra Thomas City Clerk APPROVED AS TO FORM: ________________________________ Adrian R. Guerra City Attorney G.8.d Packet Pg. 271 At t a c h m e n t : 2 0 2 2 - x x - I n v e s t m e n t R e s o l u t i o n ( A p p r o v e I n v e s t m e n t B r o k e r ) AGENDA REPORT MEETING DATE: June 14, 2022 Council Item TITLE: Approval of Annual Appropriations Limit for Fiscal Year 2022-23, Including Adoption of the Price Factor and Population Change Factor for the Appropriations Limit Calculation PRESENTED BY: Terry Shea, Interim Finance Director RECOMMENDATION: (1) Approve the selection of the Change in Per Capita Personal Income of 7.55% as the Price Factor for the Fiscal Year 2022-23 Appropriations Limit Calculation; and (2) Approve the selection of the Change in County of San Bernardino Population of 0.14% as the Population Change Factor for the Fiscal Year 2022-2023 Appropriations Limit Calculation; and (3) Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2022-23, INCLUDING ADOPTION OF THE PRICE FACTOR AND POPULATION CHANGE FACTOR FOR THE APPROPRIATIONS LIMIT CALCULATION 2030 VISION STATEMENT: This staff report supports City Council Goal #1, “Ensure Our Fiscal Viability,” through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations. BACKGROUND: On November 6, 1979, California voters approved the Gann Spending Limitation Initiative (Proposition 4) establishing Article XIIIB of the State Constitution. Article XIIIB sets limits on the amount of tax revenues that the State and most local governments can appropriate within a given fiscal year. Its basic provisions are as follows: • Each year, the State and local governments must adopt a resolution establishing an Appropriations Limit, also known as the “Gann Limit”. Fiscal Year 1984-85 appropriations serve as the base for this limit, with adjustments being made annually to reflect increases in population, the cost of living, and financial responsibility transfers. • Only tax proceeds are subject to the limit. Charges for services, regulatory fees, grants, loans, donations and other non-tax proceeds are not subject to the limit. Exemptions are also made for voter-approved debt, debt that existed prior to January 1, 1979, and for the G.9 Packet Pg. 272 cost of compliance with court or Federal government mandates. • All tax revenues received in excess of the Appropriations Limit must be refunded to taxpayers within a two-year period. • The voters may approve an increase in the Appropriations Limit. For the increase to remain in effect, however, it must be re-approved by voters at four-year intervals. On June 5, 1990, California voters approved the Traffic Congestion Relief and Spending Limitation Act (Proposition 111), which made various amendments to Article XIIIB of the State Constitution. The major changes, which became effective July 1, 1990, are as follows: • The change in the cost of living is defined to be either the change in California per capita personal income or the change in assessed valuation due to the addition of non-residential new construction. Previously, the change in the cost of living was defined as the lesser of the change in the U.S. Consumer Price Index or the change in California per capita personal income. • The change in population is defined as either a change in the City’s population or a change in the County’s population, whichever is greater. • “Qualified capital outlay projects” were added to the items exempted from the Appropriations Limit. Qualified capital outlay projects must have a useful life of ten or more years and a cost that equals or exceeds $100,000. • Tax revenues received in excess of the Appropriations Limit must be refunded to taxpayers only if the limit is exceeded over a two-year period. The annual calculation of the Appropriations Limit must be reviewed as part of the City’s annual financial audit. DISCUSSION: As indicated above, Proposition 111 made several changes to the method used to calculate the Appropriations Limit. The change in the cost of living (or “price factor”) is defined to be either the change in California per capita personal income or the change in assessed valuation due to the addition of non-residential new construction. Following are the two options for the City’s FY 2022-23 Appropriations Limit calculation: 1) Change in California per capita personal income (provided by California Department of Finance): 7.55% 2) Change in Grand Terrace assessed valuation from 2022 to 2023 due to the addition of non-residential new construction: This information is not yet available from the County Assessor’s office. When the data is available, if it is greater than the change in California per capita personal income, the Appropriations Limit will be revised and resubmitted to the City Council for approval. Based on the above information, the change in California per capita personal income has been used as the price factor for the FY 2022-23 Appropriations Limit calculation. G.9 Packet Pg. 273 The “population factor” to be used in calculating the Appropriations Limit is defined by Proposition 111 as either a change in the City’s population or a change in the County’s population, whichever is greater. Per information provided by the California Department of Finance, following are the population changes from 2022 to 2023: 1) Change in City of Grand Terrace population: (-0.68%) 2) Change in San Bernardino County population: 0.14% Since Option 2 (change in San Bernardino County population) is greater than the City of Grand Terrace population change, it is recommended to be used as the population factor for the FY 2022-23 Appropriations Limit calculation. Exhibit A provides the calculation of the FY 2022-23 Appropriations Limit using the recommended price and population factors. Exhibit B identifies the revenues that are classified as tax proceeds and those that are classified as non-tax proceeds for Appropriations Limit purposes. Exhibit C is the Department of Finance letter providing the per capita personal income and population change information used in the Appropriations Limit calculation. The City’s Appropriations Limit for FY 2021-22 was $16,164,085. The recommended change factor, as allowed by Proposition 111 due to cost of living and population changes, is 1.0770. This results in a FY 2022-23 Appropriations Limit of $17,408,719. The FY 2022-23 Proposed Budget contains appropriations subject to the Appropriations Limit of $5,769,810 which is $11,638,909 below the City’s legal limit. FISCAL IMPACT: There is no fiscal impact associated with adoption of the FY 2022-23 Appropriations Limit, as the City is safely within its legal appropriations limit for FY 2022-23. ATTACHMENTS: • FY 2022-23 Appropriations Limit Resolution (PDF) • Exhibit A - FY2022-23 Appropriations Limit Calculation (PDF) • Exhibit B - Revenue Classification (PDF) • Exhibit C - DOF Price and Population Letter 2022 (PDF) APPROVALS: Terry Shea Completed 05/27/2022 1:53 PM City Manager Completed 05/27/2022 1:58 PM City Council Pending 06/14/2022 6:00 PM G.9 Packet Pg. 274 Page 1 of 3 RESOLUTION NO. 2022-______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2022-23, INCLUDING ADOPTION OF THE PRICE FACTOR AND POPULATION CHANGE FACTOR FOR THE APPROPRIATIONS LIMIT CALCULATION Recitals WHEREAS, Article XlllB of the California Constitution and Section 7910 of the California Government Code require that each year the City of Grand Terrace shall by resolution, establish an Appropriations Limit for the fiscal year; and WHEREAS, the City Council has adopted the Budget for Fiscal Year 2022-23 on June 14, 2022 and has prepared adjustments to said budget, a copy of which is on file in the Office of the City Clerk and available for public inspection, and WHEREAS, the said Budget and proposed amendments contains the estimates of the services, activities and projects comprising the budget, and contains expenditure requirements and the resources available to the City; and WHEREAS, the City’s Finance Department has prepared calculations and documentation required for and to be used in the determination of certain matters and for the establishment of an Appropriations Limit for the City for Fiscal Year 2022-23; and WHEREAS, in accordance with Section 7910 of the California Government Code, documentation used in the determination of the appropriations limit and other necessary determinations was made available to the public in accordance with the requirements set forth therein; and WHEREAS, the City Council has considered pertinent data such as price and population factors and made such determinations as may be required by law, and has adopted this Resolution at a regularly scheduled meeting of the City Council: and WHEREAS, the Appropriations Limit for the City of Grand Terrace for Fiscal Year 2022- 23 is hereby established at $17,408,719 and the total annual appropriations subject to such limitation for Fiscal Year 2022-23 are determined to be $5,769,810. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: 1. That $17,408,719 is hereby established as the Appropriations Limit for the City of Grand Terrace for Fiscal Year 2022-23. 2. The City Council hereby adopts the findings and methods of calculation set forth in Exhibit A (Appropriations Limit Calculation) and Exhibit B (Proceeds of Tax Calculation). G.9.a Packet Pg. 275 At t a c h m e n t : F Y 2 0 2 2 - 2 3 A p p r o p r i a t i o n s L i m i t R e s o l u t i o n ( G A N N L i m i t ) Page 2 of 3 3. The City of Grand Terrace reserves the right to revise the factors associated with the calculation of the limit established pursuant to Article XlllB of the California Constitution if such changes or revisions would result in a more advantageous Appropriations Limit in the future. 4. If any section, subsection, sentence, clause, phrase, or portion of this Resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council of the City of Grand Terrace hereby declares that it would have adopted this Resolution and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. 5. The City Clerk shall certify to the adoption of this Resolution. 6. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED by the City Council of Grand Terrace at a regular meeting held on the 14th day of June, 2022. ________________________________ Darcy McNaboe Mayor ATTEST: __________________________________ Debra L. Thomas City Clerk APPROVED AS TO FORM: __________________________________ Adrian R. Guerra City Attorney G.9.a Packet Pg. 276 At t a c h m e n t : F Y 2 0 2 2 - 2 3 A p p r o p r i a t i o n s L i m i t R e s o l u t i o n ( G A N N L i m i t ) Page 3 of 3 G.9.a Packet Pg. 277 At t a c h m e n t : F Y 2 0 2 2 - 2 3 A p p r o p r i a t i o n s L i m i t R e s o l u t i o n ( G A N N L i m i t ) G.9.b Packet Pg. 278 At t a c h m e n t : E x h i b i t A - F Y 2 0 2 2 - 2 3 A p p r o p r i a t i o n s L i m i t C a l c u l a t i o n ( G A N N L i m i t ) G.9.c Packet Pg. 279 At t a c h m e n t : E x h i b i t B - R e v e n u e C l a s s i f i c a t i o n ( G A N N L i m i t ) G.9.d Packet Pg. 280 At t a c h m e n t : E x h i b i t C - D O F P r i c e a n d P o p u l a t i o n L e t t e r 2 0 2 2 ( G A N N L i m i t ) G.9.d Packet Pg. 281 At t a c h m e n t : E x h i b i t C - D O F P r i c e a n d P o p u l a t i o n L e t t e r 2 0 2 2 ( G A N N L i m i t ) G.9.d Packet Pg. 282 At t a c h m e n t : E x h i b i t C - D O F P r i c e a n d P o p u l a t i o n L e t t e r 2 0 2 2 ( G A N N L i m i t ) AGENDA REPORT MEETING DATE: June 14, 2022 Council Item TITLE: Approval of Amendment No. 2 to the Professional Services Agreement for Interim Finance Director and Administration Services with Rogers, Anderson, Malody and Scott, LLP PRESENTED BY: Konrad Bolowich, City Manager RECOMMENDATION: 1. Approve Amendment No. 2 to the Professional Services Agreement for Interim Finance Director and Administration Services with Rogers, Anderson, Malody and Scott, LLP, which increases the contract sum by $60,000 for a total contract sum of $277,500. 2. Authorize the Mayor to execute Amendment No. 2, subject to the City Attorney’s approval as to form. 2030 VISION STATEMENT: This staff report supports the Goal #1 - To “Ensure our Fiscal Viability” through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations. BACKGROUND: The Assistant City Manager/Finance Director left the City in April-2021. The City currently has an agreement (attachment B) with Rogers, Anderson, Malody and Scott (RAMS) for the interim finance director and administration services. The total contract sum under this amended agreement added $90,000 to the initial agreement (attachment A) sum of $127,500. The amended agreement (attachment B) ends June 30, 2022. DISCUSSION: In order to continue the day-to-day operations of the Finance Department (including Finance Director), the total contract sum for existing agreement with Rogers, Anderson, Malody and Scott to provide finance director and finance administration/consulting services will need to be increased. The services include the following: • Provide Interim Finance Director services, including supervision of Finance staff; • Be onsite at City Hall on Tuesdays and Wednesdays and as needed; • Attend City Council meetings; G.10 Packet Pg. 283 • Prepare and review Staff Reports for City Council meetings; • Review and submit the quarterly Treasurer’s Report, the monthly Check Register report, the Monthly/Quarterly Financial Report (General Fund) to City Council for approval; • Review and approve routine account and statement reconciliations, including but not limited to accounts receivable and cash account reconciliations; • Review monthly recurring journal entries; • Review and approve the weekly check register run; • Review or provide accounting assistance in closing the City’s books each month; • Prepare the Monthly Departmental Activity Reports; • Prepare or supervise staff in completing the auditors annual requested workpapers or providing requested documents; • Be available to work with the auditors; • Assist in the preparation of the annual budget; • Attend staff meetings as required; • Advise and assist regarding compliance with federal, state, and local financial reporting. Staff is recommending that City Council approve Amendment No. 2 to the aforementioned professional services agreement (Attachment C) with Rogers, Anderson, Malody and Scott, LLP to provide interim finance director and administration services and authorize the Mayor to execute Amendment No. 2, subject to City Attorney approval as to form. This Amendment No. 2 increases the total compensation by $60,000 for a total compensation of $277,500. It is staff’s intent that this vacant position be filled by January-2023. FISCAL IMPACT: Funding for the agreement with RAMS for the Interim Finance Director and Finance Administration Services is appropriated in the fiscal year 2022-23 budget. No additional appropriation is required. ATTACHMENTS: • Rogers, Anderson, Malody & Scott, LLP-2021-11(a) (PDF) • RAMS Amendment No 1(b) (PDF) • RAMS Amendment No 2 (PDF) APPROVALS: Konrad Bolowich Completed 06/06/2022 10:56 AM Finance Completed 06/07/2022 1:37 PM G.10 Packet Pg. 284 City Manager Completed 06/08/2022 11:50 AM City Council Pending 06/14/2022 6:00 PM G.10 Packet Pg. 285 G.10.a Packet Pg. 286 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 287 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 288 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 289 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 290 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 291 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 292 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 293 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 294 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 295 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 296 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 297 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 298 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 299 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 300 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 301 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 302 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 303 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 304 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 305 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 306 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 307 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 308 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 309 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 310 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 311 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) G.10.a Packet Pg. 312 At t a c h m e n t : R o g e r s , A n d e r s o n , M a l o d y & S c o t t , L L P - 2 0 2 1 - 1 1 ( a ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) aog. I —t % CIO) AMENDMENT NO.1 TO AGREEMENT FOR CONTRACT SERVICES BETWEEN THE CITY OF GRAND TERRACE AND ROGERS, ANDERSON, MALODY & SCOTT, LLP FOR INTERIM FINANCE DIRECTOR AND ADMINISTRATION SERVICES This AMENDMENT NO. 1 TO THE AGREEMENT FOR CONTRACT SERVICES BETWEEN THE CITY OF GRAND TERRACE AND ROGERS, ANDERSON, MALODY & SCOTT, LLP FOR INTERIM FINANCE DIRECTOR AND ADMINISTRATION SERVICES ("Amendment No. 1") by and between the CITY OF GRAND TERRACE ("City") and ROGERS, ANDERSON, MALODY & SCOTT, LLP, a California corporation ("Consultant") is effective as of the 14th day of December, 2021. RECITALS A. The City entered into that certain Agreement for Contract Services between the City of Grand Terrace and Rogers, Anderson, Malody & Scott, LLP for Interim Finance Director and Administration Services for a total contract sum of $127,500 with an initial term ending on June 30, 2021, and which automatically extends for succeeding terms of 1 month each until termination ("Agreement"). B. The City desires to amend the Agreement to increase the total contract sum by 90,000 for a total contract sum of $217,500. TERMS 1. Contract Amendments. The Agreement is amended as provided herein: 1.1 Section 2.1 (Contract Sum) of the Agreement is hereby amended its entirety as follows: Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the amounts specified in the "Schedule of Compensation" attached hereto as Exhibit "C" and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed Two Hundred Seventeen Thousand Five Hundred Dollars ($217,500) (the Contract Sum"), unless additional compensation is approved pursuant to Section 1.8:' 1.2 Section III of Exhibit C of the Agreement is hereby amended in its entirety as follows: The total compensation for the Services shall not exceed $217,500 as provided in Section 2.1 of this Agreement." 2. Continuing Effect of Agreement. Except as amended by this Amendment No. 1, all provisions of the Agreement, as amended by Amendment No. 1, shall remain unchanged and 01247.0007n55138.1 G.10.b Packet Pg. 313 At t a c h m e n t : R A M S A m e n d m e n t N o 1 ( b ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) in full force and effect. From and after the date of this Amendment, whenever the term Agreement" appears in the Agreement, it shall mean the Agreement, as amended by Amendment No. 1. 3. Affirmation of Agreement; Warranty Re Absence of Defaults. City and Consultant each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement. Each party represents and warrants to the other that there have been no written or oral modifications to the Agreement other than as provided herein. Each party represents and warrants to the other that the Agreement is currently an effective, valid, and binding obligation. Consultant represents and warrants to City that, as of the date of this Amendment No. 1, City is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. City represents and warrants to Consultant that, as of the date of this Amendment No. 1, Consultant is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. 4. Adequate Consideration. The parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 1. 5. Authority. The persons executing this Amendment No. 1 on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 1 on behalf of said party, (iii) by so executing this Amendment No. 1, such party is formally bound to the provisions of the Agreement, as amended and (iv) the entering into this Amendment No. 1 does not violate any provision of any other agreement to which said party is bound. SIGNATURES ON FOLLOWING PAGE] 01247.0007n55138.1 G.10.b Packet Pg. 314 At t a c h m e n t : R A M S A m e n d m e n t N o 1 ( b ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 on the date and year first -above written. ATTEST: n92:Z119A 311XMV i7oCi7:_uA ALESHIRE & WYNDER, LLP Adrian R. Guerra, City Attorney CITY: CITY OF GRAND TERRACE, CONSULTANT: Rogers, Anderson, Malody & Scott, LLP By: Name: TE,cj-v 5// e4 Title: may_ P4P7iil2/2. Un Name: Title: Address: 735 E. E. Carnegie Drive, Suite 100Drive, Suite 100 San Bernardino, CA 92408 NOTE: CONSULTANT'S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO DEVELOPER'S BUSINESS ENTITY. G.10.b Packet Pg. 315 At t a c h m e n t : R A M S A m e n d m e n t N o 1 ( b ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) CALIFORNIA ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California 1 County of SWAE-OAM4 ii,f)O 1} On- 4.9 L D .20A.P- before me,y ..4 A)OT Date L Here Insert Name a d Title of the Officer personally appeared Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 0° e DEBZ L. THO S Notary Pubik • California San Bernardino County Commission 6 2308763 Ny Comm. Expires Nw 10, 2023 Place Notary Seal and/or Stamp Above I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Signature of Notary Public OPTIONAL Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Corporate Officer - Title(s): Partner - Limited General Individual Attorney in Fact Trustee Guardian or Conservator Other Signer is Representing: 02018 National Notary Association Signer's Name: Corporate Officer - Title(s): Partner - Limited General Individual Trustee Other: Signer is Representing: Attorney in Fact Guardian or Conservator G.10.b Packet Pg. 316 At t a c h m e n t : R A M S A m e n d m e n t N o 1 ( b ) ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) 01247.0007/755138.1 AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES BETWEEN THE CITY OF GRAND TERRACE AND ROGERS, ANDERSON, MALODY & SCOTT, LLP FOR INTERIM FINANCE DIRECTOR AND ADMINISTRATION SERVICES This AMENDMENT NO. 2 TO THE AGREEMENT FOR CONTRACT SERVICES BETWEEN THE CITY OF GRAND TERRACE AND ROGERS, ANDERSON, MALODY & SCOTT, LLP FOR INTERIM FINANCE DIRECTOR AND ADMINISTRATION SERVICES (“Amendment No. 2”) by and between the CITY OF GRAND TERRACE (“City”) and ROGERS, ANDERSON, MALODY & SCOTT, LLP, a California corporation (“Consultant”) is effective as of the ______ day of ______, 2022. RECITALS A. The City entered into that certain Agreement for Contract Services between the City of Grand Terrace and Rogers, Anderson, Malody & Scott, LLP for Interim Finance Director and Administration Services for a total contract sum of $127,500 with an initial term ending on June 30, 2021, and which automatically extends for succeeding terms of 1 month each until termination (“Original Agreement”). B. The City and Consultant entered into an amendment of the Agreement (“Amendment No. 1”) to increase the total contract sum by $90,000 for a total contract sum of $217,500, which provided compensation under the Agreement until June 30, 2022. C. For the purposes of this Amendment No. 2, the term “Agreement” shall mean the Original Agreement as amended by Amendment No. 1. D. The City and Consultant now desire to amend the Agreement again to increase the total contract sum by $60,000 for a total contract sum of $277,500, which will provide compensation under the Agreement until December 31, 2022. TERMS 1. Recitals. The recitals set forth above are incorporated herein by this reference. 2. Contract Amendments. The Agreement is amended as provided herein: 2.1 Section 2.1 (Contract Sum) of the Agreement is hereby amended its entirety as follows: “Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the amounts specified in the "Schedule of Compensation" attached hereto as Exhibit "C" and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed Two Hundred Seventy Seven Thousand Five Hundred Dollars ($277,500) (the "Contract Sum"), unless additional compensation is approved pursuant to Section 1.8.” 2.2 Section III of Exhibit C of the Agreement is hereby amended in its entirety G.10.c Packet Pg. 317 At t a c h m e n t : R A M S A m e n d m e n t N o 2 ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) 01247.0007/755138.1 as follows: “The total compensation for the Services shall not exceed $277,500 as provided in Section 2.1 of this Agreement.” 3. Continuing Effect of Agreement. Except as amended by this Amendment No. 2, all provisions of the Agreement shall remain unchanged and in full force and effect. From and after the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by Amendment No. 2. 4. Affirmation of Agreement; Warranty Re Absence of Defaults. City and Consultant each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement. Each party represents and warrants to the other that there have been no written or oral modifications to the Agreement other than as provided herein. Each party represents and warrants to the other that the Agreement is currently an effective, valid, and binding obligation. Consultant represents and warrants to City that, as of the date of this Amendment No. 2, City is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. City represents and warrants to Consultant that, as of the date of this Amendment No. 2, Consultant is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. 5. Adequate Consideration. The parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 2. 6. Authority. The persons executing this Amendment No. 2 on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 2 on behalf of said party, (iii) by so executing this Amendment No. 1, such party is formally bound to the provisions of the Agreement, as amended and (iv) the entering into this Amendment No. 2 does not violate any provision of any other agreement to which said party is bound. [SIGNATURES ON FOLLOWING PAGE] G.10.c Packet Pg. 318 At t a c h m e n t : R A M S A m e n d m e n t N o 2 ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) 01247.0007/755138.1 IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 2 on the date and year first-above written. CITY: CITY OF GRAND TERRACE, a municipal corporation ___________________________ Darcy McNaboe, Mayor ATTEST: ___________________________ Debra Thomas, City Clerk APPROVED AS TO FORM: ALESHIRE & WYNDER, LLP _______________________ Adrian R. Guerra, City Attorney CONSULTANT: Rogers, Anderson, Malody & Scott, LLP By: Name: Title: By: Name: Title: Address: 735 E. Carnegie Drive, Suite 100 San Bernardino, CA 92408 NOTE: CONSULTANT’S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO DEVELOPER’S BUSINESS ENTITY. G.10.c Packet Pg. 319 At t a c h m e n t : R A M S A m e n d m e n t N o 2 ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) 01247.0007/755138.1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On __________, 2022 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: _____________________________________ OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER _______________________________ TITLE(S) PARTNER(S) LIMITED GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER_________________________ ________________________________ SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) ______________________________________ ______________________________________ ___________________________________ TITLE OR TYPE OF DOCUMENT ___________________________________ NUMBER OF PAGES ___________________________________ DATE OF DOCUMENT ___________________________________ SIGNER(S) OTHER THAN NAMED ABOVE A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. G.10.c Packet Pg. 320 At t a c h m e n t : R A M S A m e n d m e n t N o 2 ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) 01247.0007/755138.1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On __________, 2022 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: _____________________________________ OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER _______________________________ TITLE(S) PARTNER(S) LIMITED GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER_________________________ ________________________________ SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) ______________________________________ ______________________________________ ___________________________________ TITLE OR TYPE OF DOCUMENT ___________________________________ NUMBER OF PAGES ___________________________________ DATE OF DOCUMENT ___________________________________ SIGNER(S) OTHER THAN NAMED ABOVE A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. G.10.c Packet Pg. 321 At t a c h m e n t : R A M S A m e n d m e n t N o 2 ( A m e n d e d A g r e e m e n t f o r I n t e r i m F i n a n c e A d m i n i s t r a t i o n S e r v i c e s ) CITY OF GRAND TERRACE CITY COUNCIL MINUTES MAY 24, 2022 Council Chamber Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace ATTACHMENTS TO May 24, 2022 City Council Minutes PowerPoint Presentations 2021 Annual Crime Report (Preliminary) Bryan Lane, Lieutenant San Bernardino County Sheriff, Central Station AB 109 –Prison Realignment Prop 47 –Reduced certain felonies to misdemeanors Prop 57 –Parole for non-violent crimes Prop 64 –Decriminalization of Marijuana SB 54 –Sanctuary Law, limited cooperation with ICE AB 953 –Racial Profiling Act Workload Summary 2011 -2021 Workload Summary Comparison 2011 -2021 City of Grand Terrace –Part I & Part II Crimes •261.5 Juv case where both were listed as suspect and victim –1 incident = 2 charges = 2 stats •Other Report taken in 2021 but crime occurred years prior –stat’d for 2021 Part I & Part II Crimes City Comparison Deputy Reports Taken 2018 -2021 2018 2019 2020 2021 Column1 1,139 1,151 1138 1354 1,139 1,151 1138 1354 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 19% Calls by Date by Hour of the Day 2021 Response Times Dispatched to On-scene 2020-2021 2020 2021 Difference Emergency 0:04:12 0:03:55 -00:17 Priority 1 0:06:37 0:06:54 +00:17 Priority 2 0:09:22 0:09:31 +00:09 Priority 3 0:08:13 0:11:06 +02:53 Priority 4 0:06:33 0:11:35 +05:02 Total(avg)0:07:31 0:09:35 +03:45 Response Times On-scene to Close 2020-2021 2020 2021 Difference Emergency 1:40:23 1:21:20 -0:20:57 Priority 1 0:29:50 0:30:12 +0:00:22 Priority 2 0:36:11 0:32:33 -0:03:38 Priority 3 0:26:39 0:28:03 +0:01:24 Priority 4 0:19:56 0:24:44 +0:04:48 Traffic Collision Data COLLISION TYPE 2020 Total 51 Property Damage Only 36 Injury Related -# of Report 20 Number of Victim 20 Pedestrian Involved 1 Fatal 2 DUI Arrest (Alcohol or Drug) -Collision Related 4 CITATIONS (Grand Terrace) TOTAL 836 COLLISION TYPE 2021 Total 55 Property Damage Only 37 Injury Related -# of Report 24 Number of Victims 24 Pedestrian Involved 1 Fatal 0 DUI Arrest (Alcohol or Drug) -Collision Related 12 CITATIONS (Grand Terrace) TOTAL: Infraction 964 TOTAL: Vehicle Misdemeanor 231 TOTAL: Combined Citations 1195 City Priority Proactivity 2021 January February March April May June July August September October November December Stops 406 408 320 225 292 241 254 154 273 304 259 186 Cites 125 102 83 43 57 71 75 49 84 110 138 58 Cite Percent 32.5 21 26 19 19.5 29.5 29.5 31.8 31 36.1 53.2 31 Moving Violations 35 35 25 5 14 18 29 7 40 56 48 15 Homeless/Transient 52 27 28 31 21 19 11 33 24 18 11 24 Fireworks 1 11 42 0 2 2 4 2 Palm 14 28 8 13 0 406 408 320 225 292 241 254 154 273 304 259 186 125 102 83 43 57 71 75 49 84 110 138 58 32.5 21 26 19 19.5 29.5 29.5 31.8 31 36.1 53.2 31353525 5 14 18 29 7 40 56 48 15 52 27 28 31 21 19 11 33 24 18 11 24 1 11 42 0 2 2 4 2 14 28 8 13 0 0 50 100 150 200 250 300 350 400 450 Transient Occupancy Tax MAY 24, 2022 State Law Revenue & Taxation Code Section 7280 et seq.permits the City to adopt a transient occupancy tax imposed upon the privilege of occupying a room or rooms, or other living space, in a hotel, inn, tourist home or house, motel, or other lodging. Proposed Transient Occupancy Tax Measure 1.The proposed transient occupancy tax measure proposes a general tax. 2.If adopted by the voters, the transient occupancy tax would provide a maximum tax rate of 10% of hotel charges. 3.Estimated annual revenue is between $10,000 and $250,000. 4.The proposed transient occupancy tax ordinance also allows the City Council to adjust the tax rate by resolution, provided it does not exceed the voter-approved 10% maximum. 5.All taxes must be submitted to voters for approval. Election Resolutions 3 resolutions must be considered/adopted by the City Council as follows: 1.A resolution calling the election for the measure on November 8, 2022, sending the measure to the voters for their consideration on November 8, 2022, and requesting that this measure/election be consolidated with the Statewide election held on the same date. 2.A resolution authorizing direct arguments and requesting an impartial analysis from the City Attorney. 3.An optional resolution authorizing rebuttals. Ballot Question 1.“Shall the measure, establishing a general Transient Occupancy Tax imposing a maximum tax rate of 10% of hotel charges upon guests staying in hotels (as defined) and generating approximately $10,000 (current estimate) to $250,000 (if a major hotel is developed within the City of Grand Terrace) in annual revenue until ended by voters, be adopted?” 2.This can be changed subject to the following: a.No more than 75 words. b.Must include the amount of money to be raised annually and the rate and duration of the tax to be levied. c.Must be a true and impartial synopsis of the purpose of the proposed measure, and must be in language that is neither argumentative nor likely to create prejudice for or against the measure. Argument Authorization 1.The second resolution authorizes, but does not require, all councilmembers to write arguments concerning the ballot measure. It also sets priorities for choosing of arguments. 2.However, the City Council may, instead, authorize certain councilmembers to write arguments. 3.If three or more Councilmembers jointly write a ballot argument, then the Brown Act will require the collaboration to occur at a noticed public meeting. Rebuttal Arguments 1.The third resolution authorizes rebuttal arguments to the primary/direct arguments. 2.These are optional under state law and are allowed at the discretion of the City Council. 3.If the City Council does not desire to authorize rebuttal arguments, then Council should not approve this third election resolution. Procedures for Submission 1.Because this is tax measure, two-thirds (i.e., 4 Councilmembers) vote of all members of the City Council (Gov’t Code §53724(b)) will be required to pass the resolution to order the submission of the proposed measure to the voters. 2.Passage of the measure will require approval by a majority of the voters. 3.The proposed taxes will generate revenue, deposited in the general fund, available for any general governmental purpose. Thus, the taxes are considered “general taxes.” Under Proposition 218, the levy of a new general tax must be approved by a majority of voters. (Cal. Const. art. 13C, §2(b).). 4.The estimated cost of sending this measure to the voters is $15,000. Questions? 2 3 4 5 2020-21 2020-21 2021-22 2021-22 2022-23 Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget Property Tax $2,082,593 $2,197,948 $3,989,040 $1,985,232 $2,078,595 Residual Receipts -RPTTF $1,798,163 $1,354,741 $176,900 $2,603,817 $2,402,700 Proceeds from Sale of Property $0 $0 $1,798,700 $2,070,601 $0 Franchise Fees $445,000 $613,598 $620,000 $644,000 $635,000 Licenses, Fees & Permits $329,090 $439,948 $490,000 $329,822 $665,400 Sales Tax $750,000 $1,064,567 $988,000 $1,110,053 $1,125,400 Intergovernmental Revenue/Grants $20,000 $54,606 $31,220 $66,492 $60,500 Charges for Services $100,300 $138,916 $141,100 $73,229 $178,000 Fines & Forfeitures $70,000 $73,219 $66,300 $44,274 $66,300 Miscellaneous $0 $20,091 $0 $14,885 $26,710 Use of Money & Property $67,500 $31,140 $34,660 $28,416 $34,660 Wastewater Receipts $318,349 $318,349 $318,349 $318,349 $318,349 Transfers In $0 $0 $0 $0 $50,000 Residual Receipts -Sr Ctr $0 $0 $0 $0 $0 Total Revenues $5,980,995 $6,307,123 $8,654,269 $9,289,170 $7,641,614 Property Tax 58.6% Sales Tax 14.7% Franchise Fees 8.3% Licenses, Fees & Permits 8.7% Waste Water Receipts 4.2% Intergovt Revenue/Grants 0.8% Charges for Services 2.3% Use of Money & Property 0.5%Fines & Forfeitures 0.9% Transfers In 0.7% Miscellaneous 0.3% City of Grand Terrace 2022-23 General Fund Proposed Revenues 2020-21 2020-21 2021-22 2021-22 2022-23 Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget Salaries $1,094,006 $1,088,247 $1,552,512 $1,356,254 $1,482,899 Benefits $1,118,326 $964,910 $1,149,757 $1,044,541 $1,356,069 Materials & Supplies $190,955 $206,360 $224,770 $218,657 $323,605 Professional/Contractual Services $3,572,540 $3,646,766 $3,674,258 $3,743,232 $4,198,568 Equipment $1 $0 $0 $3,000 $0 Lease of Facility/Equipment $19,323 $17,513 $19,600 $17,615 $12,000 Utilities $143,858 $168,416 $176,448 $199,166 $229,448 Overhead Cost Allocation ($81,950)($68,192)($84,950)($84,950)($81,950) Capital Projects $213,419 $90,615 $0 $113,922 $0 Debt Service $0 $15,968 $0 $0 $0 Transfers Out $139,750 $200,725 $110,000 $110,000 $110,700 Total Expenditures $6,410,228 $6,331,328 $6,822,395 $6,721,437 $7,631,339 $1,482,899 $1,356,069 $323,605 $4,198,568 $12,000 $229,448 ($81,950) $110,700 Salaries Benefits Materials & Supplies Prof/Cont Services Lease of Equip Utilities Overhead Cost Alloc Transfers Out ($500,000)$500,000 $1,500,000 $2,500,000 $3,500,000 $4,500,000 City of Grand Terrace 2022-23 General Fund Proposed Expenditures 10 Event Date Budget Introduction Tue., May 24th Continued Budget Deliberations (if necessary)Tue.,June 14th Budget Adoption Tue., June 28th