American Canyon City Council
January 18, 2022

REGULAR CITY COUNCIL MEETING AGENDA
City Hall - Council Chambers
4381 Broadway St., Suite 201, American Canyon
January 18, 2022
6:30 PM
Consistent with Government Code Secon 54953 and the American Canyon City Council Resoluon Declaring the Existence of a Local Emergency due to the COVID-19 Pandemic, City Council, City Council and other public meengs are currently Teleconference Meengs Only to align with local and federal guidelines and social distancing recommendaons for the containment of the coronavirus.

This meeting will be broadcast live to residents on Napa Valley TV here and on YouTube here.

You may submit public comments for any Agenda Item, Non-Agenda Item or make general public comments by one of the following methods:

Oral comments, during the mee0ng: A Zoom Webinar has been established for public par%cipa%on during the mee%ng related to a specific agenda item, or ma(ers not on the agenda. To give your public comment directly to the legisla%ve body during the mee%ng, use the Register to Speak feature of eComments or connect via below Zoom link and follow the instruc%ons or by calling 408- 638-0968.

Zoom Meeting Link: Click here
Webinar ID: 853 7979 0553 Passcode: 608107
Wri4en comments, Via eComments: The eComments link is located on the Mee%ngs & Agendas page of our website here. Comments received before the 3:00 p.m. day-of-mee%ng cutoff %me will be routed to all Councilmembers at that %me. eComments will remain open throughout the meeting, and all comments received will be posted online and become part of the meeting record.

The above-iden%fied measures exceed all legal requirements for par%cipa%on in public comment, including those imposed by the Ralph M. Brown Act. For more informa%on, please call the Office of the City Clerk at (707) 647-4369 or email [email protected].

AGENDA MATERIALS: City Council agenda materials are published 72 hours prior to the mee%ng, and are available to the public via the City’s website at www.cityofamericancanyon.org.

AMERICANS WITH DISABILITIES ACT: The City Council will provide materials in appropriate alterna%ve formats to comply with the Americans with Disabili%es Act. Please send a wri(en request to City Clerk at 4381 Broadway, Suite 201, American Canyon, CA 94503 or by email to [email protected]. Include your name, address, phone number and brief descrip%on of the requested materials, as well as your preferred alterna%ve format or auxiliary aid, at least three calendar days before the meeting.

Mayor: Leon Garcia
Vice Mayor: Mariam Aboudamous
Councilmembers: Mark Joseph, David Oro, Pierre Washington CITY COUNCIL MEETING AGENDA JANUARY 18, 2022
1 PUBLIC ADDRESS – CLOSED SESSION 4:30 P.M.

The Mayor will call the meeng to order and conduct role call. Council will immediately convene into Closed Session a1er hearing any public comment on Closed Session items. At 6:30 p.m. the Council will reconvene into Open Session and then resume Closed Session at the end of the meeting to address outstanding items, if necessary. 4:30 P.M. CLOSED SESSION

1. Matters Relating to Public Employment Public Employee Performance Evaluation Pursuant to Government Code Section 54957.

Position: Jason Holley, City Manager

2. Conference with Legal Counsel – Anticipated Litigation Pursuant to Government Code Section 54956.9 (d)(2)
Two Matters.
6:30 P.M. OPEN SESSION - REGULAR MEETING

CALL TO ORDER

PLEDGE OF ALLEGIANCE

MEETING ANNOUNCEMENT
Pursuant to AB 361 this meeting will be held entirely virtually. All methods available for public participation are detailed on the first page of the agenda.

ROLL CALL

REPORT ON CLOSED SESSION/CONFIRMATION OF REPORTABLE ACTION

PROCLAMATIONS AND PRESENTATIONS

3. Proclamation - American Canyon's 30th Anniversary

4. Oath of Office - Police Chief Rick Greenberg

PUBLIC COMMENT - ITEMS NOT ON THE AGENDA
This me is reserved for members of the public to address the City Council on items of interest that are not on the Agenda and are within the subject ma7er jurisdicon of the City Council. Comments are limited to 3 minutes.

Comments for items on the Agenda will be taken when the item is called. The City Council is prohibited by law from taking any acon on ma7ers discussed that are not on the Agenda, and no adverse conclusions should be drawn if the City Council does not respond to public comment at this me. Speakers are asked to please speak clearly, and provide their name. Any handouts for distribuon to the City Council must be emailed by 3:00 p.m. on meeng day. To comment via zoom during the meeng: click the “raise your hand” bu7on if joining by computer, or press *9 if joining by phone, when the item is called. To avoid confusion, hands raised outside of Public Comment periods will be lowered.

AGENDA CHANGES
The Mayor and Council may change the order of the Agenda or request discussion of a Consent Item. A member of the CITY COUNCIL MEETING AGENDA JANUARY 18, 2022
2 Public may request discussion of a Consent Item by making that request during Public Comment.

CONSENT CALENDAR

5. Minutes - Regular City Council Meeting of December 21, 2021 Recommendation: Approve the minutes from the regular City Council mee%ng of December 21, 2021.

6. Closed Session Report - December 21, 2021
Recommendation: Approve the Closed Session Report from the Regular City Council Meeting of December 21, 2021.

7. Closed Session Report - January 11, 2022
Recommendation: Approve the Closed Session Report from the Special City Council Closed Session meeting of January 11, 2022.

8. Continued Use of Remote Teleconference for Meetings
Recommendation: Adopt a Resolu%on reaffirming that a local emergency exists, re-ra%fying the Proclama%on of a State of Emergency by Governor Newsom on March 4, 2020, and authorizing con%nued use of remote teleconferenced mee%ngs of legisla%ve and advisory bodies of the City of American Canyon for the period of January 18, 2021 - February 15, 2022 pursuant to to Ralph M. Brown Act.

9. 2021 Annual Napa Logistics Phase 2 Development Agreement Review Recommendation: Adopt a Resolu%on of the City Council of the City of American Canyon, California, finding that DWF IV NLP II, LLC has demonstrated “Good Faith efforts” to comply with the Napa Logis%cs Phase 2 Development Agreement obliga%ons during Calendar Year 2021.

10. Labor and Employment Counsel Services
Recommendation: Adopt a Resolu%on approving an agreement with Sloan Sakai Yeung & Wong LLP to provide legal assistance to the City on employment related ma(ers and upcoming labor contract negotiations.

PUBLIC HEARINGS

11. Acquisition of Certain Property for Public Purposes Recommendation: Con%nued Public Hearing on Acquisi%on of Certain Property for Public Purposes.

12. Urgency Ordinance and Zoning Code Amendment - Fuel Stations Recommendation: Hold a Public Hearing and by title only, take the following actions:

1. Adopt an Interim Urgency Ordinance of the City Council of the City of American Canyon, California, enacted pursuant to California Government Code Sec%on 65858 establishing a 12-Month Temporary Moratorium on the approval of discre%onary applica%ons for new fuel sta%ons that are not complete as of the effec%ve date of this CITY COUNCIL MEETING AGENDA JANUARY 18, 2022
3 Ordinance in all zoning districts in the City of American Canyon pending review and possible amendment of Municipal Code Regula%ons; and seNng forth the facts constituting such urgency (PL21-0005); and

2. Adopt an Ordinance of the City Council of the City of American Canyon, California, amending the American Canyon Municipal Code Chapter 19.04 Defini%ons; Chapter

19.05 Commercial Classifica%ons; Chapter 19.11 Commercial Zoning District; Chapter

19.49 Nonconforming Uses, Structures and Lots; and Broadway District Specific Plan Table 2-3 Permi(ed Uses; to prohibit new and expanded service sta%ons in all zoning districts in the City of American Canyon that engage in retail sale of motor vehicle fossil fuels (PL21-0028).

BUSINESS

13. Amendment 17 to Napa County Agreement No. 3220 for Law Enforcement Services Recommendation: Adopt a Resolu%on approving Amendment 17 to Napa County Agreement No. 3220 with the Napa County Sheriff’s Office for law enforcement services for the period March 1, 2022 through June 30, 2024.

14. Annual Comprehensive Financial Report
Recommendation: Receive and file the Annual Comprehensive Financial Report and related communications from the City's external auditor for Fiscal Year 2020-21.

MANAGEMENT AND STAFF ORAL REPORTS

MAYOR/COUNCIL COMMENTS, COMMITTEE REPORTS, AND FUTURE AGENDA ITEMS The Mayor and Council may comment on ma7ers of public concern and announce ma7ers of public interest; no collective council action will be taken.

Anticipated Future Council Item of Note:

February 1, 2022 City Council Meeting
Napa Junction FRC
Black History Month
Climate Change Resolution
Mid-Year Budget Adjustment
ARPA Recommendations/CIP Update
February 15, 2022 City Council Meeting
Quarterly Investment Report
Award Wetland Restoration Plan (PR20-0300) Contract
Amend Questa/Newell Trail Contract Agreement
Monthly Check Register and Expenditure Reporting
Senior Center Name Change

15. City Council Committee Reports - Councilmember David Oro

16. City Council Committee Report - Councilmember Mark Joseph CITY COUNCIL MEETING AGENDA JANUARY 18, 2022
4 ADJOURNMENT

CERTIFICATION
I, Taresa Geilfuss, City Clerk for the City of American Canyon, do hereby declare that the foregoing Agenda of the City Council was posted in compliance with the Brown Act prior to the meeting date. ______________________________________
Taresa Geilfuss, City Clerk
CITY COUNCIL MEETING AGENDA JANUARY 18, 2022
5 CITY OF AMERICAN CANYON

PROCLAMATION
Recognizing American Canyon’s 30th Anniversary
WHEREAS, residents began settling the area now known as “American Canyon” following World War II, with the McKnight Acres subdivision in the 1940’s and Rancho Del Mar in the 1950’s; and
WHEREAS, American Canyon was previously known as “Napa Junction” and before incorporation, was served by the American Canyon County Water District and American Canyon Fire Protection District; and
WHEREAS, by vote of the residents and by vote of the Napa County Board of Supervisors, the “City of American Canyon” incorporated January 1, 1992; and WHEREAS, since incorporation, the American Canyon community has proudly witnessed the following accomplishments:
• The donation of 640 acres by Jack and Bernice Newell for the Newell Open Space Preserve; and
• The acquisition of its own Zip Code, 94503 and Post Office with assistance from President Clinton and Congressman Mike Thompson
• The establishment of a retail corridor with four new shopping centers, including national anchor tenants such as Safeway ad Walmart, along with a mixture of regional tenants and local businesses.
• The construction of a new Water Reclamation Facility, Senior Center, Aquatics Center and Community Center/Gym, City Hall, Library, numerous parks and trails, Boys and Girls Center, and the Wetlands Trail; and
• The construction of American Canyon Middle School, American Canyon High School, Canyon Oaks Elementary School, and (new) Napa Junction Elementary School. • The expansion of its original municipal boundaries through the annexation of land to provide for the new La Vigna, Vintage Ranch and Watson Ranch residential 6 neighborhoods along with commercial/industrial development in the Green Island Industrial Area.

WHEREAS, the residents of American Canyon have embraced the mantel of service to others through the formation of numerous community groups and establishment of places of worship such as:
4-H Club of American Canyon
AHI Recreational Swim Team
American Canyon Arts Foundation
American Canyon AYSO REGION 1187
American Canyon Bocce Ball League
American Canyon Boys and Girls Club
American Canyon Chamber of Commerce
American Canyon Community & Parks Foundation
American Canyon Cycling Club
American Canyon Fil-Am Seventh Day Adventist Church
American Canyon High School Alliance
American Canyon High School Cheer
American Canyon High School Go Pack
American Canyon Kiwanis Club
American Canyon Lions Club
American Canyon Little League
American Canyon Middle School PTO
American Canyon Mobile Home Park
American Canyon Mom’s Club
American Canyon Relay for Life
American Canyon Youth Football
American Legion Post 603
Boy Scouts Troop 7062
Calvary Baptist Church
Canyon Oaks Elementary School PTO
Community Emergency Response Team (CERT)
Cub Scouts 7178
Donaldson Way Elementary School PTA
Family Worship Center
Filipino-American Association of American Canyon
Girl Scouts
Girls on the Run
Grace Point Faith Church
Harvest Free Will Baptist Church
Holy Family Catholic Church
Khope International
Napa Junction Elementary School PTO
7 Napa Junction Family Resource Center
New Life Community Adventist Church
Soroptimist International
NOW THEREFORE, BE IT PROCLAIMED, that the City Council of the City of American Canyon does hereby recognize January 1, 2022 as American Canyon’s 30th Anniversary.

Dated: January 18, 2022 _______________________________ Leon Garcia, MAYOR
8 January 14, 2022
The Honorable Mayor Leon Garcia
City of American Canyon
4381 Broadway,
American Canyon, CA 94503
RE: City of American Canyon – 30th Anniversary of Incorporation To the Mayor, City Council and all residents of American Canyon:

Congratulations for achieving the significant milestone of the 30th anniversary of the establishment of the City of American Canyon!
From the humble origins of the American Canyon Fire Protection District and the Rancho Del Mar development, the City of American Canyon has become Napa County’s 2nd largest and fastest growing city. With a new town center on the way, American Canyon will continue to mature into a city with even stronger bonds with each other and further define your own sense of community. New roads that parallel SR 29 will soon reduce traffic that can grip the daily life of residents and workers throughout the county. And with growth in the Green Island Road industrial area, jobs that pay a living wage with opportunities of upward mobility are widely available. It is clear that American Canyon is a wonderful place to live and already well on the way to a prosperous future.

American Canyon is not only the most diverse city in Napa County, it is one of the most diverse in all of California. And that is what makes it one of the most friendly and inviting cities around. American Canyon residents should be proud of the work they have accomplished and how far they have come in the past 30 years. Again congratulations and I look forward to seeing what else we can accomplish together. If I may be of any other assistance, please contact me at (707) 224-1990.

Best,
Senator 3rd District
CHAIR: SENATE GOVERNMENTAL ORGANIZATION COMMITTEE

STATE CAPITOL
PO BOX 942849
SACRAMENTO, CA 94249
Ph (916) 651-4003
Fax (916) 651-4903

COMMITTEES

GOVERNMENTAL ORGANIZATION

BUSINESS, PROFESSIONS AND

ECONOMIC DEVELOPMENT

TRANSPORTATION AND HOUSING

INSURANCE

ENERGY, UTILITIES AND

COMMUNICATION
9 Oath of Office

I, Rick Greenberg, Police Chief, do solemnly swear (or affirm) that I will support and defend the Constitution of the United States and the Constitution of the State of California against all enemies, foreign and domestic; that I will bear true faith and allegiance to the Constitution of the United States and the Constitution of the State of California; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties upon which I am about to enter.

Signature
Subscribed and sworn to before me this 18th day of January, 2022.

Taresa Geilfuss City Clerk
Name Title
City Clerk Signature
10 CITY OF AMERICAN CANYON

REGULAR JOINT CITY COUNCIL MEETING

ACTION MINUTES
December 21, 2021
PUBLIC ADDRESS – CLOSED SESSION 5:30 P.M.

CLOSED SESSION ROLE CALL

Present: Mayor Leon Garcia, Vice Mayor Mark Joseph, Councilmember Mariam Aboudamous, Councilmember David Oro, Councilmember Pierre Washington

Absent: None
There were no public comments on the closed session items. 5:30 P.M. CLOSED SESSION

1. Conference with Legal Counsel – Anticipated Litigation Pursuant to Government Code Section 54956.9 (d)(3) Three Matters.

2. Matters Relating to Public Employment Public Employee Performance Evaluation Pursuant to Government Code Section 54957.

Position: Jason Holley, City Manager
6:30 P.M. OPEN SESSION - REGULAR MEETING

CALL TO ORDER
The meeting was called to order at 6:44 p.m.

PLEDGE OF ALLEGIANCE
Mayor Leon Garcia led the Pledge of Allegiance.

MEETING ANNOUNCEMENT
Mayor Leon Garcia made the meeting announcement.

ROLL CALL

Present: Mayor Leon Garcia, Vice Mayor Mark Joseph, Councilmember Mariam Aboudamous, Councilmember David Oro, Councilmember Pierre Washington

Absent: None
11 REPORT ON CLOSED SESSION/CONFIRMATION OF REPORTABLE ACTION City Attorney William Ross provided an oral report on Closed Session. Closed Session commenced at 5:31 p.m. Closed Session adjourned at 6:36 p.m. A written report will be provided.

PROCLAMATIONS AND PRESENTATIONS

3. Proclamation - Steve McCollum 19+ Years of Public Service Mayor Leon Garcia announced the Proclamation, accepted by Maintenance & Utilities Director Felix Hernandez, III.

4. Appointments to Boards, Commissions and Committees with Terms Expiring December 2021 - Oaths of Office
Action: Motion to adopt Minute Order 2021-04 reappointing Deborah Maffei to the Napa County Mosquito Abatement District Board for an additional two-year term, ending December 31, 2023 made by Vice Mayor Mark Joseph, seconded by Councilmember Mariam Aboudamous, and CARRIED by roll call vote.

Ayes: Mayor Leon Garcia, Vice Mayor Mark Joseph, Councilmember Mariam Aboudamous, Councilmember David Oro, Councilmember Pierre Washington Nays: None
Abstain: None

Absent: None
Action: Motion to adopt Minute Order 2021-05 reappointing Barry Christian, Nance Matson, and Scott Artis to the Open Space Advisory Committee for additional four-year terms ending December 31, 2025 made by Vice Mayor Mark Joseph, seconded by Councilmember David Oro, and CARRIED by roll call vote.

Ayes: Mayor Leon Garcia, Vice Mayor Mark Joseph, Councilmember Mariam Aboudamous, Councilmember David Oro, Councilmember Pierre Washington Nays: None
Abstain: None

Absent: None

PUBLIC COMMENT - ITEMS NOT ON THE AGENDA
Mayor Leon Garcia opened Public Comments. Written comments: none. Oral comments: Beth Marcus was called to speak; Justin Hamilton Hole was called to speak. Mayor Leon Garcia closed Public Comments.

AGENDA CHANGES
There were no changes to the agenda.
12 CONSENT CALENDAR
Action: Motion to approve the Consent Calendar made by Councilmember David Oro, seconded by Vice Mayor Mark Joseph, and CARRIED by roll call vote.

Ayes: Mayor Leon Garcia, Vice Mayor Mark Joseph, Councilmember Mariam Aboudamous, Councilmember David Oro, Councilmember Pierre Washington Nays: None
Abstain: None

Absent: None

5. Minutes of December 7, 2021
Action: Approved the minutes of the Regular City Council Meeting of December 7, 2021.

6. Minutes/Reportable Action of December 14, 2021
Action: Approved the Minutes/Reportable Action from the Special Closed Session of December 14, 2021.

7. City Attorney Closed Session Reports
Action: Approved the City Attorney Closed Session Reports of August 24th, September 7th, and December 7, 2021.

8. Continued Use of Remote Teleconference for Meetings
Action: Adopted Resolution 2021-97 reaffirming that a local emergency exists, re-ratifying the Proclamation of a State of Emergency by Governor Newsom on March 4, 2020, and authorizing continued use of remote teleconferenced meetings of legislative and advisory bodies of the City of American Canyon for the period of December 21, 2021 - January 20, 2022 pursuant to the Ralph M. Brown Act.

9. Local Appointments List - Maddy Act Compliance
Action: Received and filed the Local Appointments List of Board, Commission and Committee citizen appointments and vacancies for 2022.

10. Annual Inflation Adjustment to Impact Fees
Action: Adopted Resolution 2021-98 of the City Council of the City of American Canyon adopting the 2022 annual Inflation-adjustment to the Traffic Impact Fee, Water Capacity Fee, Wastewater Capacity Fee, Parks and Recreation Fee, Civic Facilities Fee, General Plan Update Fee, and Affordable Housing Nexus Fee.

11. Information Technology Contract
Action: Adopted Resolution 2021-99 authorizing the City Manager to approve contract 2021- A181 with Definitive Networks, Inc for the lease, warranty, maintenance and support services of information technology and telephone systems and equipment. 13 12. SB619 Intent to Comply with SB1383
Action: Adopted Resolution 2021-100 of the City Council of the City of American Canyon affirming a Notice of Intent to Comply with State Senate Bill 1383 requirements of mandatory solid waste, recycling and organics collection services.

13. Annual Update to Part-time Temporary Staff Pay Rates Action: Adopted Resolution 2021-R101 approving part-time temporary staff pay rates, and updating the salary schedule and compensation plan for FY 2021/2022.

PUBLIC HEARINGS
There were no public hearing items.

BUSINESS

14. Selection of Vice Mayor and City Council Committee Appointments Action: Motion to adopt Minute Order 2021-06, selecting Councilmember Miriam Aboudamous as the Vice Mayor to serve for a one-year term from January 1, 2022 to December 31, 2022 made by Councilmember David Oro, seconded by Councilmember Pierre Washington, and CARRIED by roll call vote.

Ayes: Mayor Leon Garcia, Vice Mayor Mark Joseph, Councilmember Mariam Aboudamous, Councilmember David Oro, Councilmember Pierre Washington Nays: None
Abstain: None

Absent: None
Action: Motion to adopt Minute Order 2021-07 creating the Watson Ranch Subcommittee with Councilmember Mariam Aboudamous and Councilmember Pierre Washington appointed to serve; and approving the 2022 City Council Committee Appointments List made by Councilmember David Oro, seconded by Vice Mayor Mark Joseph, and CARRIED by roll call vote.

Ayes: Mayor Leon Garcia, Vice Mayor Mark Joseph, Councilmember Mariam Aboudamous, Councilmember David Oro, Councilmember Pierre Washington Nays: None
Abstain: None

Absent: None

15. Ballot Measure for June 7, 2022 Statewide Primary Election - Term Limits Council received a staff report from MRG Consultant Shirley Concolino. Mayor Leon Garcia opened public comments. Written comments: none. Oral comments: Justin Hamilton Hole was called to speak. Mayor Leon Garcia closed public comments. 14 Action: Motion to adopt Resolution 2021-R102 submitting to the qualified voters of the City an Ordinance amending the American Canyon Municipal Code to add Section

2.04.120 regarding Mayor and Councilmember Term limits at the Regular Statewide Primary Election to be held on June 7, 2022 made by Vice Mayor Mark Joseph, seconded by Councilmember Pierre Washington, and CARRIED by roll call vote.

Ayes: Vice Mayor Mark Joseph, Councilmember Mariam Aboudamous, Councilmember David Oro, Councilmember Pierre Washington
Nays: Mayor Leon Garcia
Abstain: None

Absent: None
Action: Motion to adopt Minute Order 2021-08 designating Councilmember Mariam Aboudamous as preparer of an argument in favor and a rebuttal to opposition, and Mayor Leon Garcia as preparer of an argument against and a rebuttal to in favor, both to be published in the County voter materials for the term limits special election made by Councilmember Mariam Aboudamous, seconded by Councilmember Pierre Washington, and CARRIED by roll call vote.

Ayes: Mayor Leon Garcia, Vice Mayor Mark Joseph, Councilmember Mariam Aboudamous, Councilmember David Oro, Councilmember Pierre Washington Nays: None
Abstain: None

Absent: None

16. Water Supply and Demand Drought Emergency Stage 2
Council received a staff report from Maintenance & Utilities Director Felix Hernandez, III and Water Systems Manager Dominic Patrick. Mayor Leon Garcia opened Public Comments. Written comments: none. Oral comments: Justin Hamilton Hole was called to speak; Beth Marcus was called to speak. Mayor Leon Garcia closed Public Comments. Council filed the report.

MANAGEMENT AND STAFF ORAL REPORTS
Police Chief Rick Greenberg congratulated Officer Jose Pinedo, he was selected by the VFW Post 1123 as the Officer of the Year.

MAYOR/COUNCIL COMMENTS, COMMITTEE REPORTS, AND FUTURE AGENDA ITEMS

17. City Council Committee Report - Councilmember David Oro

18. City Council Committee Report - Vice Mayor Mark Joseph 15 Councilmember David Oro had no additions to the submitted report. Councilmember Mark Joseph had no additions to his submitted report. Councilmember Mariam Aboudamous provided an oral update on meetings and events attended. She will provide a written report. Mayor Leon Garcia provided an oral update on meetings and events attended. He will provide a written report.

ADJOURNMENT
The meeting was adjourned at 7:55 p.m.

CERTIFICATION
Respectfully Submitted,
_____________________________________
Taresa Geilfuss, City Clerk
16 William D. Ross
David Schwarz
Kypros G. Hostetter
Law Offices of
William D. Ross
400 Lambert Avenue
Palo Alto, California 94306
Telephone: (650) 843-8080
Facsimile: (650) 843-8093
Los Angeles Office:
11420 Santa Monica Blvd
#25532
Los Angeles, CA 90025
File No: 199/6
December 21, 2021

VIA E-MAIL
The Honorable Leon Garcia, Mayor
and Members of the City Council
City of American Canyon
4381 Broadway, Suite 201
American Canyon, CA 94503
Re: Report Upon Return from Closed Session; Virtual Regular Meeting of the American Canyon City Council; December 21, 2021
Dear Mayor Garcia and Members of the City Council:

This communication sets forth reportable action, if any, of the City Council (“Council”) of the City of American Canyon (“City”), consistent with provisions of the Ralph M. Brown Opening Meeting Act (Government Code Section 54950, et seq.) resulting from the Closed Session of the Virtual December 21, 2021 Regular Council Meeting, consistent with Government Code Section 54957.1.

After convening in Open Session at 5:31 p.m. and ascertaining that there were no public comments on the agendized Closed Session matters, your Council adjourned to Closed Session at 5:32 p.m.

There were two matters agendized for City Closed Session consideration.

1. Conference with Legal Counsel – Anticipated Litigation Pursuant to Government Code Section 54956.9(d)(2)
Three Matters.

2. Matters Relating to Public Employment Public Employee Performance Evaluation
Pursuant to Government Code Section 54957.

Position: Jason Holley, City Manager
With respect to the first matter considered under Closed Session Agenda Item No. 1., there was no reportable action under the common law attorney-client privilege and that provided by Government Code Section 54956.9(d)(2).
17 The Honorable Leon Garcia, Mayor
and Members of the City Council
December 22, 2021

With respect to the second matter considered under Closed Session Agenda Item No. 1., the City Attorney was directed (5-0) to retain after further facts are revealed concerning proposed real property to be acquired that an appraiser be retained to value the then identifiable property.

Except as indicated, there was no other reportable action under the common law attorney-client privilege and that provided by Government Code Section 54956.9(d)(2).

With respect to the third matter considered under Closed Session Agenda Item No. 1., there was reportable action in that the Council unanimously (5-0) authorized the Mayor to execute the Fifth Amendment to the Tolling Agreement between the County of Napa, the County of Napa Airport Land Use Commission (“ALUC”), the City of American Canyon and Rick Hess Development Agreement with respect to a prospective challenge by the County and the County ALUC to the City’s override of the decision of the ALUC with respect to the Oat Hill Residential Project. Except as indicated, there was no other reportable action under the common law attorneyclient privilege and that provided by Government Code Section 54956.9(d)(2).

With respect to Closed Session Agenda Item No. 2., there was no reportable action under the provisions of Government Code Section 54957.

The Closed Session concluded at 6:36 p.m. The Council conveyed in Open Session at 6:43 p.m., where it was indicated that a written report upon return consistent with Government Code Section 54957.1, would be prepared.

This communication should be reviewed under the Consent portion of the Agenda of your next Regular or Special City Council Meeting.

Should you have questions concerning this Report, it may be taken off the Consent calendar when agendized in the future, or our office may be contacted in the interim.

Very truly yours,
William D. Ross
City Attorney
WDR:jf
cc: Jason B. Holley, City Manager
Maria Ojeda, Assistant City Manager
Taresa Geilfuss, City Clerk
18 REPORT FROM CLOSED SESSION
Report Upon Return from Closed Session; Virtual Special City Council Closed Session Meeting of the American Canyon City Council; January 11, 2021.

This communication sets forth reportable action, if any, of the City Council (“Council”) of the City of American Canyon (“City”), consistent with provisions of the Ralph M. Brown Opening Meeting Act (Government Code Sec on 54950, et seq.) resul ng from the Closed Session of the Virtual January 11, 2022 Special Council Meeting, consistent with Government Code Section 54957.1.

After convening in Open Session at 4:06 p.m., and ascertaining that there were no public comments on the agendized Closed Session matters, Council adjourned to Closed Session at 4:07 p.m.

There was one matter agendized for City Closed Session consideration.

1. Matter Relating to Public Employment Public Employee Performance Evaluation Pursuant to Government Code Section 54957.

Position: Jason Holley, City Manager
With respect to the one matter considered under Closed Session Agenda Item No. 1., there was no reportable action and Council continued the matter to January 18, 2022, 4:30 p.m., Special Closed City Council meeting under the common law Attorney-client privilege provided by Government Code Section 54956.9(d)(1).

The Closed Session concluded at 6:06 p.m.

Jason Holley, City Manager
19 CITY COUNCIL AGENDA
JANUARY 18, 2022

STAFF REPORT

CONSENT
ITEM NUMBER: 8.

TITLE
Continued Use of Remote Teleconference for Meetings

RECOMMENDATION
Adopt a Resolu)on reaffirming that a local emergency exists, re-ra)fying the Proclama)on of a State of Emergency by Governor Newsom on March 4, 2020, and authorizing con)nued use of remote teleconferenced mee)ngs of legisla)ve and advisory bodies of the City of American Canyon for the period of January 18, 2021 - February 15, 2022 pursuant to to Ralph M. Brown Act.

CONTACT
William D. Ross, City Attorney

BACKGROUND & ANALYSIS
Because of the COVID-19 Pandemic, the City Council, as well as the City Planning Commission and Board of Directors of the American Canyon Fire Protec)on District, have been conduc)ng mee)ngs via Zoom teleconference, as allowed by Execu)ve Order N-29-20. However, the Execu)ve Order expired on September 30, 2021.

Assembly Bill 361, which was approved at by the Governor on September 16, 2021, allows local agencies such as the City to con)nue to meet by Zoom or other teleconferencing methods, provided that certain conditions are met.

The effect of Execu)ve Order N-29-20 was to suspend certain provisions of the Ralph M. Brown Open Mee)ng Act (Government Code Sec)on 54950 et seq.), which only allowed remote teleconference par)cipa)on by City Council Members through a pos)ng process at each teleconferenced member’s loca)on, with agenda provisions indica)ng that each teleconferenced location be accessible to the public.

The enclosed Resolu)on would comply with the provisions of AB 361 and allow con)nued Zoom mee)ngs of the City Council un)l full in-person mee)ngs are resumed. The ability to con)nue to meet by Zoom, even in conjunc)on with Open Mee)ngs, can be accomplished by the City Council provided that monthly resolutions are agenized and enacted with provisions referencing appropriate confirmation of declared emergencies are described.
20 Stated plainly, the City Council will have to enact a “361 Resolu)on” at least every 30 days to allow the Zoom teleconferencing procedure to continue.

Changes to the first page of the City Council Agendas were made made beginning October 2021, as the means for the public to par)cipate via con)nued Zoom teleconference will have to be described consistent with the AB 361 procedures rather than the now-expired Executive Order N-29-20.

COUNCIL PRIORITY PROGRAMS AND PROJECTS
Not applicable.

FISCAL IMPACT
None.

ENVIRONMENTAL REVIEW
15378(b) - The ac)on is not a "Project" subject to the California Environmental Quality Act ("CEQA") because it does not qualify as a "Project" under Public Resources Code Sec)ons 21065 and 21080 and in Section 15378(b) of Title 14 of the California Code of Regulations.

ATTACHMENTS:

1. Resolution - AB361
21 1
RESOLUTION NO. 2022-______

A RESOLUTION OF THE CITY OF AMERICAN CANYON CITY COUNIL REAFFIRMING THAT A

LOCAL EMERGENCY EXISTS, RE-RATIFYING THE PROCLAMATION OF A STATE OF EMERGENCY BY GOVERNOR NEWSOM ON MARCH 4, 2020, AND AUTHORIZING CONTINUED USE OF

REMOTE TELECONFERENCED MEETINGS OF LEGISLATIVE AND ADVISORY BODIES OF THE CITY OF AMERICAN CANYON FOR THE PERIOD JANUARY 18, 2022 THROUGH FEBRUARY 15, 2022 PURSUANT TO THE RALPH M. BROWN ACT
WHEREAS, the City of American Canyon (“City”) is committed to preserving and nurturing public access and participation in meetings of the American Canyon City Council (“City Council”), Council committees, Planning Commission, and all other advisory, elected and appointed committees and commissions (“City Decision Making Bodies”); and,
WHEREAS, all meetings of the City’s legislative bodies are open and public, as required by the Ralph M. Brown Act (Cal. Gov. Code 54950 – 54963), so that any member of the public may attend, participate, and watch the City’s legislative bodies conduct their business; and, WHEREAS, the Brown Act, Government Code section 54953(e), makes provisions for remote teleconferencing participation in meetings by members of a legislative body, without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and,
WHEREAS, a required condition for such teleconference meetings is that a state of emergency be declared by the Governor pursuant to Government Code section 8625, proclaiming the existence of conditions of disaster or of extreme peril to the safety of persons and property within the state caused by conditions as described in Government Code section 8558; and, WHEREAS, that proclamation is made when there is an actual incident, threat of disaster, or extreme peril to the safety of persons and property within the jurisdictions that are within the City’s boundaries, caused by natural, technological, or human-caused disasters; and, WHEREAS, that proclamation also requires that state or local officials have imposed or recommended measures to promote social distancing, or, the legislative body meeting in person would present imminent risks to the health and safety of attendees; and, WHEREAS, emergency conditions exist in the City, specifically, a State of Emergency has been proclaimed by Governor Newsom on March 4, 2020, proclaiming a State of Emergency to exist in California as a result of the threat of COVID-19; and,
22 2
WHEREAS, during the COVID-19 pandemic, the City Council has conducted remote, teleconferenced meetings consistent with the Governor’s Executive Orders promoting social distancing;
WHEREAS, consistent with AB 361, as a condition of extending the use of the provisions found in section 54953(e), the City Council must reconsider the circumstances of the state of emergency that exists in the City, and the City Council has done so; and, WHEREAS, in response to COVID-19, the Governor of the State of California issued a Proclamation of a State of Emergency in response to COVID-19 on March 4, 2020, and issued Executive Order N-25-20 on March 12, 2020 proclaiming temporary amendments to State law and regulations related thereto; and
WHEREAS, on March 16, 2020 the City’s Director of Emergency Services issued a Proclamation of a Local Emergency by the City of American Canyon Director of Emergency Services and Acknowledgement of a State Proclamation Declaring of a State of Emergency and Acknowledgement of a Federal Proclamation Declaring of a National Emergency (P2020-001) (the “Proclamation”); and
WHEREAS, on March 17, 2020, the American Canyon City Council ratified the Proclamation. The City Council took actions to extend the Proclamation on May 5, June 16, August 4, and October 6, 2020.

WHEREAS, due to the continuing pandemic and the surging Delta Variant of COVID-19, meetings in person continues to present imminent risk to health and safety of attendees; and, WHEREAS, the City Council hereby finds that the coronavirus causing the State of Emergency proclaimed by Governor Newsom on March 4, 2020, and, the Delta Variant of COVID-19 surging in Napa County, has caused, and will continue to cause, conditions of peril to the safety of persons within the City that are likely to be beyond the control of services, personnel, equipment, and facilities of the City, and desires to re-affirm that a local emergency persists and re-ratify the Proclamation of State of Emergency by the Governor of the State of California; and, WHEREAS, as a consequence of the local emergency, the City Council does hereby find that City Decision Making Bodies shall conduct their meetings without compliance with paragraph (3) of subdivision (b) of Government Code section 54953, as authorized by subdivision (e) of section 54953, and that such legislative bodies shall comply with the requirements to provide the public with access to the meetings as prescribed in paragraph (2) of subdivision (e) of section 54953; and,
WHEREAS, the City is providing teleconference access via a conference phone-line number to the meetings to ensure public access.
23 3

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

Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.

Section 2. Affirmation that Local Emergency Exists. The City Council hereby proclaims that a local emergency continues to exist throughout the City, and the surging Delta Variant of COVID19 would present an imminent risk to meeting in person.

Section 3. Re-Ratifies of Governor’s Proclamation of a State of Emergency. The City Council hereby re-ratifies the Governor’s Proclamation of State of Emergency, effective as of its issuance date of March 4, 2020.

Section 4. Remote Teleconference Meetings. City Decision Making Bodies and City Staff are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution, including conducting open and public teleconferenced meetings in accordance with Government Code section 54953(e) and other applicable provisions of the Brown Act.

Section 5. Effective Date of Resolution. This Resolution shall take effect immediately upon its adoption and shall be effective until such time as the City Council adopts a subsequent Resolution in accordance with Government Code section 54953(e)(3) to extend the time during which City Decision Making Bodies may continue to conduct teleconferenced meetings without compliance with paragraph (3) of subdivision (b) of section 54953.

PASSED, APPROVED and ADOPTED at a regularly scheduled meeting of the American Canyon City Council held on the 18th day of January, 2022, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Leon Garcia, Mayor
ATTEST: APPROVED AS TO FORM
Taresa Geilfuss, City Clerk William D. Ross, City Attorney 24 CITY COUNCIL AGENDA
JANUARY 18, 2022

STAFF REPORT

CONSENT
ITEM NUMBER: 9.

TITLE
2021 Annual Napa Logistics Phase 2 Development Agreement Review

RECOMMENDATION
Adopt a Resolu*on of the City Council of the City of American Canyon, California, finding that DWF IV NLP II, LLC has demonstrated “Good Faith efforts” to comply with the Napa Logis*cs Phase 2 Development Agreement obligations during Calendar Year 2021.

CONTACT
Brent Cooper, AICP, Community Development Director

BACKGROUND & ANALYSIS
On November 7, 2017, the Council approved the Napa Logis*cs Park-Phase 2 Development Agreement (DA) with, DWF IV NLP Il, LLC (Ordinance No. 2017-08). The DA provides the owner with a 10-year vested right to develop the Napa Logis*cs Park Phase 2 Condi*onal Use Permit “Project Approvals” (Resolution 2015-107). The Project Approvals allow:

A maximum of 2,271,000 square feet of industrial, warehouse, distribu*on E-commerce, manufacturing, accessory retail/office uses.

Building heights of up to one-hundred (100) feet.

On-site parking spaces consistent with the requirements for end users.

Rail spur access to the buildings.

Construction of internal Roads “B” and “C” with connections to Devlin Road.

Grading as required for the Project improvements.

A storm drainage system and associated detention areas.

Water connections to the City system.

On-site and off-site recycled water connection lines.

On-site and off-site sewer connection lines.

37.21 acres subject to a wetlands conservation easement.

Landscaping for roadways, around buildings, and parking areas.

Road and intersection improvements at SR-29 and South Kelly Road.

Annual review of Development Agreements is required by State law and Chapter 19.47 of the American Canyon Municipal Code. This annual report represents the 2021 Calendar Year monitoring 25 report.

The burden of demonstra*ng good faith compliance is dependent on the Owner. On November 15, 2021, the Owner transmiFed a leFer to the City explaining the Project’s en*tlement status and progress made in substan*al compliance with the Development Agreement’s terms. A copy of this letter is included as Attachment 2 and is included in the Resolution as Exhibit A.

Development Agreement Public Benefits
Sec*on 3.3 of the Development Agreement describes substan*al public benefits the City will receive from the Napa Logis*cs Park Phase 2 Project. A table explaining each public benefit and its status is included as Attachment 2.

Condition of Approval Completion Status
A Table explaining the status of the target dates to complete certain Condi*onal Use Permit condi*ons is included as AFachment 3. Note: “Target Dates” are intended to provide flexibility recognizing that third par*es and other factors outside the control of the City and the Owner may cause delays in implementation.

COUNCIL PRIORITY PROGRAMS AND PROJECTS
Economic Development and Vitality: "AFract and expand diverse business and employment opportunities."

FISCAL IMPACT
The fiscal impacts of the Projects were addressed as part of the Condi*onal Use Permit and Development Agreement.

ENVIRONMENTAL REVIEW
The annual Development Agreement monitoring report is categorically exempt from California Environmental Quality Act (CEQA) in accordance with Government Code 15321 – Enforcement Ac*ons by Regulatory Agencies (Class 21). Class 21 applies as an exemp*on because the annual Development Agreement monitoring report is intended to serve as a tool to enforce the Napa Logistics Park Phase 2 Development Agreement.

ATTACHMENTS:

1. NLP DA Annual Report Resolution

2. Annual Report

3. Development Agreement Public Benefit Status

4. Conditions of Approval Status
26 ATTACHMENT 1
RESOLUTION NO. 2022-______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AMERICAN CANYON, CALIFORNIA, FINDING THAT DWF IV NLP IL, LLC HAS DEMONSTRATED “GOOD FAITH EFFORTS” TO COMPLY WITH THE NAPA LOGISTICS PHASE 2 DEVELOPMENT AGREEMENT OBLIGATIONS DURING CALENDAR YEAR 2021 (P21-0034)
WHEREAS, pursuant to Section 65300 of the State Planning and Zoning Law, the City of American Canyon has adopted a General Plan to provide comprehensive long-range planning and a blueprint of the city’s future form, including land use and circulation maps that specify the roadway network and the distribution of types and intensities of land; and
WHEREAS, on November 7, 2017, the City Council City approved the Napa Logistics Park-Phase 2 Development Agreement between the City of American Canyon and the “Owner”, DWF IV NLP Il, LLC (Ordinance No. 2017-08); and
WHEREAS, the Napa Logistics Park-Phase 2 Development Agreement provides the Owner with a 10-year vested right to develop the Napa Logistics Park Phase 2 Conditional Use Permit “Project Approvals” (Resolution 2015-107); and
WHEREAS, the Development Agreement contributes to achieving the City Council’s strategies to provide diverse employment opportunities, enhance the City’s sewer and recycled water facilities in the industrial area, and provide resources to improve the City’s transportation network; and WHEREAS, an annual review of the Napa Logistics Park Phase 2 Development Agreement is required by Government Code section 65865.1 and American Canyon Municipal Code section 19.47.100; and WHEREAS, during the 2021 Calendar period, the Development Agreement was reviewed to ensure compliance to the terms and provisions of the Agreement; and WHEREAS, the burden of demonstrating good faith compliance with the Development Agreement is on the Owner; and
WHEREAS, Owner has submitted a communication, attached as Exhibit A, detailing the status of Owner’s compliance, to date, with the Development Agreement and the status of remaining obligations and necessary conditions precedent, which have been reviewed by City Staff as set forth in the Staff Report accompanying this Resolution; and
WHEREAS, the annual Development Agreement monitoring report is categorically exempt from California Environmental Quality Act (CEQA) in accordance with Government Code 15321 – Enforcement Actions by Regulatory Agencies (Class 21). Class 21 applies as an exemption because the annual Development Agreement monitoring report is intended to serve as a tool to enforce the Napa Logistics Park Phase 2 Development Agreement.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of American Canyon hereby has 27 concluded its review of the Napa Logistics Phase 2 Development Agreement for Calendar Year 2021 and finds that the Owner has, to date, demonstrated “Good Faith” efforts toward meeting its Development Agreement obligations for the 2021 Calendar Year.

PASSED, APPROVED and ADOPTED at a regularly scheduled meeting of the City Council of the City of American Canyon held on the 18th day of January, 2022, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
____________________________
Leon Garcia, Mayor
ATTEST: APPROVED AS TO FORM:
_______________________________ _________________________________ Taresa Geilfuss City Clerk William D. Ross, City Attorney Exhibit A:

Divco West Annual Report 11.09.21
28 DocuSign Envelope ID: DA01FAFF-81ED-4873-9E54-B377152D4893 29 2
consistent with the requirements for end users; rail spur access to the buildings; internal roadways (Boone Drive) with connections to Devlin Road; grading as required for the Project improvements; a storm drainage system and associated detention areas, water connections to the City system, on-site and off-site recycled water connection lines, on-site and off-site sewer connection lines; landscaping for roadways, around buildings, and parking areas; and road and intersection improvements at SR-29 and South Kelly Road, all as described in Section 3.1 of the Development Agreement.

Development Agreement Section 3.2 and Section 3.5: Vested Rights and Subsequent Approvals In addition to the vested rights described in Section 3.2 of the Development Agreement, Owner has obtained four (4) Subsequent Approvals from the City: (1) on January 25, 2018, by Resolution No. 2018- 02, the City Planning Commission approved a Design Permit application for a building (“Building 4”) in the Project (the “Building 4 Approval”); (2) on March 22, 2018, by Resolution No. 2018-06 the City Planning Commission approved a Tentative Parcel Map (the “Parcel Map”) for the Project (the “Tentative Map Approval”), and the City Council approved the final Parcel Map on November 20, 2018; (3) on July 25, 2019, by Resolution No. 2019-11, the City Planning Commission approved a Design Permit application for another building (“Building 5”) in the Project (the “Building 5 Approval”); and (4) on June 25, 2020, by Resolution No. 2020-06, the City Planning Commission approved a Design Permit application for a building (“Building 3”) in the Project (the “Building 3 Approval”). As part of the final approval of the Parcel Map by the City Council and as permitted by the Tentative Map Approval, the City approved a Subdivision Improvement and Reimbursement Agreement (the “Subdivision Agreement”), dated December 18, 2018, between Owner and the City which secures Owner’s obligations with respect to certain of the improvements described in the Project Approvals, including, without limitation, the improvements required by the Tentative Map Approval. Since Owner submitted the last Annual Report, Owner has (i) completed Building 43in accordance with the Building 4 Approval and Building 4 is partially occupied, (ii) completed Building 34in accordance with the Building 3 Approval and Building 3 is fully occupied, (iii) completed construction of a rail spur to provide rail service to Building 4, (iv) completed the horizontal on-site infrastructure (other than the final portion of the Devlin Road/Boone Drive roundabout), and (v) commenced construction of certain of the required off-site infrastructure improvements as more particularly described in the discussion below regarding public benefits. Owner will not be constructing Building 5, which would have been located on Lot 4 of the Parcel Map, since Lot 4 was sold to PG&E in December 20205.

Development Agreement Section 3.3: Public Benefits
The Project has and will continue to provide substantial public benefits to the City as described in Section 3.3 of the Development Agreement. The below sets forth the status of each such public benefit:
(a) Owner completed construction of new mitigation wetlands that were required by the RWQCB and the USACE to mitigate impacts associated with the City’s Devlin Road Extension Project (0.48 acre of wetland creation) and the City’s Green Island Road Widening and Reconstruction Project (0.36 acre of wetland creation). This obligation is complete. 3 Building 4 is located on Lot 2 of the Parcel Map.
4 Building 3 is located on Lot 1 of the Parcel Map.
5 We understand that PG&E has submitted received a Design Permit and Variance for its proposed development on Lot 4 of the Parcel Map.

DocuSign Envelope ID: DA01FAFF-81ED-4873-9E54-B377152D4893 30 3
(b) Since the 2020 Annual Report, progress has been made with respect to the public benefits described in Section 3.3 (b) of the Development Agreement:
• COA No. 19: Because the City had the funding it needed for Devlin Road, including the TIF payments made by Owner for Building 3 and Building 4, the City and Owner terminated this obligation pursuant to the terms of that certain Termination of Devlin Road Extension Funding and Reimbursement Agreement, dated August 3, 2021. Therefore, Owner’s obligation with respect to COA No. 19 is satisfied in full and complete. • COA No. 16a.: The improvements to SR 29 and South Kelly Road have not been performed, because the scope as originally contemplated and studied in the Project Approvals is not required. The City and Owner are in the process of discussing an alternative scope, which will include the preparation of an addendum to the FEIR supporting such alternative approach and amendments to the Subdivision Agreement and potentially other agreements between the City and Owner6. Owner has posted the bonds for the originally anticipated improvements. Also, because the scope of the original improvements at SR 29 and South Kelly Road would have required an encroachment permit from Caltrans, the City is responsible for the performance of these improvements as set forth in the Subdivision Agreement, though Owner is responsible for the cost of these improvements (subject to the reimbursement mechanism set forth in the Subdivision Agreement). Owner confirms its obligation to pay for these improvements subject to its right to receive reimbursement for the oversized portion of these improvements as described in the Subdivision Agreement.
• COA No. 16b. and 16 c.1: The recycled water main improvements have been installed by the City as part of the Devlin Road extension (Owner to reimburse City for the costs thereof upon receipt of invoice) and Owner anticipates completion of the oversized public sanitary sewer line in Q1 of 2022.
(c) Owner has not received any reimbursement for, and no reimbursement formula exists, for the civil engineering costs expended by Owner in connection with the design of the oversized improvements described in COA 16.b. This obligation is complete.
(d) Owner funded the geologic fault investigation for the oversizing of the improvements described in COA 16.b, and no reimbursement formula exists for the reimbursement of such investigation costs.

This obligation is complete.
(e) Owner paid the fourth $50,000.00 installment (of the required ten (10) annual installments) to the City of American Canyon Fire Protection District on or about December 21, 2020, and shall make the next $50,000.00 installment on or before January 30, 2022. (f) This obligation was completed by Owner on March 12, 2018. (g) This obligation was completed by Owner on March 12, 2018. (h) The Green Island Road Community Facilities District was approved, and Owner prepaid the entire 2019-2020 assessment of $163,154.38 for all of the Project on or about November 12, 2019. This obligation is complete.
6 All of which remains subject to approval by the City Council for the City.

DocuSign Envelope ID: DA01FAFF-81ED-4873-9E54-B377152D4893 31 4
(i) During 2021, Owner completed construction of Building 3 and Building 4. All of Building 3 is leased and the tenant took occupancy in August of 2021 and has been actively operating therefrom.

Nearly half of Building 4 has been leased and the tenant has taken occupancy. The increased construction activity and occupancy at the Project has continued to result in certain benefits to the City as described in Section 3.3(i). These benefits to the City will continue to be realized as the Project nears completion and full occupancy.

Development Agreement Section 3.4: Timing
As anticipated in the 2020 Annual Report, Owner completed both Building 3 and Building 4 during 2021. Owner also has substantially completed most of the on-site horizontal infrastructure, with completion of the roundabout at the intersection of Devlin Road and Boone Drive remaining. Owner also commenced most of the off-site improvements in 2021 (other than the improvements to SR 29 and South Kelly as more fully discussed above) and expects to complete these improvements in Q1 2022.

Based on the above, Owner submits it is in full compliance with its obligations under the Development Agreement. Owner looks forward to completing its development obligations as contemplated and permitted by the Project Approvals and, subject to events not within Owner’s control, anticipates being complete with all such obligations in 2022.

Respectfully Submitted,

DWF IV NLP II, LLC,
a Delaware limited liability company
By: DWF IV Logistics Holdings, LLC, its Administrative Member By: DWF IV Napa Logistics Center Investors, LLC, its Managing Member By: _______________________________
Steve Novick
Authorized signatory
Cc: William Ross, Esq. (via email)
DocuSign Envelope ID: DA01FAFF-81ED-4873-9E54-B377152D4893 32 ATTACHMENT 3
Table 1 - Status of Napa Logistics Park Phase II
Development Agreement Public Benefits
DA
Section
Public Benefit Status

3.3(a) Reserve 1.0 acre of wetlands to mitigate
impacts from the Devlin Road Extension
Project and the City's Green Island Road
Widening and Reconstruction Project.

SATISFIED: Owner completed construction of
new mitigation wetlands that may be
required by the RWQCB and the USACE to
mitigate impacts associated with the City’s
Devlin Road Extension Project (0.48 acre of
wetland creation) and the City’s Green Island
Road Widening and Reconstruction Project
(0.36 acre of wetland creation).

3.3(b) Comply with target dates to complete
certain Conditional Use Permit Conditions
of Approval (COA).

IN PROGRESS: See Table 2 for a status of the
target dates to complete certain Conditional
Use Permit COAs.

3.3(c) The formula to reimburse the Owner’s cost
to “oversize” public improvements
described in COA 16.b shall exclude
$300,000 in certain civil engineering costs
expended by the Owner.

SATISFIED: Reimbursement formula is
complete. This obligation is now complete.

Owner has not received any reimbursement
for and no reimbursement formula for the
oversized improvements described in COA

16.b includes the civil engineering costs
expended by Owner in connection with the
design of such improvements.

3.3(d) Owner shall fund the approximate
$136,000 cost of a geologic fault
investigation to assess geotechnical issues
associated with the design of a new
wastewater collection system
improvements across the Giovannoni
Property located to the south of the
Property.

SATISFIED: Owner funded the geologic fault
investigation and no reimbursement formula
for the oversizing of the public
improvements described in COA 16.b.
includes the reimbursement of such
investigation costs.

3.3(e) Owner shall contribute a $500,000
donation to the City of American Canyon
Fire Protection District in $50,000
installments over 10 years.

ONGOING: Owner paid the first $50,000 (of
the required ten (10) annual installments) to
the American Canyon Fire Protection District
on or about March 12, 2018, the second
$50,000 installment was made on or before
January 30, 2019. The third $50,000
installment was made on or about January
29, 2020. The fourth $50,000.00 installment
was made December 21, 2020. The fifth
$50,000 installment will be made on or
before January 30, 2022.
33 DA
Section
Public Benefit Status

3.3(f) Owner shall contribute a one-time $50,000
payment for the Clarke Ranch Master Plan
Project.

SATISFIED: Owner contributed the sum of
$50,000 to the Clark Ranch Master Plan on
March 12, 2018.

3.3(g) Owner shall contribute a one-time
$250,000 payment for the South County
Comprehensive Corridor Plan.

SATISFIED: Owner contributed $250,000 on
March 12, 2018.

3.3(h) Owner shall agree not to object to the
Green Island Road Community Facilities
District and agree to an annual assessment
of $82,867.

SATISFIED: Owner renewed its agreement
not to object to the Green Island Road
Community Facilities District in the
Subdivision Improvement Agreement for the
Parcel Map, and also agreed in the
Subdivision Improvement Agreement to an
increased annual assessment more than
double the amount required in the
Development Agreement.

The Green Island Road Community Facilities
District was approved, and Owner prepaid
the entire 2019-2020 assessment of
$163,154.38 for all of the Project on or about
November 12, 2019. This obligation is now
complete.

3.3(i) Project will provide substantial financial
benefits to the City through increased
taxes, sales, jobs, business license fees and
other sources.

SATISFIED: Owner completed construction of
Building 3 and Building 4. All of Building 3 is
leased and the tenant took occupancy in
August of 2021 and has been actively
operating therefrom. Nearly half of Building
4 has been leased and the tenant has taken
occupancy. The increased construction
activity and occupancy at the Project has
continued to result in certain benefits to the
City as described in Section 3.3(i). These
benefits to the City will continue to be
realized as the Project nears completion and
full occupancy.
34 ATTACHMENT 4
Table 2 - Status and Timing for Meeting Conditions of Approval Consistent with the Napa Logistics Park Phase 2 Development Agreement Infrastructure Timing Prerequisites Status
$4.7M in TIF
Advance for
Devlin Road (CUP,
COA No. 19).

Owner to provide payment by
3/1/2018 provided
prerequisites have occurred.

If the prerequisites have not
occurred by 3/1/2018, then
Owner to provide payment
within 30 days of receiving
notice from City that
prerequisites have been met.

City has secured right of way
from the Giovannoni Trust.

City has completed design
documents.

City has secured all other
funds necessary to complete
the road.

City has secured all necessary
resource agency permits.

SATISFIED
Devlin Road under
construction
South Kelly/SR 29
Improvements
(CUP, COA No.

16.a).

Owner to submit
encroachment permit
application to Caltrans by
12/29/2017.

Target Date for substantial
completion of improvements:
12/31/2018, provided
prerequisites have occurred.

If prerequisites have not
occurred, City and Owner shall
diligently pursue achievement
of prerequisites and extend
the Target Date for substantial
completion by the amount of
time required to complete
prerequisites. In addition to
this extension, the Target Date
may be extended an additional
90 days in accordance with
Section 3.3(b).

City has secured dedication
of NACC property for
widening by3/31/2018.

Caltrans has approved
encroachment permit by
3/31/2018.

Owner has secured all City
and other agency approval of
permits necessary to start
construction by 3/31/2018.

IN PROCESS
City has secured a
right-of-way
dedication from
Panattoni.

Owner and City
have redesigned
the improvements.

Owner requested
modified ultimate
improvements by
proposing an
amendment to the
NLP Subdivision
Improvement
Agreement.

Review of request
is ongoing (PL21-
0033)
35 Infrastructure Timing Prerequisites Status
Sanitary Sewer
Line and Recycled
Water Main
Improvements
(CUP, COA) CUP
Condition No.

16.b and 16.c (1).

Owner to initiate design of sanitary
sewer line and recycled water main
improvements, per CUP Condition 16.b
and 16.c(l), by 3/1/2018 or within 30
days.

Required after Notice to Proceed
(NTP) from City, whichever occurs first,
provided prerequisite has occurred.

Owner to submit necessary permit
applications to City by 9/1/2018 or 6
months after receiving NTP from City,
whichever occurs first, provided
prerequisite has occurred.

Target Date for substantial completion
of improvements: 7/31/2019, provided
prerequisite has occurred by 3/1/2018.

If prerequisite has not occurred, City
shall diligently pursue achievement of
prerequisite and extend the Target
Date for substantial completion date
by the amount of time required to
complete prerequisite. In addition to
this extension, the Target Date may be
extended an additional 90 days in
accordance with Section 3.3(b).

City has secured all
necessary right of way
acquisitions.

SATISFIED
Sanitary sewer
and recycled
water main
improvements
are under
construction.
36 CITY COUNCIL AGENDA
JANUARY 18, 2022

STAFF REPORT

CONSENT
ITEM NUMBER: 10.

TITLE
Labor and Employment Counsel Services

RECOMMENDATION
Adopt a Resolu)on approving an agreement with Sloan Sakai Yeung & Wong LLP to provide legal assistance to the City on employment related matters and upcoming labor contract negotiations.

CONTACT
William D. Ross, City Attorney

BACKGROUND & ANALYSIS
The City contracts with outside law firms to provide labor and employment counsel services. City Staff determined it was appropriate to re-bid for labor and employment legal services that had previously been provided by Liebert Cassidy Whitmore since 2015.

On August 4, 2021, Staff sent out Request for Proposals to retain a qualified firm or individual to provide legal services for personnel, labor and employment law services. Staff chose four firms to be interviewed on September 17, 2021. The City Manager, Jason B. Holley, and the City A<orney, William D. Ross, sat on a panel to evaluate and determine which firm they felt would be the most suited for the City. Following the interview process, the City A<orney and the City Manager had differing top choices. The two choices were referred to the Council and the Council indicated its preference for Sloan Sakai Yeung & Wong LLP (“Sloan Sakai”). AAer the Council indicated its preference, the City Manager and the City A<orney recommend the Council adopt a Resolu)on approving an Agreement with Sloan Sakai to provide labor and employment legal services to the City (Attachment 1).

Sloan Sakai’s website highlights its legal expertise and the diversity of its attorneys:

At Sloan Sakai Yeung & Wong LLP our goal is the help clients solve the complex problems facing their organiza)ons. Our clients, many of whom are public agencies and non-profit organiza)ons, represent California’s rich diversity. In turn we believe that our diversity posi)vely impacts our representa)on of our clients and is integral to our success as a Firm. Among the Firm’s a<orneys, 47% are women and 41% are people of color. Among both a<orneys and staff, 50% are women and 46% are people of color. The Firm is also minority-owned making it one of the largest minority37 owned Firms in California. We are proud of our diversity but we continue to strive to do better.

Sloan Sakai proposes to provide labor nego)a)on services to the City at its regular discounted public agency hourly rates for its legal counsel and supporting staff as follows:

Charles Sakai $ 405
Dania Torres Wong $ 345
Adam Benson $ 240
Charles Ayers $ 100
These rates will apply for all categories of major ac)vi)es in providing labor rela)ons consul)ng services to the City. The final project budget will be largely dependent on the City's overall need.

Next Steps
Given the expira)on of the City’s labor contracts for the General Unit and Mid-Management Unit of Teamsters Local 315 in June 2022, the City ini)ated the "meet and confer" process for a new labor agreement. A series of mee)ngs is expected and it is important the City contract with an employment law firm now to assist with the labor nego)a)ons process. The City A<orney and the City Manager recommend the approval of an agreement with Sloan Sakai for labor and employment counsel.

COUNCIL PRIORITY PROGRAMS AND PROJECTS
Organizational Effectiveness: "Deliver exemplary government services."

FISCAL IMPACT
The FY 21/22 Budget includes $25k for labor and employment counsel services which is currently unspent. The ini)al work will occur under this exis)ng appropria)on, with the remainder to be funded from available fund balance at Mid-Year Budget in February 2022. The FY 2022-23 and 2023- 24 Budgets will include $50k appropria)ons for the remainder of this contract cost not to exceed a total of $200k through June 30, 2024.

ENVIRONMENTAL REVIEW
The proposed Resolu)on is exempt from review under the California Environmental Quality Act (“CEQA”) because it is not a project which has a poten)al for the resul)ng in either, a direct physical change in the environment, or reasonably foreseeable indirect physical changes in the environment pursuant to CEQA Guidelines Section 15378.

ATTACHMENTS:

1. Resolution - Sloan Sakai Contract

2. Exhibit A - Sloan Sakai Labor And Employment Contract 38 RESOLUTION NO. 2022-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AMERICAN CANYON APPROVING AN

AGREEMENT WITH SLOAN SAKAI YEUNG & WONG LLP TO PROVIDE LABOR AND EMPLOYMENT

COUNSEL
WHEREAS, pursuant to the provisions of the Meyers-Millias-Brown Act (Government Code Section 3500 et seq), the City has designated Teamsters Local 315 as the recognized employee organization for groups of City employees; and
WHEREAS, the City Manager or designated representative(s) are the City’s representatives in employeremployee relations; and WHEREAS, it is necessary and desirable that the City consult with qualified persons to provide legal advice for personnel, labor, and employment matters; and
WHEREAS, this legal advice is especially imperative during labor contract negotiations so that the City Manager and designated representative(s) are meeting and conferring in good faith with representatives of the City’s recognized employee labor organizations;
WHEREAS, after a comprehensive, competitive qualifications-based selection process, the City Council has determined Sloan Sakai Yeung & Wong LLP (“Sloan Sakai”) is the most qualified firm to provide these services to the City.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of American Canyon does hereby approve an Agreement with Sloan Sakai, attached hereto as Exhibit A and incorporated by reference, to provide legal assistance to the City on employment-related matters and upcoming labor contract negotiations for a total amount not to exceed $200,000 and for the following amounts in each of these fiscal years: Fiscal Year 2021/22: $100,000; Fiscal Year 2022/23: $50,000; & Fiscal Year 2023/24: $50,000.

NOW, THEREFORE BE IT FURTHER RESOLVED that current Fiscal Year 2021/22 appropriation of $25,000 is sufficient to begin these serves but further appropriation at the Mid-Year Budget are likely to be needed to finish the work.

PASSED, APPROVED and ADOPTED at a regularly scheduled meeting of the City Council of the City of American Canyon held on the 18th day of January 2022, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
____________________________
Leon Garcia, Mayor
39 2
ATTEST: APPROVED AS TO FORM:
____________________________ _____________________________ Taresa Geilfuss, City Clerk William D. Ross, City Attorney 40 1
CITY OF AMERICAN CANYON AGREEMENT NO. ___________

CITY OF AMERICAN CANYON

STANDARD AGREEMENT

FOR INDEPENDENT CONTRACTOR SERVICES
THIS AGREEMENT (hereinafter referred to as “Agreement”) is made and entered into this ____ day of_________, 2022, by and between the City of American Canyon (“CITY”), a Municipal Corporation and Sloan Sakai Yeung & Wong LLP (“CONTRACTOR”), who agree as follows:

RECITALS
WHEREAS, City desires to have certain services provided as set forth in Exhibit A, attached and incorporated by this reference; and,
WHEREAS, Contractor represents that it is qualified and able to perform services; and, WHEREAS, Contractor is agreeable to providing the services on the terms and conditions hereinafter set forth.

NOW THEREFORE, the parties agree as follows:

1. Term of Agreement: The Term of this Agreement shall extend from ___________ (“Commencement Date”) to June 30, 2024 (the “Termination Date”).

2. Contractors Services. Contractor shall perform the services describe in Exhibit A (“Scope of Work” and/or “Services”) to the full satisfaction of City.

3. Time of Performance. Contractor shall perform the Services on or by the Termination Date set forth in Agreement section 1, unless extended in writing by the parties pursuant to the terms of this Agreement.

4. Compensation. City agrees to compensate Contractor, and Contractor agrees to accept in full satisfaction for the Services required by this Agreement the consideration set forth in Exhibit B, attached and incorporated by this reference (“Payment”). City shall pay Contractor in accordance with the schedule of payment set forth in Exhibit B.

5. Independent Contractor. Contractor is and shall at all times remain, as to City, a wholly independent contractor. Neither City nor any of its agents shall have control over the conduct of Contractor or any of Contractor’s employees, except as set forth in this Agreement. Contractor shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of City.

6. Assignment. Contractor shall not assign or attempt to assign any portion of this Agreement without prior written approval by City.
41 2

7. Responsible Principal of Contractor: The Responsible Principal of the Contractor is Charles Sakai who shall be the individual responsible for Contractor’s obligations under this Agreement and shall service as principal liaison between City and Contractor. Designation of another Responsible Principal by Contractor shall not be made without the prior written consent of City.

8. Personnel. Contractor represents that it has, or shall secure at its own expense, all personnel required to the perform Contractor’s services under this Agreement. Contractor shall assign only competent personnel. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the removal of any such persons, Contractor shall, immediately upon receiving notice from City of such desire of City, cause the removal of such person or persons.
a. Employment Eligibility. Contractor shall ensure that all employees of Contractor and any subcontractor retained by Contractor in connection with this Agreement have provided the necessary documentation to establish identity and employment eligibility as required by the Immigration Reform and Control Act of 1986, any amendments thereto and all applicable labor laws in effect at the time of this Agreement. Failure to provide the necessary documentation will result in the termination of the Agreement as required by the Immigration Reform and Control Act of 1986.

9. Changes to Scope of Work. City may, by written notice, initiate any change to the Scope of Work. A corresponding equitable change in the Payment of this Agreement will be made for each change ordered as mutually agreed upon by the parties in writing.

10. Interests of Contractor. Contractor affirms that it presently has no interest and shall not have any interest, direct or indirect, which would conflict in any manner with the performance of the Services contemplated by this Agreement.

11. Responsibility of Contractor. Contractor shall take all responsibility for the work, shall bear all losses and damages directly or indirectly resulting to Contractor or any subcontractor, to the City, its elected and appointed officials, officers, attorneys, agents, and employees and each of them from any and all loss or damage on account of the performance or character of the work, unforeseen difficulties, accidents, occurrences or other causes predicated on active or passive negligence of the Contractor or of any subcontractors.

12. Insurance. Contractor agrees to have and maintain the policies set forth in Exhibit C entitled “INSURANCE REQUIREMENTS,” which is attached and incorporated by this reference. All policies, endorsements, certificates, and/or binders shall be subject to approval by the City as to form and content. These requirements are subject to amendment or waiver only if so approved in writing by the City. A lapse in any required insurance coverage during this Agreement shall be a breach of this Agreement. 42 3
a. Contractor shall procure and maintain for the duration of this Agreement insurance as set forth in Exhibit C, attached and incorporated by this reference.

The cost of such insurance shall be included in the Contractor’s bid. b. Contractor agrees to maintain in force at all times during the performance of the Scope of Work under this Agreement, workers’ compensation insurance as required by law.
c. Contractor agrees to include with all subcontractors in their subcontract the same requirements and provisions of this Agreement including the indemnity and insurance requirements to the extent they apply to the scope of the subcontractor’s work. Subcontractors hired by Contractor agree to be bound to Contractor and City in the same manner and to the same extent as Contractor is bound to City under this Agreement and any other applicable contract documents. Subcontractor further agrees to include these same provisions with any sub-subcontractor. A copy of the Indemnity and Insurance provisions in this Agreement will be furnished to the subcontractor upon request. The General Contractor shall require all subcontractors to provide a valid certificate of insurance and the required endorsements included in the Agreement prior to commencement of any work and will provide proof of compliance to the City. d. Contractor shall require each of its subcontractors to maintain insurance coverage which meets all of the requirements of this Agreement. e. The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California.
f. Contractor agrees that if it does not keep the aforesaid insurance in full force and effect, City may terminate this Agreement.
g. At all times during the term of this Agreement, Contractor shall maintain on file with the City a certificate or certificates of the required insurance as set forth in Exhibit C showing that the required insurance policies are in effect in the required amounts.
h. It shall be a requirement under this Agreement that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits shall be available to the additional insured.

Furthermore, the requirements for coverage and limits shall be (1) the minimum coverage and limits specified in this Agreement; or (2) the broader coverage and maximum limits of coverage of an insurance policy or proceeds available to the named Insured; whichever is greater.

13. Indemnification. To the fullest extent permitted by law Contractor shall indemnify, defend and hold harmless City, its elected and appointed officials, officers, attorneys, agents, employees, volunteers and each of them (“City indemnitees”), from and against any and all 43 4
causes of action, claims, liabilities, obligations, judgments, damages, loss, expenses, and costs of every nature, including reasonable legal counsels’ fees and costs of litigation (“claims”) arising out of or in connection with Contractor’s performance of its obligations under this Agreement or out of the operations conducted by Contractor or its failure to comply with any of its obligations contained in this Agreement, including the City’s active or passive negligence, except for such loss or damage arising from the active or sole negligence or willful misconduct of the City. In the event the City indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Contractor’s performance of this Agreement, the Contractor shall provide a defense to the City indemnitees, or at the City’s option, reimburse the City indemnitees their costs of defense, including reasonable legal counsels’ fees incurred in defense of such claims. a. General. This obligation to indemnify and defend City as set forth herein is binding on the successors, assigns, or heirs of Contractor and shall survive the termination of this Agreement or this section. By execution of this Agreement, Contractor acknowledges and agrees that it has read and understands the provisions hereof and that this section is a material element of consideration.

The parties agree that if any part of this Indemnification is found to conflict with applicable laws, such part shall be unenforceable only insofar as it conflicts with said laws, and that this indemnification shall be judicially interpreted and rewritten to provide the broadest possible indemnification legally allowed and shall be legally binding upon Contractor.
b. Survival. Contractor and any subcontractor’s responsibility for such defense and indemnity obligations shall survive the termination or completion of this Agreement for the full period of time allowed by law.
c. No Limitation by Insurance Obligations. The defense and indemnification obligations of this Agreement are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained in this Agreement. d. Scope. This Section shall in no event be construed to require indemnification by Contractor to a greater extent than permitted under the public policy of the State of California.

14. Termination.
a. In addition to any other rights of termination and suspension set forth in this Agreement or at law, either party may terminate this Agreement with or without cause by providing ten (10) days’ notice in writing to the other party. b. The City may terminate this Agreement at any time without prior notice in the event that Contractor commits a material breach of the terms of this Agreement. c. In the event of termination of this Agreement by City, due to no fault or failure of performance by Contractor, Contractor shall be paid full compensation for all 44 5
services performed by Contractor, in an amount to be determined as follows:

For work done in accordance with the terms and provisions of this Agreement, Contractor shall be paid an amount equal to the amount of services performed prior to the effective date of termination or cancellation; provided, in no event shall the amount of money paid under the foregoing provisions of this paragraph exceed the amount which would be paid to Contractor for the full performance of the Scope of Work under this Agreement.
d. Upon termination, this Agreement shall become of no further force or effect and all parties shall be discharged from their duties and obligations under this Agreement. Notwithstanding, the provisions of this Agreement concerning retention of records, City’s rights to material produced, confidential information, Contractor's responsibility, indemnification, insurance, dispute resolution, litigation, and jurisdiction and severability shall survive termination of this Agreement.

15. Notice. All notices that are required either expressly or by implication to be given by one party to the other under this Agreement shall be signed for Contractor by its Responsible Principal and for City by its City Manager, or, for either party, by such officer as it may, from time to time, be authorized to so act. All such notices shall be deemed to have been given if delivered personally or if enclosed in a properly addressed envelope and deposited in a United States Post Office for delivery by registered or certified mail or overnight express carrier. Unless and until formally notified otherwise, all notices shall be addressed to the parties at their addresses as follows:

Contractor shall address notices to:

City Clerk
City of American Canyon
4381 Broadway, Suite 201
American Canyon, CA 94503
City shall address notices to:

Charles Sakai, Esq.
[email protected]
1220 7th Street, 3rd Floor
Berkeley, CA, 94710
415-299-0856

16. Prevailing Wages. In accordance with the provisions of sections 1770 et seq. of the California Labor Code, the Director of Industrial Relations of the State of California has determined the general prevailing rate of wages applicable to the work to be done.

Contractor will be required to pay all persons employed on the project by the Contractor’s sums not less than the sums set forth in the documents entitled “General Prevailing Wage Determination made by the Director of Industrial Relations pursuant to California Labor 45 6
Code, part 7, Chapter 1, Article 2, sections 1770, 1773, 1773.1.” These documents may be obtained from the State of California.

17. Compliance with Laws.
a. In General. Contractor shall observe and comply with all laws, policies, general rules and regulations established by City and shall comply with the common law and all laws, ordinances, codes and regulations of governmental agencies, (including federal, state, municipal and local governing bodies) applicable to the performance of the Scope of Work hereunder, including, but not limited to, all provisions of the Occupational Safety and Health Act of 1979 as amended. b. Labor Laws: Contractor shall comply with and adhere to all applicable labor laws, including, but not limited to, alien labor, prevailing wages, etc. Contractor shall comply with all applicable provisions of the California Labor Code. c. Drug-free Workplace. Contractor’s employees and subcontractors shall comply with the City’s policy of maintaining a drug-free workplace. Neither Contractor nor Contractor 's employees and/or subcontractors shall unlawfully manufacture, distribute, dispense, possess or use controlled substances, as defined in 21 U.S. Code section 812, including marijuana, heroin, cocaine, and amphetamines, at any facility, premises or worksite used in any manner in connection with performing services pursuant to this Agreement. If Contractor or any employee or subcontractor is convicted or pleads nolo contendere to a criminal drug statute violation occurring at such a facility, premises, or worksite, the Contractor shall notify the City within five (5) days. d. Discrimination Prohibited. During the performance of this Agreement, Contractor and its subcontractors shall not unlawfully discriminate, harass or allow harassment, against any employee or applicant for employment because of sex, sexual orientation, race, color, religious creed, marital status, denial of family and medical care leave, ancestry, national origin, medical condition (cancer/genetic characteristics), age (40 and above), disability (mental and physical) including HIV and AIDS, denial of pregnancy disability leave or reasonable accommodation. Contractor and subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov.

Code, §12900 et seq.) and the applicable regulations promulgated thereunder (Cal. Code Regs, tit. 2, §7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, §12990 (a)–(f), are incorporated into this Agreement by reference and made a part hereof as if set forth in full (Cal. Code Regs, tit. 2, §7285.0 et seq.). Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
46 7
e. Harassment Prohibited. Contractor and Contractor’s employees and subcontractors shall comply with the City's Workplace Harassment and Discrimination Policy.
f. Illness and Injury Prevention Program (IIPP). Contractor shall provide the City with a copy of their IIPP to show compliance with CalOSHA. g. Licenses and Permits. Contractor represents and warrants to City that it has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for Contractor to practice its profession. Contractor represents and warrants to City that Contractor shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals which are legally required for Contractor to practice its profession.

Contractor shall secure and maintain a business license with the City during the term of this Agreement.

18. Facilities and Equipment: Except as set forth in Exhibit D (“Facilities and Equipment”), Contractor shall, at its sole cost and expense, furnish all facilities and equipment, which may be required for completing the Scope of Work pursuant to this Agreement. City shall furnish to Contractor only the facilities and equipment listed in Exhibit D according to the terms and conditions set forth in Exhibit D.

19. Special Conditions.
a. N/A___________
b. ______________
c. ______________

20. Exhibits. All exhibits referred to in this Agreement are attached and incorporated by this reference.

21. Benefits and Taxes. Contractor shall not have any claim under this Agreement or otherwise against City for seniority, vacation time, vacation pay, sick leave, personal time off, overtime, health insurance, medical care, hospital care, insurance benefits, social security, disability, unemployment, workers compensation or employee benefits of any kind.

Contractor shall be solely liable for and obligated to pay directly all applicable taxes, including, but not limited to, federal and state income taxes, for which Contractor shall indemnify and hold City harmless from any and all liability that City may incur because of Contractor's failure to pay such taxes. City shall have no obligation whatsoever to pay or withhold any taxes on behalf of Contractor.

22. Dispute Resolution. Should any dispute arise concerning any provisions of this Agreement, or the parties’ rights and obligations hereunder, the parties shall meet and confer in an attempt to resolve the dispute. Prior to commencing any legal action, the complaining party shall provide to the other party thirty (30) days’ written notice of the intent to take such action; provided that such notice shall not be required where a delay in commencing 47 8
an action would prejudice the interests of the party that intends to file suit. During the thirty (30) day notice period, the parties shall meet and confer in an attempt to resolve the dispute. Except as specifically provided, nothing herein in intended to waive or abridge any right or remedy that either party may have.

23. Default and Remedies.
a. Events of Default. Each of the following shall constitute an event of default hereunder:
i. Failure to perform any obligation under this Agreement and failure to cure such breach immediately upon receiving notice of such breach, if the breach is such that the City determines the health, welfare, or safety of the public is immediately endangered; or
ii. Failure to perform any obligation under this Agreement and failure to cure such breach within fifteen (15) days of receiving notice of such breach, if the breach is such that the City determines that the health, welfare, or safety of the public is not immediately endangered, provided that if the nature of the breach is such that the City determines it will reasonably require more than fifteen (15) days to cure, Contractor shall not be in default if Contractor promptly commences the cure and diligently proceeds to completion of the cure.
b. Remedies upon Default. Upon any Contractor default, City shall have the right to immediately suspend or terminate the Agreement, seek specific performance, contract with another party to perform this Agreement and/or seek damages including incidental, consequential and/or special damages to the full extent allowed by law.

24. Attorneys’ Fees. In the event any legal action is commenced to enforce this Agreement, the prevailing party is entitled to reasonable attorney’s fees, costs, and expenses incurred.

25. Documents and Records.
a. Property of City. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda or other written documents or materials prepared by Contractor pursuant to this Agreement shall become the property of City upon completion of the work to be performed hereunder or upon termination of this Agreement.
b. Retention of Records. Until the expiration of five (5) years after the furnishing of any services pursuant to this Agreement, Contractor shall retain and, upon written request by City, make available to the City or any party designated by the City this Agreement, and such books, documents and records of Contractor and subcontractor that are necessary or convenient for audit purposes to certify the 48 9
nature and extent of the reasonable cost of services to City.

26. Inspection of Books and Records. During regular office hours, each of the parties hereto and their duly authorized representatives shall have the right to inspect and make copies of any books, records, or reports of the other party pertaining to this Agreement or matters related hereto. Each of the parties hereto shall maintain and make available for such inspection accurate records of all of its costs, disbursements and receipts with respect to its activities under this Agreement.

27. Confidential Information. Contractor shall hold any confidential information received from City in the course of performing this Agreement in trust and confidence and will not reveal such confidential information to any person or entity, either during the term of the Agreement or at any time thereafter. Upon expiration of this Agreement, or termination as provided herein, Contractor shall return materials which contain any confidential information to City. Contractor may keep one copy for its confidential file. For purposes of this section, confidential information is defined as all information disclosed to Contractor which relates to City's past, present, and future activities, as well as activities under this Agreement, which information is not otherwise of public record under California law.

28. Successors and Assigns. This Agreement and all of its provisions shall apply to and bind the successors and assigns of the parties hereto.

29. Waiver. Any waiver at any time by either party hereto of its rights with respect to a default or any other matter arising in connection with this Agreement shall not be deemed to be a waiver with respect to any other default or matter.

30. Modifications. This Agreement may not be modified orally or in any manner other than by an agreement in writing signed by both parties.

31. Agreement Interpretation. Each party to this Agreement has had an opportunity to review the Agreement, confer with legal counsel regarding the meaning of the Agreement, and negotiate revisions to the Agreement. Accordingly, neither party shall rely upon Civil Code section 1654 in order to interpret any uncertainty in the meaning of the Agreement.

32. Entire Agreement. This Agreement, including all documents incorporated herein by reference, comprises the entire integrated understanding between the parties concerning the subject matter described herein.

33. Jurisdiction and Severability. This Agreement shall be governed and construed in accordance with California law. The venue for any legal action in State court filed by a party to this Agreement for the purpose of interpreting or enforcing any provision of this Agreement shall be in the Superior Court of California, County of Napa. The venue for any legal action in Federal court filed by a party to this Agreement for the purpose of interpreting or enforcing any provision of this Agreement within the jurisdiction of the Federal courts shall be the Northern District of California. The appropriate venue for arbitration, mediation or similar legal proceeding under this Agreement shall be in Napa 49 10
County, California; however nothing in this Agreement section shall obligate a party to submit to arbitration any dispute arising under this Agreement. If any term or provision of this Agreement shall, to any extent, be held invalid or unenforceable, the remainder of this Agreement shall not be affected.

34. Signatures. The individuals executing this Agreement represent and warrant that they have the right, power, legal capacity, and authority to enter into and to execute this Agreement on behalf of the respective legal entities of Contractor and City.

IN WITNESS WHEREOF, City of American Canyon and Contractor do hereby agree to the full performance of the terms set forth herein.

CONSULTANT
BY: ________________________
NAME Charles Sakai, Esq.

TITLE Founding Partner
DATE: _____

CITY OF AMERICAN CANYON
BY: ________________________
Jason B. Holley
City Manager
DATE: _____
APPROVED AS TO FORM:

BY: ________________________
William D. Ross
City Attorney
DATE: _____

50 11

APPROVED AS TO BUDGET
AUTHORITY:

BY: ________________________
Lincoln Bogard
Finance Director
DATE: _____
APPROVED AS TO INSURANCE:

BY: ________________________
William D. Ross
City Attorney
DATE: _____
Attachments:

Exhibit A – Scope of Work
Exhibit B – Payment and Schedule of Payments
Exhibit C – Insurance Requirements
Exhibit D – Facilities and Equipment
51 12

EXHIBIT A

SCOPE OF WORK
Contractor shall complete the attached Scope of Work.
52 Personnel, Labor & Employment
Legal Services
August 27, 2021
Primary Contact:

Charles Sakai
[email protected]
1220 7th Street, 3rd Floor
Berkeley, CA, 94710
415-299-0856
Response to City of
American Canyon RFP
53 City of American Canyon Personnel, Labor & Employment Legal Services RFP i

TABLE OF CONTENTS
COVER LETTER ...........................................................................................................ii I. PROJECT APPROACH........................................................................................1 II. SKILLS, EXPERIENCE, AND EXPERTISE ...........................................................5 III. FEES AND COSTS ...............................................................................................7 IV. ABILITY TO PERFORM......................................................................................7 APPENDIX A: TEAM RESUMES
APPENDIX B: RATE SHEET
54 City of American Canyon Personnel, Labor & Employment Legal Services RFP ii

CHARLES SAKAI
[email protected]
1220 7th Street, 3rd Floor
Berkeley, CA, 94710
415-299-0856
Via Electronic Submission

August 27, 2021
Scott Corey
Human Resources Officer
City of American Canyon
4381 Broadway Street, Suite 201
American Canyon, CA 94503
Re: Personnel, Labor & Employment Legal Services
Dear Mr. Corey:

Sloan Sakai Yeung & Wong LLP (“Sloan Sakai” or “the Firm”) strongly values our previous relationship with the City of American Canyon (“The City”) and is pleased to provide the enclosed proposal and statement of qualifications.

We propose that I serve as project manager and negotiator along with Dania Torres Wong, with assistance from consultant Adam Benson and Analyst Charles Ayers for costing and comparability. We have a team approach to client representation and all of the Firm’s attorneys and consultants are available to provide services to the City as needed, allowing us to match your needs with the appropriate attorneys’ expertise, resulting in efficient and cost-effective services.

As will be shown in our proposal, we are able to handle the full range of duties specified in the Request for Qualifications and are familiar with the City and its labor relations needs.

Please contact me to discuss in further detail our proposal and credentials. The terms of this response shall remain valid for a period of not less than ninety (90) days from the date of submission.

Sincerely,
Charles Sakai
Managing Partner
55 City of American Canyon Personnel, Labor & Employment Legal Services RFP 1 I. PROJECT APPROACH
We understand that a significant portion of the project will involve collective bargaining representation and advice involving the City’s employee groups. Below is our description of the steps for preparing and participating in negotiations and post-negotiations activities. • Preparation for collective bargaining
• Assisting human resources, labor relations, finance, management, and administrative staff in preparing for collective bargaining, including developing record-keeping and tracking systems, identifying the bargaining team, assigning team responsibilities, and arriving at methods for ensuring internal accountability.
• Specialized training for assigned bargaining team members, department representatives, and Board members upon request on the strategy, nuts, and bolts of labor negotiations.
• Reviewing personnel and human resources policies and practices to identify areas of needed changes on matters within the scope of negotiations. • Gathering information about the agency’s financial condition and labor costs. • Reviewing the comparability data utilized by the City in prior cases and recommending any needed changes in approach.
• Working collaboratively with City leadership to develop bargaining strategy. • Interest Based Bargaining (IBB); for employers who opt to utilize an interest based bargaining model, the added preparation would include negotiating the cost, process, and impasse process at the onset with the employee organization. IBB normally requires a third-party facilitator who would conduct at least a full day of training on the agreed upon process. • Participating in collective bargaining activities as assigned • Developing proposals based on preparatory activities above. • Representing the City as lead negotiator in collective bargaining negotiations.
56 City of American Canyon Personnel, Labor & Employment Legal Services RFP 2 • Working closely with the management bargaining team to assure proper coordination, bargaining table conduct, record keeping, and accountability. • Preparing for and participating in closed sessions with the City Council to make recommendations and receive direction on negotiations issues, and to advise on labor law issues that may arise during negotiations. • Coordinating with management and the City Council and assuring proper channels of communication and to ensure execution of bargaining strategy across all open bargaining units.
• Assuring that management is acting in “good faith” as defined by PERB case law, including avoidance of unfair practices both at the bargaining table or in management activities outside of bargaining.
• Monitoring union activity to ensure legal compliance. • Preparing for and participating in the impasse process Factfinding is a statutory impasse process available to the unions and, if triggered, would require the employer to respond to an expedited administrative hearing process.

Additionally, the parties could also agree to pre-factfinding mediation as you have done in the past. The impasse process can often lead to an agreement that eluded the parties in negotiations. We assist agencies in this process by:
• Preparing for and arranging for impasse meetings and mediation – we have extensive experience working with most of the mediators employed by the State Mediation and Conciliation Service.
• Preparing for and participating in interest arbitration or in statutory factfinding processes.

Should factfinding efforts prove unsuccessful, we can also offer assistance in navigating next steps, including re-engaging in negotiations, implementing the City’s last, best, and final offer, and/or preparing for and responding to union job actions. 57 City of American Canyon Personnel, Labor & Employment Legal Services RFP 3 • Responding to the Public Employment Relations Board (PERB) unfair practice charges and being alert to possible unfair practices by the employee organization
Engaging in good faith bargaining, under the framework we have outlined above, is a critical step in avoiding allegations of “unfair practices” that could give rise to a PERB proceeding. Unfair practice charges can arise both from conduct that occurs at the bargaining table, and from actions by managers (or even supervisors) away from the table, including alleged unilateral changes in working conditions, “direct dealing” with employees, and discriminatory actions toward employees based on their support of their union.

We work with management to help avoid such conduct – an imperative given the many costs, both direct and indirect, associated with PERB proceedings. Those costs include attorney’s fees spent in defending management’s position, lost administrative and staff time in preparing for and defending against PERB charges, the potential in some instances for backpay liability, and (not least) the political consequences that often accompany PERB’s issuance of an unfair practice complaint or an adverse decision by an Administrative Law Judge (ALJ) or PERB.

We also keep in mind that the union, equally, has a duty to bargain in good faith. In negotiations, we take appropriate steps to keep unions on the proper course of good faith bargaining conduct, and we advise management when unions do not do so, in order for management to exercise its legal rights if it chooses. These are particularly important steps to take in the unfortunate event that negotiations come to sticking point and a union considers striking before legally required impasse procedures are exhausted. Such conduct ordinarily constitutes an illegal refusal to bargain in good faith.

As the discussion of our qualifications below demonstrates, we are peerless in our ability to represent local agencies in PERB proceedings.
• Assisting in “contract administration” after a collective bargaining agreement is reached, including advice and/or representation in grievances and disciplinary appeals
We recognize that our role is to assist the City in negotiating agreements with its unions that are mutually acceptable and will afford stability in employee relations for an extended time period. Adoption of the Agreement gives rise to a period of “contract administration,” 58 City of American Canyon Personnel, Labor & Employment Legal Services RFP 4 which requires the employer to assure its compliance with the terms of the agreement. This may involve:
• Training management about the terms and requirements of the agreement. • Assuring that management and employees comply with the agreement. • Addressing issues of employee poor performance or misconduct. • Investigating and resolving allegations of misconduct. • Assuring compliance with contractual evaluation and disciplinary processes. • Properly administering a system of progressive discipline. • Compliance with legal/constitutional requirements in connection with discipline of employees.
• Properly handling grievances arising from alleged violations of the agreement.
• Handling appeals of disciplinary action.

We are able to assist management in connection with any and all of the above processes, including advice and representation in grievances and disciplinary appeals, conducting investigations, and/or assisting in oversight of investigations conducted by assigned investigators.
• Labor Law Litigation
We have extensive experience litigating all types of labor law cases before PERB, state courts, and federal courts. We have handled many hundreds of PERB cases, both in PERB’s administrative proceedings, upon review of PERB decisions in the Court of Appeal and California Supreme Court, and in local superior courts. Our representation of public employers spans all of the employment sectors over which PERB has jurisdiction. • Ongoing Personnel and Labor Advice
We view negotiations as an ongoing process. We believe in providing continuous advice and assistance after negotiations on issues that arise through implementation of new agreements and through the normal course of business. Our day-to-day work also includes 59 City of American Canyon Personnel, Labor & Employment Legal Services RFP 5 advice on leave policies, general personnel rules and regulations, risk management issues, and much more. With respect to dealing with the California Public Employee’s Retirement System and pensions issues generally, Partner Charles Sakai and Consultant Adam Benson have substantial experience in analyzing, administering, and advising clients. We pride ourselves in providing timely, efficient, and constructive counsel to our clients. We encourage and welcome open communications with clients so that we may better understand and respond to client needs, priorities, and deadlines. We try to respond to all client inquiries within four hours, and typically do so in far less time.

II. SKILLS, EXPERIENCE, AND EXPERTISE
Sloan Sakai was formed in 2004 to provide a broad array of legal and consulting services to public agencies and non-profit corporations. Labor law, employment law, government law and labor/personnel relations are the focal points of our practice. Among our total complement of 25 lawyers, more than half are labor lawyers who serve as advisors, strategists, litigators, and often as lead negotiators representing public agencies in bargaining with employee organizations. In addition, our Management Strategies Group (MSG) boasts 15 highly qualified non-attorney consultants. Our consultants are all experienced practitioners, most of whom have been in the shoes of public agency senior management. Their disciplines include finance, human resources, organization development, labor relations, risk management, operational specialties (such as fire, police, and public works) and public agency executive management support. Our consultants enable us to offer “wrap around” services—proposing various solutions that can reasonably be executed, and then assist in the hard work of enacting a chosen solution.

Our Labor and Employment law division is the largest in the Firm. Many of our attorneys focus on traditional labor law, advising and representing employers with a unionized workforce. Our Firm attorneys have a deep understanding and unrivaled experience when it comes to traditional labor law in California, boasting a former PERB General Counsel and two former advisors to PERB Board members, as well as Tim Yeung, the author of the California PERB Blog. Others focus on Human Resources consulting, advising on leave policies, general personnel rules and regulations, and risk management issues. Our Firm’s MSG consultants bring decades of experience as leaders in labor relations, human resources, and risk management for public agencies. This means that we are not just advocates; we are also colleagues with and advisors to labor relations and human resources professionals and their in-house attorneys.
60 City of American Canyon Personnel, Labor & Employment Legal Services RFP 6 We approach traditional labor law in untraditional ways. Our negotiation philosophy centers on a fact-based negotiations model using both traditional and interest-based techniques to produce effective agreements and improve relationships in a more efficient manner than either traditional or interest-based methods alone. Our fact-based approach is a hybrid of collaboration and problem solving with its foundation in agreed upon facts.

We are committed to careful preparation and record-keeping as the foundation of superior labor negotiations services. We value clear communication and coordinate with the Management Team to keep decision-makers informed.

Our labor attorneys and labor relations professionals have years of experience representing California public entities in negotiations with labor organizations, particularly in the capacity of Lead Negotiator. We work closely with labor organizations, focusing on collegiality and productive problem solving, even during difficult fiscal times. We strive to build direct and honest relationships, establish trust, work with unions to agree on "the facts," and jointly develop options. This process helps labor and management reach the best solutions to complex problems.

This combination of attorneys and non-attorneys, all with deep experience in labor relations, human resources, and risk management, makes our Firm unique. We have experience bargaining with a variety of California public sector unions, including AFSCME, IBEW, Local 21, and SEIU. In the realm of collective bargaining, our negotiators are unmatched for their depth of experience and success at the bargaining table. Firm negotiators also have wide-ranging experience in impasse resolution procedures, such as mediation, fact-finding, and interest arbitration. Throughout negotiations and impasse resolution processes, our multi-disciplinary approach utilizes financial experts, operational experts, and, if necessary, effective public relations strategies to achieve workable settlements.

When it comes to labor law litigation, our experience handling matters before PERB is unparalleled. Similarly, we have successfully handled hundreds of arbitrations, including both interest and grievance arbitrations.
61 City of American Canyon Personnel, Labor & Employment Legal Services RFP 7 III. FEES AND COSTS
The Firm proposes to provide labor negotiation services to the City at our regular discounted public agency hourly rates as follows:

Charles Sakai $ 405
Dania Torres Wong $ 345
Adam Benson $ 240
Charles Ayers $ 100
These rates will apply for all categories of major activities in providing labor relations consulting services to the City. The final project budget will be largely dependent on the City’s overall need.

We use a computerized billing system that is capable of tracking multiple account codes for each of our clients. We bill on a monthly basis for services performed and costs incurred. Payment is due within 30 days of the date an invoice is rendered. Past due amounts will be shown on the invoice.

The Firm charges separately for certain costs in the representation, as well as for any disbursements to third parties made on a client’s behalf. Such costs and disbursements include, for example, the following: travel (at the IRS rate in effect at the time the travel occurs), computer-assisted research, transcription, overnight delivery, and messenger services. For major disbursements to third parties, invoices may be sent directly to the client for payment. The Firm also bills for time spent traveling on a client’s behalf at our normal rates. You may terminate our services at any time, subject to any applicable requirements for withdrawal of counsel imposed by a tribunal. The firm reserves the right to withdraw from the representation for failure of the client to make timely payment of fees, costs, and disbursements in accordance with the fee arrangement described in this letter, or for any other reason permitted by the applicable Rules of Professional Conduct.

IV. ABILITY TO PERFORM
As stated previously, the proposed team will be led by Charles Sakai, who will serve as project manager and negotiator along with Dania Torres Wong. They will receive assistance from Consultant Adam Benson and Analyst Charles Ayers for costing and comparability.

Full resumes can be found in Appendix A. The amount of time each individual will spend 62 City of American Canyon Personnel, Labor & Employment Legal Services RFP 8 on the project will be largely dependent on the City’s determination of need and the best fit for each of the bargaining tables. The team will be available to provide services to the City in line with the desired project timeline.

Charles Sakai is a founding partner of the Firm. He practices in the areas of employment and labor law, focusing on traditional labor relations including unit determinations and modifications, representation and decertification elections, collective bargaining, interest arbitrations, contract grievances and rights arbitration, and unfair labor practice charges.

He primarily handles complex negotiations and collective bargaining issues, including multi-party negotiations, interest arbitrations, and collective-bargaining-related litigations. Mr. Sakai has extensive experience in addressing difficult fiscal situations, including negotiations under Chapter 9 Bankruptcy protection, and negotiations following divisive issues such as ballot measures and unilateral implementations. Early in his career, Mr. Sakai worked as a Legal Advisor to a PERB Board Member.

Dania Torres Wong practices labor and employment law on behalf of public sector and nonprofit employers. Her practice focuses on traditional labor relations, including collective bargaining, investigations, training, discipline, and strategic preventative counseling. She regularly serves as chief labor negotiator, having gained extensive and valuable experience overseeing all aspects of labor and employment relations with most of the primary labor representatives in California. In collaboration with policy makers and elected officials, she has developed strategies to successfully negotiate a countless number of labor agreements in a concessionary environment and has participated in mediation efforts resulting in successful settlement agreements. Ms. Torres Wong has extensive experience negotiating with a wide range of employee unions and associations like, International Association of Fire Fighter (IAFF), Teamsters, Service Employees International Union (SEIU); POA (Police Officers Association); Local One, Local 39, AFSME and UAPD. Ms. Torres Wong joined the firm in 2007. Prior to joining Sloan Sakai, Ms. Torres Wong served as the Director of Personnel and Chief Negotiator for the County of Santa Cruz for twelve years, and as the Equal Employment/Americans with Disabilities Act Compliance officer for two years. Her comprehensive background in labor relations and human resources in the public sector provides her with the ability to advise clients in addressing complex labor and employment issues.

Adam Benson is an MSG Consultant with over fifteen years of experience in public and private sector employment, including supervisory and executive management experience.

Prior to joining the Firm, Mr. Benson most recently worked at the City of Oakland, first as a Finance Manager, then as Budget Administrator, and finally as Director of 63 City of American Canyon Personnel, Labor & Employment Legal Services RFP 9 Finance/Treasurer. As a member of the senior executive team, he worked closely with the City Administrator, elected officials, and department directors to provide recommendations on a variety of citywide policies, ordinances, and resolutions. He also directed all activities of the Finance Department, consisting of the Treasury Bureau, the Budget Bureau, the Revenue & Tax Bureau, and the Controller’s Bureau. Before his time at the City of Oakland, Mr. Benson worked as a consultant, first with Public Financial Management, Inc. and then with Renne Sloan Holtzman Sakai (Sloan Sakai’s predecessor firm). He received a BA in Political Science from George Washington University and a Master of Public Administration with a Certificate in Public Finance from the University of Pennsylvania.

Charles Ayers joined the Firm in 2018 with a background in research, analysis, and communications. He has since assisted with numerous classification and compensation studies alongside the Firm’s consultants. Recent examples include Bay Area Rapid Transit (BART), the City of Oakland, the City of Menlo Park, the Golden Gate Bridge and Highway Transit District, Santa Cruz County, the Port of Oakland, and the Bay Area Air Quality Management District. He received a BA from the University of California, Berkeley, double majoring in Economics and Political Science.

References
Over the years we have represented numerous public agencies, including 40 of the state’s 58 counties, and 11 of the state’s 20 largest cities. Public agencies that we are currently providing or have recently provided labor relations services to include: City of Berkeley, City of Carmel-by-the-Sea, City of East Palo Alto, City of Fremont, City of Gilroy, City of Mountain View, City of Menlo Park, City of Newport Beach, City of Newark, City of Oakland, City of Palo Alto, City of Petaluma, City of Pittsburg, County of San Benito, City and County of San Francisco, City of Santa Clara, City of Sausalito, City of Sunnyvale, City of Vallejo, San Joaquin County, Stanislaus County, San Luis Obispo County, Siskiyou County, Solano County, the San Francisco Housing Authority, the Bay Area Air Quality Management District, UC Regents, and the Valley of the Moon Water District.

Mr. Sakai and Ms. Torres Wong have negotiated collective bargaining agreements on behalf of nearly all of the listed clients as well as providing day-to-day advice and assisting with employment-related issues. Adam has provided negotiations support, costing and comparability work for East Palo Alto, Menlo Park, Oakland, Santa Clara, and Sunnyvale, and has testified at fact-finding for several cities.
64 City of American Canyon Personnel, Labor & Employment Legal Services RFP 10 For a specific list of references, please see below:

Client Mailing Address Contact Person Contact Info
City of Modesto
P.O. Box 642
Modesto, CA 95353
Joseph Lopez,
City Manager
(209) 577-5223
City and County of
San Francisco
One South Van Ness
Avenue, 4th Floor
San Francisco, CA
94103
Carol Isen, Human
Resources Director (415) 557-4845
City of Gilroy 7351 Rosanna Street
Gilroy, CA 95020
LeeAnn McPhillips,
Human Resources
Director/Risk Manager
(408) 846-0205
City of Berkeley 2180 Milvia Street, 1st
floor, Berkeley, CA
94704
LaTanya Bellow, Human
Resources Director
(510) 981-6800
Additional references available on request.
65 APPENDIX A

TEAM RESUMES
66 SLOAN SAKAI YEUNG & WONG LLP
1220 Seventh Street, Suite 300
Berkeley, CA 94710
555 Capitol Mall, Suite 600
Sacramento, CA 95814

BERKELEY OFFICE
t: 415.678.3808
f: 415.6783838
[email protected]

PRACTICE AREAS
Administrative Hearings & Arbitration
Employment Law & Litigation
labor Relations & Labor Law
Public Management Group
Training
Workplace Investigations

BAR ADMISSION
California

EDUCATION
University of CA Davis Law School, JD
Pomona College, BA
Charles Sakai
Partner

EXPERIENCE
Charles Sakai is a founding partner of the Firm. He practices in the areas of employment and labor law, focusing on traditional labor relations, including unit determinations and modifications, representation and decertification elections, collective bargaining, interest arbitrations, contract grievances and rights arbitration, and unfair labor practice charges.

Mr. Sakai primarily handles complex negotiations and collective bargaining issues, including multi-party negotiations, interest arbitrations, and collective bargaining-related litigation.

Mr. Sakai has extensive experience in addressing difficult rascal situations, including negotiations under Chapter 9 Bankruptcy protection. Recent negotiations have achieved structural changes in compensation and benefit cost structures as well as furloughs and other temporary solutions.

Mr. Sakai also has significant experience dealing with pension and retireemedical issues for both 37 Act and PERS agencies and has assisted agencies in securing significant reductions in GASB liability.

RELATED EXPERIENCE
Mr. Sakai began his career at the California Department of Personnel Administration, where he represented the State before the State Personnel Board (disciplinary hearings), Public Employment Relations Board (“PERB”) (unfair practice charges), and grievance arbitrators. He also advised various state departments on labor relations and personnel matters and handled litigation in State and Federal Courts, including civil writs, and Fair Labor Standards Act litigation.

In 1986, Mr. Sakai accepted a Governor’s appointment as a Legal Advisor to a member of the PERB, where he drafted legal memoranda and decisions and worked with other Board members and legal advisors to interpret and develop California’s public sector labor relations laws. He also assisted the General Counsel’s office in investigating unfair practice charges, assisted the Board in deciding requests for Injunction Relief, and represented the agency in appellate litigation.
during his tenure with PERB, Mr. Sakai taught “Labor and Employment Law and Legislation: for the University Extension program at the University of California at Davis.
67 1220 Seventh Street, Suite 300
Berkeley, CA 94710
555 Capitol Mall, Suite 600
Sacramento, CA 95814

BERKELEY OFFICE
t: 415.678.3834
f: 415.678.3838
[email protected]

PRACTICE AREAS
ADA Accessibility Compliance
HR and LR Consulting
Labor Relations & Labor Law
Public Management Group
Training
Workplace Investigations

BAR ADMISSION
California
CA STATE BAR NO.
152246

EDUCATION
University of California,
Hastings College of the Law, JD
San Francisco State University,
BA
Dania Torres Wong
Partner

EXPERIENCE
Ms. Torres Wong practices labor and employment law on behalf of public sector and nonprofit employers. Her practice focuses on traditional labor relations, including collective bargaining, investigations, training and strategic preventative counseling. She regularly serves as chief labor negotiator, having gained extensive and valuable experience overseeing all aspects of labor and employment relations with most of the primary labor representatives in California.

In collaboration with policy makers and elected officials, she has developed strategies to successfully negotiate a countless number of labor agreements in a concessionary environment, and has participated in mediation efforts resulting in successful settlement agreements. She has continuously worked with the City of Stockton advising them in their labor concession bargaining throughout the City’s bankruptcy proceedings. In addition to Stockton, current clients include the cities of Modesto, Benicia, Palo Alto, Berkeley, Cupertino, and Tracy, as well as San Benito County and the San Francisco Housing Authority. Ms. Torres Wong represents a number of nonprofits, including one of California’s largest community health centers, La Clinica de la Raza. She serves as a resource to clients on a variety of aspects related to Human Resource functions. Her comprehensive background in labor relations and human resources provides her with the ability to advise clients in addressing complex labor and employment issues.

RELATED EXPERIENCE
Ms. Torres Wong joined the firm in 2007. Previously, Ms. Torres Wong served as the Director of Personnel and Chief Negotiator for the County of Santa Cruz for 12 years, and as the Equal Employment/Americans with Disaiblities Act Compliance officer for two years. During Ms. Torres Wong’s tenure in Santa Cruz, she served as the chief negotiator for 10 bargaining groups, including handling all closed session negotiations matters; directing all risk management matters related to tort claims; contract compliance; employee benefits; employee leaves (workers’ compensation, Americans with Disabilities Act, California Family Rights Act, Family Medical Leave Act); directing the County’s Department of Transportation drug testing program; monitoring workplace violence prevention programs; managing recruitment and selection processes in a civil service environment; and directing investigations and responses at the state, local and federal level to all Equal Employment Opportunity, Sexual Harassment and Americans with Disability Act complaints.

SLOAN SAKAI YEUNG & WONG LLP
68 BERKELEY | SACRAMENTO
1220 Seventh Street, Suite 300 Berkeley, CA 94710 O: 510.995.5800 F: 415.678.3838 mgmt-strategies.com

BERKELEY OFFICE
t: 215.779.2423
f: 415.678.3838
[email protected]

PRACTICE AREAS
Financial Management
Labor and Employee Relations
HR Management
Operations Consulting

EDUCATION
University of Pennsylvania, MPA &
Certificate in Public Finance
George Washington University, BA

CERTIFICATIONS
Certified Employee Benefits Specialist
Retirement Plan Associate
Group Benefits Associate
Adam Benson
Consultant

EXPERIENCE
Mr. Benson is a consultant with the firm’s Management Strategies Group (MSG).

He combines his background in public finance, labor relations, and employee benefits to provide local governments with strategic financial and operational advice.

Mr. Benson joins the firm after serving in several capacities at the City of Oakland, including most recently as the Director of Finance/Treasurer. He directed all activities of the Finance Department, consisting of the Treasury Bureau, the Controller’s Bureau, the Budget Bureau, and the Revenue and Tax Bureau, with more than 165 full-time equivalent employees. Prior to being appointed Director of Finance, Mr. Benson served in the role of Finance Manager and Budget Administrator, where he oversaw the development and implementation of the City’s two-year $3.3 billion operating and capital budget.

RELATED EXPERIENCE
Prior to his work at the City of Oakland, Mr. Benson worked as a consultant with Sloan Sakai’s predecessor agency Renne Sloan Holtzman Sakai. He also spent five years with Public Financial Management, Inc. (PFM), a national leader in providing independent financial advice as well as investment advisory, management, and consulting services to local and state governments and nonprofit clients nationally.

While at PFM, Mr. Benson developed evidence for fact-finding and interest arbitration proceedings, including economic, financial, and compensation analyses. In addition to assisting municipalities with workforce analytics, Mr.

Benson assisted in the development of long-range financial plans and budget projection models, identifying financial risks and challenges, and developing practical recommendations tailored to meet his clients’ needs. 69 BERKELEY | SACRAMENTO
1220 Seventh Street, Suite 300 Berkeley, CA 94710 O: 510.995.5800 F: 415.678.3838 mgmt-strategies.com

BERKELEY OFFICE
t: 510.995.5815
f: 415.678.3838
[email protected]

PRACTICE AREAS
Classification & Compensation

EDUCATION
University of California, Berkeley, BA
Charles Ayers
Analyst

EXPERIENCE
Charles Ayers is an Analyst with the Firm assisting consultants and attorneys with a variety of client and business development projects. Mr. Ayers joined the Firm in 2018 with a background in research, analysis, and communications. He has since assisted with numerous classification and compensation studies, frequently supporting various MSG consultants. Sample projects include simple salary surveys, total compensation studies, benefits breakdowns, researching and analyzing the different roles and responsibilities for individual job classes or families, and examining public agency practices. He received a BA from the University of California, Berkeley, double majoring in Economics and Political Science.
70 APPENDIX B

RATES SHEET
71 Public Sector and Non-Profit Fee Schedule
Effective January 1, 2021 to December 31, 2021
Partners: $300 - $450
Of Counsel: $265 - $385
Senior Counsel: $275 - $385
Associates: $245 - $275
Law Clerks: $185
Paralegals: $105 - $175
Analysts: $95 - $135
Consultants: $160 - $275
72 13

EXHIBIT B

PAYMENT AND SCHEDULE OF PAYMENTS

1. TOTAL COMPENSATION
City shall compensate Contractor for the satisfactory performance of the work described in this Agreement to not exceed the amount of Two Hundred Thousand dollars ($200,000) apportioned as follows: $100,000 in Fiscal Year 2021-22; $50,000 in Fiscal Year 2022-23; and $50,000 in Fiscal Year 2023-24.

2. Contractor shall submit an itemized statement to City on a City approved form for its services performed, which shall include documentation setting forth in detail a description of the services rendered, and the hours of service, if appropriate. City shall compensate Contractor the amount of such billing within thirty (30) days receipt of same.

3. There shall be no right to reimbursement of expenses incurred by Contractor except as specified in Exhibit A to this Agreement.
73 14

EXHIBIT C

INSURANCE REQUIREMENTS
Please refer to the insurance requirements listed below. Those that have an “X” indicated in the space before the requirement apply to Contractor’s or Consultant’s Agreement.

Commercial General Liability (CGL):
__X_ Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. Contractor’s general liability policies shall be primary and non-contributory, and be endorsed using Insurance Services Office form CG 20 10 (or equivalent) to provide that City and its officers, officials, employees, attorneys, and agents shall be additional insureds under such policies. For construction contracts, an endorsement providing completed operations to the additional insured, ISO form CG 20 37, is also required. ___ Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. Contractor’s general liability policies shall be primary and non-contributory, and be endorsed using Insurance Services Office form CG 20 10 (or equivalent) to provide that City and its officers, officials, employees, attorneys and agents shall be additional insureds under such policies. For construction contracts, an endorsement providing completed operations to the additional insured, ISO form CG 20 37, is also required. ___ Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than five million dollars ($5,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. Contractor’s general liability policies shall be primary and non-contributory, and be endorsed using Insurance Services Office form CG 20 10 (or equivalent) to provide that City and its officers, officials, employees, attorneys, and agents shall be additional insureds under such policies. For construction contracts, an endorsement providing completed operations to the additional insured, ISO form CG 20 37, is also required. 74 15
Commercial General Liability (CGL) - Completed Operations Coverage ___ Contractor shall maintain and provide completed operations coverage and to the additional insured using ISO form CG 20 37. Contractor shall maintain insurance as required by this Agreement to the fullest amount allowed by law and shall maintain insurance for a minimum of five (5) years following the completion of this project. In the event Contractor fails to obtain or maintain completed operations coverage as required by this Agreement, the City at its sole discretion may purchase the coverage required and the cost will be paid by Contractor.

Automobile Liability:
__X_ Contractor shall provide auto liability coverage for owned, non-owned, and hired autos using ISO Business Auto Coverage form CA 00 01, or the exact equivalent, with a limit of no less than one million dollars ($1,000,000) per accident. If Contractor owns no vehicles, this requirement may be met through a non-owned auto endorsement to the CGL policy. ___ Contractor shall provide auto liability coverage for owned, non-owned, and hired autos using ISO Business Auto Coverage form CA 00 01, or the exact equivalent, with a limit of no less than five million dollars ($5,000,000) per accident. If Contractor owns no vehicles, this requirement may be met through a non-owned auto endorsement to the CGL policy. ___ Garage keepers’ extra liability endorsement to extend coverage to all vehicles in the care, custody and control of the Contractor or Consultant, regardless of where the vehicles are kept or driven.

Professional Liability (Errors and Omissions):
_X__ Contractor shall maintain professional liability insurance that insures against professional errors and omissions that may be made in performing the Services to be rendered in connection with this Agreement, in the minimum amount of one million dollars ($1,000,000) per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement, and Contractor agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement.
___ Contractor shall maintain professional liability insurance that insures against professional errors and omissions that may be made in performing the Services to be rendered in connection with this Agreement, in the minimum amount of two million dollars ($2,000,000) per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement, and Contractor agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement.
75 16
Workers’ Compensation Insurance:

X Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance with limits of at least one million dollars ($1,000,000).

Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, agents, employees, and volunteers.

The Contractor or Consultant makes the following certification, required by section 1861 of the California Labor Code:

I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract. __________________________________
Contractor/Consultant Signature
Builder’s Risk (Course of Construction):

Builder’s Risk (Course of Construction Insurance) (applicable to Construction Contracts only) ___ Contractor shall provide Builders Risk Insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the project and no coinsurance penalty provisions.

Upon commencement of construction and with approval of City, Contractor shall obtain and maintain Builder’s Risk/Course of Construction insurance. Policy shall be provided for replacement value on an "all-risk" basis. The City shall be named as Loss Payee on the policy and there shall be no coinsurance penalty provision in any such policy. Policy must include: (1) coverage for removal of debris, and insuring the buildings, structures, machinery, equipment, materials, facilities, fixtures, and all other properties constituting a part of the project; (2) coverage with limits sufficient to insure the full replacement value of any property or equipment stored either on or off the project site. Such insurance shall be on a form acceptable to City to ensure adequacy of terms and limits. Contractor shall not be required to maintain property insurance for any portion of the Project following transfer of control thereof to City.

Surety Bonds:

Contractor shall provide the following Surety Bonds:
____ Bid Bond
____ Performance Bond
____ Payment Bond
____ Warrantee Bond
76 17
The Payment Bond and Performance Bond shall be in a sum equal to the contract price. If the Performance Bond provides for a one-year warranty a separate Warrantee Bond is not necessary. If the warranty period specified in the contracts is for longer than one (1) year a Warrantee Bond equal to ten percent (10%) of the contract price is required. Bonds shall be duly executed by a responsible corporate surety, authorized to issue such bonds in the State of California and secured through an authorized agent with an office in California.

Contractor’s or Consultant’s Pollution Legal Liability:
___ Pollution Coverage shall be provided on a Contractors Pollution Liability form or other form acceptable to City providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than two million dollars ($2,000,000) per claim. All activities contemplated in this agreement shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the project site to the final disposal location, including non-owned disposal sites.

Specific Insurance Provisions
Insurance Limits:

The limits of insurance required in this Agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of City (if agreed to in a written contract or agreement) before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.

If the Contractor or Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor or Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City.

Notice of Cancellation, Suspension or Otherwise Voiding Policies:

Each insurance policy required above shall contain, or be endorsed to contain that coverage shall not be suspended, voided, canceled or reduced in coverage or in limits except with thirty (30) days’ prior written notice by certified mail, return receipt requested to the City.

Waiver of Subrogation:

Contractor or Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor or Consultant may acquire against the City by virtue of the payment of any loss under such insurance. Contractor or Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision 77 18
applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

Deductibles and Self-Insured Retentions (“SIR”):

Any deductibles or self-insured retentions above $25,000 must be declared to and approved by City. The City may require the Contractor or Consultant to purchase coverage with a lower deductible or retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. At the option of the City, either (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its elected and appointed officials, officers, attorneys, agents, and employees; or (2) the Contractor or Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.

All SIRs must be disclosed to Risk Management for approval and shall not reduce the limits of liability.

Policies containing any SIR provision shall be endorsed to provide that the SIR may be satisfied by either the named insured or the City.

City reserves the right to obtain a full-certified copy of any insurance policy and endorsements. Failure to exercise this right shall not constitute a waiver of right to exercise later.

Acceptability of Insurers:

Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A-:VII, unless otherwise acceptable to City.

Claims Made Policies: (note - should be applicable only to professional liability, see below)

1. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of contract of work.

3. If coverage is canceled or non-renewed, and not replaced with another claimsmade policy form with a Retroactive Date prior to the contract effective date, the Contractor or Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

4. A copy of the claims reporting requirements must be submitted to the City for review.
78 19

5. If the services involve lead-based paint or asbestos identification/remediation, the Contractor’s Pollution Liability Policy shall not contain lead-based paint or asbestos exclusions. If the services involve mold identification/remediation, the Contractors Pollution Liability Policy shall not contain a mold exclusion, and the definition of Pollution shall include microbial matter, including mold.

Subcontractors:

Contractor or Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors.

Subcontractor agrees to be bound to Contractor and City in the same manner and to the same extent as Contractor is bound to City under this Agreement and any other contract documents. Subcontractor further agrees to include the same requirements and provisions of this Agreement, including the indemnity and insurance requirements, with any subsubcontractor to the extent they apply to the scope of the sub-subcontractor’s work. A copy of the City indemnity and insurance provisions will be furnished to the subcontractor upon request.

Verification of Coverage:

Contractor or Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor or Consultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage or other special circumstances.

Failure to Comply:

Each insurance policy required above shall contain or be endorsed to contain that any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected and appointed officials, officers, attorneys, agents, and employees.

Applicability of Coverage:

Each insurance policy required above shall contain or be endorsed to contain that the Contractor’s or Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 79 20

EXHIBIT D

FACILITIES AND EQUIPMENT
City shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary for Contractor’s use while consulting with City employees and reviewing records and the information in possession of City. The location, quantity, and time of furnishing said physical facilities shall be in the sole discretion of City. In no event shall City be obligated to furnish any facility which may involve incurring any direct expense, including, but not limiting the generality of this exclusion, long-distance telephone or other communication charges, vehicles, and reproduction facilities. Contractor shall not use such services, premises, facilities, supplies or equipment for any purpose other than in the performance of Contractor's obligations under this Agreement.
80 CITY COUNCIL AGENDA
JANUARY 18, 2022

STAFF REPORT

PUBLIC HEARING
ITEM NUMBER: 11.

TITLE
Acquisition of Certain Property for Public Purposes

RECOMMENDATION
Continued Public Hearing on Acquisition of Certain Property for Public Purposes.

CONTACT
William D. Ross, City Attorney

BACKGROUND & ANALYSIS
At the Council Special Mee1ng on January 7, 2022, the Council unanimously con1nued the Hearing on a proposed Resolu1on of Necessity un1l this Regular Council Mee1ng date in order to facilitate any addi1onal ac1ons which may have been necessary to supplement the Resolu1on of Necessity that was adopted.

This was done a5er the unanimous Council ac1on approving City Resolu1on No. 2022-01 for the Acquisition of Certain Real Property for Public Purposes.

It has been determined that there is no need for any addi1onal ac1on by Council with respect to the adop1on of City Resolu1on No. 2022-01. Accordingly, the appropriate ac1on would be a Council motion to close the continued Special Hearing on City Resolution No. 2022-01.

COUNCIL PRIORITY PROGRAMS AND PROJECTS

FISCAL IMPACT
Not applicable.

ENVIRONMENTAL REVIEW
Not applicable.

ATTACHMENTS:

None
81 CITY COUNCIL AGENDA
JANUARY 18, 2022

STAFF REPORT

PUBLIC HEARING
ITEM NUMBER: 12.

TITLE
Urgency Ordinance and Zoning Code Amendment - Fuel Stations

RECOMMENDATION
Hold a Public Hearing and by title only, take the following actions:

1. Adopt an Interim Urgency Ordinance of the City Council of the City of American Canyon, California, enacted pursuant to California Government Code Sec4on 65858 establishing a 12- Month Temporary Moratorium on the approval of discre4onary applica4ons for new fuel sta4ons that are not complete as of the effec4ve date of this Ordinance in all zoning districts in the City of American Canyon pending review and possible amendment of Municipal Code Regulations; and setting forth the facts constituting such urgency (PL21-0005); and

2. Adopt an Ordinance of the City Council of the City of American Canyon, California, amending the American Canyon Municipal Code Chapter 19.04 Defini4ons; Chapter 19.05 Commercial Classifica4ons; Chapter 19.11 Commercial Zoning District; Chapter 19.49 Nonconforming Uses, Structures and Lots; and Broadway District Specific Plan Table 2-3 PermiAed Uses; to prohibit new and expanded service sta4ons in all zoning districts in the City of American Canyon that engage in retail sale of motor vehicle fossil fuels (PL21-0028).

CONTACT
Brent Cooper, AICP, Community Development Director

BACKGROUND & ANALYSIS
Climate change represents a growing danger to human health, safety, economic prosperity, basic services, the environment, and natural resources. The State of California as a whole, and Napa County residents, economy, and environment have experienced adverse effects associated with climate change, such as a prolonged wildfire seasons and firestorms, rising temperatures, mudslides, severe droughts, property destruc4on and damage to infrastructure (Source: American Canyon June 18, 2019 Climate Change Proclamation).

American Canyon has a long history of suppor4ng policies to protect the environment. In 2013, American Canyon’s Energy Efficiency Climate Ac4on Plan (EECAP) was the first Climate Ac4on Plan adopted in Napa County. In 2016, American Canyon earned a Beacon Award from the League of California Ci4es. The Beacon Award is an honor granted to local governments that successfully 82 achieve voluntary efforts to reduce greenhouse gas emissions, save energy and adopt policies that promote sustainability.

The Broadway District Specific Plan (BDSP) is an important land use policy document intended to reduce greenhouse gas emissions with higher density housing served by transit coupled with pedestrian and bicycle facili4es near commercial services, retail, and employment (Ordinance 2019- 07 and Ordinance 2020-05). Designated as a Priority Development Area by the Associa4on of Bay Area Governments, the BDSP is an important part of the Bay Area’s Sustainable Community Strategy to reduce greenhouse gas emissions through smart growth planning policies.

On February 19, 2019, the City adopted an Electric Vehicle Charging Sta4on streamline permit process (Ordinance 2019-02). The State Governor’s Office of Business has assigned American Canyon with “Green” rating to verify the City is consistent with Assembly Bill 1236.

On June 18, 2019, the City Council approved a Countywide Commitment to Address Climate Change Proclama4on declaring the City’s support of local ac4ons to address climate change including joining the Napa Countywide Climate Ac4on CommiAee (CAC). Vice-Mayor Joseph and Councilmember Washington represent the City on the CAC.

Due to concerns of greenhouse gas emissions as well as market satura4on and BDSP community character, the City Council adopted Ordinance 2021-03 on April 6, 2021. The Ordinance imposes an immediate 10-Month, 15-day moratorium on processing discre4onary en4tlements to establish, use, and operate new fuel sta4ons within the City of American Canyon. The Urgency Ordinance will expire on Monday, February 21, 2022 unless it is extended by the City Council through a subsequent Urgency Ordinance. A copy of Urgency Ordinance 2021-03 is included as Attachment 3.

Urgency Ordinance 2021-03 provides 4me for the City to explore regula4ons concerning the placement, establishment, and possible opera4on of Fuel Sta4ons within the City consistent with the community’s vision. The first step in considering poten4ally new fuel sta4ons Zoning Code regulations is to review the General Plan.

The General Plan is a fundamental document that provides local control over the physical development of our City. The legal authority for General Plan policies is derived from the California Cons4tu4on that allows Ci4es to adopt regula4ons in that protect public health, safety, and welfare.

Thus, in California, every City and County is required by law to adopt a comprehensive, long-term General Plan. Policies to implement the General Plan, such as the Zoning Ordinance, Capital Improvement Projects, Development Approvals, Impact Fees, Infrastructure dedica4ons, and Conditions of Approvals must be consistent with the General Plan.

The updated General Plan 2040 will include comprehensive climate change policies to reduce greenhouse gas emissions and improve climate change adapta4on. However, General Plan 2040 adop4on is not contemplated before the end of Calendar Year 2022. Thus, on July 22, 2021, the 83 Planning Commission recommended City Council approval of a General Plan amendment to incorporate climate change, adapta4on, and greenhouse gas reduc4on policies into the Land Use Element (Resolu4on 2021-16). On September 7, 2021, the City Council approved the General Plan amendment (Resolution 2021-60). A copy of Resolution 2021-16 is included as Attachment 4.

On November 16, 2021, the City Council issued a Climate change Emergency Proclama4on that acknowledges climate change caused by human ac4vity represents a growing danger to human health, safety, and economic prosperity, and the window of opportunity for long term climate preserva4on is rapidly closing and commits to a goal of net zero climate pollu4on, measured in terms of net contribu4on to excess trapped heat, by or before 2030 by implemen4ng immediate and sustained ac4ons in support of its achievement. A copy of the Climate Emergency Proclama4on is included as Attachment 5.

On October 28, 2021 and December 16, 2021, the Planning Commission conducted a public hearing on the proposed Fuel Station Ordinance, and recommends City Council approval.

American Canyon Fuel Station Status
Currently, there are three exis4ng fuel sta4ons in American Canyon and one approved fuel sta4on in permiLng. The exis4ng fuel sta4ons include: Chevron at 401 Napa Junc4on Road; Union 76 (former Arco) at 3462 Broadway; and Safeway at 103 West American Canyon Road. The approved fuel station in permitting is a Circle K located at 112 Lombard Road.

In addi4on to the exis4ng and approved fuel sta4ons, the City currently has a Condi4onal Use Permit (CUP) applica4on for a 7-Eleven fuel sta4on at 218 American Canyon Road. An applica4on for a RoAen Robbie fuel sta4on with a convenience store and carwash at 3519 Broadway was withdrawn by the applicant on September 15, 2021. The 7-Eleven applica4on is on hold pending comple4on of the Urgency Ordinance and/or new Zoning Code regula4ons. A map depic4ng the exis4ng, under construc4on, and proposed gas sta4ons in American Canyon is included as Attachment 6.

Climate Basis for a Fuel Station Prohibition
Government Code Sec4on 65358 allows General Plan Amendments when it is deemed in the public interest to do so. According to the California Air Resources Board (CARB), transporta4on accounts for about 40% of the state's greenhouse gas (GHG) pollu4on in the State. This sta4s4c places transporta4on as the leading source of GHG pollu4on. Contribu4ons from the transporta4on sector include emissions from fuel combus4on by on-road and off-road vehicles, avia4on, rail, and waterborne vehicles, as well as a few other smaller sources.

According to the California Department of Transporta4on (Caltrans), widespread use of ZEVs will improve California's air quality and help meet California's GHG reduc4ons targets. A ZEV is defined as plug-in hybrid electric, full baAery electric, hydrogen, and fuel cell vehicles because they have no greenhouse gas or air pollutant tailpipe emissions.
84 According to Caltrans, ZEVs are typically cheaper to fuel than gasoline-powered vehicles, and there are an increasing number of models to choose from, including longer-range BaAery Electric Vehicles (BEVs), All-wheel-drive vehicles, SUVs, and mini-vans. Exis4ng and proposed fuel sta4ons do not include any Zero Emission Vehicle (ZEV) fueling infrastructure.

In September 2020, as part of an effort to address the impacts of climate change caused by transporta4on-related greenhouse gas emissions, Governor Newsom issued Execu4ve Order N-79- 20 to require all in-state sales of new passenger vehicles be ZEV by 2035. The Execu4ve Order also sets a further goal of the state that 100 percent of medium- and heavy-duty (MD/HD) vehicles in the state be zero-emission by 2045 for all opera4ons where feasible, and by 2035 for drayage trucks.

Further, it sets a goal of the state to transi4on to 100 percent zero-emission off-road vehicles and equipment by 2035 where feasible.

Zoning Code Amendments
The “Zoning Code” is contained in Title 19 of the American Canyon Municipal Code. Discussed below are amendment to the Zoning Code to prohibit new and expanded service sta4ons in all zoning districts in the City of American Canyon that conduct motor vehicle fossil fuel retail sales.

Amendments that remove text are shown in strikeout. Underline is shown for new text.

Chapter 19.04 – Definitions
The Zoning Code Use Definition chapter defines terms used throughout the Zoning Code.

Section 19.04.030 – Citywide Definitions
“Force Majeure Event. A Force Majeure Event is an extraordinary event or circumstance beyond the control of one or more par4es that impacts their ability to perform. This defini4on of Force Majeure Event shall be limited to situa4ons resul4ng in a declara4on of a state or local emergency that was caused by acts of God or the elements, storms, wildfires, earthquakes, pandemics, wars, acts of terrorism, riots, or insurrection that significantly impact a party.” JUSTIFICATION: The definition was prepared by the City Attorney to define extraordinary unforeseen events.
“Zero-Emission Vehicle. A zero-emission vehicle is any type of vehicle that has no tailpipe emissions.

Vehicles run on electric motors and are powered by electricity delivered from baAeries or hydrogen and fuel cells. In contrast to conven4onal internal combus4on vehicles, zero emission vehicles prevent air pollu4on, lower greenhouse gas emissions, and help integrate renewable energy into the transporta4on sector. There are two kinds of zero emission vehicles: plug-in electric vehicles and hydrogen fuel cell electric vehicles.”
JUSTIFICATION: A Zero-Emission vehicle defini4on is needed because it supports the new “Zero 85 Emission Vehicle Service Station” land use classification.

Chapter 19.05 – Use Classifications
The Zoning Code Use Classifica4on chapter defines every use that is PermiAed, Condi4onallyPermiAed, or Prohibited in the City. Service Sta4ons are only permiAed in Commercial Zoning Districts and the Broadway District Specific Plan. Discussed below are needed amendments to the Use Classifications.

Section 19.05.050 – Commercial Classifications
This section of the Use Classification chapter defines all Commercial uses in each zoning district.

Gas sta4ons and automobile service facili4es: an establishment engaged primarily in the retail sale of motor fuels and incidentally in the supplying of goods and services required in the opera4on and maintenance of motor vehicles. This classifica4on includes incidental maintenance and repair of automobiles and light trucks. Should be discouraged at major intersections.

JUSTIFICATION: The Gas sta4ons and automobile service facili4es Use Classifica4on is the same as Service Sta4on so it is redundant. Service Sta4on is used throughout the zoning code which makes the Gas Station classification unnecessary.

Service Sta4on is a subcategory of Vehicle/Equipment Sales and Services. Listed below are proposed changes to provide a new Zero Emission service station classification.

Fossil Fuel Service Sta4on: an establishment engaged primarily in the retail of motor vehicle fossil fuels sales and incidental ly in the supplying of goods and services required in the opera4on to operate and maintain maintenance of motor vehicles. This classifica4on includes incidental of automobiles and light truck s repair and maintenance, but excludes body and fender work or repair of heavy trucks or vehicles, upholstery work, auto glass work, pain4ng, 4re recapping, auto dismantling, auto storage, and the sale of groceries, dairy products, liquor, garden supplies and similar items.

JUSTIFICATION: The current “service sta4on” classifica4on is divided into two new classifica4ons:

Fossil Fuel Service Sta4on and Zero Emission Vehicle Service Sta4on. The language is cleaned up to simplify allowable accessory uses.

Zero Emission Vehicle Service Sta4on: an establishment engaged primarily in retail electric vehicle fuel sales and incidental goods and services required to operate and maintain zero emission motor vehicles. This classifica4on includes incidental maintenance and repair of automobiles and light trucks, but excludes body and fender work or repair of heavy trucks or vehicles, upholstery work, auto glass work, pain4ng, 4re recapping, auto dismantling, auto storage, and the sale of groceries, dairy products, liquor, garden supplies and similar items.

This classifica4on does not include electric vehicle charging sta4ons installed as an accessory use (see “Accessory Use” Definition Section 19.04.030).
86 JUSTIFICATION: The Zero Emission Service Sta4on classifica4on is a new classifica4on. Electric vehicle charging sta4ons installed as a customer or employee service or convenience (i.e.: a charging sta4on in a parking lot of another use) are an Accessory Use and not a Zero Emission vehicle service station.

Chapter 19.11 – Commercial Districts
The Zoning Code Commercial District chapter iden4fies the development standards and allowable uses in Commercial Zoning districts throughout the city.

Section 19.11.040 – Permitted Uses in Commercial Zoning Districts Amend Table 1 with the following changes:

1. Delete Gas Sta4ons and automobile service facili4es because this use is redundant with service station.

2. Change Service Sta4on from Condi4onally PermiAed to Prohibited in the Neighborhood Commercial and Community Commercial zoning districts. Rename as Fossil Fuel Service Station.

3. Add Zero Emission Service Sta4on as a Condi4onally PermiAed use in the Neighborhood Commercial and Community Commercial zoning districts.

Broadway District Specific Plan
Amend Table 2-3 with the following changes:

1. Delete Gas Sta4ons and automobile service facili4es because this use is redundant with service station.

2. Add Zero Emission Service Sta4on as a Condi4onally PermiAed use in the Business Park zoning district.

JUSTIFICATION: As a land use, the Zero Emission Service Sta4on may appear and func4on similar to a fossil fuel service sta4on. For this reason, this “automobile-oriented” use would not be permiAed in the central part of the Broadway District Specific Plan. Electric vehicle charging sta4ons, typically found in parking lots of commercial uses, would be permiAed because it does not meet the definition of a Zero Emission Service Station.

Chapter 19.49 – Nonconforming Uses, Structure, and Lots The purpose of the Nonconforming chapter is to regulate buildings and uses which do not conform to one or more provisions of the Zoning Code today, but were lawfully established in accordance with the Zoning Code at the time the project was approved.

The proposed Nonconforming amendments are intended to provide specific ways that Fossil Fuel Service Stations may be modified following adoption of this zoning code amendment. 87 19.49.090 - Regulation of Fossil Fuel Service Station Uses and Structures A. Purpose.

1. Accommodate con4nued Fossil Fuel Service Sta4on opera4on as a legal non-conforming use and describe when they may be deemed abandoned.

2. Allow altera4ons to Fossil Fuel Service Sta4on when such changes provide greater protec4on of the environment, safeguard public health and safety, facilitate the use of zero emission vehicles, or enable other uses permitted within the respective zoning district.

3. Prohibit Fossil Fuel Service Sta4on opera4ons from increasing the storage and dispensing capacity of gasoline and any other fossil fuel.

B. Applicability. This section applies to:

1. All lawfully developed and opera4ng Fossil Fuel Service Sta4on uses in existence prior to March 3, 2022.

2. All Fossil Fuel Service Sta4on uses not yet developed and/or opera4ng but subject to an approved and unexpired land use permit as of March 3, 2022.

C. Modifica4ons to Fossil Fuel Service Sta4on Uses, Generally. Except as provided below, Fossil Fuel Service Sta4on uses and structures shall not be enlarged, extended, reconstructed or moved to a different por4on of the lot or parcel of land occupied by such use. Examples of features subject to this provision include, but are not limited to retail fossil fuel sale, storage, conveyance, and dispensing (i.e., storage tanks, pumps, dispensers).

D. Modifica4ons to Improve Public Health and Safety. Fossil Fuel Service Sta4on uses may be modified to conform to current public health and safety standards (i.e.: stormwater quality control regula4ons or remediate contamina4on of the soil, groundwater, pedestrian and bicycle access safety, traffic control devices).

E. Modifica4ons to Enable Zero Emission Vehicles (BaAery Charging Sta4on). Fossil Fuel Service Sta4on uses may be modified to accommodate baAery charging sta4on(s) for Zero Emission Vehicles.

F. Modifica4ons to Enable Zero Emission Vehicles (Hydrogen Fuel Cell Sta4on). Fossil Fuel Service Station uses may be altered to include hydrogen storage, conveyance and dispensing facilities.

G. Discon4nua4on of a Fossil Fuel Service Sta4on Uses or Structures. A Fossil Fuel Service Sta4on Use shall not be re-established if such use has been discon4nued for a con4nuous period of one hundred and eighty (180) days or longer, unless either of the following exceptions apply:

1. If the use has discon4nued for one hundred and eighty (180) days or longer because the nonconforming Fossil Fuel Service Sta4on is subject to construc4on with a valid building permit that has not received final inspec4on, the nonconforming 4meframe will be extended in accordance with 88 the building permit application completion.

2. If the use has discon4nued for of one hundred and eighty (180) days or longer due to a Force Majeure Event, the nonconforming 4meframe may be extended in accordance with a 4meframe that receives the approval of the City Community Development Director and the concurrence of the City AAorney. The determina4on of whether an event or circumstance is a “Force Majeure Event” is to be made at the discretion of the City.

Next Steps
The City Council may adopt the Zoning Code amendment as proposed or provide direc4on to revise and/or amend the policies. Once approved, a Zoning Code amendment requires a second reading.

If approved, the ordinance would take effect 30 days later.

COUNCIL PRIORITY PROGRAMS AND PROJECTS
Community and Sense of Place: "Build on the strength of our local community to develop a clear 'sense of place' and establish our unique identity."

FISCAL IMPACT
N/A

ENVIRONMENTAL REVIEW
Consistent with Public Resources Code Sec4on 21000, et seq., the California Environmental Quality Act, (“CEQA”), the proposed Zoning Code and Specific Plan Amendments are categorically exempt from environmental review in accordance with CEQA Guidelines Sec4on 15307 Ac4ons by Regulatory Agencies for Protec4on of Natural Resources, and CEQA Guidelines Sec4on 15308 Ac4ons by Regulatory Agencies for Protec4on of the Environment. CEQA Guidelines Sec4on 15307 and 15308 are applicable because the proposed amendments are intended to address Climate change impacts that pose an immediate and growing threat to California’s economy, environment, safety, and public health.

ATTACHMENTS:

1. Fuel Station 12-Month Urgency Ordinance

2. Fuel Station Ordinance
89 ATTACHMENT 1
ORDINANCE NO. 2022-____

AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AMERICAN CANYON, CALIFORNIA ENACTED PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65858 ESTABLISHING A 12-MONTH TEMPORARY MORATORIUM ON THE APPROVAL OF

DISCRETIONARY APPLICATIONS FOR NEW FUEL STATIONS THAT ARE NOT COMPLETE AS OF THE

EFFECTIVE DATE OF THE ORDINANCE IN ALL ZONING DISTRICTS IN THE CITY OF AMERICAN CANYON PENDING REVIEW AND POSSIBLE AMENDMENT OF MUNICIPAL CODE REGULATIONS; AND SETTING FORTH THE FACTS CONSTITUTING SUCH URGENCY (PL21-0005) WHEREAS, Article XI, Section 7 of the California Constitution authorizes cities to adopt local police, sanitary, and other ordinances not in conflict with general laws; and WHEREAS, Government Code Section 65858, subdivision (a) provides: that city legislative bodies may, to protect public safety, health and welfare, adopt as an urgency measure an interim ordinance prohibiting any uses that may conflict with a contemplated general plan, specific plan, or zoning proposal that the legislative body is considering or studying or intends to study within a reasonable time; that adoption of such urgency measures requires a four-fifths vote of the legislative body; that such measures shall be of no effect 45 days from the date of adoption, and may be extended a maximum to two times and have a maximum total duration of two years; and
WHEREAS, Government Code Section 65858, subdivision (c) provides that legislative bodies may not adopt or extend such interim ordinances unless they contain findings that there is a current and immediate threat to the public health, safety, or welfare, and that the approval of additional entitlements would result in that threat to public health, safety, or welfare; and WHEREAS, Government Code Section 65858, subdivision (d) provides that ten days prior to the expiration of an interim ordinance or any extension, the legislative body shall issue a written report describing the measures taken to alleviate the condition which led to the adoption of the ordinance; and WHEREAS, the City of American Canyon (“City”) seeks to ensure that the City’s zoning laws are consistent with the goals, policies, and standards set forth in the City General Plan; and WHEREAS, Governor Newsom’s Executive Order N-79-20, sets a goal to eliminate new gasoline-powered vehicle sales by 2035; and
WHEREAS, the City is an active member of the Napa County Climate Action Committee and this Committee is contemplating policy amendments to reduce greenhouse gas emissions in Napa County; and
WHEREAS, on September 7, 2021, the City Council approved climate change, adaptation, and greenhouse gas reduction policies into the General Plan (Resolution 2021-60); and WHEREAS, on November 16, 2021, the City Council issued a Climate change Emergency Proclamation that acknowledges climate change caused by human activity represents a growing danger to human health, safety, and economic prosperity, and the window of opportunity for long term climate preservation is 90 rapidly closing and commits to a goal of net zero climate pollution, measured in terms of net contribution to excess trapped heat, by or before 2030 by implementing immediate and sustained actions in support of its achievement; and
WHEREAS, Fuel Station approvals and construction may be inconsistent with the contemplated General Plan, Zoning Ordinance, and applicable Specific Plans; and WHEREAS, on February 2, 2021, the City Council conducted a workshop to discuss impacts of discretionary development application processing and construction permit issuance for new Fuel Stations in all zoning districts in the City of American Canyon; and
WHEREAS, on February 16, 2021, the City Council conducted a public hearing to discuss impacts of discretionary development application processing and construction permit issuance for new Fuel Stations in all zoning districts in the City of American Canyon; and WHEREAS, on March 2, 2021, the City Council adopted Interim Urgency Ordinance 2021-01, a 45-day moratorium on processing Fuel Stations discretionary development application processing in all zoning districts in the City of American Canyon; and
WHEREAS, on April 6, 2021, the City Council adopted Interim Urgency Ordinance 2021-03, a 10 month, 15-day moratorium on processing Fuel Stations discretionary development application processing in all zoning districts in the City of American Canyon; and
WHEREAS, Interim Urgency Ordinance 2021-03 will expire March 3, 2022 unless it is extended by adoption of a subsequent 12-month Interim Urgency Ordinance; and WHEREAS, an extension to Ordinance 2021-03 is necessary because a proposed (non-urgency) Ordinance to prohibit retail fuel stations that sell fossil fuels could not be adopted prior to the expiration of Urgency Ordinance 2021-03; and
WHEREAS, the City Council has considered all of the written and oral testimony presented at a public hearing on January 18, 2022 in making its decision.

NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF AMERICAN CANYON DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1: The above recitals are true and correct and are incorporated herein.

SECTION 2: Moratorium. In order to protect the public health, safety and welfare and pursuant to the provisions of Government Code section 65858, a moratorium is hereby placed on the following:
a. The approval of discretionary applications for Fuel Station uses that are not complete as of the effective date of this Ordinance in all zoning districts in the City of American Canyon that would allow the establishment, expansion, or relocation of a Fuel Station or business offering related services. b. For the Purposes of this Ordinance, “Fuel Station” shall also mean a “Gas Station and Automobile Service Facility” and is defined as: an establishment engaged primarily in the retail sale of motor fuels and incidentally in the supplying of goods and services required in the operation and maintenance of motor vehicles. This classification includes incidental maintenance and repair of automobiles and light trucks. 91 SECTION 3. Declaration of Urgency. This urgency is based on the following facts:
a. The purpose of this Ordinance is to protect the public safety, health and welfare from the current and immediate threats posed by the establishment of new Fuel Stations and the possible modification and expansion of existing Fuel Stations.
b. Article XI, Section 7 of the California Constitution authorizes cities to adopt local police, sanitary, and other ordinances not in conflict with general laws. c. The City Council finds that, in general, these types of businesses, as presently regulated in other jurisdictions, may result in serious harmful effects, including but not limited to damage to the community vision, climate change, air pollution, vehicle traffic congestion, and reduction in viability of existing Fuel Stations in American Canyon.
d. The City has concluded that the best method of protecting the public safety, health, and welfare is to explore regulations concerning the placement, establishment, and possible operation of Fuel Stations within the City.

SECTION 4. Community Development Department. The Community Development Director is directed to provide a written report to the City Council at least ten (10) days prior to the expiration of this ordinance, describing the study conducted of the local conditions that led to the adoption of this ordinance.

SECTION 5. Effective Date. This ordinance shall become effective immediately upon the date of its adoption pursuant to Government Code section 65858.

SECTION 6. Expiration. This moratorium shall be of no further force or effect upon the expiration of twelve (12) months from the date of adoption, unless extended in accordance with the provisions Government Code section 65858.

SECTION 7. Severability. If any section, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

SECTION 8. Compliance with California Environmental Quality Act. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15308 (regulatory action taken by the City pursuant to its policy power and in accordance with Government Code Section 65858 and Article XI, Section 7 of the California Constitution), 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment), and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, Title 14, Chapter 3 of the California Code of Regulations because it has no potential for resulting in physical change to the environment, directly or indirectly, as it prevents changes in the environment pending the completion of the contemplated possible review of City zoning regulations.

SECTION 9. Custodian of Records. The documents and materials that constitute the record of proceedings on which this Ordinance is based are located at the City Clerk’s office located at 4831 Broadway, Suite 201, American Canyon, CA 94503. The custodian of these records is the City Clerk. 92 The foregoing Urgency Ordinance was adopted at a regular meeting of the City Council of the City of American Canyon, State of California, held on the 18th day of January, 2022 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_____________________________
Leon Garcia, Mayor
ATTEST: APPROVED AS TO FORM:
_______________________________ ___________________________ Taresa Geilfuss, City Clerk William D. Ross, City Attorney 93 ATTACHMENT 2
ORDINANCE NO. 2022-____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AMERICAN CANYON, CALIFORNIA, AMENDING THE AMERICAN CANYON MUNICIPAL CODE CHAPTER 19.04 DEFINITIONS; CHAPTER

19.05 COMMERCIAL CLASSIFICATIONS; CHAPTER 19.11 COMMERCIAL ZONING DISTRICT; CHAPTER 19.49 NONCONFORMING USES, STRUCTURE, AND LOTS; AND BROADWAY DISTRICT SPECIFIC PLAN TABLE 2-3 PERMITTED USES TO PROHIBIT NEW AND EXPANDED SERVICE STATIONS

IN ALL ZONING DISTRICTS IN THE CITY OF AMERICAN CANYON THAT ENGAGE IN RETAIL SALE OF MOTOR VEHICLE FOSSIL FUELS (PL21-0028)
WHEREAS, Article XI, Section 7 of the California Constitution authorizes cities to adopt local police, sanitary, and other ordinances not in conflict with general laws; and WHEREAS, Climate change represents a growing danger to human health, safety, economic prosperity, basic services, and natural resources. The State of California as a whole, and Napa County residents, the economy, and environment have experienced adverse effects associated with climate change, such as a prolonged wildfire seasons and firestorms, rising temperatures, mudslides, severe droughts, property destruction and damage to infrastructure; and
WHEREAS, American Canyon has a long history of supporting policies to protect the environment. In 2013, American Canyon’s Energy Efficiency Climate Action Plan (EECAP) was the first Climate Action Plan adopted in Napa County; and
WHEREAS, on June 18, 2019, the City Council approved a Countywide Commitment to Address Climate Change Proclamation declaring the City’s support of local actions to address climate change including joining the Napa Countywide Climate Action Committee (CAC); and WHEREAS, on April 6, 2021, due to concerns of greenhouse gas emissions as well as market saturation and Broadway District Specific Plan (BDSP) community character, the City Council adopted Urgency Ordinance 2021-03 to impose an immediate 10-Month, 15-day moratorium on processing discretionary entitlements to establish, use, and operate new fuel stations within the City of American Canyon; and WHEREAS, according to the California Air Resources Board (CARB), transportation accounts for about 40% of the state's greenhouse gas (GHG) pollution in the State which places transportation as the leading source of GHG pollution in California; and
WHEREAS, as of 2017, the CARB reports that passenger vehicles represent the largest single source of transportation GHG emissions in California; and
WHEREAS, according to the California Department of Transportation (Caltrans), widespread use of Zero Emission Vehicles (ZEVs) will improve California's air quality and help meet California's GHG reductions targets; and
WHEREAS, a ZEV is defined as plug-in hybrid electric, full battery electric, hydrogen, and fuel cell vehicles because they have no greenhouse gas or air pollutant tailpipe emissions; and 94 WHEREAS, according to Caltrans, ZEVs are typically cheaper to fuel than gasoline-powered vehicles, and there are an increasing number of models to choose from, including longer-range Battery Electric Vehicles (BEVs), All-wheel-drive vehicles, SUVs, and mini-vans; and WHEREAS, in September 2020, as part of an effort to address the impacts of climate change caused by transportation-related greenhouse gas emissions, Governor Newsom issued Executive Order N-79-20 to require all in-state sales of new passenger vehicles be ZEV by 2035; and WHEREAS, the Governor’s Executive Order sets a further State goal that 100 percent of medium- and heavyduty (MD/HD) vehicles be zero-emission by 2045 for all operations where feasible, and by 2035 for drayage trucks, and transition to 100 percent zero-emission off-road vehicles and equipment by 2035 where feasible; and
WHEREAS, the City is an active member of the Napa County Climate Action Committee and this Committee is contemplating policy amendments to reduce greenhouse gas emissions in Napa County; and WHEREAS, there are three existing fuel stations in American Canyon and one approved fuel station in American Canyon and the existing and proposed fuel stations do not include any Zero Emission Vehicle (ZEV) fueling infrastructure; and

WHEREAS, pursuant to Section 65300 of the State Planning and Zoning Law, the City of American Canyon (City) has adopted a General Plan to provide comprehensive long-range planning and a blueprint of the City’s future form, including land use and circulation maps that specify the roadway network and the distribution of types and intensities of land; and
WHEREAS, on July 22, 2021, the Planning Commission recommended City Council approval of a General Plan Amendment to incorporate climate change, adaptation, and greenhouse gas reduction policies into the Land Use Element (Resolution 2021-16); and
WHEREAS, on September 7, 2021, the City Council approved climate change, adaptation, and greenhouse gas reduction policies into the General Plan (Resolution 2021-60); and WHEREAS, on November 16, 2021, the City Council issued a Climate change Emergency Proclamation that acknowledges climate change caused by human activity represents a growing danger to human health, safety, and economic prosperity, and the window of opportunity for long term climate preservation is rapidly closing and commits to a goal of net zero climate pollution, measured in terms of net contribution to excess trapped heat, by or before 2030 by implementing immediate and sustained actions in support of its achievement; and
WHEREAS, pursuant to the California Environmental Quality Act (CEQA), (Public Resources Code Section 21000, et seq.), the proposed Zoning Code and Specific Plan Amendment is categorically exempt from environmental review in accordance with CEQA Guidelines Section 15307 Actions by Regulatory Agencies for Protection of Natural Resources, and CEQA Guidelines Section 15308 Actions by Regulatory Agencies for Protection of the Environment. CEQA Guidelines Section 15307 and 15308 are applicable because the proposed Zoning Code and Specific Plan amendments are intended to address climate change impacts that pose an immediate and growing threat to California’s economy, environment, and public health; and 95 WHEREAS, a duly-noticed public hearing was held by the City of American Canyon Planning Commission on October 28, 2021 and December 16, 2021 on the subject project, and recommends City Council approval; and
WHEREAS, a duly-noticed public hearing was held by the City of American Canyon City Council on January 18, 2022 on the subject project, at which time all those in attendance were given the opportunity to speak on this proposal and to submit comments.

NOW, THEREFORE, BE IT ORDAINED that the City Council of the City of American Canyon, having considered all the evidence, including any submitted by member of the public, hereby approves Zoning Code Amendments as shown below.

SECTION 1. FINDINGS. Based on the following evidence and as required by Zoning Ordinance Section

19.48.040 C, the City Council finds that:
a. The amendment is consistent with the goals and policies of the general plan.

General Plan Opportunities and Constraints #15 states that climate change impacts pose an immediate and growing threat to California’s economy, environment, and public health. The effects of climate change in American Canyon include increased temperatures, decreased air quality, reduced precipitation, flooding, a prolonged wildfire seasons and firestorms, mudslides, severe droughts, reduced water supply, property destruction, and damage to infrastructure.

To address these constraints, the proposed ordinance will fulfill related General Plan Policy 1.37.2 which states: “Recognizing that the transportation sector is the largest source of GHG emissions in American Canyon and in California more broadly, prohibit construction of new fossil-fuel stations in American Canyon.” The proposed Ordinance would achieve Policy 1.37.2 by prohibiting new fossil fuel stations in American Canyon. The proposed ordinance includes reasonable measures to address nonconforming gas stations and unforeseen “Force Majeure” events that cause a gap in gas station operations.
b. The amendment is consistent with the purposes of this title, as set forth in Chapter 19.01, Authority, Purposes and Effects of the Zoning Ordinance.

The amendment is consistent with the purpose of the Zoning Ordinance to protect and promote the public health, safety, peace, comfort, convenience, aesthetics, prosperity, and general welfare consistent with the City Council Climate Change Emergency Proclamation that acknowledges climate change caused by human activity represents a growing danger to human health, safety, and economic prosperity, and commits to a goal of net zero climate pollution, measured in terms of net contribution to excess trapped heat, by or before 2030 by implementing immediate and sustained actions in support of its achievement.

SECTION 2. ZONING CODE AMENDMENTS.

The following policies are hereby incorporated into the American Canyon Chapter 19 (“Zoning Code”):

Chapter 19.04 – Definitions
Section 19.04.030 – Citywide Definitions
*Note to Codifier: Add this new definition.
96 Force Majeure Event. A Force Majeure Event is an extraordinary event or circumstance beyond the control of one or more parties that impacts their ability to perform. This definition of Force Majeure Event shall be limited to situations resulting in a declaration of a state or local emergency that was caused by acts of God or the elements, storms, wildfires, earthquakes, pandemics, wars, acts of terrorism, riots, or insurrection that significantly impact a party.
*Note to Codifier: Add this new definition.
“Zero-Emission Vehicle. A zero-emission vehicle is any type of vehicle that has no tailpipe emissions.

Vehicles run on electric motors and are powered by electricity delivered from batteries or hydrogen and fuel cells. In contrast to conventional internal combustion vehicles, zero emission vehicles prevent air pollution, lower greenhouse gas emissions, and help integrate renewable energy into the transportation sector. There are two kinds of zero emission vehicles: plug-in electric vehicles and hydrogen fuel cell electric vehicles.”
Chapter 19.05 – Use Classifications
The Zoning Code Use Classification chapter defines every use that is Permitted, Conditionally-Permitted, or Prohibited in the City. Service Stations are only permitted in Commercial Zoning Districts and the Broadway District Specific Plan.

Section 19.05.050 – Commercial Classifications
*Note to Codifier: Delete this definition.

Gas stations and automobile service facilities: an establishment engaged primarily in the retail sale of motor fuels and incidentally in the supplying of goods and services required in the operation and maintenance of motor vehicles. This classification includes incidental maintenance and repair of automobiles and light trucks. Should be discouraged at major intersections. *Note to Codifier: Add this new definition.

Fossil Fuel Service Station: an establishment engaged primarily in the retail of motor vehicle fossil fuels sales and incidentally in the supplying of goods and services required in the operation to operate and maintain maintenance of motor vehicles. This classification includes incidental of automobiles and light trucks repair and maintenance, but excludes body and fender work or repair of heavy trucks or vehicles, upholstery work, auto glass work, painting, tire recapping, auto dismantling, auto storage, and the sale of groceries, dairy products, liquor, garden supplies and similar items. *Note to Codifier: Add this new definition.

Zero Emission Vehicle Service Station: an establishment engaged primarily in retail electric vehicle fuel sales and incidental goods and services required to operate and maintain zero emission motor vehicles. This classification includes incidental maintenance and repair of automobiles and light trucks, but excludes body and fender work or repair of heavy trucks or vehicles, upholstery work, auto glass work, painting, tire recapping, auto dismantling, auto storage, and the sale of groceries, dairy products, liquor, garden supplies and similar items.

This classification does not include electric vehicle charging stations installed as an accessory use (see “Accessory Use” Definition Section 19.04.030).

Chapter 19.11 – Commercial Districts
97 The Zoning Code Commercial District chapter identifies the development standards and allowable uses in Commercial Zoning districts throughout the city.

Section 19.11.040 – Permitted Uses in Commercial Zoning Districts *Note to Codifier: Amend Table 1 to with the following changes:

1. Delete Gas Stations and automobile service facilities because this use is redundant with service station.

2. Change Service Station from Conditionally Permitted to Prohibited in the Neighborhood Commercial and Community Commercial zoning districts.

3. Add Zero Emission Service Station as a Conditionally Permitted use in the Neighborhood Commercial and Community Commercial zoning districts.

Chapter 19.49 – Nonconforming Uses, Structure, and Lots *Note to Codifier: Add this new Section 19.49.090.

19.49.090 - Regulation of Fossil Fuel Service Station Uses and Structures A. Purpose.

1. Accommodate continued Fossil Fuel Service Station operation as a legal non-conforming use and describe when they may be deemed abandoned.

2. Allow alterations to Fossil Fuel Service Station when such changes provide greater protection of the environment, safeguard public health and safety, facilitate the use of zero emission vehicles, or enable other uses permitted within the respective zoning district.

3. Prohibit Fossil Fuel Service Station operations from increasing the storage and dispensing capacity of gasoline and any other fossil fuel.

B. Applicability. This section applies to:

1. All lawfully developed and operating Fossil Fuel Service Station uses in existence prior to March 3, 2022.

2. All Fossil Fuel Service Station uses not yet developed and/or operating but subject to an approved and unexpired land use permit as of March 3, 2022.

C. Modifications to Fossil Fuel Service Station Uses, Generally. Except as provided below, Fossil Fuel Service Station uses and structures shall not be enlarged, extended, reconstructed or moved to a different portion of the lot or parcel of land occupied by such use. Examples of features subject to this provision include, but are not limited to retail fossil fuel sale, storage, conveyance, and dispensing (i.e., storage tanks, pumps, dispensers).

D. Modifications to Improve Public Health and Safety. Fossil Fuel Service Station uses may be modified to conform to current public health and safety standards (i.e.: stormwater quality control regulations or remediate contamination of the soil, groundwater, pedestrian and bicycle access safety, traffic control devices).

E. Modifications to Enable Zero Emission Vehicles (Battery Charging Station). Fossil Fuel Service Station uses may be modified to accommodate battery charging station(s) for Zero Emission Vehicles. 98 F. Modifications to Enable Zero Emission Vehicles (Hydrogen Fuel Cell Station). Fossil Fuel Service Station uses may be altered to include hydrogen storage, conveyance and dispensing facilities.

G. Discontinuation of Fossil Fuel Service Station Uses or Structures. A Fossil Fuel Service Station Use shall not be re-established if such use has been discontinued for a continuous period of one hundred and eighty (180) days or longer, unless either of the following exceptions apply:

1. If the use has discontinued for one hundred and eighty (180) days or longer because the nonconforming Fossil Fuel Service Station is subject to construction with a valid building permit that has not received final inspection, the nonconforming timeframe will be extended in accordance with the building permit application completion.

2. If the use has discontinued for of one hundred and eighty (180) days or longer due to a Force Majeure Event, the nonconforming timeframe may be extended in accordance with a timeframe that receives the approval of the City Community Development Director and the concurrence of the City Attorney. The determination of whether an event or circumstance is a “Force Majeure Event” is to be made at the discretion of the City.

SECTION 3. BROADWAY DISTRICT SPECIFIC PLAN AMENDMENTS.
*Note to Codifier: Amend Table 2-3 with the following changes:

1. Delete Gas Stations and automobile service facilities because this use is redundant with service station.

2. Add Zero Emission Service Station as a Conditionally Permitted use in the Business Park zoning district.

SECTION 4. COMMUNITY DEVELOPMENT DEPARTMENT. The Community Development Director is directed to provide a written report to the City Council at least ten (10) days prior to the expiration of this ordinance, describing the study conducted of the local conditions that led to the adoption of this ordinance.

SECTION 5. EFFECTIVE DATE. This ordinance shall become effective immediately upon the date of its adoption pursuant to Government Code section 65858.

SECTION 6. SEVERABILITY. If any section, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

SECTION 6. COMPLIANCE WITH CALIFORNIA ENVIRONMENTAL QUALITY ACT. Consistent with Public Resources Code Section 21000, et seq., the California Environmental Quality Act, (“CEQA”), the proposed Zoning Code and Specific Plan Amendments are categorically exempt from environmental review in accordance with CEQA Guidelines Section 15307 Actions by Regulatory Agencies for Protection of Natural Resources, and CEQA Guidelines Section 15308 Actions by Regulatory Agencies for Protection of the Environment. CEQA Guidelines Section 15307 and 15308 are applicable because the proposed amendments are intended to address Climate change impacts that pose an immediate and growing threat to California’s economy, environment, safety, and public health.
99 SECTION 7. CUSTODIAN OF RECORDS. The documents and materials that constitute the record of proceedings on which this Ordinance is based are located at the City Clerk’s office located at 4831 Broadway, Suite 201, American Canyon, CA 94503. The custodian of these records is the City Clerk.

The foregoing Ordinance was introduced at a regular meeting of the City Council of the City of American Canyon, State of California, held on the 18th day of January, 2022 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

The foregoing Ordinance was adopted at a regular meeting of the City Council of the City of American Canyon, State of California, held on the 1
st day of February, 2022, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_____________________________
Leon Garcia, Mayor
ATTEST: APPROVED AS TO FORM:
_______________________________ ___________________________ Taresa Geilfuss, City Clerk William D. Ross, City Attorney

EXHIBIT A
Parcel A Zoning Map Amendment
PASSED, APPROVED and ADOPTED at a regularly scheduled meeting of the Planning Commission of the City of American Canyon held on the 28th day of October, 2021, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
____________________________
Tyrone Navarro, Chair
ATTEST: APPROVED AS TO FORM:
100
_______________________________ ___________________________ Nicolle Jones, Administrative Technician William D. Ross, City Attorney 101

CITY COUNCIL AGENDA
JANUARY 18, 2022

STAFF REPORT

BUSINESS
ITEM NUMBER: 13.

TITLE
Amendment 17 to Napa County Agreement No. 3220 for Law Enforcement Services

RECOMMENDATION
Adopt a Resolu/on approving Amendment 17 to Napa County Agreement No. 3220 with the Napa County Sheriff’s Office for law enforcement services for the period March 1, 2022 through June 30, 2024.

CONTACT
Rick Greenberg, Chief of Police

BACKGROUND & ANALYSIS
The Napa County Sheriff’s Office has been providing law enforcement services to the City of American Canyon (City) since its incorpora/on in 1992. On July 9, 1996, an Agreement for Law Enforcement Services between the City and the Napa County Sheriff’s Office was established and has been amended from /me to /me. In July 2006, a new agreement (Agreement) was reached between the par/es, under which the City contracted with County for the provision of certain law enforcement services within the City’s municipal boundaries.

On April 16, 2019, the City of American Canyon Adopted Resolu/on 2019-31 approving Amendment 16 to Napa County Agreement No. 3220 with the Napa County Sheriff’s Office for Law Enforcement Services for the period July 1, 2019 through June 20, 2024.

Over the past year, the City and Sheriff’s Office have evaluated staffing for the Public Safety Facility’s front counter. Since the Public Safety Facility opened in 2007, the front counter has been staffed with an Administra/ve Clerk I/II that was a City employee. This posi/on, which is currently vacant, is essen/al for the efficient and effec/ve management of daily business. In September, the City conducted an Administra/ve Clerk I/II recruitment to fill this posi/on, but was unsuccessful given the specific requirements associated with working in a law enforcement environment that are not adequately described in this job classification.

Based on opera/onal needs of the Department, the posi/on should be filled with someone with knowledge of principles and legal requirements of law enforcement records, sta/s/cal informa/on, and management of document storage, retrieval, prepara/on, and processing within a confiden/al 102
public safety environment. Due to the nature of this posi/on, a full law enforcement level background check is required during the employment process.

The Sheriff’s Office has an employee classifica/on that meets these opera/onal needs. It would be beneficial to the community that this posi/on be changed from a City posi/on to a Napa County Records Tech II posi/on. This change would provide the Department with the necessary exper/se and sufficient backup and training resources to avoid any interrup/ons in service in this key role. It is recommended that the Agreement be amended to add a Sheriff’s Records Tech II posi/on to the contracted staff to be supplied to the City.

During the term of this Agreement, City shall be invoiced monthly and agrees to reimburse County for the performance of law enforcement services under this Agreement. A further breakout of the amounts is provided in the Service plan, Exhibit A-17.

COUNCIL PRIORITY PROGRAMS AND PROJECTS
Public Safety: "Ensure American Canyon remains a safe community."

FISCAL IMPACT
Under the terms of Amendment 17, the Sheriff’s Office will provide one Records Tech II posi/on to the City of American Canyon. The amounts listed below include all allowable direct and indirect costs es/mated to be incurred by County for provision of services set forth in the Service Plan.

Employees performing services under this agreement will be en/tled to all benefits and paid leave.

An es/mated increase of 20% in salary and benefits from Administra/ve Clerk I to Records Tech II has been allocated in the budget. The City’s current Memorandum of Understanding ends June 2022; therefore, the salary and benefits for FY 2022/2023 and 2023/2024 reflect a 2% increase. The costs for Fiscal Year 2021-2022 reflect the Records Tech II employee will begin March 2022.

Fiscal Year Sheriff Record Tech II City Admin Clerk I Difference 2021/2022 $32,213.00 $26,450.00 $5,763.00
2022/2023 $99,637.00 $80,937.00 $18,700.00
2023/2024 $102,626.00 $82,555.00 $20,071.00

ALTERNATIVES
If front counter staffing were to con/nue to be a City posi/on, a new job classifica/on separate from the Administra/ve Clerk I/II class would need to be created that encompasses the law enforcement opera/onal requirements described above. This would most likely be a single incumbent posi/on lacking a career ladder or peer support. The pay scale for the new classifica/on would need to be competitive within our local market.
103

ENVIRONMENTAL REVIEW
N/A
ATTACHMENTS:

1. Resolution - Law Enforcement Services

2. Amendment 17 Law Enforcement Services

3. Exhibit A-17 Amendment 17 - Law Enforcement Services 104
RESOLUTION NO. 2022-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AMERICAN CANYON APPROVING AMENDMENT 17 TO NAPA COUNTY AGREEMENT NO. 3220 WITH THE NAPA COUNTY SHERIFF’S OFFICE FOR LAW ENFORCEMENT SERVICES FOR THE PERIOD MARCH 1, 2022 THROUGH JUNE 30, 2024.

WHEREAS, the City of American Canyon and the County of Napa have previously entered into Agreement No. 3220 for Law Enforcement Services within the City’s municipal boundaries; and WHEREAS, on April 16, 2019, the City of American Canyon adopted Resolution 2019-31 approving Amendment 16 to the Napa County Agreement 3220 with the Napa County Sheriff’s Office for Law Enforcement Services for period July 1, 2019 through June 30, 2024; and WHEREAS, the City of American Canyon and Napa County Sheriff Office have evaluated the Public Safety Facility Administrative Clerk position and recommend the position be a Sheriff’s Record Tech II position; and
WHEREAS, Amendment 17 includes a Sheriff’s Record Tech II position and the City of American Canyon agrees to reimburse the Napa County Sheriff’s Office for the performance of law enforcement services under this agreement; and
NOW THEREFORE BE IT RESOLVED that the City Council of the City of American Canyon hereby approves Amendment 17 To Napa County Agreement No. 3220 with the Napa County Sheriff’s Office for Law Enforcement Services for the Period March 1, 2022 Through June 30, 2024.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of American Canyon on the 18th of January, 2022, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_______________________________
Leon Garcia, Mayor
ATTEST: APPROVED AS TO FORM:
_______________________________ _______________________________ Taresa Geilfuss, City Clerk William D. Ross, City Attorney 105
1 H: cc\docs\sheriff\contracts\city police services\am can\ Am Can Amend 17.doc Napa County Agreement No. __200005B (pka 3220)___
American Canyon Agreement No. _2013-72______
AMENDMENT NO. 17

TO AGREEMENT FOR LAW ENFORCEMENT SERVICES

BETWEEN NAPA COUNTY AND

THE CITY OF AMERICAN CANYON
THIS AMENDMENT NO. 17 (“Amendment”) to Napa County Agreement No. 200005B (previously known as Agreement No. 3220) for law enforcement services is made and entered into as of the 1st day of March, 2022, by and between Napa County (“County”), a political subdivision of the State of California, and the City of American Canyon (“City”), a municipal corporation.

RECITALS
WHEREAS, the parties previously entered into an Agreement for Law Enforcement Services, initially dated July 9, 1996 and amended from time to time thereafter until a new agreement was reached between the parties dated July 2006 (the “Agreement”), pursuant to which the City contracted with County for the provision of certain law enforcement services within the City's municipal boundaries; and
WHEREAS, the Agreement has been amended from time to time to provide a service plan and cost estimates for future fiscal years; and
WHERAS, the parties now desire to add a Sheriff’s Records Tech II to the contracted staff to be supplied to the City; and
WHEREAS, Section 43 of the Agreement provides that all changes to the Agreement must be by written amendment authorized by the City's City Council and the County's Board of Supervisors.

AGREEMENT
NOW, THEREFORE, in consideration of the foregoing, the mutual agreements of the parties and other valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

1. Section 14, entitled “Compensation for Services” is hereby amended to read in full as follows:
“During the term of this Agreement (from July 1, 2019 to June 30, 2022 and Option Year One July 1, 2022 to June 30, 2023, Option Year Two July 1, 2023 to June 30, 2024), the total cost for provision of the services set forth in this Agreement shall be as follows: For Fiscal Year 2019- 2020: Six Million Seven Hundred Fifty-One Thousand One Hundred Sixty-Five Dollars 106
2 H: cc\docs\sheriff\contracts\city police services\am can\ Am Can Amend 17.doc ($6,751,165.00); for Fiscal Year 2020-2021: Six Million Nine Hundred Fifty-Three Thousand Seven Hundred One Dollar ($6,953,701.00); for Fiscal Year 2021-2022: Seven Million Two Hundred Twenty-Seven Thousand One Hundred Fifty-One Dollars ($7,227,151). Option Year One, Fiscal Year 2022-2023: Seven Million Five Hundred Sixteen Thousand One Hundred Thirty-Eight Dollars ($7,516,138); Option Year Two, Fiscal Year 2023-2024: Seven Million Seven Hundred Forty-One Thousand Six Hundred Twenty-Two Dollars ($7,741,622). A further breakout of the amounts are provided in the Service Plan, which is attached hereto as Exhibit “A17,” and incorporated here by reference. “The amounts set forth above include all allowable direct and indirect costs estimated to be incurred by County for provision of services set forth in the Service Plan. Specifically, the estimated costs include, but are not necessarily limited to: non-recurring personnel start-up costs (associated with hiring/training personnel to replace Sheriff's Department employees to be allocated to City for performance of services hereunder); estimated salaries for employee classifications expected to be performing services; all employee benefits to be paid by County at rates established by the County Board of Supervisors; the estimated costs of providing relief for all allowable absences (including, but not limited to, vacation, compensatory time off, sick leave, disability leave, bereavement leave, military leave, and jury duty); estimated supplies and services necessary for performance of work hereunder (including, but not limited to, items such as equipment and training); and indirect expenses (i.e., internal overhead associated with functions such as Administration, Records, Dispatch, and Crime Analysis). “Employees performing services under this Agreement will be entitled to all benefits, including paid holidays and other paid leave (such as vacation, compensatory time off, sick leave, disability leave, bereavement leave, military leave, and jury duty) as allowed by County for all employees and/or as allowed by bargaining agreements governing the employee classifications performing services hereunder. All costs associated with such benefits are allowable under this Agreement.

During the term of this Agreement, City shall be invoiced monthly and agrees to reimburse County for the performance of law enforcement services under this Agreement.

The costs for such services shall be fixed at the amounts set forth in the first paragraph of this Section. Notwithstanding the foregoing, if County continues to provide law enforcement services to City after expiration of the term of the Agreement, City shall reimburse County for actual costs incurred by County for performance of law enforcement services provided thereafter, until such time as the parties reach further agreement to extend or renew the Agreement.”

3. Exhibit “A-17” attached hereto and incorporated herein by reference is hereby made part of the Agreement. As of the effective date of this Amendment, all references to Exhibit “A” in the Agreement shall mean Exhibit “A-17,” the Service Plan that sets forth the levels of service to be provided during the term set forth in this Amendment. 107
3 H: cc\docs\sheriff\contracts\city police services\am can\ Am Can Amend 17.doc

4. Except as expressly set forth herein, the Agreement shall remain unchanged and in full force and effect. This Amendment may be executed in counterparts with the same force and effect as if each of the signatories had executed the same instrument.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 17 as of the date first above written.

NAPA COUNTY, a political
subdivision of the State of California
By
ALFREDO PEDROZA, Chair of the
Board of Supervisors
"COUNTY"

APPROVED AS TO FORM
Office of County Counsel
By: S. Darbinian

Date: November 30, 2021

APPROVED BY THE NAPA COUNTY

BOARD OF SUPERVISORS
Date:

Processed By:

Deputy Clerk of the Board
ATTEST: NEHA HOSKINS
Clerk of the Board of Supervisors
By:

CITY OF AMERICAN CANYON
By_______________________________________
JASON HOLLEY, City Manager
ATTEST: CHERRI WALTON
American Canyon Deputy City Clerk
By:

APPROVED AS TO FORM:

WILLIAM D. ROSS, City Attorney
By:
108
4th Year Option (1) 5th Year Option (2)
BASE RATE SERVICES FY19/20 FY20/21 FY 21/22 FY 22/23 FY 23/24

4.0% 3.0% 3.5% 3.0% 3.0%
PATROL
1 CHIEF 341,094 351,327 363,623 374,532 385,768
4 SERGEANT 929,112 956,985 990,480 1,020,194 1,050,800
8 DEPUTY SHERIFF II 1,341,504 1,381,749 1,430,110 1,473,014 1,517,204 11 SENIOR DEPUTY SHERIFF II 2,191,992 2,257,752 2,336,773 2,406,876 2,479,083 1 SHERIFF'S RECORDS TECH II - - 32,213 99,637 102,626
25 Total Personnel 4,803,702 4,947,813 5,153,200 5,374,253 5,535,481 ESTIMATED HOLIDAY PAY 85,265 87,823 90,897 93,624 96,433

INVESTIGATIONS/NSIB
INVESTIGATIONS, I.D., LAB, PROP/EVIDENCE 61,192 63,028 64,919 66,866 68,872 BWC DATA STORAGE/TRANSFER SHERIFF'S RECORDS TECH III 10,728 11,050 11,382 11,723 12,075 OVERTIME/COURT APPEARANCES 449,232 462,709 478,904 493,271 508,069 DISPATCH 814,592 839,030 864,201 890,127 916,830

CENTRAL DISPATCH
AMERICAN CANYON 40% OF TOTAL

SHERIFF'S DEPT CALLS FOR SERVICE
FY 19-20 Cost $2,036,480
K9 25,669 26,439 27,233 28,050 28,891
TOTAL DIRECT EXPENSES 6,250,382 6,437,893 6,690,735 6,957,914 7,166,652

ADMINISTRATIVE SERVICES
DEPT OVERHEAD 8.6% 537,533 553,659 575,403 598,381 616,332 TOTAL DIRECT/INDIRECT 6,787,915 6,991,552 7,266,138 7,556,295 7,782,984 LESS PARKING REVENUE (36,749) (37,851) (38,987) (40,156) (41,361) TOTAL ANNUAL COST 6,751,165 6,953,701 7,227,151 7,516,138 7,741,622

CITY OF AMERICAN CANYON

LAW ENFORCEMENT CONTRACT
FY 2019/2020 - FY 2023/2024
EXHIBIT A-17
109

CITY COUNCIL AGENDA
JANUARY 18, 2022

STAFF REPORT

BUSINESS
ITEM NUMBER: 14.

TITLE
Annual Comprehensive Financial Report

RECOMMENDATION
Receive and file the Annual Comprehensive Financial Report and related communica*ons from the City's external auditor for Fiscal Year 2020-21.

CONTACT
Lincoln Bogard, Finance Director

BACKGROUND & ANALYSIS
A2er the conclusion of each fiscal year, an independent auditor (currently Richardson & Co.) reviews the repor*ng of the City’s financial statements in accordance with industry accoun*ng standards.

The result is an “Annual Comprehensive Financial Report (ACFR)”.

The City’s Fiscal Year 2020-21 ACFR was finalized on December 30, 2021 (A=achment 1). It includes financial statements for the City of American Canyon and the American Canyon Fire Protec*on District. It also contains the independent auditor’s report, which describes the scope of the audit as well as the auditor’s opinion on the financial statements. For the Fiscal Year 2020-21 ACFR, the City received an “unmodified” opinion. An “unmodified” opinion is only issued when there are no significant repor*ng issues, the financial statements are free of material misstatements, and informa*on is presented in accordance with Generally Accepted Accoun*ng Principles (GAAP). This opinion indicates that the City’s financial condi*on, posi*on, and opera*ons are fairly presented in the financial statements. This is important to financial statement users and provides comfort to the City’s creditors, while enabling the City to obtain better interest rates on any new debt issuances.

Staff reviewed the first dra2 of the FY 2020-21 ACFR with the Finance Commi=ee on December 16, 2021. At that mee*ng, staff provided the “government-wide financial statements”, the “statement of net assets” and the “statement of ac*vi*es”. These statements provide both long and short-term informa*on about the City’s overall financial status. Addi*onally, the commi=ee specifically reviewed the General Fund Net Posi*on. As the Finance Director men*oned in that mee*ng, there were changes made to the Governmental Fixed Assets by the audit team that the Audit Partner confirmed should be changed back to the City's calculated amounts. 110
City management assumes full responsibility for the completeness and reliability of all of the informa*on presented in the ACFR. The City has established a comprehensive internal control framework designed to protect the City’s assets from loss, the2, or misuse and provide sufficient reliable informa*on that the City of American Canyon’s financial statements are in conformity with GAAP. The cost of internal controls should not outweigh the resul*ng benefits and internal controls are designed to provide reasonable assurance, not absolute assurance, that the financial statements will be free from material misstatements. City management asserts that, to the best of our knowledge and belief, the financial report is complete and reliable in all material respects.

The Fiscal Year 2020-21 ACFR includes and introductory sec*on that profiles the City, discusses the local economy, recounts key projects, and details financial planning issues and future challenges, as well as other vital topics. Included in the report is the Cer*ficate of Achievement for Excellence in Financial Repor*ng presented to the City by the Government Finance Officers Associa*on for its prior year (Fiscal Year 2019-20). Staff has submi=ed the Fiscal Year 2020-21 ACFR for the same award and expects to receive it in time for presentation in next year’s ACFR.

The ACFR also includes a “Management Discussion and Analysis” sec*on, which provides financial highlights, an overview of the financial statements, and compares key financial data to the prior year. The conclusion of the report details a variety of supplemental financial data, debt and demographical sta*s*cs. Also included are four related communica*ons: “Management Le=er”, “Governance Le=er”, “Appropria*on Limit Tes*ng for the City”, and “Appropria*on Limit Tes*ng for the Fire District”. In these le=ers, the auditors iden*fied no material deficiencies in internal controls.

The “Management Le=er” noted ma=ers for considera*on that staff will be working on implementing in the next ACFR.

COUNCIL PRIORITY PROGRAMS AND PROJECTS
Organizational Effectiveness: "Deliver exemplary government services."

FISCAL IMPACT
The cost of the audit was consistent with the approved contract amount and the recommended ac*on will have no impact on the City's Fiscal Year 2021-22 Budget. A full discussion of the City’s financial status starts on Page 4 of the Fiscal Year 2020-21 ACFR.

Implied in all City Council Goals, Objec*ves, and Work Programs is the fundamental principle that the City will follow the City Council’s adopted Fiscal Policy and will exercise the utmost financial discipline and accountability. In accordance with the City’s adopted Fiscal Policy and pursuant to Sec*on 37208 of the Government Code, the City Manager is responsible for preparing an audited Comprehensive Financial Report each year.

ENVIRONMENTAL REVIEW
Not applicable.
111
ATTACHMENTS:

1. City of American Canyon Annual Comprehensive Financial Report FY 2020-21

2. City of American Canyon Management Letter FY 2020-21

3. City of American Canyon Governance Letter FY 2020-21

4. City of American Canyon Appropriations Limit Report FY 2020-21

5. American Canyon Fire Protection District Appropriations Limit Report FY 2020-21 112

CITY OF AMERICAN
CANYON
AND

AMERICAN CANYON

FIRE PROTECTION

DISTRICT

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
for the fiscal year ended
June 30, 2021
American Canyon, California
www.cityofamericancanyon.org
113

(This page intentionally left blank.)
114

American Canyon, California
Napa County
City of
American
Canyon

CITY OF AMERICAN CANYON
AND
AMERICAN CANYON FIRE PROTECTION DISTRICT
ANNUAL COMPREHENSIVE FINANCIAL REPORT
for the fiscal year ended June 30, 2021
Prepared by the Finance Department
115

(This page intentionally left blank.)
116
CITY OF AMERICAN CANYON and

AMERICAN CANYON FIRE PROTECTION DISTRICT
Annual Comprehensive Financial Report
June 30, 2021
117
(This page intentionally left blank.)
118

CITY OF AMERICAN CANYON
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
i
TABLE OF CONTENTS ..................................................................................................................... i

INTRODUCTORY SECTION
Letter of Transmittal ......................................................................................................................... iv Certificate of Achievement for Excellence in Financial Reporting – Government Finance Officers Association .................................................................................. xii List of Principal Officials ................................................................................................................ xiii Organizational Chart ....................................................................................................................... xiv

FINANCIAL SECTION
Independent Auditor’s Report ............................................................................................................ 1 Management’s Discussion and Analysis ........................................................................................... 4 Basic Financial Statements
Government-Wide Financial Statements:

Statement of Net Position ......................................................................................................... 17 Statement of Activities ............................................................................................................. 18 Fund Financial Statements:

Governmental Funds:

Balance Sheet ........................................................................................................................ 20 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ................................................................................................... 22 Statement of Revenues, Expenditures, and Changes in Fund Balances .............................................................................................................................. 23 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities ........................................................................................................ 25 Proprietary Funds:

Statement of Net Position ..................................................................................................... 26 Statement of Revenues, Expenses and Changes in Fund Net Position ............................................................................................................................... 27 Statement of Cash Flows ...................................................................................................... 28 Fiduciary Funds:

Statement of Fiduciary Net Position ..................................................................................... 29 Statement of Changes in Fiduciary Net Position .................................................................. 30 Notes to Basic Financial Statements ............................................................................................ 31

REQUIRED SUPPLEMENTARY INFORMATION
Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual:

General Fund .............................................................................................................................. 73 Fire District Operations Special Revenue Fund ......................................................................... 74 CDBG, CalHome and HOME Loan Development Special Revenue Fund ......................................................................................................................................... 75 State and Federal Grants – City Special Revenue Fund ............................................................. 76 119

CITY OF AMERICAN CANYON
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
ii
REQUIRED SUPPLEMENTARY INFORMATION (Continued)
Schedule of the Proportionate Share of the Net Pension Liability and Schedule of Contributions – City Miscellaneous Plan (Unaudited) ............................................ 77 Schedule of the Proportionate Share of the Net Pension Liability and Schedule of Contributions – Fire Safety Plan (Unaudited) .......................................................... 78 Schedule of the Proportionate Share of the Net Pension Liability and Schedule of Contributions – Fire Miscellaneous Plan (Unaudited) ............................................. 79 Schedule of Changes in the Net OPEB Liability and Related Ratios – City Plan (Unaudited) ................................................................................................................... 80 Schedule of Changes in the Net OPEB Liability and Related Ratios – Fire Plan (Unaudited) ................................................................................................................... 81 Schedule of Contributions to the OPEB Plan – City Plan (Unaudited) ........................................... 82 Schedule of Contributions to the OPEB Plan – Fire Plan (Unaudited) ........................................... 83

SUPPLEMENTAL INFORMATION
Budgetary Comparisons, Major Capital Projects and Debt Service Funds
Schedules of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

City Capital Projects Fund .................................................................................................... 84 Affordable Housing Capital Projects Fund .......................................................................... 85 Cabernet Village Lease Debt Service Fund.......................................................................... 86 Non-major Governmental Funds
Combining Balance Sheet ............................................................................................................ 87 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances ........................................................................................................................... 92 Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ................................................................................................................. 97 Internal Service Funds
Combining Statement of Net Position – Internal Service Funds ............................................... 116 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Internal Service Funds .................................................................................... 117 Statement of Cash Flows – Internal Service Funds.................................................................... 118 Fiduciary Funds
Combining Statement of Fiduciary Net Position – Custodial Funds ......................................... 119 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ...................................................................................................................... 120

STATISTICAL SECTION
Statistical Section Table of Contents ............................................................................................. 121 Financial Trends Information
Schedule of Net Position by Component – Last Ten Fiscal Years ............................................ 122 Schedule of Changes in Net Position – Last Ten Fiscal Years .................................................. 123 Schedule of Fund Balances, Governmental Funds – Last Ten Fiscal Years ....................................................................................................................................... 125 120

CITY OF AMERICAN CANYON
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
iii
STATISTICAL SECTION (Continued)
Schedule of Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years ..................................................................................................................... 126 Revenue Capacity Information
Own Source Tax Revenue by Source – Last Ten Fiscal Years .................................................. 127 Assessed Value of Taxable Property – Last Ten Fiscal Years ................................................... 128 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ....................................... 129 2020/21 Top Ten Property Taxpayers ........................................................................................ 130 2011/12 Top Ten Property Taxpayers ........................................................................................ 131 Property Tax Levies and Collections – Last Ten Fiscal Years .................................................. 132 Debt Capacity Information
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ................................................... 133 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years ...................................... 134 Computation of Direct and Overlapping Debt ........................................................................... 135 Computation of Legal Debt Margin – Last Ten Fiscal Years .................................................... 136 Pledged Revenue Coverage – Last Ten Fiscal Years ................................................................. 137 Demographic and Economic Information
Demographic and Economic Statistics – Last Ten Fiscal Years ................................................ 138 Principal Employers – (Ten Largest) – Last Fiscal Years ......................................................... 139 Operating Information
Full-Time Equivalent City Government Employees by
Function/Program – Last Ten Fiscal Years ............................................................................ 140 Operating Indicators by Function/Program – Last Ten Fiscal Years ......................................... 141 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ....................................................................................................................................... 142 121

(This page intentionally left blank.)
122
iv
December 31, 2021
To the Honorable Mayor, Members of the City Council and Citizens of the City of American Canyon We hereby submit the Annual Comprehensive Financial Report of the City of American Canyon for the fiscal year ended June 30, 2021. The fiscal year covers financial transactions from July 1, 2020 to June 30, 2021 on a modified or full accrual basis, depending on the fund type. The City follows a policy of preparing a complete set of financial statements in conformity with accounting principles generally accepted in the United States of America after the end of each fiscal year. An independent licensed certified public accounting firm audits these financial statements.

City management assumes full responsibility for the completeness and reliability of all of the information presented in this report. The City has established a comprehensive internal control framework that is designed both to protect the City's assets from loss, theft, or misuse and provides sufficiently reliable information that the City of American Canyon's financial statements are in conformity with U.S. generally accepted accounting principles. The cost of internal controls should not out-weigh their benefits and the internal controls are designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. City management asserts that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

Richardson and Co. LLP, a licensed certified public accounting firm, has audited the City of American Canyon's financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of American Canyon, for the fiscal year ended June 30, 2021, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. Richardson and Co. LLP has concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion ("clean" opinion) that the City of American Canyon's financial statements for the fiscal year ended June 30, 2021 are fairly presented in conformity with U.S. generally accepted accounting principles. The independent auditor's report is presented as the first component of the financial section of this report.

Annual Comprehensive Financial Report (ACFR)
This ACFR contains financial information and data using the financial reporting format established for governments by the Governmental Accounting Standards Board (GASB). The GASB sets accounting and financial reporting standards for governments in the United States of America. The financial reporting standards require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.

Immediately following the report of the independent auditors, you will find the City of American Canyon's MD&A.
123
v
Profile of the City and its Operations
Incorporated on January 1, 1992, the City of American Canyon is the second largest city in Napa County. The City's population as of January 1, 2021 was estimated to be 20,802 by the California State Department of Finance. American Canyon is located at the Southern end of the Napa Valley wine growing region in close proximity to the San Francisco Bay. It is bounded by the Napa River and a 500 acre wetland preserve to the west, the foothills of the Sulphur Springs Mountain Range to the east, the City of Vallejo to the south, the Napa Airport and numerous vineyards to the north.

The City operates under a council-manager form of government and is a general law city. Policy making and legislative authority are vested in the City Council. There are four elected Council Members and one elected Mayor. The Vice Mayor is selected annually by the Council. The non-partisan Mayor and City Council members serve staggered four year terms. The Council's responsibilities include passing ordinances, adopting the City budget, appointing committees, and hiring the City Manager, Fire Chief and City Attorney. The City Manager implements the policies and ordinances of the City Council, appoints department heads, oversees and maintains the daily operations of the City.

The City provides a full range of municipal services including police and fire protection services; construction and maintenance of City streets, storm drains, bridges and similar infrastructure type assets; park maintenance and community recreation activities; short and long-range community planning; operation of water, wastewater, and recycled water utilities; and more. The City operates its water, wastewater, and recycled water systems in a fashion similar to private businesses, which is termed business-type activities in the financial statements.

The City's annual budget serves as the foundation for the City of American Canyon's financial planning and control system. Every year, each City department submits requests for appropriations to the City Manager. The City Manager uses these requests as a starting point for developing a proposed budget. The City Manager then presents the proposed budget to the City Council's Finance Committee followed by a presentation to the City Council. The Council holds public hearings on the proposed budget and then ultimately adopts a formal budget.

The budget is adopted by fund, function, and department. During the fiscal year the City Manager and Council periodically review the City's actual financial activity in relationship to the original budget, and as necessary, amends the original budget to reflect changing needs.

Factors affecting Financial Condition
The information presented in the financial statements is best understood when it is considered in context with the City's particular economic climate and with the City's plans for the future.

Napa Valley is considered by many to be North America's legendary wine, food, and wellness capital. The valley's vineyards are planted on gently rolling hills and are very picturesque. Their bucolic charm attracts large numbers of tourists. It is estimated that each year 5 million tourists visit more than 300 wineries scattered throughout the valley. The lodging, restaurants, wineries, and shopping located throughout the valley make tourism a major contributor to the local economy. The City of American Canyon, at the south end of Napa Valley, benefits from some tourism; however, these economic benefits are enjoyed much more by those cities in the north valley. In 2010 the City joined the Napa Valley Tourism Improvement District (NVTID) to increase tourism in American Canyon. The NVTID provides valley-wide as well as local tourist activity marketing and promotion.

In addition to the tourism related economic benefits of proximity to the Napa Valley, American Canyon benefits tremendously as a wine processing hub. Because of our strategic location at the southern end of Napa County and with easy access to state and interstate highways, American Canyon's industrial district is home to millions of square feet of wine processing, bottling, storage, and shipping space. Demand for space in this area is very high, with very little vacancy and there is new development underway. 124
vi
Beginning in fiscal year 2013-14, the Council directed Staff to enter a three-year "Stabilization Plan" in order to ensure the long-term fiscal sustainability of the City's finances. During this three-year stabilization period, critical reductions in expenses were slowly restored as revenue growth allowed. The 2015-16 fiscal year marked the final year of this successful plan. Since then the City has benefited from improvements in both the national and local economy and revenues continued increasing gradually until the onset of the Coronavirus Pandemic (COVID-19) in early 2020.

COVID-19 was expected to have a dramatic impact on revenues and the City responded by reducing expenditures budgeted and incurred. The actual impact at year-end FY 2019-20 was far less than anticipated.

With one-time Coronavirus Relief Funding, lower impact on actual revenues received, and the reduction in expenditures, the City ended that year near breakeven with a minimal General Fund deficit.

The pandemic is still a part of our daily lives, but the cost-saving measures previously implemented by the City have resulted in favorable results for FY 2020-21. The signing of the Bipartisan Infrastructure Act into law is expected to help reduce inflationary pressures that have spiked during 2021. Congress is currently working to pass the Build Back Better Act which would also offer relief to working families, increasing disposable income for families, and offer more help to offset inflation.

Due to the pandemic, the City extended its Memorandum of Understanding (MOU) with employee bargaining units for one year (year 6). Negotiations will occur in fiscal year 2021-22 to solidify new MOUs, which will impact salaries and benefits in the coming years.

Over half of all general fund revenue received is from property taxes and are critical in supporting the cost of essential services provided by the City. For the fiscal year 2020-21 the City budgeted a 2% increase in property taxes, which has been reduced to 1.4% with an assessed valuation growth of 2.6%, and actually came in at that 1.4% increase. Property tax was projected to increase an additional 5.7% in the 2021-22 fiscal year, which will may be reduced during the mid-year budget adjustment process to be more in line with with an assessed valuation growth of 5.6%. However, preliminary estimates for secured property tax revenues are $9.65 million with VLFAA Property Tax revenues are $1.85 million, which is $800,000 above FY 2020-21 for those two categories alone. Almost $700,000 in additional unsecured, supplemental, prior year, and homeowners’ exemption property taxes were also collected in fiscal year 2020-21. Home values in American Canyon have also had a median increase of value of 10.61% in 2021 on top of a 2020 increase of 10.68% There is continued interest in industrial and residential development. With developable land selling and construction starting in the coming year, the City should experience further increases in assessed valuation and property tax revenues.

New construction will also mean an increase in building permit revenue. Our property tax consultants have forecasted a weakening market for commercial real estate, but the impact on residential real estate is still unknown. One factor that may be beneficial to American Canyon is the type of commercial real estate here.

Since there is less commercial office space than industrial space, the impact to the City will likely be less than many other communities.

The City's Transient Occupancy Tax (TOT) rate is 12%. Fiscal year 2019-20 Transient Occupancy Tax (TOT) decreased by 26.3%. This decrease was due primarily to the stay-at-home orders resulting from the public health impact of COVID-19. We projected a decrease of 7.1% for fiscal year 2020-21. Actual results were a decrease closer to 20% based on the multiple variants experienced, which continued to limit travel both for business and pleasure. For fiscal year 2021-22, we have projected $1.38 million in TOT revenue, which may be revised downward during the mid-year budget adjustment process to lower this projection of full return to pre-pandemic levels. We expect that American Canyon will continue to benefit from tourism in the Napa Valley when life does return to a semblance of normalcy. We also expect additional hotel rooms will be constructed in American Canyon within five years; however, the projections moderate the additional revenue streams.

Sales tax was also impacted by the COVID-19 pandemic and fell 9.1% in fiscal year 2019-20. The City budgeted a further 10.7% reduction for fiscal year 2020-21. However, our sales tax consultant updated projections mid125 vii
year to 5.5% growth over fiscal year 2019-20 and actual growth was 5.8%. This was due in large part to consumer purchasing increasing rather than decreasing as the pandemic continued. We budgeted a similar

5.7% increase for fiscal year 2021-22. Based on new consultant estimates, we now expect that growth to be closer to 3.9% for fiscal year 2020-21 and 4.2% for fiscal year 2022-23.

Staff will continue to closely monitor and review updated economic forecasts for any new developments that may positively or negatively affect the City's budget.

Capital Improvement Program
The City of American Canyon's capital improvement program is a long-range program for major municipal construction projects. Key projects currently in progress include:
 Devlin Road Connection – The City is undertaking a project to construct a major connector from Devlin Road to Green Island Road. These two roads serve our growing industrial area on the north side of the City. When the City completes this section of Devlin Road, it will serve as a continuous parallel route to Highway 29 from Napa to American Canyon. This will help keep truck traffic off Highway 29 and ease congestion during peak times. The City Council approved a construction contract in November 2020 and began construction on this project in April 2021 with anticipated construction completion in Spring 2022.
 Green Island Road Reconstruction – Green Island Road is the only road currently serving the Green Island industrial district in the north portion of American Canyon. The City is undertaking a project to reconstruct this road to meet current needs. The project will be partially funded by up to $14 million in land-secured debt financing, funded by private property owners within the Green Island Industrial District through the creation of a Community Facilities District. The City’s first Community Facilities District was approved by a vote of the property owners in February 2019. The road reconstruction will not take place until early 2023. However, environmental regulatory permits, encroachment permits and right of way acquisition were secured in 2021. In addition, the undergrounding of overhead utilities will take place in 2022, with the initial boring of utility conduits underneath the two railroad crossings beginning in December 2021.
 Pavement Rehabilitation Projects – Road Repair and Accountability Act (also known as SB1) and Measure T, (the half cent Napa Valley County Sales Tax for Road Repairs) funds will be used to repair/rehabilitate various streets in American Canyon.

New Development
Key development projects include:
 Broadway District Specific Plan – The Broadway District is the heart of American Canyon. The Broadway District Specific  Plan  (BDSP) will  transform  this auto‐oriented  highway  commercial district into a livable, mixed use, small  town neighborhood; and improve  the City’s image by supporting quality development.  The Broadway District Specific Plan was approved in 2019 and most recently updated in 2021.  Development projects in the BDSP include the following:
o Home2Suites Hotel – A new 102‐room Home2Suites hotel is nearing construction permit approval.  Construction is anticipated to begin in the First Quarter 2022. o Hampton Inn Hotel A new 112‐room Hampton Inn hotel was approved on 2.53‐acres at 3443 Broadway December 2021.
o Napa Cove A multifamily housing project was approved December 2021.  The project will provide 66 critically needed affordable homes in 1, 2, and 3‐bedroom units on a 3.47‐acre site at 3805 Broadway.  Funded by a Low‐Income Housing Tax Credit  (LIHTC) award,  the 126
viii
project units will be affordable to residents at or below 30%, 40% and 60% the Area Median Income (AMI).
o Circle K  A Convenience store and gas station was approved in October 2020 on a 2.25‐acre lot located at 112 Lombard Road.  The project is currently under construction.  Watson  Ranch  ‐  Watson  Ranch  Specific  Plan  (WRSP)  is  a  long‐planned  re‐development  of  a vacant 300‐acre industrial property into a new mixed‐use commercial/retail town center.  The Project  includes  a  new  hotel,  1,253  residential  units,  a  school,  parks,  and  other  amenities.

Development projects in the WRSP include the following:
o Lot 14/15  98 single‐family homes on 11.97 acres were approved December 2020. o Lemos Pointe,  a 186‐unit affordable rental development on 6.77 acres was approved in May 2021.  The project is located at the northwest corner of Rio Del Mar East and Loop Road. construction permits were approved in October 2021.  Construction is anticipated to begin during the First Quarter 2022.
o Lot 10, 219‐unit single family homes on 27.17‐acres was approved September 2021. o Watson Ranch Resort‐Style hotel A resort hotel application is anticipated February 2022.  Napa Logistics Park ‐ The Napa Logistics Park is nearing buildout with completion of a 200,000 SF  Amazon  Distribution  Center  in  September  2021  (Building  3).   Building  4,  a  700,000  SF warehouse was completed March 2021.  A Pacific Gas and Electric (PG&E) Regional Maintenance facility was approved on 24.51 acres (Lot 4) in September 2021.  Commerce Court ‐ A 330,000 SF wine warehouse on 35.85 acres was completed October 2020 at 1005 Commerce Court. A 217,000 SF wine warehouse (SDG 217) is proposed on 10.39‐acres at 1075 Commerce Court.  The SDG 217 project is currently undergoing environmental review.  Giovannoni  Logistics  Center  –  A  2.4  million  SF  high  cube  wine  warehouse  business  park  is proposed on 208‐acres, north of Green Island Road.  The project is anticipated to be constructed in  two phases.  Phase 1 consists of  two high cube warehouses on  the east side of  the  future Devlin Road.  Phase 2 consists of 1.2 million SF of high cube warehouse on the west side of Devlin Road.   The  project  is  currently  in  entitlement  review  and  an  environmental  impact  report  is anticipated to be ready for public review in First Quarter, 2022.  Village at Vintage Ranch ‐ The Village at Vintage Ranch is an apartment project consisting of 159 units  in  18  buildings.  16  dwelling  units  will  be  affordable  housing  (8  units  for  Low‐Income residents and 8 units for Very Low‐Income residents). The project construction began July 2018 and was completed August 2021.
 Canyon Estates – A 35‐single family large lot subdivision of custom homes was approved to begin construction in February 2021.  Custom home lot sales are ongoing.  Oat Hill Residential – A 291‐unit, 20‐acre multifamily development was approved by the City Council on the east side of Oat Hill in September 2021.  Napa Junction Elementary School – The Napa Valley Unified School District opened a new 10‐ acre elementary school at 500 Eucalyptus Drive to replace an outdated elementary school at 300 Napa  Junction  Road.   Construction  began  September  2019  and  greeted  students  September 2021.
127
ix
Paoli/Watson Lane Annexation
The  City is working in  partnership with Watson  Lane and  Paoli  Loop  residents  on a  Property Owner‐ Initiated annexation of 85 acres on the city’s northeast boundary.  The annexation area would facilitate construction  of  the  Newell  Road  extension  from  its  terminus  in  Watson  Ranch  to  Highway  29.   The Watson  Lane  residential  area  would  remain  in  its  current  development  pattern.   Vacant  land  in  the northern half of the annexation area could be considered for future urban uses following annexation.

General Plan Update
The  City  has  begun  a  General  Plan  Update  (GPU)  for  the  first  time  since  1994.  The  General  Plan  is American Canyon’s long‐term blueprint for development of the City and any land outside its boundaries that bears relation to its planning. The Plan represents our community’s view of its future and expresses the long‐term growth and development goals. It addresses issues that impact the entire City, such as how land is used; where buildings are built; the locations of roads, schools, and parks; safety; noise; and much more. The Plan includes the implementation of both one‐time projects and on‐going programs.

The  GPU  process  will  revisit  all  of  the  City’s  General  Plan  elements,  conduct  public  outreach  to  get community feedback, and prepare the City’s vision for the next 20 years. The City is conducting public outreach  to  define  issues  of  importance  prior  to  considering  alternatives.  The  Housing  Element  is scheduled to be completed by the Third Quarter 2022 with the rest of the General Plan scheduled to be completed in the Third Quarter 2023.

Water Supply
Water Supply
The critical droughts from 2020-2021 brought to the forefront the City's need to continue to seek out permanent, reliable water sources to serve our residents and businesses. The City receives nearly all of its water from the Department of Water Resources' (DWR) State Water Project (SWP). Generally, this "raw water" is treated at the City's Water Treatment Plant (WTP) and then distributed to residents and businesses in the City's Water Service Area (which is larger than the City limits proper). The City also maintains connections with the Cities of Napa and Vallejo, who are able to provide treated water supplies if necessary. The City's Urban Water Management Plan demonstrates that the City has sufficient water to meet projected needs in the next 20 years. However, the City could benefit from a greater variety of water sources, better water quality, and less expensive water sources. As such, the City is pursuing several important options, including participation in new, regional surface water projects and potable re-use of recycled water from our Water Reclamation Facility. In recent years, the City has invested heavily in maximizing both the water quality and quantity of recycled water produced at the Water Reclamation Facility. The City has been successful in reducing demand for potable water by as much as 21 acre feet per year through conversion of potable water, uses for irrigation to recycled water and permanent changes to landscape and irrigation techniques.

In 2017, the City joined as a member of the Sites Reservoir Project. The Sites Project is a new proposed “offstream” water storage reservoir that would hold approximately 1.8 million-acre feet. In fiscal year 2022-23, the City will continue to participate on the project team that is pursuing funding and ultimately, construction of this new water supply project. The City’s share of the Sites Reservoir Project is 4,000 acre feet per year.

In May 2018, the City Council authorized new water rates beginning January 2019. The water rates will increase in each of the subsequent five years, with the last increase scheduled for January 2023. The City will no longer collect a drought surcharge of two dollars per unit. The rate increases are required to meet operational requirements, construct improvements to existing aging infrastructure, and to establish funding necessary to pay for additional water purchases.
128
x
Cash Resources
The cash and investments held by the City are sufficient to move forward into the new fiscal year, conduct operations, and embark upon the planned capital asset improvement programs. Please see Note C – Cash and Investments beginning on page 38 of the ACFR.

Risk Management
The City limits its exposure to losses from unfavorable events, employee injuries, and from the risk of damages to City property by participating with other governments in an insurance pool wherein the risk of substantial monetary loss is transferred from the City to the insurance pool. Further information about this arrangement is included in the notes to the financial statements.

Long-Term Debt Administration
In accordance with the City's fiscal policy, the issuance of long-term debt is limited to capital improvements or projects that cannot be financed from current revenues or resources. The City may issue general obligation bonds, revenue bonds, certificates of participation or anticipation notes. The payback period of the debt is limited to the estimated useful life of the capital project or improvement. All debt service payments were made as required during the fiscal year, and the City complied with all required reserves and debt service covenants.

Postemployment Benefits
The City directly participates in the Public Employees Retirement System (PERS) of the State of California for all full-time employees. The City plans to fund each year's required contribution for its regular and public safety plans based on rates calculated by PERS after analyzing the city's workforce. With respect to retiree health care costs, the City's practice has been to pay the same premium for retired employees' health care as it does for active employees. The City plans to fund its annual required contribution (ARC). The City and Fire District have entered into irrevocable trusts with PERS to fund retiree health benefits. The City is considering contributing to an irrevocable trust for retirement benefits, but no decision has yet been made. The Fire District has decided not to participate. Additional information about the City's pension and other post-employment benefits plans are included in notes J and K to the financial statements and the required supplementary information section of this report. During 2017, the City completed negotiations with employees to reduce postemployment medical insurance benefits to future employees as they retire, which resulted in a decrease in long-term liability.

Awards
The City was awarded a Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association (GFOA) for its comprehensive annual financial report for the fiscal year ended June 30, 2020. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for preparation of state and local government financial report. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. In our opinion, the current annual comprehensive financial report continues to meet the Certificate of Achievement Program's requirements and it will be submitted to the GFOA to determine its eligibility for recognition.

The City was awarded the Distinguished Budget Presentation Award by the GFOA for its fiscal year 2020-21 Annual Budget. This prestigious award recognizes conformance with the highest budget standards and is awarded based on both content and presentation criteria. The City did not submit for the Operating Budget Excellence Award by the California Society of Municipal Finance Officers that was due by September 129
xi
30, 2020, due to management turnover in the Finance Department during that budget process. These awards are valid for a period of one year only.

Acknowledgements
The preparation of this report would not have been possible without the capable and dedicated services of the Finance Team. The Mayor and City Council also warrant special recognition for their continued support, leadership and high expectations for professionalism in overseeing the City of American Canyon's financial affairs.

Respectfully Submitted,
Jason B. Holley
City Manager
130
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of American Canyon
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
xii
131
xiii
CITY OF AMERICAN CANYON
PRINCIPAL OFFICIALS
YEAR ENDED JUNE 30, 2021
CITY COUNCIL
Mayor ……………………………………………………………………………………………………………….. Leon Garcia Vice Mayor……………………………………………………………………………………….………………… Mark Joseph Council Member ………………………..……………………………………………………………………… Mariam Aboudamous Council Member ………………………………………………….……………………………………………. David Oro Council Member …………….……..………………………………………………………………………….. Pierre Washington ADMINISTRATIVE PERSONNEL
City Manager ………………….………………………………………….…………………………………….. Jason Holley Assistant City Manager …………………………………………………………………………………….. Maria Ojeda Acting City Clerk ……………………………………………………………………………………………….. Cherri Walton Police Chief ……………………………………….…………………………………………………….……….. Oscar Ortiz Fire Chief …………………………………………….……………………………………………..…….………. Mike Cahill City Attorney ………………………………….………………………………………………………….……… William Ross Finance Director……………………………………………………………………….………………….….… Lincoln Bogard Public Works Director…………………………………………………………..…………………….….….. Erica Ahmann‐Smithies Community Services Director ………………………………………….………………………….…….. Brent Cooper Parks and Recreation Director………………………………………………….………………….….…. Creighton Wright 132
CITY COUCIL
PUBLIC WORKS UTILITIES AND

MAINTENANCE

COMMUNITY

DEVELOPMENT
PARKS AND

RECREATION
FIRE PROTECTION

DISTRICT
POLICE CHIEF
CITY MANAGER CITY ATTORNEY
CITY CLERK HUMAN

RESOURCES

FINANCE
ASSISTANT CITY

MANAGER
xiv
133
(This page intentionally left blank.)
134
550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728
1 INDEPENDENT AUDITOR’S REPORT
To the City Council
City of American Canyon, California
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of American Canyon, California, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
135
To the City Council
City of American Canyon, California
2 Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of American Canyon, California, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Emphasis of Matter
As discussed in Note O to the financial statements, during the year ended June 30, 2021 the City adopted GASB Statement No. 84, Fiduciary Activities. Our opinion is not modified with respect to this matter.

Correction of Errors
As discussed in Note O to the financial statements, certain errors resulting in an understatement of amounts previously reported for capital assets and long-term liabilities as of July 1, 2020, were discovered by management of the City during the current year. Accordingly, amounts reported for capital assets and long-term liabilities have been restated in the June 30, 2021 financial statements now presented, and an adjustment has been made to governmental activities net position as of July 1, 2020, to correct the error. Our opinion is not modified with respect to this matter.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management’s discussion and analysis, Budgetary Comparison Schedules, Schedules of the Proportionate Share of the Net Pension Liability, Schedules of Contributions to the Pension Plan, Schedules of Changes in the Net OPEB Liability and Related Ratios and Schedules of Employer Contributions to the OPEB Plan be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s financial statements. The introductory section, budgetary comparison for the major capital projects fund, combining and individual nonmajor fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The budgetary comparisons for the major capital projects fund and combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the 136
To the City Council
City of American Canyon, California
3 basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary comparison for the major capital projects fund and combining and individual nonmajor fund financial statements and schedules are fairly stated in all material respects in relation to the basic financial statements as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express on opinion or provide any assurance on them.

December 30, 2021
137

MANAGEMENT'S DISCUSSION AND ANALYSIS
4 This section of the City of American Canyon's annual financial report presents our discussion and analysis of the City's financial performance during the fiscal year that ended on June 30, 2021. Please read it in conjunction with the City's audited financial statements, which follow this section.

FINANCIAL HIGHLIGHTS
 The City's total net position increased by about $10.2 million over the course of this year’s operations after conducting all City operations and programs. The Citywide Statement of Activities reports an $8.3 million increase in net position for Governmental Activities using full accrual accounting and Businesstype Activities increased $2.0 million. The assets and deferred outflows of the City exceeded its liabilities and deferred inflows by $369.8 million at the end of the 2021 fiscal year. The Citywide Statement of Net Position reports that $298.8 is related to Governmental Activities and $71.0 million is related to Businesstype Activities. Of that amount, $16.7 million (the unrestricted net position) may be used to meet the City's ongoing obligations and operating expenses for the next fiscal year.  Governmental Funds reported combined fund balances of $40.7 million at June 30, 2021, an increase of $3.2 million compared to the prior year. Of these fund balances, $0.4 million is non-spendable, $23.6 million is restricted, $7.7 million is committed, $5.8 million is assigned, and $3.2 million is unassigned.  Overall, city-wide revenues from all governmental and business-type activities were $55.4 million, an increase of about $9.8 million compared to the prior year. This amount includes $7.7 million from capital grants and contributions for Governmental Activities and $1.5 million from Business-type Activities.  The City's total expense for all programs in fiscal year 2020-21 was $45.2 million, a increase of $0.9 million compared to the prior year.
 The General Fund ended fiscal year 2020-21 with a fund balance of $12.2 million, an increase of $1.4 million compared to the prior year of which $3.9 million was unassigned. This is largely due to three major expenditures totaling approximately $0.9 million that did not occur in the fiscal year as was originally budgeted. The Fire District Operations Fund ended fiscal year 2020-21 with a $5.9 million fund balance, and is unchanged compared to the prior year. The CDBG, CalHome and HOME Loan Development Special Revenue Fund ended fiscal year 2020-21 with a fund balance of near breakeven, and is unchanged compared to the prior year. The State and Federal Grants - City Special Revenue Fund ended fiscal year 2020-21 with a negative fund balance of $0.6 million, a decrease of $0.2 million compared to the prior year. This was the result of the loss of some grant funds that have been reapplied for in fiscal year 2021-22. The Affordable Housing Capital Projects Fund ended fiscal year 2020-21 with a fund balance of $0.3 million, which is unchanged compared to the prior year. Other Governmental Funds reported a cumulative fund balance of $22.8 million available for special purposes, primarily infrastructure and capital asset additions.
 The City ended fiscal year 2020-21 with $23.7 million of available net position in its enterprise funds consisting of restricted and unrestricted net position. This is an increase of $2.0 million from the prior fiscal year. Internal Service Funds ended fiscal year 2020-21 with a cumulative unrestricted fund balance of $1.0 million and increase $0.2 million compared to the prior year. 138

MANAGEMENT'S DISCUSSION AND ANALYSIS
5 OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of four parts – a management’s discussion and analysis (this section), the basic financial statements, required supplementary information, and an optional section that presents combining statements for non-major governmental funds and proprietary funds. The basic financial statements include two kinds of statements that present different views of the City:
 The first two statements are government-wide financial statements that provide both long-term and shortterm information about the City’s overall financial status.  The remaining statements are fund financial statements that focus on individual parts of the City government, reporting the City's operations in more detail than the government-wide statements. - The governmental funds statements tell how general government services such as public safety, community development, parks and recreation, public works and streets were financed in the short term as well as what remains for future spending.
- Proprietary fund statements offer short and long-term financial information about the activities the government operates like businesses, such as the City's water, wastewater and recycled water systems.

The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the information in the financial statements. In addition to these required elements, we have included a section with combining statements that provide details about our non-major funds, each of which are added together and presented in single columns in the basic financial statements.

Figure A-1 summarizes the major features of the City's financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the structure and contents of each of the statements.

Figure A-1
Major Features of City of American Canyon's Government-Wide and Fund Financial Statements

Fund Statements

Government-Wide
Statements Governmental Funds Proprietary Funds

Scope Entire City government The activities of the City that are not proprietary or fiduciary, such as police, fire, streets,
general government, and community services
Activities the City operates
similar to private businesses:
the water, wastewater, and
recycled water funds and
internal service funds

Required financial
statements
 Statement of net position  Balance sheet  Statement of net position  Statement of activities  Statement of revenues, expenditures, and changes in fund balances
 Statement of revenues,
expenses, and changes in
net position
 Statement of cash flows

Accounting basis
and measurement
focus
Accrual accounting and
economic resources focus
Modified accrual accounting and current financial
resources focus
Accrual accounting and
economic resources focus

Type of
asset/liability
information
All assets and liabilities, both
financial and capital, and shortterm and long-term
Only assets expected to be used up and liabilities
that come due during the year or soon thereafter;
no capital assets included
All assets and liabilities, both
financial and capital, and shortterm and long-term

139

MANAGEMENT'S DISCUSSION AND ANALYSIS
6 Type of
inflow/outflow
information
All revenues and expenses
during the year, regardless of
when cash is received or paid
Revenues for which cash is received during or soon
after the end of the year; expenditures when goods
or services have been received and payment is due
during the year or soon thereafter
All revenues and expenses
during the year, regardless of
when cash is received or paid

Government-wide Statements
The government-wide statements report information about the City as a whole using accounting methods similar to those used by private-sector companies. The statement of net position includes all of the City's assets and liabilities. All of the current year’s revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid.

The two government-wide statements report the City's net position and how it has changed. The difference between the City's assets and liabilities is one way to measure the City's financial health or position.  Over time, an increase or decrease in the City's net position is an indicator of whether its financial health is improving or deteriorating, respectively.

The government-wide financial statements of the City are reported in two categories:
 Governmental activities – All of the City’s basic services are included here, such as general government, police, fire, community development, parks and recreation, and public works. Property taxes, sales taxes, transient occupancy taxes, special and other taxes, user charges and fees, and state, local and federal grants finance these activities.  Business-Type activities - The City charges fees to customers to help cover the costs of certain services. The City's water, wastewater, and recycled water enterprises are reported here.

Fund Financial Statements
The fund financial statements provide more detailed information about the City's most significant funds – not the City as a whole. Funds are accounting devices that the City uses to keep track of specific sources of funding and spending for particular purposes.
 The City's major funds, including the General Fund; Fire District Operations; CDBG, CalHome and HOME Loan Development; State and Federal Grants – City; City Capital Projects; Affordable Housing; and Cabernet Village Lease Debt Service are reported in separate columns, and all other governmental funds are aggregated in a single column.
 The City establishes other funds to control and manage money for particular purposes. Some funds are maintained to demonstrate that the City is properly using certain specific fees for their intended purpose (such as the City's impact fee funds).
 Other funds are maintained for similar purposes but also demonstrate the City's ability to repay its longterm debt obligations, such as bonds.

The City has three kinds of funds:

Governmental funds – The City's basic services are included in governmental funds, which focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out, and (2) the balances left at year-end that are available for spending. Consequently, the governmental funds statements provide a detailed short-term view that helps one determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. Because this information does not encompass the additional long-term focus of the government-wide statements, we provide additional information at the bottom of the governmental funds' statement, or on the subsequent page, that explains the relationship (or differences) between them.
140

MANAGEMENT'S DISCUSSION AND ANALYSIS
7 Proprietary funds – There are two different types of proprietary funds. Enterprise funds are used to report the same functions reported as business-type activities in the government-wide financial statements: the City's Water, Wastewater, and Recycled Water Operations. Internal service funds are an accounting device used to accumulate and allocate costs internally. During the 2015 fiscal year, the City created internal service funds. Proprietary funds provide the same type of information as the government-wide statements, only in more detail. The proprietary fund statements provide separate information for the City's Water, Wastewater, and Recycled Water Operations, which are considered to be major funds of the City.

Fiduciary funds - These funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City of American Canyon’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

FINANCIAL ANALYSIS OF THE CITY AS A WHOLE
Net Position. As summarized in Table A-1 below, the City's combined net position increased $11.0 million between fiscal years 2020 and 2021.

Table A-1
City of American Canyon's Net Position
(in millions of dollars)
Governmental
Activities
Business-Type
Activities Total
Total
Percentage
Change
2020 2021 2020 2021 2020 2021 2020-2021
Current and other assets

48.8 58.4

24.5 28.3

73.3 86.7 18.3%
Capital assets

266.6

274.2

51.9 53.5

318.4

327.7 2.9%
Total assets

315.4

332.6

76.3 81.8

391.7 414.4 5.8%
Deferred Outflow of Resources

5.3 5.2

1.0 1.1

6.3 6.3 0.0%
Long-term debt outstanding

26.7 29.3

7.0 10.9

33.7 40.2 19.3%
Other liabilities

2.2 8.2

1.1 0.8

3.3 9.0 172.7%
Total liabilities

28.9 37.5

8.1 11.7

37.0 49.2 33.0%
Deferred Inflows of Resources

2.0 1.6

0.2 0.2

2.2 1.8 -18.2%
Net investment in capital assets

260.8

267.6

48.5 47.3

309.3

314.9 1.8%
Restricted

29.4 32.2

5.8 6.1

35.1 38.3 9.1%
Unrestricted

(0.4)

(1.0)

14.8 17.7

14.4 16.7 16.0%
Total net position

289.7

298.8

69.1 71.0

358.8

369.8 3.1%
The net position of the City’s governmental and business-type activities increased 3.1% to $369.8 million.

The increase was primarily due to an increase in Grants and Contributions from COVID-19 pandemic relief and contributed infrastructure from developers, a decrease in Public Works and Parks and Recreation expenditures during the year, and savings from furloughs implemented to combat the pandemic’s impact, countered by a large increase in Wastewater transfers, continued cost increases for Pension and other post-employment benefits, and increased Law Enforcement Services contract costs and pandemic-related costs in Public Safety. Approximately 85.1% of the City’s net position is invested in capital assets such as buildings, land, equipment and facilities. About $6.2 million of ongoing capital projects capital assets were purchased this fiscal year and are invested in projects such as the Annual Pavement Management project ($1.3 million) and the Napa Junction Road Intersection (Phase 2) project ($1.2 million), contributed property 141

MANAGEMENT'S DISCUSSION AND ANALYSIS
8 from developers, and in various Internal Service Funds fleet vehicles, radios, and fleet operations equipment. The remaining 14.9% of net position is represented by restricted and unrestricted net position.

Notable receivables are the $2.0 million in Property Taxes and $2.5 million from Utilities. Approximately $6.4 million of Intergovernmental Receivables include American Rescue Plan Act (ARPA) COVID-19 relief funding of $4.9 million, the Devlin Road Extension project from Federal Grants of $1.0 million, and HOME Loan Assistance Program of $0.2 million, plus COPS funding and other minor receivables. About 82% of the City's total liabilities are represented by long-term obligations including pension liabilities, lease revenue bonds, capital leases and loans from the State of California. A more detailed list of long-term liabilities is found in Note G – Long-Term Liabilities on pages 50-54. Enterprise funds also had a major increase in Interfund Payables to $8.3 million. This increase is due to internal coverage of negative cash positions, excluding investments, for Governmental Funds, and capital asset transfers to the newly created Recycled Water Operations Fund.

Changes in net position. The City's major sources of revenue and functional expenses are presented in charts 1 and 2. As summarized in Table A-2 on page 10, revenues for fiscal year 2020-21 totaled $55.4 million, an increase of $9.8 million or 21.5% from the prior year. Grants and contributions revenue increased $9.0 million primarily due to the award from ARPA funding and capital contributions from developers.

Charges for Services increased moderately by $0.9 million or 4.9%, which is primarily comprised of scheduled increases in Water and Wastewater Service Charges and an increase in Developer Reimbursements, which is offset by a significant reduction of $0.8 million in Charges for Services for Governmental Activities. The City’s primary source of discretionary revenue is property taxes which totaled $16.1 million or 29.1% of total revenues for the year and increased by 1.9% over fiscal year 2019-20 due to continued improvement in assessed valuation during the recent pandemic recession. Sales tax revenue increased by $0.5 million or 12.8% to $4.4 million in fiscal year 2020-21, due to additional discretionary revenues from telecommuting and individual assistance aide. Approximately $16.8 million or 30.3% of all City revenues were generated from water, wastewater, and recycled water service fees and other revenue.

Charges for services,
36%
Grants and contributions,
13%
Property taxes, 31%
Sales taxes, 8%
Franchise Taxes, 2%
Other, 10%
Chart 1
Sources of Revenues
142

MANAGEMENT'S DISCUSSION AND ANALYSIS
9 The total cost for all programs and services in fiscal year 2020-21 was $45.2 million which includes a wide range of services such as public safety, public works, community development, parks and recreation programs, storm drain, water and wastewater treatment plants and related distribution and collection systems. Major types of expenditures by function are shown in Chart 2. As summarized in Table A-2, for fiscal year 2020-21, expenses increased by $0.9 million or 2.0%. In this fiscal year, the General Government expenses decreased by $0.9 million, a 11.7% decrease from the prior year largely due to three major General Fund expenditure delays of approximately $0.9 million, plus $0.8 million less supplies and services spending for Non-General Fund Governmental Funds., furlough savings of approximately $0.5 million. The Fire District Operations Special Revenue Fund had an increase of $0.8 million in expenditures for the fiscal year, which is completely comprised of an increase in salary costs related to participation in State fire strike teams. Water, Wastewater and Recycled Water expenses were $1.7 million higher compared to prior year at $12.8 million. This increase is mainly the result of an interest rate adjustment approved by the City Council on the interfund loan financing recycled water projects.

The City’s largest operating expense was public safety services. The City’s cost to provide police and fire protection services was $14.3 million or 31.6% of the City’s total operating expenses followed closely by the water and sewer which collectively comprised $12.8 million or 28.3% of total expenses. Public Works and Storm Drain departments accounted for 14.6% of expenses, Parks and Recreation 6.2%, and Community Development 3.8%. The remaining 15.5% was expended on general City administration and other programs.

When all operations were concluded, governmental activities created a $8.3 million increase in net position and business-type activities increased $1.9 million for 2020-21.

General & Other Prog
15%
Public Safety
32%
Storm Drain
1%
Public works
14%
Comm Dev
4%
Parks & Rec
6%
Water and Sewer
28%
Chart 2
Functional Expenses
143

MANAGEMENT'S DISCUSSION AND ANALYSIS
10 Table A-2
Changes in the City of American Canyon's Net Position
(in millions of dollars)
Governmental
Activities
Business Type
Activities Total
Total
Percentage
Change

2020 2021 2020 2021 2020 2021 2020-2021
Revenues
Program revenues
Charges for services

6.8 6.0

11.8 13.4

18.5 19.4 4.9%
Grants and contributions –
operating

1.1 1.3

0.2 0.4

1.4 1.7 21.4%
Grants and contributions –
capital

0.1 7.7

0.5 1.5

0.5 9.2 1740.0%
General revenues
Property taxes

15.8 16.1

-

-

15.8 16.1 1.9%
Franchise taxes

0.8 0.8

-

-

0.8 0.8 0.0%
Sales taxes

3.9 4.4

-

-

3.9 4.4 12.8%
Other

3.9 2.3

0.8 1.5

4.6 3.8 -17.4%
Total revenues

32.4 38.6

13.2 16.8

45.6 55.4 21.5%
Expenses
General government

7.7 6.8

-

-

7.7 6.8 -11.7%
Public Safety 13.6 14.3

-

-

13.6 14.3 5.1%
Public works

6.8 6.2

-

-

6.8 6.2 -8.8%
Community Development 1.7 1.7

-

-

1.7 1.7 0.0%
Parks and Recreation 2.9 2.8

-

-

2.9 2.8 -3.4%
Storm Drain 0.3 0.4

-

-

0.3 0.4 33.3%
Water - -

6.6 6.8

6.6 6.8 3.0%
Wastewater - -

4.4 6.0

4.4 6.0 36.4%
Recycled Water - - - - - - 0.0%
Other

0.3 0.2

-

-

0.3 0.2 -33.3%
Total expenses

33.2 32.4

11.1 12.8

44.3 45.2 2.0% Excess (deficiency) before
transfers

(0.8) 6.2

2.1 4.0

1.3 10.2 684.6%
Transfers

1.4 2.1

(1.4)

(2.1) -

- 0.0%
Increase(decrease) in net
position

0.6 8.3

0.7 1.9

1.3 10.2 684.6%
Net position, beginning as
restated 289.1 290.5

68.3 69.1 357.4 359.5 0.6%
Net position, ending 289.7 298.8

69.1 71.0 358.8 369.8 3.1%
City Program Costs
144

MANAGEMENT'S DISCUSSION AND ANALYSIS
11 Table A-3 presents the cost of each of the City's six largest programs: Public Safety, Public Works, Parks and Recreation, Water, Wastewater, and Community Development.

Table A-3
Cost of City of American Canyon's Programs
(in millions of dollars)
Total Cost of Services
Percentage
Change
2020 2021 2020-2021

Public Safety 13.6 14.3 5.1%
Public Works (includes Storm drain) 7.1 6.6 -7.0%
Community Development 1.7 1.7 0.0%
Parks and Recreation 2.9 2.8 -3.4%
Water 6.6 6.8 3.0%
Wastewater 4.4 6.0 36.4%
Recycled Water - - 0.0%
All other 8.0 7.0 -11.4%
Total $ 44.3 $ 45.2 2.3%
The cost of all programs this year was $45.2 million, an increase of $.9 million, or 2.0% compared with the prior year. For governmental activities, overall program costs decreased $0.8 million, or negative 2.4%, mostly due reductions in General Government previously discussed.

Governmental Activities
As detailed on the Statement of Activities, the City’s governmental program expenses totaled $32.4 million during the year. Program revenues, including grants, totaled $15.0 million leaving the City to fund the balance of $17.4 million with general revenues. Program revenues increased by $7.0 million, while expenditures decreased by $0.8 million over the prior year. The increase in the Program Revenues was due to an increase in federal stimulus funding through the ARPA program ($4.9 million) and developer contributions ($3.6 million). Expenditure reductions were prioritized due to the onset of the COVID-19 pandemic.

Business-Type Activities
At 2020-21 fiscal year-end, the net position for the City’s enterprise funds or business-type activities, the City’s Water, Wastewater, and Recycled Water funds, increased by $1.9 million over the prior year. In fiscal year 2020-21, charges for services increased by approximately $1.6 million or 13.6% compared to the prior year. Business-type revenues increased by 27.3% overall compared to 2019-20. The increase was primarily due to an increase in utility charges to customers, plus increased investment earnings, along with other miscellaneous items. The Enterprise funds also experienced furlough cost savings. Even with those savings, Water fund expenses increased by $0.2 million or 3.0% compared to fiscal year 2019-20 and was primarily from increases in payments to the City of Vallejo for water rights and water purchases. Wastewater fund expenses increased $1.6 million to $6.0 million, primarily due to increases in debt service expenses.

The Recycled Water fund had very little activity for the fiscal year except asset transfers. This will change upon completion of the Enterprise Rate Study and the establishment of recycled water rates and charges. 145

MANAGEMENT'S DISCUSSION AND ANALYSIS
12 FINANCIAL ANALYSIS OF THE CITY’S FUNDS
At the end of fiscal year 2020-21, the City’s governmental funds had a combined fund balance of $40.7 million, about $3.2 million more than the prior year. This can be attributed to community development activities for planning and building, which added $1.3 million of restricted fund balance in 2020-21; the General Fund’s better than expected performance less than anticipated impact on revenues and $0.9 million in expenditures delayed to fiscal year 2021-22, combined with cost cuts and furlough savings increased fund balance $1.4 million. The Fire District Operations fund balance decreased by $0.1 million or 1.2% as a result of fiscal year 2020-21 operations. New grant funding obtained for the CalHome program led to a $0.1 million increase in the fund balance of the CDBG, CalHome, and HOME Loan Development Special Revenue Fund, bringing it positive at year end. Increased intergovernmental revenues of $4.8 million combined with the loss of a grant funding source led to a continued State and Federal Grants fund balance deficit. That reduction overall was $0.2 million and Public Works has reapplied for that funding source. The fund balances in the City Capital Projects, Affordable Housing Capital Projects, and Cabernet Village Debt Service funds all remained unchanged after the results of operations.

The City’s Cash and Investment accounts increased by $4.9 million compared to the prior year, totaling $73.7 million at fiscal year end. The City’s Restricted Cash and Investments totaled $7.0 million of that balance. Fiduciary Funds comprised another $7.5 million of that balance. The Water and Wastewater enterprise funds ended the year with $18.7 million in cash and investments available for future use, of which $6.6 million is restricted.

The City’s General Fund had a deficiency of revenues over expenditures of $0.9 million before other financing sources. General Fund Property Taxes increased by $0.3 million, Sales Taxes increased by $0.4 million, Other Taxes remained relatively unchanged, decreasing $0.1 million. Charges for Services increased by $0.2 million compared to the prior year. The City’s General Fund Expenditures decreased by $0.4 million to $19.2 million mostly due to cuts made due to the COVID-19 pandemic, primarily 20 furlough days for all employees ($0.5 million), and three major contractual expenditures delayed until fiscal year 2021-22 ($0.9 million). The Transfers in from Other Funds decreased by $0.4 million compared to the prior year mostly due to lower transfers for Support Services across the General Fund and transfers for Measure A for Public Works. After including inter-fund transfers, the General Fund ended the fiscal year with an excess of $1.4 million.

The City’s non-major governmental funds ended the fiscal year with a consolidated fund balance of $22.8 million. The fund balance of $22.6 million is restricted with externally enforceable legal restrictions.

General Fund Budgetary Highlights
Over the course of the year, the City Council amended the City budget numerous times. These budget amendments were done throughout the year to fund new projects, avoid cost overruns, to account for unanticipated revenues, and in reaction to the COVID-19 pandemic. Additionally, adjustments were made as a result of the mid-year budget review. At year-end, including all adjustments, actual General Fund expenditures, were $1.2 million less than final budget amounts. The largest cost in the General Fund, public safety, remained relatively constant, due to temporarily decreasing one sworn officer in fiscal year 2020-

21. Overall, fiscal year 2019-20 General Fund expenditures decreased by $0.4 million from the prior year’s $19.6 million.

The General Fund’s fund balance increased by $1.4 million from June 30, 2020 to June 30, 2021. The General Fund’s primary source of discretionary revenue is property taxes which totaled $11.3 million or

61.8% of total revenues for the year and increased by 2.1% over the prior year. This was under budget $0.4 million. Due to the impact of the COVID-19 pandemic, non-property taxes came in over budget by $0.3 million and Charges for Services were $0.4 million more than the final budget.

146

MANAGEMENT'S DISCUSSION AND ANALYSIS
13 CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
As of June 30, 2021, the City had invested $327.7 million (net of accumulated depreciation) in a broad range of capital assets, including land, vehicles, equipment, the water, wastewater, and recycled water systems, streets, and other capital assets (see Table A-4). This amount represents a net increase, after additions and deductions, of about $9.3 million or 2.9% compared to the prior fiscal year. Additional information can be found in the notes to the financial statements, Note F – Capital Assets pages 47-50.

Table A-4
City of American Canyon's Capital Assets
(net of depreciation, in millions of dollars)

Governmental
Activities
Business-type
Activities Total
Total
Percentage
Change
2020 2021 2020 2021 2020 2021 2020-21
Land $ 9.6 $ 10.2 $ 2.2 $ 2.2 $ 11.8 $ 12.4 5.1%
Construction in progress

4.1 7.9

3.1 7.6

7.2 15.5 115.3%
Right of ways 162.3 165.2 - - 162.3 165.2 1.8%
Buildings and Improvements

30.0 28.6

3.4 3.1

33.4 31.7 -5.1%
Machinery and Equipment

2.4 2.7

1.3 1.0

3.7 3.7 0.0%
Water utility system

23.9 19.1

23.9 19.1 -20.1%
Wastewater system

18.0 16.7

18.0 16.7 -7.2%
Recycled water system 3.8 3.8 100.0%
Infrastructure system 58.1 59.7 58.1 59.7 2.8%
Total $266.6 $274.2 $51.9 $53.5 $318.4 $327.7 2.9%
Long - Term Debt
At the end of fiscal year 2020-21, the City had about $13.4 million in long-term debt obligations outstanding.

Of the $13.4 million, $6.7 million relates to the City’s business-type activities and the remaining $6.7 million is applicable to governmental type financing activities. The remaining other long-term debt of $26.8 million are estimated employee benefits payable by the City. The City’s component-unit, the City of American Canyon’s Fire Protection District, has one long-term debt obligation from green energy upgrades of $0.3 million. It also has a $1.6 million liability for uninsured workers compensation claims.

For governmental type activities, the major long-term debt year-end balances consist of a refinanced $4.6 million capital lease to purchase a commercial office building that was transformed into City Hall, and $0.8 million for green energy projects benefiting City Hall and the American Canyon Fire Protection District.

The City and Walmart agreed to share the cost of the traffic light and improvements at SR29. Walmart constructed the street light at a cost of $1.6 million and the City has agreed to reimburse Walmart for

75.85% of the cost or $1.2 million. The City reimbursed Walmart $179,796 for interest expense occurred in 2013. This was originally reported as a reduction in principal and no accrual of interest due was made.

Management corrected in this fiscal year, which had a $0.7 million increase in liability owed. The City budgeted full repayment from the Traffic Impact Fee Fund in fiscal year 2021-22. 147

MANAGEMENT'S DISCUSSION AND ANALYSIS
14 For business-type activities, major long-term debt year-end balances are comprised of green energy projects for the benefit of Water enterprises of $1.3 million and Wastewater enterprises of $3.1 million; a $1.4 million State Revolving Fund loan used for construction of the City’s wastewater treatment plant facility; $0.5 million State loan for water system improvement; and a $0.3 million capital lease for the acquisition and installation of the wastewater treatment membrane. The City has no bonded debt outstanding for its business-type activities.

Additional information about the City's long-term obligations can be found in the notes to the financial statements, Note G – Long Term Liabilities, on pages 50-54.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
With stellar growth in the first half of 2021, U.S. GDP surpassed pre-pandemic levels despite having 5 million fewer workers than early last year. More people are expected to rejoin the workforce as wages rise, but a smaller workforce will not necessarily mean slower economic growth if recent productivity increases can be sustained from heavy investments in that business productivity. Capital expenditures are up by $600 billion (9.2%) from the pre-pandemic peak. Meanwhile, highly effective vaccines have substantially decreased the economic risks from COVID-19. Temporary surges in cases will simply push growth to the following quarter rather than leave any lasting impact. The greater risk in the medium term is the coming unwinding of monetary stimulus from the U.S. Federal Reserve, which will increase the cost of servicing debt for public and private entities.

The unemployment rate in California has already dropped by more than half since the depths of the pandemic. Part of this improvement is a function of the huge increase in the number of people not seeking work, a category not counted as unemployed in government surveys, but not all of these workers have left the labor force indefinitely. As a result, the lower unemployment rate tends to confuse the complex labor market recovery, which is better demonstrated by total nonfarm employment. Higher unemployment rates may even be a welcome sign that hot economic conditions are inducing workers to look for work after having temporarily dropping out of the workforce. Unemployment should continue to steadily decline into next year.

American Canyon’s sales tax receipts from April 2021 through June 2021 were 17.4% above the same period in 2020. Excluding reporting aberrations, actual sales were up 19.2%. Results reflected measurable improvement over lows one year ago, which had suffered due to COVID-19 impacts. Casual dining restaurants, which had severe access restrictions last year reported a 64% recovery. Net of aberrations, taxable sales for all of Napa County grew 46.1% over the comparable time period; the Bay Area was up

34.1%
Approximately 50% of general fund revenue received is from property taxes. The COVID-19 pandemic while it delayed home and property sales in the 2020 calendar year, did not significantly impact the growth most communities experienced due to the transfer of ownership element as reflected in the 2021-22 fiscal year. The stay-at-home orders and business closures and economic impacts DID impact the overall growth experienced as the annual CPI granted was 1.036% roughly ½ of the growth usually seen from this growth indicator. New construction in process continued as this sector did not see a decline, however the shortages of building supplies did influence growth in new construction starts in the second half of the year. The year over year increase citywide was $162.2 million an increase of 4.8%. This is almost twice the year to year value change as was seen last year and the percent change was 2% higher. This growth was on the strength of industrial uses which were offset by vacant use declines as newly developed properties transition from vacant to other permanent uses.
148

MANAGEMENT'S DISCUSSION AND ANALYSIS
15 Detached Single Family Residence – City of American Canyon Year
D‐SFR
Sales
Median
Price
%
Change
2017  188  $498,500  10.78%
2018  175  $525,000   5.32%
2019  186  $515,000   ‐1.90%
2020  165  $570,000  10.68%
2021  106  $613,750  7.68%
With the first 7 months of sales data processed for 2021, SFRs are selling for 7.68% more than in the previous calendar year. Prices for the full calendar year 2020 increased 10.68% after a year of declining prices in 2019. The median price of all SFR in 2021 is $613,750 which is $24,250 lower than the peak price experienced in 2006 at $638,000. The increased sale price is still below the all-time high experienced before the Great Recession. Increased prices are being driven by fewer properties being offered for sale and the lower interest rates for home loans. This element has contributed significantly to the growth we have seen between tax years over the past couple of years and the trends we are seeing continue to make this growth component a positive factor in the 2022-23 forecast as long as the trends continue as we have seen in the first half of 2021.

Home Sales - Comparison by County:

All Homes
Units Sold
Julne2020
Units Sold
June 2021
%
Change
Median Price
June 2020
Median Price
June 2021
%
Change
Napa County  135  224  69.5%  $654,000  $782,500  19.65% Solano County  589  677  14.94%  $482,500   $545,000  12.95% Contra Costa County  1,334  2,079  55.85%  $680,000  $810,000  19.12% San Francisco County  360  776  115.56%  $1,445,000  $1,480,000   2.42% In the last several years, the City has benefitted from increased assessed valuations as the County Assessor has restored much of the value lost during the recession. There is still approximately $47 million left to be restored on the homes reduced during the great recession. This amount increased from last year due to the reduction in median home values in 2019. This is approximately 1.3% of the citywide value. 2021-22 Taxable Property Values:

Combined Values   Total
Total Values  $3,676,532,577
Total Exemptions  $77,027,198
Net Total Values  $3,599,505,379
The City anticipates continued increases in assessed valuation due to growing interest in industrial and residential development. Key development projects include the Broadway District Specific Plan, the Village at Vintage Ranch apartments, Commerce Court, the Giovannoni Logistics Center, Canyon Estates, Oat Hill Residential multi-family residences, and continued development of Napa Logistics Park and Watson Ranch (the long-planned mixed-use commercial/retail town center). The City is also embarking on a General Plan Update, American Canyon’s blueprint for development of the City and any land outside its boundaries that bears relation to its planning.
149

MANAGEMENT'S DISCUSSION AND ANALYSIS
16 CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City's finances and to demonstrate the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Finance Director, City of American Canyon, 4381 Broadway Street, Suite 201, American Canyon, California 94503.
150

BASIC FINANCIAL STATEMENTS
151

(This page intentionally left blank.)
152

CITY OF AMERICAN CANYON
Statement of Net Position
June 30, 2021
Governmental
Activities
Business-type
Activities Total
ASSETS
Cash and investments 47,161,894 $ 12,054,953 $ 59,216,847 $ Restricted cash and investments 391,670 6,607,161 6,998,831 Taxes receivable 2,247,540 2,247,540
Accounts receivable, net 3,040,294 269,583 3,309,877
Internal balances (6,570,931) 6,570,931
Interest receivable 89,360 17,904 107,264
Due from other governments 6,332,938 6,332,938
Property held for resale 562,773 562,773
Prepaid expenses and other assets 296,498 5,386 301,884 Loans receivable, net 7,620,063 7,620,063
Capital assets:

Non-depreciable 9,793,340 183,254,329 193,047,669
Depreciable, net of accumulated depreciation 43,717,035 90,985,047 134,702,082 Total capital assets 53,510,375 274,239,376 327,749,751 TOTAL ASSETS 81,807,004 332,640,764 414,447,768

DEFERRED OUTFLOWS OF RESOURCES
Pension plan 3,197,995 615,271 3,813,266
OPEB plans 2,035,323 464,186 2,499,509
TOTAL DEFERRED OUTFLOWS OF RESOURCES 5,233,318 1,079,457 6,312,775

LIABILITIES
Accounts payable 1, 241,512 814,976 2,056,488
Accrued expenses 574,027 290,543 864,570
Unearned revenue 5,090,265 5,090,265
Accrued interest payable 36,892 687,960 724,852
Deposits 60,409 192,837 253,246
Long-term liabilities:

Due within one year
Bonds, capital leases and contracts 1, 1,310,174 303,544 2,613,718 Compensated absences 153,315 677,631 830,946
Workers compensation claims and judgments 1,636,881 1,636,881 Due in more than one year
Bonds, capital leases and contracts 5, 5,471,667 440,131 10,911,798 Compensated absences 131,618 105,318 236,936
Net pension liability 2,626,414 14,175,773 16,802,187
Net OPEB liability 1,220,301 5,914,813 7,135,114
TOTAL LIABILITIES 11,675,273 37,481,728 49,157,001

DEFERRED INFLOWS OF RESOURCES
Pension plan 92,214 320,729 412,943
OPEB plans 1,316,372 85,603 1,401,975
TOTAL DEFERRED INFLOWS OF RESOURCES 1,637,101 177,817 1,814,918

NET POSITION
Net investment in capital assets 267,596,487 47,260,429 314,856,916 Restricted for:

Public safety 1,100,873 1,100,873
Public works 13,954,756 13, 954,756
Storm drain projects 7,040,632 7,040,632
Community development, planning and building 8,266,529 8,266,529 Parks 1,668,718 1,668,718
Capacity expansion 6,075,266 6,075,266
Other activities 160,875 160,875
Unrestricted 17,697,676 (1,033,617) 16,664,059
TOTAL NET POSITION $ 71,033,371 298,755,253 $ 369,788,624 $ The accompanying notes are an integral part of these financial statements. 17 153
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Primary government
Governmental Activities
General government $ 518,482 6,844,132 $ 60,614 $
Public safety 1,880,635 14,316,901 328,941 189,000 $
Public works 6,230,869 1,860,742 702,385 7,505,379
Community development 1,640,602 1,734,661 211,442 5,412 Parks and recreation 2,791,825 95,597
Storm drain 350,946 4,408
Int on long-term debt 163,633
TOTAL GOVERNMENTAL ACTIVITIES 5,996,058 32,432,967 1,307,790 7,699,791 Business-type activities
Water 8,525,517 6,761,366 438,415 1,035,539
Wastewater 4,722,446 5,939,890 373,210
Recycled Water 113,591 18,586 53,500
Total business-type activities 12,719,842 13,361,554 438,415 1,462,249 TOTAL PRIMARY GOVERNMENT $ 19,357,612 45,152,809 $ 1,746,205 $ 9,162,040 $ General revenues:

Taxes:

Property taxes, levied for general purposes
Franchise taxes
Sales taxes
Other taxes
Unrestricted investment earnings
Other
Transfers, net
Total general revenues and transfers
Change in net position
Net position, beginning of year- as previously reported Restatement
Net position, beginning of year- as restated
Net position, end of year
The accompanying notes are an integral part of these financial statements.

Program Revenue

CITY OF AMERICAN CANYON
Statement of Activities
For the Year Ended June 30, 2021
18 154
Governmental
Activities
Business-type
Activities Total
$ (6,265,036) (6,265,036) $
(11,918,325) (11,918,325)
3,837,637 3,837,637
122,795 122,795
(2,696,228) (2,696,228)
(346,538) (346,538)
(163,633) (163,633)
(17,429,328) (17,429,328)
$ 3,238,105 3,238,105
(844,234) (844,234)
148,505 148,505
2,542,376 2,542,376
2,542,376 (17,429,328) (14,886,952)
16,156,774 16,156,774
814,697 814,697
4,417,552 4,417,552
1,499,153 1,499,153
1,464,758 (75,937) 1,388,821
28,808 831,482 860,290
(2,066,071) 2,066,071
(572,505) 25,709,792 25,137,287
1,969,871 8,280,464 10,250,335
69,063,500 289,714,019 358,777,519
760,770 760,770
69,063,500 290,474,789 359,538,289
$ 71,033,371 298,755,253 $ 369,788,624 $
Net (Expense) Revenue and Changes in Net Position
Primary Government
19 155
General Fund
Fire District
Operations
Special
Revenue
CDBG,
CalHome and
HOME Loan
Development
Special
Revenue
State and
Federal
Grants - City
Special
Revenue
ASSETS
Cash and investments $ 5,993,014 17,477,630 $ 69,770 $ 394,340 $ Restricted cash and investments
Taxes receivable 139,393 1,341,523
Accounts receivable, net 13,299 255,979
Interest receivable 4,403 70,388 44
Due from other governments 182,823 6,082,335
Property held for resale 412,503
Prepaid expenditures and deposits 26,007
Loans receivable, net 6,336 2,315,910
TOTAL ASSETS 19,773,189 $ 6,150,109 $ 2,385,724 $ 6,476,675 $

LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES
Liabilities:

Accounts payable $ 64,238 387,863 $ 55,663 $ 1,012,942 $ Accrued expenses 180,528 302,608
Unearned revenue 192,209 4,898,056
Deposits 60,409
Due to other funds 6,398,945
TOTAL LIABILITIES 7,342,034 244,766 55,663 5,910,998

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 51,605 226,531 2,315,910 1,184,279

TOTAL DEFERRED INFLOWS
OF RESOURCES 226,531 51,605 2,315,910 1,184,279

FUND BALANCES
Nonspendable:

Property held for resale 412,503
Prepaid expenditures and deposits 26,007
Restricted for:

Public safety 137,378 17,355
Public works
Storm drain projects
Community development, planning and building 14,151 331,394 Parks
Other activities 60,089
Committed 1,285,478 6,387,027
Assigned 4,550,905 1,000,000
Unassigned (618,602) 3,850,226
TOTAL FUND BALANCES 12,204,624 5,853,738 14,151 (618,602)

TOTAL LIABILITIES, DEFERRED
INFLOWS AND FUND BALANCES 19,773,189 $ 6,150,109 $ 2,385,724 $ 6,476,675 $ The accompanying notes are an integral part of these financial statements Major Funds

CITY OF AMERICAN CANYON
Balance Sheet
Governmental Funds
June 30, 2021
20 156
City Capital
Projects
Affordable
Housing
Capital
Projects
Cabernet
Village Lease
Debt Service
Other
Nonmajor
Governmental
Funds
Total
Governmental
Funds
$ 111,669 300,108 $ 22,185,094 $ 46,531,625 $
391,670 391,670
766,624 2,247,540
305 269,583
14,257 71 89,163
67,780 6,332,938
150,270 562,773
26,007
126,187 5,171,630 7,620,063
$ 5,433,640 300,108 $ - $ 23,551,917 $ 64,071,362 $
235,669 $ 1,756,375 $
$ 80,671 563,807
5,090,265
60,409
10,382 6,409,327
80,671 246,051 13,880,183
$ 510,870 5,171,630 9,460,825
5,171,630 510,870 9,460,825
412,503
26,007
1,037,501 882,768
219,437 12,818,377 13,037,814
7,036,224 7,036,224
262,010 73,273 680,828
1,668,718 1,668,718
160,875 100,786
7,672,505
5,776,137 225,232
3,221,242 (10,382)
262,010 219,437 22,794,996 40,730,354
$ 5,433,640 300,108 $ - $ 23,551,917 $ 64,071,362 $
Major Funds
21 157

(This page intentionally left blank.)
158

CITY OF AMERICAN CANYON
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2021
Total fund balance, governmental funds $ 40,730,354
Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the fund financial statements, but are reported in the governmental activities of the Statement of Net Position. 274,239,376
Revenues and loans receivable, which are deferred on the fund balance sheets because they are not available currently, are recognized as revenue in the Statement of Activities. 9,460,825 Internal service funds are used by management to charge the costs of activities to individual funds. The assets and liabilities of internal service funds are included in governmental activities in the Statement of Net Position. This amount excludes long-term assets and liabilities reported separately below. 400,532 Long-term assets and liabilities are not due and payable in the current period and are not included in the fund financial statements, but are included in the governmental activities of the Statement of Net Position.

Prepaid rent 270,000
Accrued interest payable (687,960)
Bonds, capital leases and contracts (6,743,675)
Compensated absences (782,949)
Uninsured claims (1,636,881)
Net pension liability (14,175,773)
Net OPEB liability (5,914,813)
Employee pension differences to be recognized in the future as pension expense are reported as deferred outflows and inflows of resources on the Statement of Net Position. 2,877,266 Employee OPEB differences to be recognized in the future as OPEB expense are reported as deferred outflows and inflows of resources on the Statement of Net Position. 718,951 NET POSITION OF GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET POSITION $ 298,755,253 The accompanying notes are an integral part of these financial statements. 22 159
General Fund
Fire District
Operations
Special
Revenue
CDBG,
CalHome and
HOME Loan
Development
Special
Revenue
State and
Federal
Grants - City
Special
Revenue

REVENUES
Property taxes $ 4,779,364 11,317,124 $
Sales taxes 2,848,231
Other taxes 688,645 1,804,928
Special assessments
Fines and forfeitures 72,791
Licenses and permits 585,340
Intergovernmental 189,000 114,449 211,442 $ 1,100,570 $ Charges for services 1,068,760 1,156,529
Use of money and property (860) 89,968 (131)
Other 216,062 349,715 3,269
TOTAL REVENUES 18,339,075 6,940,971 214,580 1,100,570

EXPENDITURES
Current:

General government 5,312,379
Public safety 6,453,537 7,346,218
Public works 1,813,887
Community development 1,569,975 171,131
Parks and recreation 2,794,202
Storm drain 359,470
Debt Service:

Principal
Debt issuance costs
Interest and other charges
Capital outlay 810,645 29,107
TOTAL EXPENDITURES 19,225,238 7,264,182 171,131

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (323,211) (886,163) 43,449 1,100,570

OTHER FINANCING SOURCES (USES)
Issuance of long-term debt
Sale of assets 10,000
Other sources 11,456
Transfers in 250,000 2,632,514 9,455
Transfers out (354,316) (1,307,341)

TOTAL OTHER FINANCING
SOURCES AND USES 250,000 2,299,654 9,455 (1,307,341)
NET CHANGE IN FUND BALANCES 1,413,491 (73,211) 52,904 (206,771) Fund balances, beginning of year 5,926,949 10,791,133 (38,753) (411,831) FUND BALANCES, END OF YEAR 12,204,624 $ 5,853,738 $ 14,151 $ (618,602) $ The accompanying notes are an integral part of these financial statements Major Funds

CITY OF AMERICAN CANYON
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2021
23 160
City Capital
Projects
Affordable
Housing
Capital
Projects
Cabernet
Village Lease
Debt Service
Other
Governmental
Funds
Total
Governmental
Funds
16,096,488 $
1,218,056 $ 4,066,287
2,493,573
668,114 668,114
72,791
585,340
3,232,162 4,847,623
$ 1,504,858 118,159 3,848,306
117,855 837 207,669
650,785 11,059 1,230,890
130,055 7,391,830 34,117,081
5,312,379
13,799,755
385,453 2,199,340
131,999 1,873,105
14,834 2,809,036
359,470
4,320,000 $ 278,000 4,598,000
151,000 6,293 157,293
151,433 6,024 157,457
$ 6,181,989 7,021,741
131,999 6,181,989 4,622,433 690,604 38,287,576
(1,944) (6,181,989) (4,622,433) 6,701,226 (4,170,495)
4,569,064 829,827 5,398,891
10,000
11,456
6,181,989 53,369 745,816 9,873,143
(6,212,915) (7,874,572)
6,181,989 4,622,433 (4,637,272) 7,418,918
(1,944) 2,063,954 3,248,423
263,954 219,437 20,731,042 37,481,931
$ 262,010 219,437 $ - $ 22,794,996 $ 40,730,354 $
Major Funds
24 161

CITY OF AMERICAN CANYON
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ended June 30, 2021
Net change in fund balances - total governmental funds: $ 3,248,423 Amounts reported for Governmental Activities in the Statement of Activities are different because:

Governmental funds report outlays for capital assets as expenditures because such outlays use current financial resources. In contrast, the Statement of Activities reports only a portion of the outlay as expense.

The outlay is allocated over the assets' estimated useful lives as depreciation expense for the period.

Capital outlay 7,021,741
Contributed assets 3,620,813
Depreciation expense (4,267,506)
Disposals and transfers (753,573)
Governmental funds do not present revenues that are not available to pay current obligations. In contrast, such revenues are reported in the Statement of Activities when earned. 1,127,566 Governmental funds report debt proceeds as current financial resources. In contrast, the Statement of Activities treats such issuance of debt as a liability. Governmental funds report repayment of bond principal as an expenditure. In contrast, the Statement of Activities treats such repayments as a reduction in long-term liabilities. This is the amount by which proceeds exceeded repayments, net of amortization of deferred amount on refunding. (824,579)
Internal service funds are used by management to charge the costs of activities to individual funds. The net revenue of certain internal service funds is reported with governmental activities. 438,800 Some expenses reported in the statement of activities do not require the use of current financial resources and these are not reported as expenditures in governmental funds:

Change in prepaid rent (6,000)
Change in deferred outflows of resources-pension (288,215) Change in deferred outflows of resources-OPEB 222,146
Change in accrued interest payable (49,977)
Change in compensated absences 8,145
Change in uninsured claims (572,563)
Change in net pension liability (888,124)
Change in net OPEB liability (135,938)
Change in deferred inflows of resources-pension 207,606 Change in deferred inflows of resources-OPEB 171,699
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ 8,280,464 The accompanying notes are an integral part of these financial statements. 25 162

CITY OF AMERICAN CANYON
Statement of Net Position
Proprietary Funds
June 30, 2021
Governmental
ActivitiesWater Wastewater
Recycled
Water Total
Internal
Service Funds
ASSETS
Current assets:

Cash and investments 3,634,571 $ 8,314,998 $ 105,384 $ 12,054,953 $ 630,269 $ Accounts receivable, net 2,083,851 934,633 21,810 3,040,294 Interest receivable 11,964 5,879 61 17,904 197
Due from other funds 8,238,723 8,23 8,723
Prepaid expenses 2,693 2,693 5,386 491
Total current assets 13,971,802 9,258,203 127,255 23,357,260 630,957 Non-current assets:

Restricted cash and investments 5,843,943 763,218 6,607,161 Advances to other funds 128,906 5,391,531 5,520,437
Capital assets:

Non-depreciable 4,489,356 5,292,550 11,434 9,793,340
Depreciable, net of accumulated depreciation 19,531,194 19,676,526 4,509,315 43,717,035 873,569 Total non-current assets 29,993,399 31,123,825 4,520,749 65,637,973 873,569 TOTAL ASSETS 43,965,201 40,382,028 4,648,004 88,995,233 1,504,526

DEFERRED OUTFLOW OF RESOURCES
Pension plan 290,309 324,962 61,582 615,271
OPEB plan 221,894 242,292 40,464 464,186
Total deferred outflows of resources 567,254 512,203 102,046 1,079,457

LIABILITIES
Current Liabilities:

Accounts payable 97,232 144,280 241,512 58,601
Accrued expenses 50,641 239,902 290,543 10,220
Accrued interest payable 36,892 36,892 128
Due to other funds 1,755,303 1,755,303 74,093
Deposits 148,652 44,185 192,837
Compensated absences, current portion 75,124 78,191 153,315 19,233 Bonds, notes and loans payable, current portion 1,173,004 137,170 1,310,174 33,677 Total current liabilities 3,421,642 558,934 3,980,576 195,952 Non-current liabilities:

Advances from other funds 5,520,437 5,520,437
Compensated absences, non-current portion 64,552 67,066 131,618 Bonds, notes and loans payable 3,714,403 1,757,264 5,471,667 69,065 Net pension liability 1,387,169 1,239,245 2,626,414 262,877 Net OPEB liability 636,963 583,338 1,220,301 106,378
Total non-current liabilities 3,646,913 5,803,087 5,520,437 14,970,437 438,320 TOTAL LIABILITIES 9,224,729 4,205,847 5,520,437 18,951,013 634,272

DEFERRED INFLOW OF RESOURCES
Pension plan 48,704 43,510 92,214 9,230
OPEB plan 40,921 44,682 85,603 7,463
Total deferred inflows of resources 84,431 93,386 16,693 177,817

NET POSITION
Net investment in capital assets 22,282,009 20,457,671 4,520,749 47,260,429 770,827 Restricted for:

Capacity expansion 5,688,050 387,216 6,075,266
Unrestricted 10,786,280 12,217,067 (5,393,182) 17,610,165 184,780 TOTAL NET POSITION 40,187,126 $ 31,631,167 $ (872,433) $ 70,945,860 955,607 $ 87,511
$ 71,033,371
The accompanying notes are an integral part of these financial statements.

TOTAL NET POSITION PER GOVERNMENT-WIDE FINANCIAL STATEMENTS The assets and liabilities of certain internal service funds are not included in the fund financial statement, but are included in the Business Activities of the Statement of Net Position.

Business Type ActivitiesEnterprise Funds
26 163

CITY OF AMERICAN CANYON
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Year Ended June 30, 2021
Governmental
ActivitiesWater Wastewater
Recycled
Water Total
Internal
Service Funds

OPERATING REVENUES
Charges for services $ 4,722,446 8,538,740 $ 113,591 $ 13,374,777 $ 1,870,600 $ Other 26,950 213,979 1,858 242,787
TOTAL OPERATING REVENUES 4,749,396 8,752,719 115,449 13,617,564 1,870,600

OPERATING EXPENSES
Employee services 1,668,552 1,676,415 3,344,967 322,671 Maintenance and operations 3,442,338 1,418,281 139 4,860,758 1,275,370 Depreciation 1,460,021 1,612,154 18,447 3,090,622 216,774 TOTAL OPERATING EXPENSES 4,698,987 6,578,774 18,586 11,296,347 1,814,815 OPERATING INCOME (LOSS) 50,409 2,173,945 96,863 2,321,217 55,785

NON-OPERATING REVENUES (EXPENSES)
Interest and investment revenue 192,392 1,272,103 263 1,464,758 1,483 Other revenue 220,800 220,800
Operating grants and contributions 3,636 3,636
Interest expense (1,249,725) (197,590) (717) (1,448,032) (4,138) Gain (loss) on disposal of capital assets (16,349) (4,956) (21,305) 58,692

TOTAL NON-OPERATING
REVENUE (EXPENSES) 1,282,600 (1,062,289) (454) 219,857 56,037

INCOME (LOSS) BEFORE
CONTRIBUTIONS AND TRANSFERS (1,011,880) 3,456,545 96,409 2,541,074 111,822

CONTRIBUTIONS AND TRANSFERS
Capital contributions 1,035,539 373,210 53,500 1,462,249 Transfers in 57,124 5,686,594 4,700,294 10,444,012 67,500 Transfers out (1,746,791) (5,040,656) (5,722,636) (12,510,083) CHANGE IN NET POSITION (2,328,337) 5,138,022 (872,433) 1,937,252 179,322 Net position, beginning of year 33,959,504 35,049,104 69,008,608 776,285 TOTAL NET POSITION, END OF YEAR $ 31,631,167 40,187,126 $ (872,433) $ 70,945,860 955,607 $ Change in net position 1,937,252
32,619
$ 1,969,871
The accompanying notes are an integral part of these financial statements.

CHANGE IN NET POSITION OF BUSINESS TYPE ACTIVITIES
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.

Business Type Activities
Enterprise Funds
27 164
Governmental
Activities
Water Wastewater
Recycled
Water Total
Internal
Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 8,089,092 $ 4,411,305 $ 93,639 $ 12,594,036 $ Cash paid to suppliers (3,721,555) (1,244,311) (18,586) (4,984,452) (1,252,947) $ Cash paid to employees and related benefits (1,404,599) (1,507,110) (2,911,709) (220,091) Cash (paid) received from interfund services provided (97,500) (115,100) (212,600) 1,938,100 Other receipts 220,800 220,800
CASH PROVIDED BY OPERATING ACTIVITIES 3,086,238 1,544,784 75,053 4,706,075 465,062

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Intergovernmental revenue received 3,636 3,636
Amounts received (paid) to other funds (14,137,632) 1,090,046 4,498,095 (8,549,491)

CASH (USED) PROVIDED BY NONCAPITAL AND
RELATED FINANCING ACTIVITIES (14,133,996) 1,090,046 4,498,095 (8,545,855) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Capital assets purchased 1,849,625 (2,064,252) (4,520,749) (4,735,376) (503,544) Capital revenues received 1,035,539 373,210 53,500 1,462,249 Proceeds from disposal of capital assets 105,400
Principal paid on long-term liabilities (68,666) (985,705) (1,054,371) (32,747) Proceeds from long-term liabilities 1,307,298 3,153,114 4,460,412 Interest paid on long-term liabilities (209,104) (1,267,479) (717) (1,477,300) (4,010) Capital grants received 140,847

CASH PROVIDED BY CAPITAL AND
RELATED FINANCING ACTIVITIES 3,914,692 (791,112) (4,467,966) (1,344,386) (294,054)

CASH FLOWS FROM INVESTING ACTIVITIES
Collection of interest and investment revenue 1,315,429 211,799 202 1,527,430 3,627 CHANGE IN CASH AND CASH EQUIVALENTS (5,817,637) 2,055,517 105,384 (3,656,736) 174,635 Cash and cash equivalents, beginning of year 7,022,699 15,296,151 22,318,850 455,634 CASH AND CASH EQUIVALENTS, END OF YEAR 9,478,514 $ 9,078,216 $ 105,384 $ 18,662,114 $ 630,269 $

RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE STATEMENT OF NET POSITION:

Cash and investments 3,634,571 $ 8,314,998 $ 105,384 $ 12,054,953 $ 630,269 $ Restricted cash and investments 5,843,943 763,218 6,607,161 CASH AND CASH EQUIVALENTS 9,478,514 $ 9,078,216 $ 105,384 $ 18,662,114 $ 630,269 $

RECONCILIATION OF OPERATING INCOME (LOSS)
TO CASH PROVIDED (USED) BY OPERATING ACTIVITIES:

Operating income (loss) 2,173,945 $ 50,409 $ 96,863 $ 2,321,217 $ 55,785 $ Adjustments to reconcile operating income (loss)
to cash provided (used) by operating activities:

Depreciation and amortization 1,460,021 1,612,154 3,072,175 216,774 Other operating receipts 220,800 220,800
Operating transfers in 67,500
Changes in operating assets and liabilities:

Accounts receivable, net (663,627) (338,091) (21,810) (1,023,528) Prepaid expenses (651) (464) (1,115)
Accounts payable and accrued expenses (383,646) 59,334 (324,312) 96,516 Deposits 7,580 7,580
Compensated absences 33,351 59,668 93,019 894
Changes in pension and OPEB liabilities and related deferred outflows and inflows of resources:

Deferred outflows of resources - pension plan 280 28,347 28,627 4,761 Net pension liability 196,777 119,698 316,475 24,875
Deferred inflows of resources - pension plan (13,608) (20,742) (34,350) (3,810) Deferred outflows of resources - OPEB plans (47,872) (26,900) (74,772) (5,404) Net OPEB liability 14,737 109,991 124,728 9,015
Deferred inflows of resources - OPEB plans (7,103) (13,366) (20,469) (1,844) CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 1,544,784 3,086,238 $ 75,053 $ 4,706,075 $ 465,062 $ The accompanying notes are an integral part of these financial statements.

CITY OF AMERICAN CANYON
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2021
Enterprise Funds
28 165
Total
Custodial
Funds
ASSETS
Cash and investments $ 3,806,162
Restricted cash and investments 3,720,307
Taxes receivable 91,591
Interest receivable 2,450
TOTAL ASSETS 7,620,510

LIABILITIES
Accounts payable 99,722
TOTAL LIABILITIES 99,722

NET POSITION
Restricted for individuals, organizations
and other governments 7,520,788
TOTAL NET POSITION $ 7,520,788
The accompanying notes are an integral part of these financial statements.

CITY OF AMERICAN CANYON
Statement of Fiduciary Net Position
Ficudiary Funds
June 30, 2021
29 166
Total
Custodial
Funds

ADDITIONS
Other taxes $ 156,304
Special assessments 2,358,403
Interest and investment earnings 131,783
TOTAL ADDITIONS 2,646,490

DEDUCTIONS
Maintenance and operations 2,482,589
Debt Service:

Principal 530,000
Interest and other charges 1,237,446
TOTAL DEDUCTIONS 4,250,035

NET INCREASE (DECREASE) IN
FIDUCIARY NET POSITION (1,603,545)
Net position , beginning of year - as
as previously reported
Restatement 9,124,333
Net position , beginning of year - as
as restated 9,124,333
NET POSITION, END OF YEAR $ 7,520,788
The accompanying notes are an integral part of these financial statements.

CITY OF AMERICAN CANYON
Statement of Changes in Fiduciary Net Position
Ficudiary Funds
June 30, 2021
30 167

(This page intentionally left blank.)
168

NOTES TO THE BASIC FINANCIAL STATEMENTS
169
(This page intentionally left blank.)
170

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021
31 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of American Canyon (the City) was incorporated as a general law city in 1992. The City operates under the Council-Manager form of government and provides the following services: public safety (police and fire), highways and streets, water, wastewater, culture-recreation, public improvements, planning and zoning, transit and general administration.

The financial statements and accounting policies of the City conform with generally accepted accounting principles applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Significant accounting policies are summarized below:

Reporting Entity
The financial statements of the City include the financial activities of the City and its component units.

The American Canyon Financing Authority and American Canyon Fire Protection District are legally separate entities for which the City is financially accountable and they are governed by the elected City Council. The Authority was formed to provide a method of financing public improvements, and the Fire District became part of the City when it was incorporated in 1992. The City has full accountability for the Authority’s fiscal affairs. Management of the City has operational responsibility for the Fire District. The financial activities of the Authority and the Fire District are blended with those of the City and are reported in the City’s governmental funds, and as capital assets and debt obligations of the City. Blended component units, although legally separate entities, are, in substance, part of the government’s operations and so data from these units are combined with data of the primary government. Separate component unit financial reports are not prepared.

The City is a member of joint powers authorities (JPA) in which the City has only a residual equity interest in the related entity. The City is not liable for the liabilities of the entities if they dissolve under the related JPA agreement. However, Senate Bill 1912, effective January 1, 2019, requires members of a JPA that participates in a public retirement system to agree on the apportionment of the JPA’s retirement liability to the members of the JPA if the JPA dissolves or otherwise terminates its contract with the public retirement system. The City is a member of the following JPAs: Napa Valley Transportation Authority (transit services), Napa Valley Transportation and Planning Agency (transportation planning), North Bay Water Reuse Authority (water conservation and recycling) and Napa County Stormwater Management Program (pollution prevention program), Napa County Stormwater Management Program (stormwater management) and Cooperative Joint Powers Dispatching Services Agreement (fire dispatching). The City is also a member of the insurance JPA’s discussed in Note L. The financial statements of the JPAs are available on the websites of the related entities, if applicable.

Basis of Presentation
The City’s Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board (GASB) is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
171

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
32 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (the City). These statements include the financial activities of the overall City government, except for fiduciary activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions.

Business-type activities are financed in whole or in part by fees charged to external parties.

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements: The fund financial statements provide information about the City's funds.

Separate statements for each fund category—governmental and proprietary—are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.

Major Funds
Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of governmental and proprietary funds combined. The General Fund is always a major fund. The City may also report other funds it believes should be presented as major funds.

The City reported the following major governmental funds in the accompanying financial statements:

General Fund – The General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds and the related expenditures.

Fire District Operations Special Revenue Fund – Accounts for revenues and the associated expenditures for fire services provided by the component unit fire protection district. The main sources of revenue are property taxes, assessments, and charges for services.

CDBG, CalHome and HOME Loan Development Special Revenue Fund – Accounts for housing rehabilitation made with Federal Community Development Grant monies. 172

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
33 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) State and Federal Grants – City Special Revenue Fund – Accounts for grant funds received for improvements to various bus stop, curb ramps, bicycle path/trail from Chaucer Lane to existing trail, State Water Resources Control Board for recycled water projects, Urban Open Space and Recreation Program under the Safe Neighborhood Parks, Clean Water, Clean Air, Coastal Protection Bond Act of 2000.

City Capital Projects Fund – Accounts for major capital projects funded by various City sources. Major projects include Green Island Road Reconstruction/Widening and Devlin Road Extension Segment H.

Affordable Housing Capital Projects Fund – Accounts for fees collected from developers in lieu of providing affordable housing services.

Cabernet Village Lease Debt Service Fund – Accounts for debt service on lease financing for the purchase of the commercial office building at 4381 Broadway Street which was converted to a new City Hall facility.

The City reported all of its enterprise funds as major funds in the accompanying financial statements:

Water Enterprise Fund – Accounts for the operations of the City’s water treatment and distribution system.

Wastewater Enterprise Fund – Accounts for the operation of the City’s wastewater treatment plant and collection facilities.

Recycled Water Enterprise Fund – Accounts for the operation of the City’s recycled water collection and distribution system.

The City also reports the following fund types:

Internal Service Funds – Account for building maintenance, fleet and information technology services provided to other departments or agencies of the City on a cost-reimbursement basis.

Fiduciary Funds – These funds are used to account for assets held by the City in a fiduciary capacity for special assessment districts. They consist entirely of Custodial Funds. The financial activities of these funds are excluded from the City-wide financial statements but are presented in separate Fiduciary Fund financial statements.

Basis of Accounting
The government-wide, proprietary and fiduciary fund statements are reported using the full accrual basis of accounting. The government-wide and proprietary fund statements use the economic resources measurement focus. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. The Fiduciary Fund statements are not reported using a measurement focus because only assets and liabilities are reported.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable 173

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
34 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions are reported as expenditures in governmental funds.

Proceeds of governmental long-term debt and acquisitions under capital leases are reported as other financing sources. Those revenues susceptible to accrual at both the City-wide and fund level are property, sales and franchise taxes, current service charges, and interest revenue. Fines and licenses and permits are not susceptible to accrual because they are not measurable until received in cash.

Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed.

Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied.

Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of costreimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position may be available to finance program expenditures. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.

Certain indirect costs are included in program expenses reported for individual functions and activities.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are exchange or exchange-like transactions between functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds and internal service funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

Property Tax Revenues
Napa County assesses properties and bills, collects, and distributes property taxes to the City. The County remits the entire amount levied and handles all delinquencies, retaining interest and penalties.

Secured and unsecured property taxes are levied on January 1.

Secured property tax is due in two installments, on November 1 and March 1, and becomes a lien on those dates. It becomes delinquent on December 10 and April 10, respectively. Unsecured property tax is due on July 1, and becomes delinquent on August 31.
174

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
35 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The term "unsecured" refers to taxes on personal property other than real estate, land and buildings.

These taxes are secured by liens on the property being taxed. Property tax revenues are recognized by the City in the fiscal year they are assessed, provided they become available as defined above.

Restricted Assets
Certain proceeds of long-term debt are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. Restricted cash includes the “reserve” account used to report resources set aside to make up potential future deficiencies in the bond’s debt service.

Restricted cash also includes unspent proceeds of special assessment debt transferred to City capital projects funds. The restricted assets in the Proprietary Funds also includes amounts collected that are restricted for capacity expansion.

Assets Held for Resale
Assets held for resale are carried at the lower of cost or market, but not greater than the net realizable value. In the Fund Financial Statements, an amount equal to the carrying value of the asset is reported as nonspendable fund balance because such assets are not available to finance the City’s current operations.

Compensated Absences
Compensated absences are comprised of unpaid vacation and certain compensated time off, which are accrued as earned. A liability for compensated absences that are attributable to services already rendered and that are not contingent on a specific event that is outside the control of the government and its employees is accrued as employees earn the rights to the benefits. Compensated absences that relate to future services or that are contingent on a specific event that is outside the control of the government and its employees are accounted for in the period in which such services are rendered or such events take place. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. The City’s liability for compensated absences is recorded in the governmental activities, Internal Service, Water and Wastewater Funds as appropriate and are generally liquidated by these funds. The governmental activities compensated absences liability is liquidated by the General Fund and Fire District Operations Fund. The long-term portion of governmental activities compensated absences is liquidated primarily by the General Fund. The liability for compensated absences is determined annually.

Pension Plan
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to the pension plan, and pension expense, information about the fiduciary net position of the California Public Employee’s Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The net pension liability is generally liquidated by the City’s General, Fire District Operations, Internal Service, Water and Wastewater Funds.
175

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
36 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Other Postemployment Benefits (OPEB) Plans
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to the OPEB plans (Plans), and OPEB expense, information about the fiduciary net position of the Plans and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by the Plans. For this purpose, the Plans recognize benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments and participating interest-earning investment contracts that have a maturity at the time of purchase of one year or less, which are reported at cost. The net OPEB liability is generally liquidated by the City’s General, Fire District Operations, Internal Service, Water and Wastewater Funds.

New Pronouncements
In January 2017, the GASB issued Statement No. 84, Fiduciary Activities. This Statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. This Statement describes four fiduciary funds that should be reported, if applicable: (1) pension (and other employee benefit) trust funds, (2) investment trust funds, (3) private-purpose trust funds, and (4) custodial funds.

Custodial funds generally should report fiduciary activities that are not held in a trust or equivalent arrangement that meets specific criteria. This Statement also provides for recognition of a liability to the beneficiaries in a fiduciary fund when an event has occurred that compels the government to disburse fiduciary resources. The City implemented this Statement during the year ended June 30, 2021, resulting in Agency Funds being reclassified as Custodial Funds.

In June 2017, the GASB issued Statement No. 87, Leases. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. The requirements of this Statement are effective for reporting periods beginning after June 15, 2021.

In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. This Statement enhances disclosures about capital assets and the cost of borrowing for a reporting period and simplifies the accounting for interest cost incurred before the end of a construction period. Interest cost incurred before the end of a construction period will be recognized as an expense rather than being recorded as part of the cost of capital assets in a business-type activity or enterprise fund and interest cost incurred by a fund using the current financial resources measurement focus before the end of a construction period should be recognized as an expenditure on a basis consistent with governmental fund accounting principles. The requirements of this Statement are effective for the reporting periods beginning after December 15, 2020.

In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. The Statement indicates an issuer of a conduit debt obligation should not report a liability for the conduit debt obligation but requires an issuer to report a liability associated with an additional commitment or a voluntary commitment to 176

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
37 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) support the debt. Additional commitments by an issuer to support the debt include extending a moral obligation pledge, appropriation pledge or financial guarantee or pledging the issuer’s own property, revenue or assets as security for the debt. The requirements of this Statement are effective for the reporting periods beginning after December 15, 2021.

In May 2020, the GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements (SBITA). This Statement 1) defines the term SBITA; 2) establishes that a SBITA results in a right-to-use subscription asset – an intangible asset – and a corresponding subscription liability; 3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs to a SBITA; and 4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITA are based on the standards established in Statement No. 87, Leases, as amended.

This statement is effective for fiscal years beginning after June 15, 2022.

In June 2020, the GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans. This Statement requires for the purposes of determining whether a primary government is financially accountable for a potential component unit, except for a potential component unit that is a defined contribution plan, a defined contribution OPEB plan, or an other employee benefit plan (for example, certain Section 457 plans, the absence of a governing board should be treated the same as the appointment of a voting majority of a governing board if the primary government performs the duties that a governing board typically would perform. This Statement also requires that the financial burden criterion in paragraph 7 of Statement No. 84, Fiduciary Activities, be applicable to only defined benefit pension plans and defined benefit OPEB plans that are administered through trusts that meet the criteria in paragraph 3 of Statement No. 67, Financial Reporting for Pension Plans, or paragraph 3 of Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, respectively. This Statement (1) requires that a Section 457 plan be classified as either a pension plan or an other employee benefit plan depending on whether the plan meets the definition of a pension plan and (2) clarifies that Statement 84, as amended, should be applied to all arrangements organized under IRC Section 457 to determine whether those arrangements should be reported as fiduciary activities.

The City is currently analyzing the impact of the required implementation of these new statements.

NOTE B – BUDGETS AND BUDGETARY ACCOUNTING
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all government funds except the State and Federal Grants – Fire, General Plan Update and Legal Settlement Special Revenue Funds, the Utility Underground Capital Projects Fund and the Engie Fire Debt Service Fund. All annual appropriations lapse at fiscal year-end.

The appropriated budget is prepared by fund, department, division, object and line item. The City’s department managers may make transfers of appropriations within a division. Transfers of appropriations between divisions require the approval of the Chief Administrative Officer. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the fund level. All budget amounts presented in the accompanying financial statements have been adjusted for legally authorized revisions of the annual budgets during the year.

Amounts represent the original budgeted amounts and all supplemental appropriations. The supplemental appropriations were immaterial.
177

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
38 NOTE B – BUDGETS AND BUDGETARY ACCOUNTING (Continued) The Affordable Housing Capital Projects Fund, Cabernet Village Lease Debt Service Fund, Measure T-Streets and Roads Special Revenue Fund, State Supplemental Law Enforcement Special Revenue Fund, Zero Water Footprint Special Revenue Fund, and the Engie City Debt Service Fund had expenditures and transfers out in excess of the final appropriation for the fiscal year ended June 30, 2021 by $1,999, $4,568,433, $183,254, $16,923, $237,800 and $467,263, respectively. The excess amounts were mainly due to minor unexpected costs or debt/projects approved by Council after the budget was adopted.

NOTE C – CASH AND INVESTMENTS
The City’s dependence on property tax receipts, which are received semi-annually, requires it to maintain significant cash reserves to finance operations during the remainder of the year. The City pools cash from all sources and all funds except cash and investments held by trustees so that it can be invested at the maximum yield consistent with safety and liquidity, while individual funds can make expenditures at any time.

Policies
The City’s investments are carried at fair value, as required by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.

Classification
Cash and investments are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City debt instruments or agency agreements.

Cash and investments 59,216,847 $
Restricted cash and investments 6,998,831
Total cash and investments of primary government 66,215,678 Cash and investments in Fiduciary Funds 3,806,162
Restricted cash and investments in Fiduciary Funds 3,720,307 Total cash and investments 73,742,147 $
Cash and investments as of June 30, 2021 consist of the following:

Cash on hand 2,400 $
Deposits with financial institutions 708,953
Investments:

Held by City 68,701,193
Held by fiscal agents 4,329,601
Total investments 73,030,794
Total cash and investments 73,742,147 $
178

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
39 NOTE C – CASH AND INVESTMENTS (Continued)
Cash and investments is used in preparing proprietary fund statements of cash flows because these assets are highly liquid and are expended to liquidate liabilities arising during the year.

Investments Authorized by the California Government Code and the City’s Investment Policy The City’s Investment Policy and the California Government Code allow the City to invest in the following, provided the credit ratings of the issuers are acceptable to the City; and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code, or the City’s Investment Policy where the City’s Investment Policy is more restrictive.

Authorized Investment Type
Maximum
Maturity
Minimum
Credit
Quality
Maximum
Percentage of
Portfolio
Maximum
Investment
Per Issuer
Municipal Obligations 5 Years A 30% 5%
U.S. Treasury Obligations 5 Years None None None
U.S. Agency Obligations 5 Years None None 30%
Bankers' Acceptances 180 Days A-1/A 40% 5%
Commercial Paper 270 Days A-1/A 25% 5%
Negotiable Certificates of Deposit 5 Years A-1/A 30% 5% CDARS/Time Deposits 5 Years None 20% None
Repurchase Agreements 1 Year None None None
Medium-Term Notes 5 Years A 30% 5%
Mutual Funds 5 Years AAA/Aaa 20% 10%
Money Market Mutual Funds 5 Years AAA/Aaa 20% 20%
Pass-Through Securities 5 Years AA 20% 5%
Supranational Obligations 5 Years AA 30% 10%
Collateralized Bank Deposits N/A None None None
Local Government Investment Pools N/A None None None
California Local Agency Investment Fund (LAIF) N/A None None None 179

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
40 NOTE C – CASH AND INVESTMENTS (Continued)
Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or pledged reserves to be used if the City fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City resolutions, bond indentures or State statutes. The table below identifies the investment types that are authorized for investments held by fiscal agents. The bond indentures contain no limitations for the maximum investment in any one issuer or the maximum percentage of the portfolio that may be invested in any one investment type. The table also identifies certain provisions of these debt agreements:

Maximum Minimum
Authorized Investment Type Maturity Credit Quality
Bankers' Acceptances 360 days A-1
U.S. Treasury Bills and Notes None N/A
State General Obligations None A
Municipal Obligations None Aaa/AAA
U.S. Government Agency Securities None AAA
U.S. Government Sponsored Securities None AAA
Federal Housing Administration Debentures None N/A
Medium Term Notes 5 year A
Commercial Paper 270 days A-1+
California Local Agency Investment Fund N/A N/A
Money Market Fund N/A AAm
Defeasance Securities N/A N/A
Pre-refunded Municipal Obligations None AAA
Investment Agreements N/A AA
Unsecured Certificates of Deposit 30 days A-1
CalTrust None N/A
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value changes in market interest rates. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City generally manages its interest rate risk by investing in the Local Agency Investment Fund (LAIF), which provides the necessary cash flow and liquidity needed for operations, as well as purchasing a combination of shorter term and longer term investments so that a portion of the portfolio is maturing or coming close to maturing evenly over time.

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity or earliest call date:
180

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
41 NOTE C – CASH AND INVESTMENTS (Continued)
12 Months 13 to 36 36 to 60
Authorized Investment Type or less Months Months Total
California Local Agency Investment
Fund (LAIF) 51,770,451 $ 51,770,451 $
U.S. Treasury Notes 809,998 2,909,131 $ 2,108,461 $ 5,827,590 U.S. Government Agency Obligations 532,499 1,980,657 3,356,911 5,870,067 U.S. Corporate Obligations 392,378 1,619,077 1,699,183 3,710,638 Money Market Mutual Funds 4,361,463 4,361,463
Asset-Backed Securities 3,421 268,576 792,146 1,064,143 Supranational Note 426,442 426,442
Total invesments 57,870,210 6,777,441 8,383,143 73,030,794 Cash on hand 2,400 2,400
Cash in bank 708,953 708,953
Total cash and investments 58,581,563 $ 6,777,441 $ 8,383,143 $ 73,742,147 $ The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, United States Treasury Notes and Bills, and floating rate securities issued by federal agencies, government-sponsored enterprises, and corporations. The total fair value amount invested by all public agencies in LAIF is $193,463,490,765, which is managed by the State Treasurer. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by the State Statute. At June 30, 2021, these investments matured in an average of 291 days.

Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The following are credit ratings issued by Moody’s and Standard and Poor’s as of June 30, 2021:
181

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
42 NOTE C – CASH AND INVESTMENTS (Continued)
Aa2/AA
Investment Type Aaa/AAA Aa1/AA+ Aa3/AA- A1/A+ A2/A A3/A- Baa1/BBB+ Total U.S. Government Agencies 5,870,067 $ $ 5,870,067
U.S. Corporate Obligations 190,045 $ 238,805 352,291 $ 802,721 $ 607,941 $ 1,304,692 $ 214,143 $ 3,710,638 Money Market Mutual Funds
(U.S. Securities) 4,361,463 4,361,463
Negotiable CD
Asset-Backed Securities 1,064,143 1,064,143
Supranational Note 426,442 426,442
Totals $ 6,108,872 6,042,093 $ 352,291 $ 802,721 $ 607,941 $ 1,304,692 $ 214,143 $ 15,432,753 Not rated:

LAIF 51,770,451
Exempt from credit rate disclosure:

U.S. Treasury Notes 5,827,590
Total investments $ 73,030,794
Concentration of Credit Risk
The investment policy of the City has no limitations on the amount that can be invested in any one issuer beyond what is stipulated by the California Government Code. Investments exceeding 5% of total investments are required to be disclosed under GASB Statement No. 40, which excludes U.S.

Treasury securities, mutual funds and external investment pools. At June 30, 2021 there were no investments exceeding 5% of total investments.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure public agency deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

At June 30, 2021, the City had $755,782 in deposits at banks above the federally insured limit, which are collateralized by securities pledged by the financial institution, but not in the name of the City.

Fair Value Measurement
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
182

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
43 NOTE C – CASH AND INVESTMENTS (Continued)
The City has the following recurring fair value measurements as of June 30, 2021:

Total
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs (Level 2)
Significant
Unobservable
Inputs
(Level 3)
Investments by fair value level:

U.S. Treasury Notes 5,827,590 $ 5,827,590 $
U.S. Government Agency
Obligations 5,870,067 5,870,067
U.S. Corporate Obligations 3,710,638 3,710,638
Asset-Backed Securities 1,064,143 1,064,143
Supranational Note 426,442 426,442
Total investments by fair value level 16,898,880 - $ 16,898,880 $ - $ Investments uncategorized:

LAIF 51,770,451
Money Market Mutual Funds 4,361,463
Total investments 73,030,794 $
Fair Value Measurements Using
All securities classified in Level 2 are valued using pricing models that are based on market data, such as matrix or model pricing, which use standard inputs, which include benchmark yields, reported trades, broker/dealer quotes, issue spreads, two sided markets, benchmark securities, bids, offers and reference data including market research publications.

NOTE D – INTERFUND TRANSACTIONS
Interfund transactions between funds are reflected as loans, services provided, reimbursements or transfers. Loans are reported as receivables or payables as appropriate, and are subject to elimination upon consolidation. The City transfers resources among funds in the course of normal operations. Services provided, deemed to be at market or near market rates, such as vehicle maintenance, are accounted for as revenues and expenditures/ expenses. Transactions to reimburse a fund for expenditures/expenses initially made from it that are applicable to another fund are recorded as expenditures/expenses in the correct fund and as reductions of expenditures/ expenses in the original fund. All other interfund transactions are reported as transfers. 183

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
44 NOTE D – INTERFUND TRANSACTIONS (Continued)
Transfers Between Funds
With Council approval, resources may be transferred from one City fund to another. Transfers between funds during the fiscal year ended June 30, 2021 were as follows:

Amount
Fund Making Transfer Fund Receiving Transfers Transferred General Fund CDBG Loan Development 9,455 $ (A)
Cabernet Village Lease Debt Service Fund 53,369 (C)
General Plan Update Special Revenue 222,691 (A)
Legal Internal Service Fund 67,500 (A)
Lease Revenue Bonds Debt Service Fund 1,301 (C)
Major Governmental Funds:

State and Federal Grants-City Special Revenue General Fund 257,27 (A) 7 City Capital Projects Fund 1,046,594 (B)
Water Enterprise Fund 3,470 (A)
Major Enterprise Funds:

Water General Fund 787,252 (A)
Wastewater Enterprise Fund 17,602 (A)
Recycled Water Enterprise Fund 3,716,803 (E)
City Capital Projects Fund 518,999 (B)
Wastewater General Fund 755,663 (A)
City Capital Projects Fund 7,627 (B)
Water Enterprise Fund 10 (A)
Recycled Water Enterprise Fund 983,491 (E)
Recycled Water Water Enterprise Fund 5,683,114 (E)
Wastewater Enterprise Fund 39,522 (E)
Non-major Special Revenue Funds:

Storm Drainage General Fund 373,200 (D)
Measure T City Capital Projects Fund 1,143,254 (B)
Gas Tax General Fund 301,999 (A)
City Capital Projects Fund 1,698 (B)
State Supplemental Law Enforcement General Fund 157,123 (A) Zero Water Footprint Zero Water Footprint Capital Projects Fund 2 (A) 37,800 Community Facilities District City Capital Projects Fund 2,253,66 (B) 0 Non-major Capital Projects Funds:

Fire Mitigation Fire District Operations Special Revenue 250,000 (B) Park Improvement City Capital Projects Fund 15,217 (B)
Traffic Impact City Capital Projects Fund 472,192 (B)
Civic Facilities Lease Revenue Bonds Debt Service Fund 284,024 (C) Non-major Debt Service Funds:

Engie City City Capital Projects Fund 463,230 (B)
Engie Fire City Capital Projects Fund 259,518 (B)
$ 20,384,655
(A) Transfer resources to fund incurring (C) Transfer to fund debt service payments expenditures (D) Transfer to fund flood protection projects (B) Transfer to fund capital improvements (E) Transfer of recycled water assets and liabilities 184

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
45 NOTE D – INTERFUND TRANSACTIONS (Continued)
Current Interfund Balances
Current interfund balances arise in the normal course of business and are expected to be repaid shortly after the end of the fiscal year. At June 30, 2021, the following funds have interfund balances.

Fund Making Loan Fund Receiving Loan Amount
Water Fund General Fund 6,398,945 $
Major Enterprise Funds:

Wastewater Fund 1,755,303
Non-Major Special Revenue Funds:

Cannabis Fund 10,382
Internal Service Funds:

Legal Internal Service Fund 74,093
Total Due To/Due From Other Funds 8,238,723 $
Advances Between Funds
In December 2009, the Wastewater Enterprise Fund advanced the Water Enterprise Fund $4,907,024 for the Green Island Road Recycled Waterline project, Recycled Water Pump Station upgrade and other various construction projects. This loan accrued interest at 3% per year, but in 2021 the City Council approved Resolution 2021-269 that reduced the interest rate to the Local Agency Investment Fund interest rate retroactively. As a result of this change, the accrued interest on the loan decreased by approximately $1.4 million to $128,189, which the Resolution indicated would be repaid to the Water Fund. In 2021, this advance, along with the capital assets related to the recycled water projects, were transferred to the Recycled Water Fund. As of June 30, 2021, the Recycled Water Fund owed $5,520,437 on this advance, including $128,906 to the Water Fund and $5,391,531 to the Wastewater Fund. The City intends to establish service charges in the Recycled Water Fund sufficient to repay the advance over the 15-year useful life of the capital assets.

NOTE E – LOANS RECEIVABLE
At June 30, 2021, the City had the following loans receivable:

BEGIN Program $ 8,653,621
Satellite Affordable Housing Association 2,951,326
Mid-Peninsula Housing Coalition Loan 2,169,328
HOME Program 1,602,179
CDBG Housing Rehabilitation Program 466,433
CalHome Program 247,298
Employee Home Purchase Assistance 6,336
Other 50,976
16,147,497
Valuation allowance (8,527,434)
Loans, net $ 7,620,063
185

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
46 NOTE E – LOANS RECEIVABLE (Continued)
BEGIN Program
The City was awarded $1,080,000 ($30,000 each for 36 homes) from the State of California on August 17, 2005, plus an additional $6,038,900, from Mid-Peninsula Housing Coalition (MPHC), a non-profit organization, to grant loans to qualified low-income home buyers at Vineyard Place, a subdivision comprised of 45 single-family detached homes. Loan payments are deferred for the life of the loan, or until the homeowner sells the home, whichever occurs sooner. The loans will be forgiven, in stages, commencing in the 26th year of the loan, and totally forgiven after 30 years. As of June 30, 2021, residents owed the City $8,527,434 in loans offered by this program, which includes $2,757,534 of accrued interest.

Since these loans are secured by trust deeds which are subordinated to other debt on the associated projects or are only repayable from residual cash receipts on the projects, collectability of the outstanding balances may not be realized. As a result, the entire outstanding balances of the forgivable loans have been offset by a valuation allowance and is not reported on the balance sheet.

The BEGIN Fund also includes loans of $126,187, including accrued interest, which are not required to be forgiven. However, if the amount of net sale proceeds is less than the amount due under the loan, the City may forgive the loan to the extent that the amount due under the loan exceeds the net sale proceeds.

Satellite Affordable Housing Association Loan
The City made two separate loans to Satellite Affordable Housing Association (SAHA) totaling $2,730,000 for the development of 70 affordable housing units:

Acquisition and Development: The City loaned $1,050,000 for the acquisition and $750,000 for other development costs. The loan carries a 3% interest rate over a 57-year term. As part of the agreement, the City will receive a residual share of the cash flow from the project.

Construction: The City loaned $930,000 for the construction of the units. The loan is interest free over a 57-year term.

As of June 30, 2021, the loan balance was $2,951,326.

Mid-Peninsula Housing Coalition Loan
The City loaned the Mid-Peninsula Housing Coalition (MPHC) $2,265,000 interest free for the construction of the Vineyard Crossing Apartments. As part of the agreement, the City will receive a residual share of the cash flow from the project. As of June 30, 2021, the loan balance was $2,169,328.

HOME Program
The City provides loans to qualified first time buyers through the federally funded HOME Program.

Under this program, principal and interest payments are deferred until the loan is refinanced or title to the property changes. These loans carry a 1% interest rate with a maturity of 30 years. As of June 30, 2021, residents owed the City $1,602,179 in loans offered by this program, including accrued interest.
186

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
47 NOTE E – LOANS RECEIVABLE (Continued)
CDBG Housing Rehabilitation Program
The City administers a Housing Rehabilitation Loan Program using the Housing and Community Development Act funds. Under this program, residents with incomes below a certain level are eligible to receive low interest loans, secured by deeds of trust, for construction work on their homes.

Federal grants are used to fund these loans. Upon approval of loans, the City disburses the funds, and arranges for and collects repayments. These loans generally have interest rates of 3%, although some are zero-interest-rate loans, and are generally due upon transfer of the home or refinancing. As of June 30, 2021, residents owed the City $466,433 in loans offered by this program, including accrued interest.

CalHome Program
The City operates the CalHome Program to assist with the down payment or rehabilitation of manufactured homes. No interest accrues on the loans and principal payments are deferred until maturity. As of June 30, 2021, residents owed the City $247,298 in loans offered by this program.

Employee Home Purchase Assistance
The City provided home down payment assistance to its employees until through the year ended June 30, 2009 when the program was terminated. At June 30, 2021, there was one loan outstanding to an employee. To qualify for the program, employees were required to be full-time and purchase a home within the City limits. The maximum loan amount was 10% of the purchase price, or $50,000, whichever was less. Interest on the loans was determined using the current Local Agency Investment Fund rate. The maximum loan term was 20 years. As of June 30, 2021, the remaining employee owed the City $6,336 under this program.

NOTE F – CAPITAL ASSETS
All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their estimated acquisition value on the date contributed, which is the price that would be paid to acquire an asset with equivalent service potential in an orderly market transaction at the acquisition date. The City defines capital assets as equipment, vehicles, furniture and fixtures with an initial individual cost of more than $5,000 ($50,000 for infrastructure type assets) and an estimated useful life in excess of one year (30-75 years for infrastructure assets) with the exception of Federally funded acquisitions, which are $5,000 or more. Land is capitalized at an initial individual cost of more than $150,000. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.

Capital leases are recorded as an asset and an obligation at an amount equal to the present value at the beginning of the lease term of future minimum lease payments during the lease term. 187

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
48 NOTE F – CAPITAL ASSETS (Continued)
Depreciation is provided using the straight-line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The City has assigned the useful lives listed below to capital assets:

Buildings and Improvements 20-30 years
Public Domain Infrastructure 50-75 years
System Infrastructure-Utility 60 years
Vehicles and Equipment 2-15 years
Major outlays for capital assets and improvements are capitalized as projects are constructed.

Interest incurred during the construction phase is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. No interest was capitalized during the fiscal year ended June 30, 2021.

Capital Asset Additions and Retirements
Capital assets at June 30 comprise:

June 30, 2020 Balance at
(as Restated) Additions Retirements Transfers June 30, 2021 Governmental Activities
Capital assets, not being depreciated:

Land 9,623,513 $ 540,000 $ (700) $ 10,162,813 $
Street right of ways 162,284,085 2,915,419 (11,692) $ 165,187,812 Construction in progress 4,110,515 4,561,871 (683,783) (84,899) 7,903,704 Total capital assets,
not being depreciated 176,018,113 8,017,290 (684,483) (96,591) 183,254,329 Capital assets, being depreciated:

Buildings and improvements 51,233,189 (31,938) 90 51,201,341 Machinery and equipment 9,084,580 803,042 (1,322,200) (28,835) 8,536,587 Infrastructure - streets and
storm drains 89,862,419 2,325,765 (24,029) 125,336 92,289,491 Total capital assets,
being depreciated 150,180,188 3,128,807 (1,378,167) 96,591 152,027,419 Less accumulated depreciation for:

Buildings and improvements (20,947,069) (1,695,061) 26,886 (22,615,244) Machinery and equipment (6,632,814) (504,846) 1,275,496 (5,862,164) Infrastructure - streets and
storm drains (30,504,060) (2,067,599) 6,695 (32,564,964) Total accumulated depreciation (58,083,943) (4,267,506) 1,309,077 (61,042,372) Capital assets being
depreciated, net 92,096,245 (1,138,699) (69,090) 96,591 90,985,047

GOVERNMENTAL ACTIVITIES
CAPITAL ASSETS, NET $ 6,878,591 268,114,358 $ (753,573) $ - $ 274,239,376 $ 188

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
49 NOTE F – CAPITAL ASSETS (Continued)
Balance at Balance at
June 30, 2020 Additions Retirements Transfers June 30, 2021 Business-Type Activities
Capital assets, not being depreciated:

Land and improvements 2,185,901 $ 22,868 $ 2,208,769 $
Construction in progress 3,137,966 4,469,473 $ (22,868) 7,584,571 Total capital assets,
not being depreciated 5,323,867 4,469,473 9,793,340
Capital assets, being depreciated:

Buildings and improvements 7,885,151 (5,340) $ 7,879,811 Water treatment and distribution 45,571,811 170,201 (75,094) (5,347,515) 40,319,403 Equipment 3,420,791 35,146 (235,132) 3,220,805
Wastewater treatment and
collection 35,546,238 25,500 (40,008) (470,092) 35,061,638 Recycled Water Treatment
and Distribution 53,501 5,817,607 5,871,108
Total capital assets,
being depreciated 92,423,991 284,348 (355,574) 92,352,765 Less accumulated depreciation for:

Buildings and improvements (4,531,754) (230,624) 3,931 (4,758,447) Water treatment and distribution (21,691,408) (1,429,537) 58,745 1,805,543 (21,256,657) Equipment (2,092,379) (317,536) 235,132 (2,174,783)
Wastewater treatment and
collection (17,563,838) (1,096,763) 36,461 237,595 (18,386,545) Recycled Water Treatment
and Distribution (16,160) (2,043,138) (2,059,298)
Total accumulated depreciation (45,879,379) (3,090,620) 334,269 (48,635,730) Capital assets being
depreciated, net 46,544,612 (2,806,272) (21,305) 43,717,035

BUSINESS-TYPE ACTIVITIES
CAPITAL ASSETS, NET $ 1,663,201 51,868,479 $ (21,305) $ - $ 53,510,375 $ Depreciation Allocation
Depreciation expense is charged to functions and programs based on their usage of the related assets.

The amounts allocated to each function or programs are as follows:

Depreciation
Governmental Activities:

Public safety - Police 338,413 $
Public works 3,437,050
Storm drain 492,043
Total Governmental Activities 4,267,506 $
Business-type Activities:

Water 1,460,021 $
Wastewater 1,612,154
Recycled Water 18,447
Total Business-type Activities 3,090,622 $
189

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
50 NOTE F – CAPITAL ASSETS (Continued)
Project Commitments
At June 30, 2021, the City had outstanding commitments with contractors for the following projects:

Remaining
Project Commitment
Transportation projects 6,050,272 $
Community development projects 494,632
Wastewater projects 53,078
Water projects 17,355
Parks projects 15,687
Storm drain projects 8,216
Planning projects 4,940
$ 6,644,180
NOTE G – LONG-TERM LIABILITIES
The City generally incurs long-term debt to finance projects or purchase assets, which will have useful lives equal to or greater than the related debt. Activity in the City’s long-term liabilities was as follows for the year ending June 30, 2021:

Original June 30, 2020 Balance Current
Amount (as Restated) Additions Retirements June 30, 2021 Portion Governmental Activities
2012 Refunding Facilities Lease Financing

2.95%, due on 06/01/21 2,222,000 $ 278,000 $ (278,000) $ City Hall Facility Financing 2007

4.54%, due 05/01/32 6,695,000 4,320,000 (4,320,000)
2020 City Hall Site Lease

2.6%, due 05/01/34 4,569,064 4,569,064 $ 4,569,064 $
Bank of America
Lease-Purchase ENGIE

1.79%, due 06/01/36 5,209,209 845,181 845,181 43,179 $
Municipal Asset Management, Inc.

Financed Purchase Lease - 2.96%
due 06/17/24 314,188 135,489 (32,747) 102,742 33,677
Total amortized debt 4,733,489 5,414,245 (4,630,747) 5,516,987 76,856 Cost reimbursement payable 1,226,688 1,226,688 1,226,688 1,226,688 Total direct borrowings and direct placements 5,960,177 5,414,245 (4,630,747) 6,743,675 1,303,544 Compensated absences 791,094 678,063 (686,208) 782,949 677,631 Claims and judgments 1,064,318 935,941 (363,378) 1,636,881 1,636,881 Net pension liability 13,287,649 905,021 (16,897) 14,175,773 Other postemployment benefits 5,778,875 206,489 (70,551) 5,914,813 Total Governmental
Long-Term Liabilities 26,882,113 8,139,759 (5,767,781) 29,254,091 3,618,056 $ Less: Amount due within one year (2,322,475) (3,618,056) Total Governmental Long-Term
Liabilities, Net 24,559,638 $ 8,139,759 $ (5,767,781) $ 25,636,035 $ The Municipal Asset Management, Inc. lease is reported in the Fleet Internal Service Fund, so no principal payment expense is reported in governmental funds for payments on the lease. 190

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
51 NOTE G – LONG-TERM LIABILITIES (Continued)
Original Balance Balance Current
Amount June 30, 2020 Additions Retirements June 30, 2021 Portion Business-type Activities
State of California Davis-Grunsky Loan

2.5%, due 12/31/27 2,050,000 $ 571,454 $ (68,666) $ 502,788 $ 70,382 $ State Water Resources Control Board,
State Revolving Fund Loan

2.7%, due 07/15/22 10,859,470 2,110,655 (684,893) 1,425,762 703,385 Bank of America
Lease-Purchase ENGIE

1.79%, due 06/01/36 5,209,209 4,460,412 $ 4,460,412 227,876 Municipal Finance - Inc.

Financed Purchase Lease - 3.55%
due 07/06/22 2,004,200 609,343 (300,812) 308,531 308,531 Total direct borrowings and direct placements 3,291,452 (1,054,371) 6,697,493 1,310,174 Add: Unamortized interest on
Davis-Grunsky Loan 95,862 (11,514) 84,348
Compensated absences 191,914 182,361 (89,342) 284,933 153,315 Net pension liability 2,309,939 316,475 2,626,414
Other postemployment benefits 1,095,573 124,728 1,220,301 Total Business-type
Long-Term Liabilities 6,984,740 623,564 (1,155,227) 10,913,489 1,463,489 $ Less: Amount due within one year (1,233,603) (1,463,489) Total Business-type
Activity Liabilities 5,751,137 $ 623,564 $ (1,155,227) $ 9,450,000 $ All agreements below represent direct borrowings or direct placements. 2012 Refunding Facilities Lease Financing
The City’s Financing Authority authorized $2,222,000 of 2012 Refunding Facilities Lease Financing with a bank to provide funds for refunding of the City’s 2002 Lease Revenue Bonds. The Authority and the City entered into a site lease and lease-back arrangement wherein the City, in substance, acquired ownership of the facilities and is responsible for making payments in amount sufficient to pay the lease payments. The lease receivable and payable between the City and the City’s Financing Authority have been eliminated from the accompanying financial statements. The financing bears interest at 2.95%, and interest is payable each June 1 and December 1, ranging from $2,050 to $4,101. Principal is due each June 1 and December 1, through June 1, 2021 in the amount of $139,000. In the event of default, the lender has the ability to direct and control remedies under the lease, which includes termination of the lease or to directly collect base rental payments from the City as they become due. The lease was paid off during the year ended June 30, 2021.

City Hall Facility Financing
In fiscal year 2007, the City and its Financing Authority entered into a lease purchase arrangement for $6,695,000 to provide financing for the acquisition, construction, and improvement of facilities to be used as a City Hall. The terms of the lease require annual principal payments of $280,000 to $455,000 and semi-annual interest payments of $10,329 to $98,064 through May 1, 2032, which includes interest at

4.54%. The cost of the asset was $6,804,780 and accumulated depreciation was $3,175,564 at June 30, 2021. In the event of default, the lender has the ability to direct and control remedies under the lease, which includes termination of the lease and re-lease of the property. The default interest rate is 12%. The lease was refunded during the year ended June 30, 2021. 191

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
52 NOTE G – LONG-TERM LIABILITIES (Continued)
2020 City Hall Site Lease
In October 2020, the Financing Authority entered into a site lease agreement in the amount of $4,569,064 in order to terminate the 2007 Lease Financing and restructure the lease payments. The terms of the lease require semi-annual principal payments of $185,202 to $231,828 commencing on November 1, 2023, and semi-annual interest payments of $2,492 to $53,756 commencing on May 1, 2021, through May 1, 2034, which includes interest at 2.6%. The cost and accumulated depreciation of the City Hall was $6,804,780 and $3,175,564 at June 30, 2021. In the event of default, the lender has the ability to direct and control remedies under the lease, which includes termination of the lease and re-lease of the property.

ENGIE Lease Purchase Agreement
In May 2020, the City entered into a lease purchase arrangement with a bank in the amount of $5,209,209 for equipment upgrades, replacements and installation to provide energy savings for the City. Debt service will be funded from the revenue of the General Fund, Fire District Fund, Water Fund, and Wastewater Fund. $15,354 of accrued interest was added to the principal balance by the lender after issuance during 2021. The contracts were split between governmental activities and business-type activities based on the proportion of future contract obligations. The contract rate is

1.79%. Monthly principal and interest payments ranging from $28,975 to $41,144 are due on the first of each month from July 1, 2021 to June 1, 2036. The undepreciated cost of the leased assets included in construction in progress was $4,758,900 at June 30, 2021. In the event of default, the agreement may be terminated and the equipment may be repossessed and 1% will be added to the interest rate.

Financed Purchased Lease – Municipal Asset Management, Inc. Vac Con Truck In July 2014, the City entered into a lease purchase arrangement for $314,188 to purchase sewer and storm drain equipment. The terms of the lease require annual payments of $36,757 through June 17, 2024, which includes interest at 2.96%. The cost of the asset was $439,188 and accumulated depreciation was $289,132 at June 30, 2021. In the event of default, the lease may be terminated, and the equipment may be repossessed. Also, a late charge of 1% per month will be assessed.

Cost Reimbursement Payable
The City entered into a cost sharing agreement with a property owner for the construction of a traffic light and improvements at an intersection. The property owner constructed the streetlight at a cost of $1,617,255 and the City has agreed to reimburse the property owner for 75.85% of the cost, or $1,226,688. The City had previously assumed the liability carried no interest. However, during the year ended June 30, 2021, the City determined the agreement carried interest of 5% and accrued interest of $665,947 at June 30, 2021. The City also determined a payment of $179,796 made in fiscal year 2014 should have been applied to accrued interest instead of principal and increased the principal amount due by the same amount. See the restatement disclosed in Note O. The City is expected to repay the payable during 2021.

State of California Davis – Grunsky Loan
The City obtained a loan in an original amount of $2,050,000 from the State of California Department of Water Resources under the Davis-Grunsky Act for the purpose of financing water system improvements. 192

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
53 NOTE G – LONG-TERM LIABILITIES (Continued)
Interest payments are due each July 1 and January 1 with the final payment due December 31, 2027, ranging from $659 to $7,182. Principal payments are due each January 1 with a final payment due December 31, 2027, ranging from $53,204 to $79,631. The loan bears interest at 2.5% and the loan is secured by a pledge to levy taxes or assessments in amounts sufficient to pay debt service. The City makes repayments from its water enterprise fund from available resources. In the event of default, the State may take action in a court to enforce the levy and collection of taxes or assessments to pay amounts due under the agreement and may charge a default interest rate of 0.209% per month after the scheduled payment is more than 30 days past due.

State of California Revolving Fund Loan
The City obtained a $10,859,470 loan from the State of California Department of Water Resources under the State Revolving Loan Program for the purpose of obtaining financing to construct the City’s wastewater treatment plant. The loan bears interest at 2.7% and is secured by a pledge of the City to maintain dedicated sources of revenue sufficient in amounts to provide for repayment of the loan.

Principal and interest on the loan is payable in annual installments of $741,881 due each July 15 through 2022. In the event of default, the State may take action in a court to enforce the levy and collection of taxes or assessments to pay amounts due under the agreement.

Financed Purchase Lease – Municipal Finance, Inc.- Wastewater Membranes In July 2015, the City entered into a lease purchase agreement for $2,004,200 for the acquisition and installation of equipment at a wastewater plant. The terms of the lease require annual principal payments of $157,222 through July 6, 2022, which includes interest at 3.55%. The cost of the asset is $2,164,536 and accumulated depreciation was $1,510,666 at June 30, 2021. In the event of default, all unpaid principal and interest may be declared immediately due and payable. The default interest rate is 8%.

Debt Service Requirements
Annual debt service requirements are shown below for all long-term debt:

For the Year
Ending June 30 Principal Interest Principal Interest
2022 76,856 $ 17,856 $ 1,310,174 $ 134,956 $
2023 76,046 16,101 1,012,856 104,291
2024 451,184 110,553 308,252 78,945
2025 428,017 100,626 326,856 72,765
2026 437,183 91,543 333,726 66,335
2027-2031 2,346,811 313,716 1,577,578 234,603
2032-2036 1,700,890 67,932 1,828,051 87,160
Totals 5,516,987 $ 718,327 $ 6,697,493 $ 779,055 $
Governmental Activities Business-type Activities
The Water and Wastewater Funds have pledged a portion of their net revenue to repay $2,050,000 for the State of California Davis-Grunsky loan and $10,859,470 for the State of California Revolving Fund loan to finance certain capital improvements. Total principal and interest remaining on the Water Fund loan through 2028 is $552,247 and total principal and interest remaining on the Wastewater Fund loan through 2023 is $1,425,762. For fiscal year 2021, the principal and interest paid by the Water and Wastewater funds for these loans was $82,953 and $741,882, respectively. The Water Fund and the Wastewater Funds had net revenue of $5,941,608 and $2,228,165, respectively, in fiscal year 2021. 193

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
54 NOTE G – LONG-TERM LIABILITIES (Continued)
Arbitrage
Under U.S. Treasury Department regulations, all governmental tax-exempt debt issued after August 31, 1986 is subject to arbitrage rebate requirements, which stipulate, in general, that the earnings from the investment of tax-exempt bond proceeds, which exceed related interest expenditures on the bonds, must be remitted to the Federal government on every fifth anniversary of each bond issuance. The City has evaluated its bond issuance and no arbitrage liability was recognized as of June 30, 2021.

Special Assessment Debt Without City Commitment
At June 30, 2021, the outstanding principal amount of bonded debt issued by special assessment districts in the City was as follows:

LaVigne AD 2013 Reassessment Revenue Refunding Loan 3, $ 924,200 American Canyon Road East AD Refunding Revenue Bonds, Series 2015 10,525,000 Community Facilities District No. 2018-1 (Green Island Road Project) Special Tax Revenue Bonds, Series 2020 5,165,000
The City has no legal or moral responsibility with respect to the payment of this debt and has therefore not recorded it as a liability. The City is responsible, as the Districts’ agent, for the Districts’ cash receipts, disbursements and balances, which are reported as Custodial Fund transactions in the financial statements.

NOTE H – NET POSITION AND FUND BALANCES
Net Position: Net position is the excess of the City’s assets and deferred outflows of resources over its liabilities and deferred inflows of resources. Net Position is segregated into the following categories at the government-wide and proprietary fund level:

Net investment in capital assets: This category groups all capital assets into one component of net position. Accumulated depreciation and the outstanding balance of debt that is attributable to the acquisition, construction or improvement of these assets reduces this category.

Restricted net position: This category presents external restrictions imposed by creditors, grantors, contributors or laws and regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted net position: This category represents the net position of the City, which are not restricted or invested in capital assets net of related debt for any project or other purpose.

Fund Balance: Governmental fund balances represent the net current assets of each fund. Net current assets consists of a fund’s assets and deferred outflows of resources over liabilities and deferred inflows of resources..

The City’s fund balances are classified in accordance with Governmental Accounting Standards Board Statement Number 54 (GASB 54), Fund Balance Reporting and Governmental Fund Type Definitions, which requires the City to classify its fund balances based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in the 194

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
55 NOTE H – NET POSITION AND FUND BALANCES (CONTINUED)
following order: Restricted, committed, assigned, and unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:

Nonspendable fund balances are not expected to be converted to cash within the next operating cycle and are typically comprised of long-term receivables, land held for resale, deposits with others, prepaid items and advances to other funds.

Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose.

Committed fund balances have constraints imposed by formal action of the City Council which may be altered only by formal action of the City Council consisting of an ordinance or resolution, which the City considers equally binding. The City Council has authority to establish, modify, or rescind a fund balance commitment through another ordinance or resolution.

Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or management and may be changed at the discretion of the City Council or management.

Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.

An individual governmental fund could include nonspendable resources and amounts that are restricted or unrestricted (committed, assigned, or unassigned) or any combination of those classifications. Restricted or unrestricted amounts are to be considered spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Committed, assigned, then unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used.

The Fire District Board has established a contingency reserve which may only be used in the event the City experiences a 10% reduction in the operations fund property tax revenue or in the event of a declared emergency as defined by Health and Safety Code §13901. The reserve may also only be used according to a resolution of the governing body.

The City Council has established a General Fund contingency reserve which can only be used in the event the City experiences a 10% reduction in discretionary General Fund revenue compared to the prior fiscal year or in the event of a declared emergency as defined by Municipal Code 2.48.020.

The City’s Capital Projects Reserve will be increased by a minimum of $100,000 per year until it reaches $2 million, and thereafter it will be increased by 3% or the annual CPI, whichever is greater.

The Economic Development Reserve was established at $1,000,000 and is to be used to further the City’s adopted Economic Development program.
195

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
56 NOTE H – NET POSITION AND FUND BALANCES (CONTINUED)
State and
Fire District CDBG, CalHome Federal Affordable
Operations and HOME Loan Grants - City City Housing Nonmajor Total Special Development Special Capital Capital Governmental Governmental General Revenue Special Revenue Revenue Projects Projects Funds Funds Fund Balances
Nonspendable:

Property held for resale 412,503 $ $ 412,503
Prepaid expenditures
and deposits 26,007 26,007
Total Nonspendable 438,510 438,510
Restricted:

Public safety
Fire District capital
acquisition $ 872,227 872,227
Vehicle enforcement 137,378 137,378
Other 17,355 $ 27,896 10,541
Public works
Capital projects $ 6, 219,437 6,862,716 643,279
Non-capital projects 3,455,286 3,455,286
Landscaping and lighting
districts 2,719,812 2,719,812
Storm drain 7,036,224 7,036,224
Community development,
planning and building 331,394 14,151 $ $ 73,273 262,010 680,828 Parks
La Vigne Open Space 177,618 177,618
Newell Park Open Space 237,030 237,030
Other 1,254,070 1,254,070
Other activities 60,089 160,875 100,786
Total Restricted 528,861 17,355 14,151 219,437 22, 262,010 23,621,960 580,146 Committed:

Contingency 4,868,667 1,285,478 6,154,145
Capital projects 1,518,360 1,518,360
Total Committed 6,387,027 1,285,478 7,672,505
Assigned:

Economic development 1,000,000 1,000,000
General plan update 225,232 225,232
Fire operations 4,550,905 4,550,905
Total Assigned 1,000,000 4,550,905 5,776,137 225,232
Unassigned: 3,850,226 (618,602) $ (10,382) 3,221,242
Total Fund Balance 12,204,624 $ 5,853,738 $ 14,151 $ ( $ 618,602) $ 219,437 $ 22, 262,010 $ 40,730,354 794,996 $ Net Position and Fund Equity Deficits
The State and Federal Grants – City Special Revenue Fund, Recycled Water Enterprise Fund, Cannabis Other Special Revenue Fund, and Legal Internal Service Fund had deficit fund balances or net position of $618,602, $872,433, $10,382 and $103,417, respectively, at June 30, 2021. The deficit in the State and Federal Grants – City Special Revenue Fund was due to unavailable revenue that will be recognized in the subsequent year. The remaining deficits are expected to be covered by future grants, fees or charges for services in these funds. 196

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
57 NOTE I – DEFERRED COMPENSATION PLAN
City employees may defer a portion of their compensation under a City sponsored deferred compensation plan (Plan) created in accordance with Internal Revenue Code Section 457. Under this Plan, participants are not taxed on the deferred portion of their compensation until distributed to them. Distributions may be made only at termination, retirement, death or in an emergency as defined by the Plan.

The laws governing deferred compensation plan assets require plan assets to be held by a trust for the exclusive benefit of plan participants and their beneficiaries. Since assets held under these plans are not the City’s property and are not subject to City control, they have been excluded from these financial statements.

NOTE J – PENSION PLAN
Plan Description: All qualified permanent and probationary employees are eligible to participate in the City’s cost-sharing multiple-employer defined benefit pension plan (the Plan or PERF C) administered by the California Public Employees’ Retirement System (CalPERS). PERF C consists of a miscellaneous risk pool and a safety risk pool and the following rate plans:
 City Miscellaneous Plan
 City PEPRA Miscellaneous Plan
 Fire Protection Miscellaneous Plan
 Safety Fire First Tier Plan
 Safety Fire Second Tier Plan
 Safety Fire PEPRA Plan (effective beginning fiscal year 2017) Although one pension plan exists, CalPERS provides the information separately for the Miscellaneous and Safety Risk Pools and the information is presented separately where available. Benefit provisions under the Plan is established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at www.calpers.ca.gov.

Benefits Provided: CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.

Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 (52 for PEPRA Miscellaneous Risk Pool) with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the 1959 Survivor Benefit level 4, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
197

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
58 NOTE J – PENSION PLAN (Continued)
The Plan’s provisions and benefits in effect at June 30, 2021, are summarized as follows:

City
City PEPRA Fire Protection
Miscellaneous Miscellaneous Miscellaneous
Prior to On or after Prior to
January 1, 2013 January 1, 2013 January 1, 2013
Benefit formula (at full retirement) 2.0% @ 55 2.0% @ 62 3.0% @ 60 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 52 - 67 50 - 60
Monthly benefits, as a % of eligible compensation 1.426% to 2.418% 1.0% to 2.5% 2.00% to 3.00% Required employee contribution rates 7.00% 7.25% 8.00%
Required employer contribution rates 11.746% 7.874% 7.960% Safety Fire Safety Fire Safety Fire
First Tier Second Tier PEPRA
January 1, 1965 to On or after On or after
May 5, 2010 May 5, 2010 January 1, 2013
Benefit formula (at full retirement) 3.0% @ 50 3.0% @ 55 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 55 50-57
Monthly benefits, as a % of eligible compensation 3.00% 2.40% to 3.00% 2.0% to 2.7% Required employee contribution rates 9.00% 9.00% 13.00% Required employer contribution rates 23.674% 21.746% 13.044% Beginning June 29, 2019, the City and its General and Mid-Management bargaining units agreed the employees would reimburse 3.399% of the employer contribution and would equally share in any excess employer contributions exceeding 16% up to a limit of 5% additional employee contribution. The employee reimbursement percentage was amended to 4.855% and 5% of the employer contribution on June 27, 2020 and October 5, 2021, respectively.

All rate plans except the PEPRA rate plans are closed to new members that are not already CalPERS participants.

Contributions: Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the rate plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. 198

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
59 NOTE J – PENSION PLAN (Continued)
For the year ended June 30, 2021, the contributions paid to Plan were as follows:

City Fire Fire
Miscellaneous Safety Miscellaneous
Risk Pool Risk Pool Risk Pool Total
Contributions - employer 1,099,634 $ 874,486 $ 24,560 $ 1,998,680 $ Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources: As of June 30, 2021, the City reported a net pension liability for its proportionate shares of the Plan as follows:

Proportionate
Share of Net
Pension
Liability/Asset
City Miscellaneous Risk Pool 8,529,197 $
Fire Safety Risk Pool 8,218,591
Fire Miscellaneous Risk Pool 54,399
Total Net Pension Liability 16,802,187 $
The City’s net pension liability of each risk pool is measured as the proportionate share of the net pension liability. The net pension liability of each of the risk pools is measured as of June 30, 2020, and the total pension liability for each risk pool used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures.

The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for each risk pool as of June 30, 2021 and 2020 were as follows:

City Fire Fire
Miscellaneous Safety Miscellaneous
Risk Pool Risk Pool Risk Pool
Proportion - June 30, 2020 0.19697% 0.12236% 0.00129%
Proportion - June 30, 2021 0.20221% 0.12336% 0.00178%
Change - increase (decrease) -0.00524% -0.00100% -0.00049% For the year ended June 30, 2021, the City recognized pension expense of $1,808,986, $1,466,645, $2,534 and $3,278,165 for the City Miscellaneous Risk Pool, Fire Safety Risk Pool, Fire Miscellaneous Risk Pool and in total for the Plan, respectively. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to the Plan from the following sources:
199

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
60 NOTE J – PENSION PLAN (Continued)
Deferred Outflows Deferred Inflows
City Miscellaneous Risk Pool of Resources of Resources
Pension contributions subsequent to measurement date 1,099,634 $ Differences between actual and expected experience 439,535 Changes in assumptions (60,834) $
Change in employer's proportion 203,217 (10,091)
Differences between the employer's contribution and the employer's proportionate share of contributions 2,314 (228,538) Net differences between projected and actual earnings
on plan investments 253,373
Total 1,998,073 $ (299,463) $
Deferred Outflows Deferred Inflows
Fire Safety Risk Pool of Resources of Resources
Pension contributions subsequent to measurement date 874,486 $ Differences between actual and expected experience 637,310 Changes in assumptions (27,376) $
Change in employer's proportion 58,381 (3,755)
Differences between the employer's contribution and the employer's proportionate share of contributions 5,264 (55,089) Net differences between projected and actual earnings
on plan investments 178,625
Total 1,754,066 $ (86,220) $
Deferred Outflows Deferred Inflows
Fire Miscellaneous Risk Pool of Resources of Resources
Pension contributions subsequent to measurement date 24,560 $ Differences between actual and expected experience 2,803 Changes in assumptions (387) $
Change in employer's proportion (26,873)
Differences between the employer's contribution and the employer's proportionate share of contributions 32,148
Net differences between projected and actual earnings
on plan investments 1,616
Total 61,127 $ (27,260) $
Total for Plan 3,813,266 $ (412,943) $
200

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
61 NOTE J – PENSION PLAN (Continued)
The amounts above reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the subsequent fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources will be recognized as pension expense as follows:

City Fire Fire
Year Ended Miscellaneous Safety Miscellaneous
June 30 Risk Pool Risk Pool Risk Pool Total
2022 80,719 $ $ 2,776 197,765 $ $ 281,260
2023 220,615 3,510 299,328 523,453
2024 176,119 2,245 206,765 385,129
2025 121,523 89,502 776 211,801
$ 598,976 $ 9,307 793,360 $ 1, $ 401,643
Actuarial Assumptions: The total pension liabilities in the actuarial valuations for each risk pool were determined using the following actuarial assumptions:

Valuation date June 30, 2019
Measurement date June 30, 2020
Actuarial cost method Entry-Age Normal Cost Method
Amortization method Level pecent of payroll
Asset valuation method Market value
Actuarial assumptions:

Discount rate 7.15%
Inflation 2.50%
Payroll growth 2.75%
Projected salary increase 0.4% - 8.5% Miscellaneous and 0.97% to 17.0% Safety (1) Investment rate of return 7.15% (2)
Mortality Derived using CalPERS membership data for all funds (1) Depending on age, service and type of employment
(2) Net of pension plan investment expenses, including inflation The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of Scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website. All other actuarial assumptions used in the valuations were based on the results of an actuarial experience study for the period 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report can be found on CalPERS’ website under Forms and Publications.

Discount Rate: The discount rate used in the accounting valuations to measure the total pension liability was 7.15% for each risk pool. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of

7.15% will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website. 201

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
62 NOTE J – PENSION PLAN (Continued)
The long-term expected rate of return on pension plan investments was determined using a buildingblock method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and longterm returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects the long-term expected real rate of return by asset class for the Plan. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

New
Strategic Real Return Real Return
Asset Class Allocation Years 1 - 10(a) Years 11+(b)
Global equity 50.0% 4.80% 5.98%
Fixed income 28.0% 1.00% 2.62%
Inflation assets 0.0% 0.77% 1.81%
Private equity 8.0% 6.30% 7.23%
Real estate 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% -0.92%
Total 100.0%
(a) An expected inflation of 2.00% used for this period. (b) An expected inflation of 2.92% used for this period. 202

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
63 NOTE J – PENSION PLAN (Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate: The following presents the City’s proportionate share of the net pension liability for each risk pool, calculated using the discount rate for each risk pool, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1- percentage point higher than the current rate:

City Fire Fire
Miscellaneous Safety Miscellaneous
Risk Pool Risk Pool Risk Pool Total
1% decrease 6.15% 6.15% 6.15% 6.15%
Net pension liability 13,534,428 $ 12,154,271 $ 54,399 $ 25, $ 743,098 Current discount rate 7.15% 7.15% 7.15% 7.15%
Net pension liability 8,529,197 $ 8, $ 54,399 218,591 $ 16, $ 802,187 1% increase 8.15% 8.15% 8.15% 8.15%
Net pension liability 4,393,532 $ 4, $ 54,399 988,994 $ 9, $ 436,925 Fiduciary Net Position: Detailed information about each Plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Payable to the Plan: At June 30, 2021, the City had contributions payable to the City Miscellaneous and Fire Safety Risk Pools of $44,626 and $15,210, respectively.

NOTE K – OTHER POSTEMPLOYMENT BENEFITS
Plan Descriptions: The City’s defined benefit OPEB Plan (City Plan) and the Fire District’s defined benefit OPEB Plan (Fire Plan) are both agent multiple-employer defined benefit plans that provide OPEB benefits to retirees that meet eligibility requirements. The City Council has the authority to establish and amend the benefit terms of each Plan according to the Memorandum of Understanding with the labor units. The City Plan and the Fire Plan both participate in the CalPERS California Employers' Retiree Benefit Trust (CERBT) Fund, which is a Section 115 trust fund administered by CalPERS. The CERBT issues a publicly available financial statements that may be obtained from CalPERS at www.calpers.ca.gov.

City Plan Benefits Provided: To qualify for postemployment medical benefits, an employee must be eligible for benefits and retire from the City. The City Plan does not provide dental and vision coverage. Employees must retire with CalPERS benefits to be eligible for City Plan benefits.

Nondisabled participants must be at least age 50 and have five years of service. Disabled participants do not have a minimum retirement age and must have five years of service.

Employees/retirees and their eligible spouses and dependents receive medical benefits offered through CalPERS.

For City retirees hired prior to July 2016 and enrolled in CalPERS health coverage, the City contributes a monthly payment equal to 100% of the current “Supplemental/Managed Monthly 203

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
64 NOTE K – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Employee Only Rate for Kaiser Senior Advantage” to CalPERS. CalPERS deducts the remaining cost of the medical insurance premium from the retirees account. The City reimburses the retiree for 90% of the Kaiser HMO premium rates less the payment made to CalPERS for the “Supplemental/Managed Monthly Employee Only Rate for Kaiser Senior Advantage.”
For retirees hired in or after July 2016 and enrolled in CalPERS health coverage, the City contributes a monthly payment equal to 100% of the current “Supplemental/Managed Monthly Employee Only Rate for Kaiser Senior Advantage” to CalPERS. CalPERS deducts the remaining cost of the medical premium from the retirees account.

Covered dependents of eligible retirees include spouses, domestic partners, and children under age 26 and never married (or any age if handicapped, subject to CalPERS approval). Surviving spouses of deceased retirees are covered for life on the same basis as when the retiree was alive. There are no benefits for surviving spouses or dependent children of active employees beyond COBRA continuation.

Fire Plan Benefits Provided: Employees must retire with CalPERS benefits to be eligible for Fire Plan benefits. Nondisabled participants must be at least age 50 and have five years of service.

Disabled participants do not have a minimum retirement age and must have five years of service.

Employees/retirees and their eligible spouses and dependents receive medical benefits offered through CalPERS. The Fire Plan offers retirees and their dependents access to dental, vision and life insurance for the remainder of their lifetime at the same premium rates applicable to active employees.

For employees hired prior to June 1, 2010, the District contributes the same amount for retirees as is contributed for similarly situated active employees. The District contributes the full premium up to 95% of the premium (determined reflecting coverage level and Basic, Combination or Supplemental rate) for the Kaiser Bay Area plan offered by CalPERS.

For employees hired on or after June 1, 2010, the Fire Plan has vesting requirements. Under the vesting program, employees must have ten years of CalPERS service, five of which must be with the City, to receive a contribution of 50%. An additional 5% contribution is received for each additional year of service up a 100% contribution after 20 years of service. The premium paid by the Fire Plan for employees hired on or after June 1, 2010 is subject to a cap. For 2020, the caps were $767 for retiree only coverage, $1,461 for the retiree plus one dependent and $1,868 for the retiree plus 2 or more dependents.

Employees Covered by Benefit Terms: At the June 30, 2019 actuarial valuation date, the following employees were covered by the benefit terms:

City Plan Fire Plan
Inactive employees or beneficiaries currently receiving benefit payments 31 12 Inactive employees entitled to but not yet receiving benefit payments 13 Active employees 76 20
Total 120 32
204

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
65 NOTE K – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Contributions: The City Council and Fire District Board have the authority to establish and amend the contribution requirements of the City and Fire District and employees with powers granted to it under the City Municipal Code and California Government Code, subject to the Memorandums of Understanding with employee bargaining units.

Employees are not required to contribute to the City or Fire Plans. During the fiscal year ended June 30, 2021, the City’s direct payments of insurance premiums were $322,281, implicit subsidy was $125,138 and cash contributions to the trust were $365,219, resulting in total contributions of $812,638. During the fiscal year ended June 30, 2021, the Fire District’s direct payments of insurance premiums were $243,597, implicit subsidy was $90,835 and cash contributions to the trust were $177,327, resulting in total contributions of $511,759. The City and Fire District make contributions to the CERBT, which is administered by CalPERS.

Net OPEB Liability: The City and Fire District's net OPEB liabilities were measured as of June 30, 2020, and the total OPEB liabilities used to calculate the net OPEB liabilities were determined by actuarial valuations as of June 30, 2019.

Actuarial Assumptions: The total OPEB liabilities at the measurement date were determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

City Plan Fire Plan
Valuation date June 30, 2019 June 30, 2019
Measurement date June 30, 2020 June 30, 2020
Actuarial cost method Entry-age normal cost method Entry-age normal cost method Actuarial assumptions:

Discount rate 6.95% 7.05%
Inflation 2.50% 2.75%
Salary increases 3.00% 3.25%
Investment rate of return 6.95% 7.05%
Mortality rates Derived using CalPERS membership data Derived using CalPERS membership data Pre-retirement turnover Derived using CalPERS membership data Derived using CalPERS membership data Healthcare trend rate 5.4% grading down to 4% in 2076 6.5% grading down to 5% in 2025 Assumed HMO/PPO split Not specified Not specified
Percentage electing to
cover spouse 85%
60% for employees hired before and 45% for
employees hired on or after July 1, 2016;
205

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
66 NOTE K – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Mortality information for the City and Fire Plans was derived from data collected during 1997 to 2015 CalPERS Experience Study dated December 2017. The Experience Study Report may be accessed on the CalPERS website www.calpers.ca.gov under Forms and Publications. The City and Fire Plans mortality improvement was based on the MacLeod Watts Scale 2018.

The pre-retirement turnover information was developed based on CalPERS’ specific data. For more details, please refer to the December 2017 Experience Study Report. The Experience Study Report may be accessed on the CalPERS website www.calpers.ca.gov under Forms and Publications.

The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

The City and Fire District have both elected the CERBT Strategy 1 portfolio. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Long-term
Target Expected Rate
Asset Class Allocation of Return
Global equity 59.0% 5.98%
Fixed income 25.0% 2.62%
Real estate investment trusts (REITs) 8.0% 5.00%
Treasury inflation protected securities (TIPS) 5.0% 1.46% Commodities 3.0% 2.87%
Total 100.0%
Discount Rate: The discount rate used to measure the total City and Fire District OPEB liabilities was

6.95% and 7.05%, respectively. The City discount rate remained at 6.95% and the Fire District discount rate was raised from 6.95% to 7.05%, from the previous measurement date. The projection of cash flows used to determine the discount rate assumed that City and Fire District contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the City and Fire Plans’ fiduciary net positions were projected to be available to make all projected OPEB payments for current active and inactive employees. Therefore, the long-term expected rate of return on OPEB plan investments were applied to all periods of projected benefit payments to determine the total OPEB liabilities.
206

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
67 NOTE K – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Changes in the Net OPEB Liability: Changes in the net OPEB liability were as follows during the year ended June 30, 2021:

Total OPEB Plan Fiduciary Net OPEB
City Plan Liability Net Position Liability/(Asset)
Balance at June 30, 2020 9,254,457 $ 5, $ 4, 225,898 $ 028,559 Changes in the year:

Service cost 429,075 429,075
Interest 657,168 657,168
Difference between expected and actual experience -
Changes in assumptions -
Contributions - employer 571,500 ( 571,500)
Net investment income 186,101 ( 186,101)
Administrative expenses (2,575) 2,575
Benefit payments (455,763) ( 455,763)
Net changes 630,480 299,263 331,217
Balance at June 30, 2021 9,884,937 $ 5, $ 4, 525,161 $ 359,776 Total OPEB Plan Fiduciary Net OPEB
Fire Plan Liability Net Position Liability/(Asset)
Balance at June 30, 2020 5,507,481 $ 2, $ 2, 661,592 $ 845,889 Changes in the year:

Service cost 230,045 230,045
Interest 388,764 388,764
Difference between expected and actual experience -
Changes in assumptions (72,183) (72, 183)
Contributions - employer 517,331 ( 517,331)
Net investment income 101,238 ( 101,238)
Administrative expenses (1,392) 1,392
Benefit payments (287,603) ( 287,603)
Net changes 259,023 (70, 329,574 551)
Balance at June 30, 2021 5,766,504 $ 2, $ 2, 991,166 $ 775,338 Total City and Fire Plans 15,651,441 $ 8,516,327 $ 7, $ 135,114 Increase (Decrease)
Increase (Decrease)
207

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
68 NOTE K – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates:

The following presents the net OPEB liability of the City and Fire District, as well as what the City and Fire District's net OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current discount rate:

Current
1% Decrease Discount Rate 1% Increase

5.95% 6.95% 7.95%
Net OPEB liability - City Plan 5,677,994 $ 4,359,776 $ 3,272,668 $ Current
1% Decrease Discount Rate 1% Increase

6.05% 7.05% 8.05%
Net OPEB liability - Fire Plan 3,570,640 $ 2,775,338 $ 2,130,673 $ Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates: The following presents the net OPEB liability of the City and Fire District, as well as what the City and Fire District's net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage point lower or 1 percentage point higher than the current healthcare cost trend rates:

Current
Healthcare Cost
1% Decrease Trend Rates 1% Increase
Net OPEB liability - City Plan 3,121,361 $ 4,359,776 $ 5,887,716 $ Current
Healthcare Cost
1% Decrease Trend Rates 1% Increase
Net OPEB liability - Fire Plan 2,063,288 $ 2,775,338 $ 3,661,824 $ OPEB Plan Fiduciary Net Position: Detailed information about the City and Fire District Plan’s fiduciary net position is available in the separately issued CERBT financial report at www.calpers.ca.gov.

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources: For the year ended June 30, 2021, the City and Fire District recognized OPEB expense of $813,414 and $291,896, respectively, for a total OPEB expense of $1,105,310.
208

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
69 NOTE K – OTHER POSTEMPLOYMENT BENEFITS (Continued)
At June 30, 2021, the District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows Inflows
City Plan of Resources of Resources
OPEB contributions subsequent to measurement date 812,638 $ Differences between actual and expected experience (305,835) $ Changes in assumptions 698,055
Net differences between projected and actual earnings
on plan investments 147,704
Total - City Plan 1,658,397 $ ( $ 305,835)
Deferred Deferred
Outflows Inflows
Fire Plan of Resources of Resources
OPEB contributions subsequent to measurement date 511,759 $ Differences between actual and expected experience (1,032,077) $ Changes in assumptions 259,088 (64, 063)
Net differences between projected and actual earnings
on plan investments 70,265
Total - Fire Plan 841,112 $ (1, $ 096,140)
Total - City and Fire Plans 2,499,509 $ (1, $ 401,975)
The amount reported as deferred outflows of resources related to contributions after the measurement date will be recognized as a reduction of the net pension liability in the subsequent fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended
June 30 City Plan Fire Plan Total
2022 91,727 $ (132,612) $ (40,885) $
2023 113,087 (121,061) (7,974)
2024 115,909 (117,756) (1,847)
2025 105,523 (122,046) (16,523)
2026 69,316 (121,728) (52,412)
Thereafter 44,362 (151,584) (107,222)
$ (766,787) 539,924 $ (226,863) $
Payable to the OPEB Plan: At June 30, 2021, there were no significant payables to the OPEB plans. 209

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
70 NOTE L – RISK MANAGEMENT
Insurance Coverages
The City is a member of the Pooled Liability Assurance Network Joint Powers Authority (Plan JPA) for liability coverage up to $5.0 million with excess liability coverage through commercial carriers of $25.0 million, for total coverage of $30 million, subject to a deductible of $25,000. The Plan JPA also provides property and vehicle coverage of $225,000 with excess liability coverage through commercial carriers of $999,775,000, for total coverage of $1 billion, subject to a deductible of $5,000.

The City is also a member of the Shared Agency Risk Pool (SHARP), which is administered by the Plan JPA, for worker’s compensation insurance. Workers compensation insurance is provided by SHARP up to $250,000 and excess insurance exists through the Local Agency Worker’s Compensation Excess Joint Powers Authority (LAWCX) that results in a coverage limit of up to $5,000,000 per claim. Excess commercial insurance is retained by LAWCX up to $50 million. The City has no deductible for such claims. Insurance transactions are accounted for in the City’s General Fund.

The Plan, SHARP and LAWCX are governed by boards consisting of representatives from member agencies. The boards control the operations of the Plan, SHARP and LAWCX, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the boards. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. Audited financial statements may be obtained from the Plan, SHARP and LAWCX at 1750 Creekside Drive, Suite 200, Sacramento, CA 95833.

The component unit Fire Protection District of the City obtains general, personal injury, fire damage, medical, products/completed operations annual aggregate, umbrella, management, cyber, auto, employee dishonesty and garage keepers liability insurance through its membership in the Fire Agencies Insurance Risk Authority (FAIRA). The District transfers the risk of loss to the Authority and is covered by the Authority from $10,000 to $1,000,000 per occurrence with an aggregate limit of $10,000,000 or $1 million for employee dishonesty coverage. Deductibles range from $250 to $7,500, depending on the coverage. The Fire Association Self Insurance System, a risk sharing pool, provides workers compensation insurance coverage for the Fire District. The System is self-insured for the first $750,000 of each claim and purchases commercial insurance excess coverage up to $5,000,000 per claim. The District has no deductible for works compensation insurance.

Liability for Uninsured Worker Compensation Claims: The City’s liability for uninsured worker compensation claims, including estimated claims incurred but not reported, was estimated by management based on prior years claims experience and was computed as follows as of June 30:

Year Ended Year Ended Year Ended
June 30, 2021 June 30, 2020 June 30, 2019
Unpaid claims, beginning of fiscal year 1,064,318 $ 724,016 $ 723,936 $ Incurred claims (including IBNRs) 935,941 501,074 217,917 Claim payments (363,378) (160,772) (217,837)
Unpaid claims, end of fiscal year 1,636,881 $ 1,064,318 $ 724,016 $ 210

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
71 NOTE L – RISK MANAGEMENT (Continued)
The City has had no settlements that exceeded insurance coverage in the last three fiscal years, and no changes in insurance coverage have accrued from the prior year. The liability for uninsured claims is typically liquidated by the Fire District Operations Special Revenue Fund.

NOTE M – OTHER COMMITMENTS AND CONTINGENT LIABILITIES
On March 11, 2020, the World Health Organization declared the outbreak of a coronavirus (COVID19) pandemic. The COVID-19 outbreak and related state and local shelter-in-place orders are disrupting supply chains and affecting production and sales across a range of industries. The City has lost a significant amount of revenue due to this pandemic and has responded by reducing spending.

The extent of the impact of COVID-19 on the City’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, and the impact on customers, employees and vendors, all of which are uncertain and cannot be predicted. At this point, the extent to which COVID-19 may impact the financial condition or results of operations is uncertain.

The City participates in a number of federal and state grant programs subject to financial and compliance audits by the grantors or their representatives. The amount, if any, of expenditures that may be disallowed by the granting agencies cannot be determined at this time. Management believes that such disallowances, if any, would not have a material effect on the financial statements.

The City is a defendant in a number of lawsuits that have arisen in the normal course of business, the outcome of which cannot be predicted with certainty. In the opinion of the City Attorney, these actions when finally adjudicated will not have a material adverse effect on the financial position of the City.

The City has an agreement with the Napa County Flood Control and Water Conservation District (Napa Flood) to acquire water from the California State Water Project through the year 2035. Each year, the State determines the capital and operating costs associated with Napa Flood’s share of the North Bay Aqueduct as well a charge dependent on water deliveries. The City’s share of these costs is approximately 18%. The City is obligated to pay the capital component even if does not receive water. The amount paid under this contract during the year ended June 30, 2021 was approximately $1.7 million, of which $634,000 was related to the capital component. A similar payment will be required each year through 2035. The State Water Project contractors and State Department of Water Resources are currently negotiating to extend the contract beyond 2035.

In December 2019, the Council approved an agreement for consulting services for the Comprehensive General Plan 2040 Update in an amount not to exceed $1,466,574. As of June 30, 2021, $76,282 has been spent on this project.

The City has a contractual relationship with Sites Project Authority (the Authority), which is developing the Sites Reservoir Project (the Project) in the Sacramento Valley. The Project is an offriver reservoir that would capture excess water from major storms to save for drier periods. Under the 2019 Reservoir Project Agreement, as amended, the City has agreed to pay its proportional share of yearly budgeted Authority operating costs for approved phases of the Project. The City currently has a participation of 4,000 acre-feet, resulting in a percentage participation in the Project of 2.39%, which could change based on State of California and United States Bureau of Reclamation final 211

CITY OF AMERICAN CANYON

NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
June 30, 2021
72 NOTE M – OTHER COMMITMENTS AND CONTINGENT LIABILITIES (Continued) participation in the Project. Participation results in rights to a “Storage Allocation” in the Project and proportional rights to any future power generation revenue developed. The Storage Allocation may be transferred by the City with the written consent of Authority members, which may not be unreasonably withheld. During the year ended June 30, 2021, the City contributed $400,000 to the Authority, which is reported as a non-depreciable asset in the City’s Water Fund.

NOTE N – SUBSEQUENT EVENTS
In June 2021 the City was awarded a Federal Coronavirus Local Fiscal Recovery Fund allocation from the American Rescue Plan Act in the amount of approximately $4.9 million that may be used for eligible costs incurred from March 3, 2021 to December 31, 2024. The funds will be received in two yearly installments of approximately $2.45 million beginning in July 2021. The funds may be used: 1) to respond to the COVID-19 public health emergency and support activities to decrease the spread of the virus; 2) address negative economic impacts caused by the public health emergency including assistance to households, small businesses, nonprofits, or to provide aid to impacted industries such as tourism, travel, and hospitality; 3) replace lost public sector revenue to the extent of the reduction in revenue was experienced due to the pandemic; 4) provide premium pay to eligible workers or grants to employers of workers who perform essential work during the public health emergency; and 5) invest in water, sewer, and broadband infrastructure.

In September 2021, the Council approved the purchase of vehicles and equipment totaling $866,876 for the Maintenance and Utilities Department.

NOTE O – RESTATEMENTS
During the year ended June 30, 2021, the Council implemented GASB Statement No. 84, Fiduciary Activities. As a result of the implementation of this Statement, the City’s former Agency Funds were reclassified as Custodial Funds. Agency Funds do not report net position as do Custodial Funds.

Consequently, the July 1, 2020 Custodial Fund net position was established with a restatement. As a result, the July 1, 2020 Custodial Fund net position increased by $9,124,333.

The City determined capital assets were understated by $1,545,178 during the year ended June 30, 2021 after a thorough review of capital asset records. As a result, government-wide capital assets and net position increased by $1,545,178 at July 1, 2020.

The City determine interest on a cost reimbursement payable for a streetlight should have been accrued at an interest rate of 5%. Also, a payment of $179,796 previously recorded as a reduction principal should have been recorded as a reduction of accrued interest. As a result, the accrued interest payable and cost reimbursement payable were understated by $604,612 and $179,796, respectively, and the government-wide net position was overstated by $784,408 at July 1, 2020. To correct this error, governmental activities accrued interest payable, long-term liabilities and net position were increased by $604,612 and $179,796 and $784,408, respectively at July 1, 2020.
212

REQUIRED SUPPLEMENTARY INFORMATION
213

CITY OF AMERICAN CANYON
Budget and Actual
General Fund
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Property taxes 11,385,500 $ 11,721,000 $ 11,317,124 $ (403,876) $ Sales taxes 2,200,000 2,580,200 2,848,231 268,031
Other taxes 2,027,400 1,728,300 1,804,928 76,628
Fines and forfeitures 49,000 63,700 72,791 9,091
Licenses and permits 523,800 563,600 585,340 21,740
Intergovernmental 73,000 87,600 114,449 26,849
Charges for services 839,960 800,200 1,156,529 356,329
Use of money and property 614,100 439,000 89,968 (524,132) Other 551,700 381,400 349,715 (201,985)
TOTAL REVENUES 17,919,060 18,710,400 18,339,075 (371,325)

EXPENDITURES
Current:

General government 5,845,020 5,788,050 5,312,379 475,671 Public safety 7,371,800 7,395,650 7,346,218 25,582
Public works 2,337,665 2,237,020 1,813,887 423,133
Community development 1,484,230 1,518,000 1,569,975 (51,975) Parks and recreation 2,834,150 3,045,980 2,794,202 251,778 Storm drain 451,450 413,500 359,470 54,030
Capital outlay 87,000 97,000 29,107 57,893
TOTAL EXPENDITURES 20,445,165 20,461,350 19,225,238 1,236,112

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (2,526,105) (1,750,950) (886,163) 864,787

OTHER FINANCING SOURCES (USES)
Proceeds from sale of assets 10,000 10,000 10,000
Other source 30,000 11,456 11,456
Transfers in 2,513,600 2,378,600 2,632,514 253,914
Transfers out (491,600) (491,600) (354,316) 137,284

TOTAL OTHER FINANCING
SOURCES AND USES 1,897,000 2,062,000 2,299,654 402,654
NET CHANGE IN FUND BALANCE (464,105) 146,050 1,413,491 1,267,441 Fund balance, beginning of year 10,791,133 10,791,133 10,791,133 FUND BALANCE, END OF YEAR 10,327,028 $ 10,937,183 $ 12,204,624 $ 1,267,441 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 73 214

CITY OF AMERICAN CANYON
Budget and Actual
Fire District Operations Special Revenue Fund
For the year ended June 30, 2021
Budgeted Amounts Actual Amounts
Variance with
Final Budget
Original Final

REVENUES
Property taxes 192,800 $ 4,801,513 $ 4,779,364 $ (22,149) $ Other taxes 655,924 655,924 688,645 32,721
Intergovernmental 189,000 189,000
Charges for services 256,700 1,033,700 1,068,760 35,060 Use of money and property 109,657 109,321 (860) (110,517) Other 55,000 55,000 216,062 161,062
TOTAL REVENUES 1,269,745 6,844,794 6,940,971 96,177

EXPENDITURES
Current:

Public safety 7,204,046 6,338,631 6,453,537 750,509
Capital outlay 278,564 48,000 810,645 (532,081)
TOTAL EXPENDITURES 6,386,631 7,482,610 7,264,182 218,428

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (5,116,886) (637,816) (323,211) 314,605

OTHER FINANCING SOURCES (USES)
Transfers in 200,000 587,652 250,000 (337,652)

TOTAL OTHER FINANCING
SOURCES AND USES 587,652 200,000 250,000 (337,652)
NET CHANGE IN FUND BALANCE (4,916,886) (50,164) (73,211) (23,047) Fund balance, beginning of year 5,926,949 5,926,949 5,926,949 FUND BALANCE, END OF YEAR 1,010,063 $ 5,876,785 $ 5,853,738 $ (23,047) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 74 215

CITY OF AMERICAN CANYON
Budget and Actual
CDBG, CalHome and HOME Loan Development Special Revenue Fund For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Intergovernmental 1,100,000 $ 50,000 $ 211,442 $ 161,442 $ Use of money and property 900 2,000 (131) (1,031)
Other 51,200 4,500 3,269 (47,931)
TOTAL REVENUES 1,106,500 102,100 214,580 112,480

EXPENDITURES
Current:

Community development 1,151,260 540,600 171,131 369,469 TOTAL EXPENDITURES 1,151,260 540,600 171,131 369,469

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (44,760) (438,500) 43,449 481,949

OTHER FINANCING SOURCES (USES)
Transfers in 9,455 (9,455)

TOTAL OTHER FINANCING
SOURCES AND USES 9,455 (9,455)
NET CHANGE IN FUND BALANCE (44,760) (438,500) 52,904 491,404 Fund balance, beginning of year (38,753) (38,753) (38,753) FUND BALANCE, END OF YEAR (83,513) $ (477,253) $ 14,151 $ 491,404 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 75 216

CITY OF AMERICAN CANYON
Budget and Actual
State and Federal Grants - City Special Revenue Fund
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Intergovernmental 7,532,546 $ 7,794,700 $ 1,100,570 $ (6,694,130) $ TOTAL REVENUES 7,532,546 7,794,700 1,100,570 (6,694,130)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 7,532,546 7,794,700 1,100,570 (6,694,130)

OTHER FINANCING SOURCES (USES)
Transfers out (7,532,546) (7,532,700) (1,307,341) 6,225,359

TOTAL OTHER FINANCING
SOURCES AND USES (7,532,700) (7,532,546) (1,307,341) 6,225,359 NET CHANGE IN FUND BALANCE 262,000 (206,771) (468,771)
Fund balance, beginning of year (411,831) (411,831) (411,831) FUND BALANCE, END OF YEAR (411,831) $ (149,831) $ (618,602) $ (468,771) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 76 217
June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Proportion of the net pension liability 0.20221% 0.19697% 0.19312% 0.19133% 0.18829% 0.19150% 0.20960% Proportionate share of the net pension liability 8,529,197 $ 7,887,778 $ 7,278,267 $ 7,542,231 $ 6,540,954 $ 5,334,328 $ 5,166,818 $ Covered payroll - measurement period 6,383,583 $ 5,876,867 $ 5,993,406 $ 5,979,018 $ 5,417,416 $ 5,157,279 $ 5,062,574 $ Proportionate share of the net pension liability
as a percentage of covered payroll 133.61% 134.22% 121.44% 126.14% 120.74% 103.43% 102.06% Plan fiduciary net position as a percentage of
the total pension liability 77.32% 77.41% 76.60% 74.15% 71.92% 78.22% 77.38% Notes to Schedule:

Change in Benefit Terms: None.

June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Contractually required contribution (actuarially
determined) - employer fiscal year 1,099,634 $ 1,072,824 $ 990,170 $ 918,516 $ 903,780 $ 816,543 $ 737,934 $ Contributions in relation to the actuarially
determined contributions (1,099,634) (1,072,824) (990,170) (918,516) (903,780) (816,543) (737,934) Contribution deficiency (excess) $ - - $ - $ - $ - $ - $ - $ Covered payroll - employer fiscal year 5,771,318 $ 6,383,583 $ 5,876,867 $ 5,993,406 $ 5,979,018 $ 5,417,416 $ 5,157,279 $ Contributions as a percentage of covered payroll 19.05% 16.81% 16.85% 15.33% 15.12% 15.07% 14.31% Valuation date for contribution rates: June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 June 30, 2012 Valuation date for financial reporting: June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 Measurement date: June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Methods and assumptions used to determine contribution rates:

Actuarial method
Amortization method
Remaining amortization period
Asset valuation method
Inflation 2.50% 2.625% 2.75% 2.75% 2.75% 2.75% 2.75%
Salary increases
Investment rate of return and discount rate 7.00% 7.25% 7.375% 7.50% 7.50% 7.50% 7.50% Retirement age
Mortality
Last 10 Years

CITY MISCELLANEOUS PLAN (UNAUDITED)

CITY OF AMERICAN CANYON
Omitted years: GASB Statement No. 68 was implemented during the year ended June 30, 2015. No information was available prior to this date. Information will be presented prospectively as it becomes available.

Varies, not more than 30 years
Market value
Varies by entry age and service
50-67 years. Probablilities of retirement are based on the most recent CalPERS Experience Study.

Most recent CalPERS Experience Study
Required Supplementary Information
For the Year Ended June 30, 2021

SCHEDULE OF THE PROPORTIONATE SHARE OF THE

NET PENSION LIABILITY - CITY MISCELLANEOUS PLAN (UNAUDITED) Entry age normal cost method
Level percentage of payroll, closed
Last 10 Years
Changes in assumptions: The discount rate was changed from 7.50% in 2015 to 7.65% in 2016 and 2017 and to 7.15% in 2018.

SCHEDULE OF CONTRIBUTIONS TO THE PENSION PLAN -
77 218
June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Proportion of the net pension liability 0.12336% 0.12236% 0.12252% 0.12085% 0.12357% 0.12520% 0.11999% Proportionate share of the net pension liability 8,218,591 $ 7,638,514 $ 7,189,025 $ 7,220,857 $ 6,399,934 $ 5,159,412 $ 4,500,491 $ Covered payroll - measurement period 2,023,975 $ 1,891,216 $ 1,824,180 $ 1,944,380 $ 1,524,899 $ 1,501,544 $ 1,606,377 $ Proportionate share of the net pension liability
as a percentage of covered payroll 406.06% 403.89% 394.10% 371.37% 419.70% 343.61% 280.16% Plan fiduciary net position as a percentage of
the total pension liability 71.64% 72.20% 72.74% 71.56% 71.92% 75.49% 77.83% Notes to Schedule:

June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Contractually required contribution (actuarially
determined) - employer fiscal year 874,486 $ 1,007,896 $ 881,120 $ 781,173 $ 712,349 $ 622,420 $ 549,070 $ Contributions in relation to the actuarially
determined contributions (874,486) (1,007,896) (881,120) (781,173) (712,349) (622,420) (549,070) Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ Covered payroll - fiscal year 1,825,049 $ 2,023,975 $ 1,891,216 $ 1,824,180 $ 1,944,380 $ 1,524,899 $ 1,501,544 $ Contributions as a percentage of covered payroll 47.92% 49.80% 46.59% 42.82% 36.64% 40.82% 36.57% Valuation date for contribution rates: June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 June 30, 2012 Valuation date for financial reporting: June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 Measurement date: June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Methods and assumptions used to determine contribution rates:

Actuarial method
Amortization method
Remaining amortization period
Asset valuation method
Inflation 2.50% 2.625% 2.75% 2.75% 2.75% 2.75% 2.75%
Salary increases
Investment rate of return and discount rate 7.00% 7.25% 7.375% 7.50% 7.50% 7.50% 7.50% Retirement age
Mortality
Last 10 Years
Change in Benefit Terms: None
Changes in assumptions: The discount rate was changed from 7.50% in 2015 to 7.65% in 2016 and 2017 and to 7.15% in 2018.

SCHEDULE OF CONTRIBUTIONS TO THE PENSION PLAN -
Last 10 Years

CITY OF AMERICAN CANYON
Required Supplementary Information
For the Year Ended June 30, 2021

SCHEDULE OF THE PROPORTIONATE SHARE OF THE

NET PENSION LIABILITY - FIRE SAFETY PLAN (UNAUDITED)
Omitted years: GASB Statement No. 68 was implemented during the year ended June 30, 2015. No information was available prior to this date. Information will be presented prospectively as it becomes available.

FIRE SAFETY PLAN (UNAUDITED)
Varies by entry age and service
Entry age normal cost method
Level percentage of payroll, closed
Varies, not more than 30 years
Market value
50-57 years. Probablilities of retirement are based on the most recent CalPERS Experience Study.

Most recent CalPERS Experience Study
78 219
June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Proportion of the net pension liability 0.00129% 0.00178% 0.00233% 0.00232% 0.00270% 0.00304% 0.00294% Proportionate share of the net pension liability 54,399 $ 71,296 $ 87,920 $ 91,294 $ 93,760 $ 83,520 $ 72,565 $ Covered payroll - measurement period 27,107 $ N/A N/A N/A N/A N/A N/A Proportionate share of the net pension liability
as a percentage of covered payroll 200.68% N/A N/A N/A N/A N/A N/A Plan fiduciary net position as a percentage of
the total pension liability 0.00% 0.00% 0.00% 0.00% 64.80% 68.95% 73.76% Notes to Schedule:

June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Contractually required contribution (actuarially
determined) - employer fiscal year 24,560 $ 20,740 $ 18,930 $ 19,016 $ 6,602 $ 6,056 $ 5,443 $ Contributions in relation to the actuarially
determined contributions (24,560) (20, (18, 740) (19, 930) (6, 016) (6, 602) (5, 056) 443) Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ Covered payroll - fiscal year 73,720 $ 27,107 $ N/A N/A N/A N/A N/A Contributions as a percentage of covered payroll 33.32% 76.51% N/A N/A N/A N/A N/A Valuation date for contribution rates: June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 June 30, 2012 Valuation date for financial reporting: June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 Measurement date: June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Methods and assumptions used to determine contribution rates:

Single Employers Example
Amortization method
Remaining amortization period
Asset valuation method
Inflation 2.50% 2.625% 2.75% 2.75% 2.75% 2.75% 2.75%
Salary increases
Investment rate of return and discount rate 7.00% 7.25% 7.375% 7.50% 7.50% 7.50% 7.50% Retirement age
Mortality
Omitted years: GASB Statement No. 68 was implemented during the year ended June 30, 2015. No information was available prior to this date. Information will be presented prospectively as it becomes available.

Changes in assumptions: The discount rate was changed from 7.50% in 2015 to 7.65% in 2016 and 2017 and to 7.15% in 2018.

SCHEDULE OF CONTRIBUTIONS TO THE PENSION PLAN -

FIRE MISCELLANEOUS PLAN (UNAUDITED)
Last 10 Years
The plan did not have active employees from 2015 - 2019, so there was no covered payroll during those fiscal years.

Entry age normal cost method
Level percentage of payroll, closed
Varies, not more than 30 years
Market value
Varies by entry age and service
50-67 years. Probablilities of retirement are based on the most recent CalPERS Experience Study.

Most recent CalPERS Experience Study
Change in Benefit Terms: None
Last 10 Years

CITY OF AMERICAN CANYON
Required Supplementary Information
For the Year Ended June 30, 2021

SCHEDULE OF THE PROPORTIONATE SHARE OF THE

NET PENSION LIABILITY - FIRE MISCELLANEOUS PLAN (UNAUDITED) 79 220
2021 2020 2019 2018
Total OPEB liability
Service cost 429,075 $ 335,883 $ 326,100 $ 326,100 $
Interest 657,168 602,996 553,400 519,700
Changes in assumptions 945,591
Differences between expected and
actual experience (416,017) 2,700
Benefit payments (455,763) (390,596) (351,400) (407,000) Net change in total OPEB liability 630,480 1,077,857 530,800 438,800 Total OPEB liability - beginning 9,254,457 8,176,600 7,645,800 7,207,000 Total OPEB liability - ending (a) 9,884,937 $ 9,254,457 $ 8,176,600 $ 7,645,800 $ Plan fiduciary net position
Contributions - employer 571,500 $ 576,296 $ 693,900 $ 673,700 $ Net investment income 186,101 300,131 322,826 366,285
Benefit payments (455,763) (390,596) (351,400) (407,000) Administrative expenses (2,575) (1,033) (2,126) (1,785) Net change in plan fiduciary net position 299,263 484,798 663,200 631,200 Plan fiduciary net position - beginning 5,225,898 4,741,100 4,077,900 3,446,700 Plan fiduciary net position - ending (b) 5,525,161 $ 5,225,898 $ 4,741,100 $ 4,077,900 $ Net OPEB liability - ending (a)-(b) 4,359,776 $ 4,028,559 $ 3,435,500 $ 3,567,900 $ Plan fiduciary net position as a percentage
of the total OPEB liability 55.89% 56.47% 57.98% 53.34% Notes to Schedule:

Valuation date June 30, 2019 June 30, 2019 June 30, 2017 June 30, 2017 Measurement period - fiscal year ended June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Benefit changes: None None None None
Changes in assumptions:

Discount rate changes 6.95% 6.95% 7.25% 7.25%
Health care trend changes:

Initial rate 5.40% 5.40% Various Various
Trends down to 4.00% 4.00% 4.00% 4.00%
In year 2076 2076 2030 2030
Omitted years: GASB Statement No. 75 was implemented during the year ended June 30, 2018. No information was available prior to this date. Information will be added prospectively as it becomes available until 10 years are reported.

For the Year Ended June 30, 2021

CITY OF AMERICAN CANYON
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net OPEB Liability and Related Ratios - City Plan Note: The OPEB contributions are not based on a measure of payroll so the disclosures related to covered payroll were removed in accordance with GASB Statement No. 85.
80 221
2021 2020 2019 2018
Total OPEB liability
Service cost 230,045 $ 226,062 $ 210,881 $ 146,079 $
Interest 388,764 417,289 393,002 413,368
Differences between expected and
actual experience (837,691) (705,918)
Changes in assumptions (72,183) 184,537 126,927 60,313
Benefit payments (287,603) (267,920) (266,215) (250,572) Net change in total OPEB liability 259,023 (277,723) 464,595 (336,730) Total OPEB liability - beginning 5,507,481 5,785,204 5,320,609 5,657,339 Total OPEB liability - ending (a) 5,766,504 $ 5,507,481 $ 5,785,204 $ 5,320,609 $ Plan fiduciary net position
Contributions - employer 517,331 $ 483,301 $ 530,288 $ 414,364 $ Net investment income 101,238 149,305 162,465 175,524
Benefit payments (287,603) (267,920) (266,215) (250,572) Administrative and other expenses (1,392) (530) (3,591) (904) Net change in plan fiduciary net position 329,574 364,156 422,947 338,412 Plan fiduciary net position - beginning 2,661,592 2,297,436 1,874,489 1,536,077 Plan fiduciary net position - ending (b) 2,991,166 $ 2,661,592 $ 2,297,436 $ 1,874,489 $ Net OPEB liability - ending (a)-(b) 2,775,338 $ 2,845,889 $ 3,487,768 $ 3,446,120 $ Plan fiduciary net position as a percentage
of the total OPEB liability 51.87% 48.33% 39.71% 35.23% Notes to Schedule:

Valuation date June 30, 2019 June 30, 2019 June 30, 2017 June 30, 2017 Measurement period - fiscal year ended June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Benefit changes: None None None None
Changes in assumptions:

Discount rate changes 7.05% 6.95% 7.10% 7.28%
Health care trend changes:

Initial rate 6.50% 6.50% 7.50% 8.00%
Trends down to 5.00% 5.00% 5.00% 5.00%
In year 2025 2025 2025 2024
Omitted years: GASB Statement No. 75 was implemented during the year ended June 30, 2018. No information was available prior to this date. Information will be added prospectively as it becomes available until 10 years are reported.

CITY OF AMERICAN CANYON
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net OPEB Liability and Related Ratios - Fire Plan For the Year Ended June 30, 2021
Note: The OPEB contributions are not based on a measure of payroll so the disclosures related to covered payroll were removed in accordance with GASB Statement No. 85.
81 222
2021 2020 2019 2018
Actuarially determined contribution -
employer fiscal year 812,638 $ 571,500 $ 576,700 $ 582,400 $ Contributions in relation to the actuarially
determined contributions (812,638) (571,500) (578,522) (692,000) Contribution deficiency (excess) - $ - $ (1,822) $ (109,600) $ Notes to Schedule:

Valuation date June 30, 2019 June 30, 2019 June 30, 2017 June 30, 2017 Measurement period - fiscal year ended June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortization method
Amortization period
Asset valuation method
Discount rate 6.95% 6.95% 7.25% 7.25%
Inflation 2.50% 2.50% Not stated Not stated
Payroll growth 3.00% 3.00% 3.25% 3.25%
Investment rate of return 6.95% 6.95% 7.25% 7.25%
Healthcare cost-trend rate, initial 5.40% 5.40% Varies Varies Heathcare trending down to 4.00% 4.00% 4.00% 4.00%
Retirement age
Mortality
Assumed HMO/PPO split Not stated Not stated 65%/35% 65%/35% Percentage electing to cover spouse (1) (1) 60% 60%
(1) 60% for employees hired before July 1, 2016; 45% for employees hired on/after July 1, 2016 Omitted years: GASB Statement No. 75 was implemented during the year ended June 30, 2018. No information was available prior to this date. Information will be added prospectively as it becomes available until 10 years are reported.

For the Year Ended June 30, 2021

CITY OF AMERICAN CANYON
Last Ten Fiscal Years
Required Supplementary Information (Unaudited)
Schedule of Contributions to the OBEP Plan - City Plan
Most recent CalPERS Experience Study
Entry Age Normal Cost Method
Level percentage of payroll, closed
30 years
Market value of assets
Most recent CalPERS Experience Study
Note: The OPEB contributions are not based on a measure of payroll so the disclosures related to covered payroll were removed in accordance with GASB Statement No. 85.
82 223
2021 2020 2019 2018
Contractually determined contribution -
employer fiscal year 467,573 $ 507,998 $ 492,634 $ 457,056 $ Contributions in relation to the contractually
determined contributions (511,759) (507,998) (483,301) (530,288) Contribution deficiency (excess) (44,186) $ - $ 9,333 $ (73,232) $ Notes to Schedule:

Valuation date June 30, 2019 June 30, 2019 June 30, 2017 June 30, 2017 Measurement period - fiscal year ended June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortization method
Amortization period
Asset valuation method
Discount rate 7.05% 6.95% 7.10% 7.28%
Inflation 2.75% 2.50% 2.75% 2.75%
Payroll growth 3.25% 3.00% 3.25% 3.25%
Investment rate of return 7.05% 7.05% 7.10% 7.28%
Healthcare trend, initial 6.50% 6.50% 7.50% 8.00%
Healthcare trending down to 5.00% 5.00% 5.00% 5.00%
Retirement age
Mortality
Percentage electing to cover spouse 85% 85% 85% 85%
Market value of assets
Most recent CalPERS Experience Study
Most recent CalPERS Experience Study
Omitted years: GASB Statement No. 75 was implemented during the year ended June 30, 2018. No information was available prior to this date. Information will be added prospectively as it becomes available until 10 years are reported.

CITY OF AMERICAN CANYON
Required Supplementary Information (Unaudited)
Schedule of Contributions to the OPEB Plan - Fire Plan
Last Ten Fiscal Years
For the Year Ended June 30, 2021
Entry Age Normal Cost Method
Level percentage of payroll, closed
30 years
Note: The OPEB contributions are not based on a measure of payroll so the disclosures related to covered payroll were removed in accordance with GASB Statement No. 85.
83 224

SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON

MAJOR CAPITAL PROJECTS AND DEBT SERVICE FUNDS
225
(This page intentionally left blank.)
226

CITY OF AMERICAN CANYON
Budget and Actual
City Capital Projects
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

EXPENDITURES
Capital outlay $ 23,756,000 23,756,000 $ 6,181,989 $ 17,574,011 $ TOTAL EXPENDITURES 23,756,000 23,756,000 6,181,989 17,574,011

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (23,756,000) (23,596,000) (6,181,989) 17,414,011

OTHER FINANCING SOURCES (USES)
Transfers in 23,756,000 23,826,700 6,181,989 (17,644,711)

TOTAL OTHER FINANCING
SOURCES AND USES 23,826,700 23,756,000 6,181,989 (17,644,711) NET CHANGE IN FUND BALANCE 230,700 (230,700)
Fund balance, beginning of year 219,437 219,437 219,437 FUND BALANCE, END OF YEAR 219,437 $ 450,137 $ 219,437 $ (230,700) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 84 227

CITY OF AMERICAN CANYON
Budget and Actual
Affordable Housing Capital Projects Fund
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Charges for services 1,054,500 $ 112,800 $ 118,159 $ 5,359 $ Use of money and property 6,500 13,500 837 (5,663)
Other 11,059 11,059
TOTAL REVENUES 1,068,000 119,300 130,055 10,755

EXPENDITURES
Current:

Community development 134,000 130,000 131,999 (1,999)
TOTAL EXPENDITURES 134,000 130,000 131,999 (1,999)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 934,000 (10,700) (1,944) 8,756 NET CHANGE IN FUND BALANCE 934,000 (10,700) (1,944) 8,756 Fund balance, beginning of year 263,954 263,954 263,954 FUND BALANCE, END OF YEAR 1,197,954 $ 253,254 $ 262,010 $ 8,756 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 85 228

CITY OF AMERICAN CANYON
Budget and Actual
Cabernet Village Lease Debt Service Fund
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Use of money and property $ 2,300 2,300 $ (2,300) $
TOTAL REVENUES 2,300 2,300 (2,300)

EXPENDITURES
Current:

Debt service:

Principal 280,000 4, $ (4,320,000) 320,000
Interest and other charges 196,200 54,000 302,433 (248,433) TOTAL EXPENDITURES 476,200 54,000 4,622,433 (4,568,433)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (473,900) (51,700) (4,622,433) (4,570,733)

OTHER FINANCING SOURCES (USES)
Proceeds from long-term debt, net 4, 4,569,064 569,064
Transfers in 476,200 53,800 53,369 (431)

TOTAL OTHER FINANCING
SOURCES AND USES 53,800 476,200 4,622,433 4,568,633
NET CHANGE IN FUND BALANCE 2,300 2,100 (2,100)
Fund balance, beginning of year
FUND BALANCE, END OF YEAR 2,300 $ 2,100 $ - $ (2,100) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 86 229

(This page intentionally left blank.)
230

NON-MAJOR GOVERNMENTAL FUNDS
231

SPECIAL REVENUE FUNDS
Storm Drainage Special Revenue Fund – Accounts for the proceeds and expenditures of sales taxes received under the Napa County Flood Protection Sales Tax.

Measure T Streets and Roads – Accounts for the voter approved sales tax funds received for the maintenance, reconstruction and rehabilitation of streets, roads and transportation infrastructure.

Gas Tax – Accounts for proceeds and expenditures of gas tax revenue received under the California Streets and Highways Code.

BEGIN Program – Accounts for revenue granted by the California Department of Housing and Community Development to reduce local regulatory barriers to affordable homeownership housing and provide down-payment assistance loans to qualifying homebuyers.

State Supplemental Law Enforcement – Accounts for revenue granted from the state General Fund for Citizen Option for Public Safety (COPS) program to provide supplemental public safety services for front line law enforcement including anti-gang, community crime prevention and juvenile justice programs.

La Vigne Landscape and Lighting – Accounts for maintenance expenses of the three District zones which are paid for through property tax assessments placed on owner’s annual tax bills.

La Vigne Open Space – Accounts for the costs to maintain open space at the La Vigne Open Space.

Newell Park Open Space – Accounts for the costs to maintain open space at the Newell Open Space.

State and Federal Grants - Fire – Accounts for State and Federal Grants received for fire services.

Zero Water Footprint – Accounts for mitigation monies collected to offset new water and sewer demands associated with development projects.

Cannabis – Accounts for developer deposits and fees received to reimburse the City for costs associated with reviewing commercial cannabis business permits and conditional use permits.

Community Facilities District – Accounts for resources accumulated from property owners for Community Facilities District maintenance.

General Plan Update – Accounts for fees collected for the purpose of updating the City’s general plan to meet the demand of new development.

Legal Settlement – Accounts for legal settlements to be used for specific purposes or projects.

CAPITAL PROJECTS FUNDS
Fire Mitigation – Accounts for a special voter approved new development tax for the purchase of the fire apparatus and facilities.

Park Improvement – Accounts for impact fees collected by new development to be used for adding new parks, park improvements, and recreation facilities.

Traffic Impact – Accounts for impact fees collected by new development to be used for street improvements.

Infrastructure – Accounts for bond proceeds restricted for street and road modernization projects.

City Capital Projects – Accounts for major capital projects funded by various City sources.

Civic Facilities – Accounts for impact fees collected by new development to be used for Civic Facilities improvement projects.
232

CAPITAL PROJECTS FUNDS
Utility Underground – Accounts for fees collected from developers in lieu of providing undergrounding of utilities.

Zero Water Footprint – Accounts for mitigation monies collected to offset new water and sewer capital demands associated with development projects.

DEBT SERVICE FUNDS
Lease Revenue Bonds – Issued to finance the acquisition and construction of a Community Center/Gymnasium facility and Aquatic Center Facility.

Engie City – Accounts for debt service on lease financing for the purchase of equipment for the City.

Engie Fire – Accounts for debt service on lease financing for the purchase of equipment for fire services. 233
Storm
Drainage
Measure T -
Streets and
Roads Gas Tax
BEGIN
Program
State
Supplemental
Law
Enforcement
ASSETS
Cash and investments $ 1,537,381 7,031,666 $ 1,233,540 $ 38,911 $ 4,608 $ Restricted cash and investments
Taxes receivable 722,542 37,655
Accounts receivable, net
Interest receivable 713 4,558 822 42
Due from other governments 4,408 63,372
Loans receivable, net 126,187
TOTAL ASSETS 7,040,632 $ 2,260,636 $ 1,272,017 $ 165,098 $ 68,022 $

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable $ 206,357 $ 8,928
Due to other funds
TOTAL LIABILITIES 206,357 8,928

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue $ 4,408 351,265 $ 91,825 $ 63,372

TOTAL DEFERRED INFLOWS
OF RESOURCES 4,408 351,265 91,825 63,372

FUND BALANCES
Restricted for:

Public safety 4,650
Public works 1,263,089 1,703,014
Debt service
Storm drain projects 7,036,224
Community development,
planning and building 73,273
Parks
Other activities
Assigned
Unassigned
TOTAL FUND BALANCES 7,036,224 1,703,014 1,263,089 73,273 4,650

TOTAL LIABILITIES,

DEFERRED INFLOWS AND
FUND BALANCES 7,040,632 $ 2,260,636 $ 1,272,017 $ 165,098 $ 68,022 $

CITY OF AMERICAN CANYON
Combining Balance Sheet
Other Governmental Funds
June 30, 2021

SPECIAL REVENUE FUNDS
87 234
La Vigne
Landscape
and Lighting
La Vigne
Open Space
Newell Park
Open Space
State and
Federal
Grants - Fire
Zero Water
Footprint SR Cannabis
Community
Facilities
District
General Plan
Update
$ 181,273 2,727,144 $ 236,876 $ 5,891 $ 66,971 $ 225,089 $

4,771 1,656

115 1,739 154 143

$ 181,388 2,733,654 $ 237,030 $ 5,891 $ - $ - $ 68,627 $ 225,232 $ $ 3,770 13,843 $ 2,211 $
10,382 $
3,770 13,843 10,382 2,211

$ 5,891
66,416 2,719,811
237,030 177,618 $
225,232 $
(10,382)
177,618 2,719,811 237,030 5,891 (10,382) 66,416 225,232 $ 181,388 2,733,654 $ 237,030 $ 5,891 $ - $ - $ 68,627 $ 225,232 $

SPECIAL REVENUE FUNDS
88 235
Legal
Settlement
Total Other
Governmental
Special
Revenue Funds
Fire
Mitigation
Park
Improvement Traffic Impact
ASSETS
Cash and investments $ 13,711,850 422,500 $ 871,136 $ 1,253,274 $ 4,597,144 $ Restricted cash and investments
Taxes receivable 766,624
Accounts receivable, net 305
Interest receivable 8,554 268 786 796 2,921
Due from other governments 67,780
Loans receivable, net 126,187
TOTAL ASSETS 422,768 $ 14,680,995 $ 872,227 $ 1,254,070 $ 4,600,065 $

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable 235,109 $ 560 $
Due to other funds 10,382
TOTAL LIABILITIES 245,491 560

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 510,870

TOTAL DEFERRED INFLOWS
OF RESOURCES 510,870

FUND BALANCES
Restricted for:

Public safety 872,227 10,541 $
Public works $ 6,175,098 422,768 4,599,505
Debt service
Storm drain projects 7,036,224
Community development,
planning and building 73,273
Parks 414,648 1,254,070 $
Other activities
Assigned 225,232
Unassigned (10,382)
TOTAL FUND BALANCES 422,768 13,924,634 872,227 1,254,070 4,599,505

TOTAL LIABILITIES,

DEFERRED INFLOWS AND
FUND BALANCES 422,768 $ 14,680,995 $ 872,227 $ 1,254,070 $ 4,600,065 $

SPECIAL REVENUE FUNDS CAPITAL PROJECTS FUNDS

CITY OF AMERICAN CANYON
Combining Balance Sheet
Other Governmental Funds
June 30, 2021
89 236
Infrastructure
Civic
Facilities
Capital
Projects
Utility
Underground
Zero Water
Footprint CP
Total Other
Governmental
Capital
Projects Funds
Lease
Revenue
Bonds
Engie City
Debt Service
Engie Fire
Debt Service
$ 1,237,708 31,824 $ 160,094 $ 322,064 $ 8,473,244 $
290,884 290,884 64,597 $ 36,189 $

305
873 20 102 205 5,703

$ 1,238,581 322,728 $ 160,196 $ 322,269 $ 8,770,136 $ - $ 64,597 $ 36,189 $ 560 $

560

872,227
$ 1,238,581 322,728 $ 160,196 $ 322,269 $ 6,643,279

1,254,070
64,597 $ 36,189 $

1,238,581 322,728 160,196 322,269 8,769,576 64,597 36,189 $ 1,238,581 322,728 $ 160,196 $ 322,269 $ 8,770,136 $ - $ 64,597 $ 36,189 $

CAPITAL PROJECTS FUNDS DEBT SERVICE FUNDS
90 237
Total Other
Governmental
Debt Service
Funds
Total Other
Governmental
Funds
ASSETS
Cash and investments 22,185,094 $
Restricted cash and investments $ 391,670 100,786
Taxes receivable 766,624
Accounts receivable, net 305
Interest receivable 14,257
Due from other governments 67,780
Loans receivable, net 126,187
TOTAL ASSETS 100,786 $ 23,551,917 $

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable $ 235,669
Due to other funds 10,382
TOTAL LIABILITIES 246,051

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 510,870

TOTAL DEFERRED INFLOWS
OF RESOURCES 510,870

FUND BALANCES
Restricted for:

Public safety 882,768
Public works 12,818,377
Debt service
Storm drain projects 7,036,224
Community development,
planning and building 73,273
Parks 1,668,718
Other activities $ 100,786 100,786
Assigned 225,232
Unassigned (10,382)
TOTAL FUND BALANCES 100,786 22,794,996

TOTAL LIABILITIES,

DEFERRED INFLOWS AND
FUND BALANCES 100,786 $ 23,551,917 $

CITY OF AMERICAN CANYON
Combining Balance Sheet
Other Governmental Funds
June 30, 2021
91 238

(This page intentionally left blank.)
239
Storm
Drainage
Measure TStreets and
Roads Gas Tax
BEGIN
Program
State
Supplemental
Law
Enforcement

REVENUES
Sales taxes 1,218,056 $
Special assessments
Intergovernmental 829,624 $ 156,727 $
Charges for services
Use of money and property $ 7,237 37,668 5,070 36 $ 437 Other 68,325
TOTAL REVENUES 1,225,293 37,668 834,694 68,361 157,164

EXPENDITURES
Current:

Public works
Parks and recreation
Debt Service:

Principal
Debt issuance costs
Interest and other charges

TOTAL EXPENDITURES

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 1,225,293 37,668 834,694 68,361 157,164

OTHER FINANCING SOURCES (USES)
Issuance of long-term debt
Transfers in
Transfers out (373,200) (1,143,254) (303,697) (157,123)

TOTAL OTHER FINANCING
SOURCES AND USES (1,143,254) (373,200) (303,697) (157,123) NET CHANGE IN FUND BALANCES 82,039 (335,532) 530,997 68,361 41 Fund balances, beginning of year 1,620,975 7,371,756 732,092 4,912 4,609 FUND BALANCES, END OF YEAR $ 1,703,014 7,036,224 $ 1,263,089 $ 73,273 $ 4,650 $

CITY OF AMERICAN CANYON
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Other Governmental Funds
For the Year Ended June 30, 2021

SPECIAL REVENUE FUNDS
92 240
La Vigne
Landscape
and Lighting
La Vigne
Open Space
Newell Park
Open Space
State and
Federal
Grants - Fire
Zero Water
Footprint SR Cannabis
Community
Facilities
District
General Plan
Update

$ 614,294 53,820 $
2,245,811
2,341 $
934 13,486 $ 6,933 $ (25) $ 67 200

934 627,780 6,933 (25) 2,299,698 2,541
378,457 6,996
4,568 10,266

4,568 378,457 10,266 6,996
(3,634) 249,323 (3,333) (25) 2,292,702 2,541

222,691
(237,800) $ (2,253,660)
(237,800) (2,253,660) 222,691
(3,634) 249,323 (3,333) (237,800) (25) 39,042 225,232
181,252 2,470,488 240,363 5,891 $ 237,800 (10,357) 27,374 $ 177,618 2,719,811 $ 237,030 $ 5,891 $ - $ (10,382) $ 66,416 $ 225,232 $

SPECIAL REVENUE FUNDS
93 241
Legal
Settlement
Total Other
Governmental
Special
Revenue Funds
Fire
Mitigation
Park
Improvement
Traffic
Impact

REVENUES
Sales taxes 1,218,056 $
Special assessments 668,114
Intergovernmental 3,232,162
Charges for services 2,341 114,353 $ 3,146 $ 1,240,199 $ Use of money and property $ 72,311 268 5,354 6,462 24,369 Other 422,500 490,825
TOTAL REVENUES 5,683,809 422,768 119,707 9,608 1,264,568

EXPENDITURES
Current:

Public works 385,453
Parks and recreation 14,834
Debt Service:

Principal
Debt issuance costs
Interest and other charges
TOTAL EXPENDITURES 400,287

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 5,283,522 422,768 119,707 9,608 1,264,568

OTHER FINANCING SOURCES (USES)
Issuance of long-term debt
Transfers in 222,691
Transfers out (4,468,734) (250,000) (15,217) (472,192)

TOTAL OTHER FINANCING
SOURCES AND USES (4,246,043) (250,000) (15,217) (472,192) NET CHANGE IN FUND BALANCES 1,037,479 422,768 (130,293) (5,609) 792,376 Fund balances, beginning of year 1,002,520 12,887,155 1,259,679 3,807,129 FUND BALANCES, END OF YEAR $ 13,924,634 422,768 $ 872,227 $ 1,254,070 $ 4,599,505 $

SPECIAL REVENUE FUNDS CAPITAL PROJECTS FUNDS

CITY OF AMERICAN CANYON
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Other Governmental Funds
For the Year Ended June 30, 2021
94 242
Infrastructure
Civic
Facilities
Capital
Projects
Utility
Underground
Zero Water
Footprint CP
Total Other
Governmental
Capital
Projects Funds
Lease
Revenue
Bonds
Engie City
Debt Service
Engie Fire
Debt Service

61,799 $ 83,020 $ 1,502,517 $
$ 7,668 179 236 $ 1,449 45,717 (173) $
159,960 159,960
69,467 179 160,196 84,469 1,708,194 (173)

278,000
$ 2,260 4,033 $
6,024
284,024 4,033 2,260
69,467 179 160,196 84,469 1,708,194 (284,197) (4,033) (2,260) 531,860 297,967
237,800 237,800 285,325
(284,024) (1,021,433) (463,230) (259,518)
(284,024) 237,800 (783,633) 285,325 68,630 38,449
(214,557) 179 160,196 322,269 924,561 1,128 64,597 36,189 1,453,138 322,549 7,845,015 (1,128)
$ 1,238,581 322,728 $ 160,196 $ 322,269 $ 8,769,576 $ - $ 64,597 $ 36,189 $

CAPITAL PROJECTS FUNDS DEBT SERVICE FUNDS
95 243
Total Other
Governmental
Debt Service
Funds
Total Other
Governmental
Funds

REVENUES
Sales taxes 1,218,056 $
Special assessments 668,114
Intergovernmental 3,232,162
Charges for services 1,504,858
Use of money and property $ 117,855 (173)
Other 650,785
TOTAL REVENUES 7,391,830 (173)

EXPENDITURES
Current:

Public works 385,453
Parks and recreation 14,834
Debt Service:

Principal 278,000 278,000
Debt issuance costs 6,293 6,293
Interest and other charges 6,024 6,024
TOTAL EXPENDITURES 690,604 290,317

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES 6,701,226 (290,490)

OTHER FINANCING SOURCES (USES)
Issuance of long-term debt 829,827 829,827
Transfers in 745,816 285,325
Transfers out (6,212,915) (722,748)

TOTAL OTHER FINANCING
SOURCES AND USES (4,637,272) 392,404
NET CHANGE IN FUND BALANCES 2,063,954 101,914
Fund balances, beginning of year 20,731,042 (1,128)
FUND BALANCES, END OF YEAR $ 22,794,996 100,786 $

CITY OF AMERICAN CANYON
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Other Governmental Funds
For the Year Ended June 30, 2021
96 244

CITY OF AMERICAN CANYON
Budget and Actual
Storm Drainage Special Revenue Fund
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Investment earnings 118,500 $ 118,500 $ 37,668 $ (80,832) $ TOTAL REVENUES 118,500 118,500 37,668 (80,832)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 118,500 118,500 37,668 (80,832)

OTHER FINANCING SOURCES (USES)
Transfers out (561,000) (561,000) (373,200) 187,800

TOTAL OTHER FINANCING
SOURCES AND USES (561,000) (561,000) (373,200) 187,800
NET CHANGE IN FUND BALANCE (442,500) (442,500) (335,532) 106,968 Fund balance, beginning of year 7,371,756 7,371,756 7,371,756 FUND BALANCE, END OF YEAR 6,929,256 $ 6,929,256 $ 7,036,224 $ 106,968 $ The accompanying notes are an integral part of these financial statements.

Statement of Revenues, Expenditures and Changes in Fund Balance 97 245

CITY OF AMERICAN CANYON
Budget and Actual
Measure T- Streets and Roads
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Sales taxes 926,500 $ 926,500 $ 1,218,056 $ 291,556 $
Use of money and property 2,600 2,600 7,237 4,637
TOTAL REVENUES 929,100 929,100 1,225,293 296,193

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 929,100 929,100 1,225,293 296,193

OTHER FINANCING SOURCES (USES)
Transfers out (960,000) (960,000) (1,143,254) (183,254)

TOTAL OTHER FINANCING
SOURCES AND USES (960,000) (960,000) (1,143,254) (183,254) NET CHANGE IN FUND BALANCE (30,900) (30,900) 82,039 112,939 Fund balance, beginning of year 1,620,975 1,620,975 1,620,975 FUND BALANCE, END OF YEAR $ 1,590,075 1,590,075 $ 1,703,014 $ 112,939 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 98 246

CITY OF AMERICAN CANYON
Budget and Actual
Gas Tax
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Intergovernmental 846,500 $ 851,100 $ 829,624 $ (21,476) $ Use of money and property 800 1,200 5,070 4,270
TOTAL REVENUES 847,700 851,900 834,694 (17,206)

EXPENDITURES
Current:

Public works 3,000 3,000 3,000
TOTAL EXPENDITURES 3,000 3,000 3,000

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 844,700 848,900 834,694 (14,206)

OTHER FINANCING SOURCES (USES)
Transfers out (800,000) (966,600) (303,697) 662,903

TOTAL OTHER FINANCING
SOURCES AND USES (966,600) (800,000) (303,697) 662,903
NET CHANGE IN FUND BALANCE 44,700 (117,700) 530,997 648,697 Fund balance, beginning of year 732,092 732,092 732,092 FUND BALANCE, END OF YEAR 776,792 $ 614,392 $ 1,263,089 $ 648,697 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 99 247

CITY OF AMERICAN CANYON
Budget and Actual (with Variances)
BEGIN Program
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Investment earnings 100 $ 36 $ (64) $
Other $ 33,800 90,596 68,325 34,525
TOTAL REVENUES 90,596 33,900 68,361 34,461

EXPENDITURES
Community development 95,400
TOTAL EXPENDITURES 95,400

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (4,804) 33,900 68,361 34,461 NET CHANGE IN FUND BALANCE 33,900 (4,804) 68,361 34,461 Fund balance, beginning of year 4,912 4,912 4,912
FUND BALANCE, END OF YEAR $ 38,812 108 $ 73,273 $ 34,461 $ 100
248

CITY OF AMERICAN CANYON
Budget and Actual
State Supplemental Law Enforcement
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Intergovernmental 140,000 $ 140,000 $ 156,727 $ 16,727 $ Use of money and property 200 200 437 237
TOTAL REVENUES 140,200 140,200 157,164 16,964

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 140,200 140,200 157,164 16,964

OTHER FINANCING SOURCES (USES)
Transfers out (140,200) (140,200) (157,123) (16,923)

TOTAL OTHER FINANCING
SOURCES AND USES (140,200) (140,200) (157,123) (16,923) NET CHANGE IN FUND BALANCE 41 41
Fund balance, beginning of year 4,609 4,609 4,609
FUND BALANCE, END OF YEAR 4,609 $ 4,609 $ 4,650 $ 41 $
Schedule of Revenues, Expenditures and Changes in Fund Balance 101
249

CITY OF AMERICAN CANYON
Budget and Actual
La Vigne Landscape and Lighting
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Special assessments 612,155 $ 618,700 $ 614,294 $ (4,406) $ Use of money and property 27,600 52,449 13,486 (14,114) TOTAL REVENUES 664,604 646,300 627,780 (18,520)

EXPENDITURES
Current:

Public works 642,696 539,600 378,457 161,143
TOTAL EXPENDITURES 642,696 539,600 378,457 161,143

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 21,908 106,700 249,323 142,623

OTHER FINANCING SOURCES (USES)
Transfers out (215,000) (215,000) 215,000

TOTAL OTHER FINANCING
SOURCES AND USES (215,000) (215,000) 215,000
NET CHANGE IN FUND BALANCE (193,092) (108,300) 249,323 357,623 Fund balance, beginning of year 2,470,488 2,470,488 2,470,488 FUND BALANCE, END OF YEAR 2,277,396 $ 2,362,188 $ 2,719,811 $ 357,623 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 102
250

CITY OF AMERICAN CANYON
Budget and Actual
La Vigne Open Space
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Use of money and property $ 2,400 4,400 $ 934 $ (1,466) $ TOTAL REVENUES 4,400 2,400 934 (1,466)

EXPENDITURES
Current:

Parks and recreation 9,000 9,000 4,568 4,432
TOTAL EXPENDITURES 9,000 9,000 4,568 4,432

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (4,600) (6,600) (3,634) 2,966 NET CHANGE IN FUND BALANCE (4,600) (6,600) (3,634) 2,966 Fund balance, beginning of year 181,252 181,252 181,252 FUND BALANCE, END OF YEAR 176,652 $ 174,652 $ 177,618 $ 2,966 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 103
251

CITY OF AMERICAN CANYON
Budget and Actual
Newell Park Open Space
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Use of money and property $ 8,300 12,900 $ 6,933 $ (1,367) $ TOTAL REVENUES 12,900 8,300 6,933 (1,367)

EXPENDITURES
Current:

Parks and recreation 125,700 86,600 10,266 76,334
TOTAL EXPENDITURES 125,700 86,600 10,266 76,334

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (112,800) (78,300) (3,333) 74,967 NET CHANGE IN FUND BALANCE (112,800) (78,300) (3,333) 74,967 Fund balance, beginning of year 240,363 240,363 240,363 FUND BALANCE, END OF YEAR 127,563 $ 162,063 $ 237,030 $ 74,967 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 104
252

CITY OF AMERICAN CANYON
Budget and Actual
Zero Water Footprint SR
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Charges for services 284,400 $
Use of money and property 17,100
TOTAL REVENUES 301,500

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 301,500

OTHER FINANCING SOURCES (USES)
Transfers out (427,509) (237,800) $ (237,800) $

TOTAL OTHER FINANCING
SOURCES AND USES (427,509) (237,800) (237,800)
NET CHANGE IN FUND BALANCE (126,009) (237,800) (237,800) Fund balance, beginning of year 237,800 237,800 $ 237,800 FUND BALANCE, END OF YEAR 111,791 $ 237,800 $ - $ (237,800) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 105
253

CITY OF AMERICAN CANYON
Budget and Actual
Cannabis
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Licenses and permits 20,000 $ 3,600 $ (3,600) $
Use of money and property 100 50 (25) $ (125)
TOTAL REVENUES 20,050 3,700 (25) (3,725)

EXPENDITURES
Current:

Community development 3,100 10,000 3,100
TOTAL EXPENDITURES 10,000 3,100 3,100

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 10,050 600 (25) (625)
Proceeds from sale of capital assets 10,050 600 (25) (625)

NET CHANGE IN FUND BALANCE
(10,357) (10,357) (10,357)
Fund balance, beginning of year
$ (9,757) (307) $ (10,382) $ (625) $

FUND BALANCE, END OF YEAR
Schedule of Revenues, Expenditures and Changes in Fund Balance 106
254

CITY OF AMERICAN CANYON
Budget and Actual
Community Facilities District
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Special assessments 68,000 $ 55,600 $ 53,820 $ (1,780) $ Intergovernmental 2,245,811 2,245,811
Use of money and property 100 67 (33)
TOTAL REVENUES 68,000 55,700 2,299,698 2,243,998

EXPENDITURES
Current:

Public works 4,900 6,996 (2,096)
TOTAL EXPENDITURES 4,900 6,996 (2,096)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 68,000 50,800 2,292,702 2,241,902

OTHER FINANCING SOURCES (USES)
Transfers in 9,998,500 9,998,490 (9,998,500)
Transfers out (9,998,500) (9,998,490) (2,253,660) 7,744,840

TOTAL OTHER FINANCING
SOURCES AND USES (2,253,660) (2,253,660)
NET CHANGE IN FUND BALANCE 50,800 68,000 39,042 (11,758) Fund balance, beginning of year 27,374 27,374 27,374
FUND BALANCE, END OF YEAR $ 78,174 95,374 $ 66,416 $ (11,758) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 107
255

CITY OF AMERICAN CANYON
Budget and Actual
Fire Mitigation
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Charges for services 192,026 $ 192,026 $ 114,353 $ (77,673) $ Use of money and property 15,000 15,000 5,354 (9,646)
TOTAL REVENUES 207,026 207,026 119,707 (87,319)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 207,026 207,026 119,707 (87,319)

OTHER FINANCING SOURCES (USES)
Transfers out (200,000) (250,000) (250,000)

TOTAL OTHER FINANCING
SOURCES AND USES (250,000) (200,000) (250,000)
NET CHANGE IN FUND BALANCE 7,026 (42,974) (130,293) (87,319) Fund balance, beginning of year 1,002,520 1,002,520 1,002,520 FUND BALANCE, END OF YEAR 1,009,546 $ 959,546 $ 872,227 $ (87,319) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 108
256

CITY OF AMERICAN CANYON
Budget and Actual
Park Improvement
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Charges for services 40,200 $ 3,146 $ 3,146 $
Use of money and property 14,000 29,900 $ 6,462 (7,538) TOTAL REVENUES 70,100 14,000 9,608 (4,392)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 70,100 14,000 9,608 (4,392)

OTHER FINANCING SOURCES (USES)
Transfers out (160,026) (175,300) (15,217) 160,083

TOTAL OTHER FINANCING
SOURCES AND USES (175,300) (160,026) (15,217) 160,083
NET CHANGE IN FUND BALANCE (89,926) (161,300) (5,609) 155,691 Fund balance, beginning of year 1,259,679 1,259,679 1,259,679 FUND BALANCE, END OF YEAR 1,169,753 $ 1,098,379 $ 1,254,070 $ 155,691 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 109
257

CITY OF AMERICAN CANYON
Budget and Actual
Traffic Impact
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Charges for services 1,985,300 $ 1,985,300 $ 1,240,199 $ (745,101) $ Use of money and property 45,000 100,600 24,369 (20,631) TOTAL REVENUES 2,085,900 2,030,300 1,264,568 (765,732)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 2,085,900 2,030,300 1,264,568 (765,732)

OTHER FINANCING SOURCES (USES)
Transfers out (2,955,555) (3,005,400) (472,192) 2,533,208

TOTAL OTHER FINANCING
SOURCES AND USES (3,005,400) (2,955,555) (472,192) 2,533,208 NET CHANGE IN FUND BALANCE (869,655) (975,100) 792,376 1,767,476 Fund balance, beginning of year 3,807,129 3,807,129 3,807,129 FUND BALANCE, END OF YEAR 2,937,474 $ 2,832,029 $ 4,599,505 $ 1,767,476 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 110
258

CITY OF AMERICAN CANYON
Budget and Actual
Infrastructure
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Use of money and property $ 300 5,500 $ 179 $ (121) $
TOTAL REVENUES 5,500 300 179 (121)

EXPENDITURES
Capital outlay 314,900 314,821 314,900
TOTAL EXPENDITURES 314,821 314,900 314,900

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (309,321) (314,600) 179 314,779 NET CHANGE IN FUND BALANCE (309,321) (314,600) 179 314,779 Fund balance, beginning of year 322,549 322,549 322,549 FUND BALANCE, END OF YEAR 13,228 $ 7,949 $ 322,728 $ 314,779 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 111
259

CITY OF AMERICAN CANYON
Budget and Actual
Civic Facilities
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Charges for services 387,600 $ 358,900 $ 61,799 $ (297,101) $ Use of money and property 9,000 30,200 7,668 (1,332)
TOTAL REVENUES 417,800 367,900 69,467 (298,433)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 417,800 367,900 69,467 (298,433)

OTHER FINANCING SOURCES (USES)
Transfers out (284,200) (284,200) (284,024) 176

TOTAL OTHER FINANCING
SOURCES AND USES (284,200) (284,200) (284,024) 176
NET CHANGE IN FUND BALANCE 133,600 83,700 (214,557) (298,257) Fund balance, beginning of year 1,453,138 1,453,138 1,453,138 FUND BALANCE, END OF YEAR 1,586,738 $ 1,536,838 $ 1,238,581 $ (298,257) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 112
260

CITY OF AMERICAN CANYON
Budget and Actual
Zero Water Footprint CP
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Charges for services 251,300 $ 83,020 $ (168,280) $
Use of money and property 2,000 1,449 (551)
TOTAL REVENUES 253,300 84,469 (168,831)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 253,300 84,469 (168,831)

OTHER FINANCING SOURCES (USES)
Transfers in 237,800 237,800

TOTAL OTHER FINANCING
SOURCES AND USES 237,800 237,800
NET CHANGE IN FUND BALANCE 253,300 322,269 68,969
Fund balance, beginning of year
FUND BALANCE, END OF YEAR - $ $ 322,269 253,300 $ 68,969 $ Schedule of Revenues, Expenditures and Changes in Fund Balance 113
261

CITY OF AMERICAN CANYON
Budget and Actual
Lease Revenue Bonds
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

REVENUES
Use of money and property $ 500 1,100 $ (173) $ (673) $ TOTAL REVENUES 1,100 500 (173) (673)

EXPENDITURES
Debt service:

Principal 278,000 278,000 278,000
Interest and other charges 6,200 6,100 6,024 76
TOTAL EXPENDITURES 284,200 284,100 284,024 76

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (283,100) (283,600) (284,197) (597)

OTHER FINANCING SOURCES (USES)
Transfers in 284,200 284,200 285,325 1,125

TOTAL OTHER FINANCING
SOURCES AND USES 284,200 284,200 285,325 1,125
NET CHANGE IN FUND BALANCE 1,100 600 1,128 528
Fund balance, beginning of year (1,128) (1,128) (1,128) FUND BALANCE, END OF YEAR (28) $ (528) $ - $ 528 $
Schedule of Revenues, Expenditures and Changes in Fund Balance 114
262

CITY OF AMERICAN CANYON
Budget and Actual
Engie City Debt Service
For the year ended June 30, 2021
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Original Final

EXPENDITURES
Debt service:

Debt issuance costs 4,033 $ (4,033) $
Interest and other charges 96,500 $
TOTAL EXPENDITURES 96,500 4,033 (4,033)

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (96,500) (4,033) (4,033)

OTHER FINANCING SOURCES (USES)
Issuance of long-term debt 531,860 531,860
Transfers in 96,500 96,500 $ (96,500)
Transfers out (463,230) (463,230)

TOTAL OTHER FINANCING
SOURCES AND USES 96,500 96,500 68,630 (27,870)
NET CHANGE IN FUND BALANCE 96,500 64,597 (31,903)
Fund balance, beginning of year
FUND BALANCE, END OF YEAR - $ 96,500 $ 64,597 $ (31,903) $ Schedule of Revenues, Expenditures and Changes in Fund Balance 115
263

(This page intentionally left blank.)
264

INTERNAL SERVICE FUNDS
265

(This page intentionally left blank.)
266

INTERNAL SERVICE FUNDS
Internal service funds are established to account for goods or services provided by one department within the City to other departments or other government units on a cost reimbursement basis. The following are internal service funds:

Building Maintenance – Accounts for the maintenance of all city facilities including janitorial, security alarms, door locks and building related equipment.

Fleet – Accounts for the maintenance of services to city vehicles and equipment using city staff and contracting service out when necessary.

Information Technology – Accounts for the maintenance of services to city computer systems including the financial management system, utility billing system, and building permit software.

Legal – Accounts for legal costs incurred by the City.
267

CITY OF AMERICAN CANYON
Combining Statement of Net Position
Internal Service Funds
June 30, 2021
Building
Maintenance Fleet
Information
Technology Legal
Total Internal
Service Funds
ASSETS
Current assets:

Cash and investments 266,302 $ 141,882 $ 222,085 $ 630,269 $ Interest receivable 13 85 197 99
Prepaid expenses 232 232 27 491
Total current assets 266,633 142,127 222,197 630,957
Non-current assets:

Capital Assets:

Depreciable, net of accumulated depreciation 873,569 873,569 Total non-current assets 873,569 873,569
TOTAL ASSETS 266,633 1,015,696 222,197 1,504,526

DEFERRED OUTFLOW OF RESOURCES
Pension plan 27,709 31,078 2,795 61,582
OPEB plan 19,237 19,237 1,990 40,464
Total deferred outflows of resources 46,946 50,315 4,785 102,046

LIABILITIES
Current Liabilities:

Accounts payable 18,333 5,658 5,286 29,324 $ 58,601
Accrued expenses 5,708 3,601 911 10,220
Accrued interest payable 128 12 8
Due to other funds 74,093 74,093
Compensated absences, current portion 1,549 16,502 1,182 19,233 Bonds, notes and loans payable,
current portion 33,677 33,677
Total current liabilities 23,483 61,673 7,379 103,417 195,952 Non-current liabilities:

Bonds, notes and loans payable 69,065 69,065
Net pension liability 118,283 132,661 11,933 262,877
Net OPEB liability 50,573 50,573 5,232 106,378
Total non-current liabilities 168,856 252,299 17,165 438,320 TOTAL LIABILITIES 192,339 313,972 24,544 103,417 634,272

DEFERRED INFLOW OF RESOURCES
Pension plan 4,153 4,658 419 9,230
OPEB plan 3,548 3,548 367 7,463
Total deferred inflows of resources 7,701 8,206 786 16,693

NET POSITION
Net investment in capital assets 770,827 770,827
Unrestricted (26,994) 113,539 201,652 (103,417) 184,780 TOTAL NET POSITION 113,539 $ 743,833 $ 201,652 $ (103,417) $ 955,607 $ 116
268

CITY OF AMERICAN CANYON
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds
For the Year Ended June 30, 2021
Building
Maintenance Fleet
Information
Technology Legal
Total Internal
Service Funds

REVENUES
Charges for services $ 655,800 514,000 $ 524,100 $ 176,700 $ 1,870,600 $ TOTAL OPERATING REVENUES 514,000 655,800 524,100 176,700 1,870,600

OPERATING EXPENSES
Employee services 168,970 138,344 15,357 322,671
Maintenance and operations 242,235 237,760 447,874 347,501 1,275,370 Depreciation 216,774 216,774
TOTAL OPERATING EXPENSES 380,579 623,504 463,231 347,501 1,814,815 OPERATING INCOME (LOSS) 133,421 32,296 60,869 (170,801) 55,785

NON-OPERATING REVENUES (EXPENSES)
Interest and investment revenue 583 436 580 (116) 1,483 Interest expense (4,138) (4,138)
Gain (loss) on disposal of capital assets 58,692 58,692

TOTAL NON-OPERATING
REVENUE (EXPENSES) 436 55,137 580 (116) 56,037

INCOME (LOSS) BEFORE
CONTRIBUTIONS AND TRANSFERS 133,857 87,433 61,449 (170,917) 111,822

CONTRIBUTIONS AND TRANSFERS
Transfers in 67,500 67,500
CHANGE IN NET POSITION 133,857 87,433 61,449 (103,417) 179,322 Net position, beginning of year 656,400 (20,318) 140,203 776,285 TOTAL NET POSITION, END OF YEAR 113,539 $ 743,833 $ 201,652 $ (103,417) $ 955,607 $ 117
269
Building
Maintenance Fleet
Information
Technology Legal
Total Internal
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash paid to suppliers (239,691) $ (232,597) $ (462,482) $ (318,177) $ (1,252,947) $ Cash paid to employees and related benefits (128,012) (148,512) (17,660) 74,093 (220,091) Cash received from interfund services provided 514,000 655,800 524,100 244,200 1,938,100 CASH PROVIDED BY OPERATING ACTIVITIES 146,297 274,691 43,958 116 465,062

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Capital assets purchased (503,544) (503,544)
Proceeds from disposal of capital assets 105,400 105,400 Principal paid on long-term liabilities (32,747) (32,747) Interest paid on long-term liabilities (4,010) (4,010)
Capital grants received 140,847 140,847

CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES (294,054) (294,054)
CASH FLOWS FROM INVESTING ACTIVITIES:

Collection of interest and investment revenue 924 1,436 1,383 (116) 3,627

INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 147,221 (17,927) 45,341 174,635
Cash and cash equivalents, beginning of year 119,081 159,809 176,744 455,634 CASH AND CASH EQUIVALENTS, END OF YEAR 266,302 $ 141,882 $ 222,085 $ - $ 630,269 $

RECONCILIATION OF OPERATING INCOME (LOSS)
TO CASH PROVIDED (USED) BY OPERATING ACTIVITIES:

Operating income (loss) 133,421 $ 32,296 $ 60,869 $ (170,801) $ 55,785 $ Adjustments to reconcile operating income (loss)
to cash provided (used) by operating activities:

Depreciation and amortization 216,774 216,774
Operating transfers in 67,500 67,500
Changes in operating assets and liabilities:

Prepaid expenses 2 2 (4)
Accounts payable and accrued expenses 2,542 5,161 (14,604) 103,417 96,516 Compensated absences (4,900) 4,612 1,182 894
outflows and inflows of resources:

Deferred outflows of resources - pension plan 1,809 913 2,039 4,761 Net pension liability 12,390 17,896 (5,411) 24,875
Deferred inflows of resources - pension plan (1,649) (1,630) (531) (3,810) Deferred outflows of resources - OPEB plans (2,927) (1,877) (600) (5,404) Net OPEB liability 6,524 1,459 1,032 9,015
Deferred inflows of resources - OPEB plans (915) (915) (14) (1,844) CASH USED BY OPERATING ACTIVITIES 146,297 $ 274,691 $ 43,958 $ 116 $ 465,062 $ The accompanying notes are an integral part of these financial statements.

CITY OF AMERICAN CANYON
Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2021
118
270

CUSTODIAL FUNDS
271

CUSTODIAL FUNDS
American Canyon Road East Assessment District – These assessment bonds were issued to finance major street and road realignments and improvements of the American Canyon Road East. The bonds are secured by special assessments levied against properties within the District.

La Vigne Assessment District – These assessment bonds were issued to finance water and sewer connection fees of the La Vigne Subdivision. The bonds are secured by special assessments levied against properties within the District.

Community Facilities District – The District was formed to account for the Community Facilities District No. 2018-1 (Green Island Road Project) Special Tax Bonds, Series 2020 debt service and maintenance expenses of the Green Island Road Community Facilities District. The bonds are secured by special assessments levied against commercial properties within the District.

Tourism Improvement District – The District was formed to account for the local share of a 2% annual assessment on room rental revenue at lodging businesses through June 16, 2025 that is used for marketing programs, special event sponsorship and other programs to benefit lodging businesses paying the assessment by attracting overnight visitors. 272
American
Canyon Road
East
Assessment
District
La Vigne
Assessment
District
Community
Facility
District No.
2018-1
Tourism
Improvement
District Total
ASSETS
Cash and investments 1,048,639 $ 1,169,143 $ 1,524,288 $ 64,092 $ 3,806,162 $ Restricted cash and investments 322,523 314,271 3,083,513 3,720,307 Taxes receivable 16,209 2,700 25,646 47,036 91,591
Interest receivable 678 748 984 40 2,450
TOTAL ASSETS 1,388,049 1,486,862 4,634,431 111,168 7,620,510

LIABILITIES
Accounts payable 53 63,244 36,425 99,722
TOTAL LIABILITIES 53 63,244 36,425 99,722

NET POSITION
Restricted for individuals, organizations
and other governments 1,387,996 1,486,862 4,571,187 74,743 7,520,788 TOTAL NET POSITION 1,387,996 $ 1,486,862 $ 4,571,187 $ 74,743 $ 7,520,788 $ Statement of Fiduciary Net Position
Ficudiary Funds
June 30, 2021

CITY OF AMERICAN CANYON
Custodial Funds
119
273
American
Canyon Road
East
Assessment
District
La Vigne
Assessment
District
Community
Facility
District No.
2018-1
Tourism
Improvement
District Total

ADDITIONS
Other taxes $ 156,304 156,304 $
Special assessments 1,015,476 $ 472,584 $ 870,343 $ 2,358,403 Interest and investment earnings 117,655 7,862 6,154 112 131,783 TOTAL ADDITIONS 1,133,131 480,446 876,497 156,416 2,646,490

DEDUCTIONS
Maintenance and operations 33,237 15,393 2,272,810 161,149 2,482,589 Debt Service:

Principal 530,000 530,000
Interest and other charges 523,198 448,097 266,151 1,237,446 TOTAL DEDUCTIONS 1,086,435 463,490 2,538,961 161,149 4,250,035

NET INCREASE (DECREASE) IN
FIDUCIARY NET POSITION 46,696 16,956 (1,662,464) (4,733) (1,603,545) Net position , beginning of year - as
as previously reported
Restatement 1,341,300 1,469,906 6,233,651 79,476 9,124,333 Net position , beginning of year - as
as restated 1,341,300 1,469,906 6,233,651 79,476 9,124,333 NET POSITION, END OF YEAR 1,387,996 $ 1,486,862 $ 4,571,187 $ 74,743 $ 7,520,788 $ Custodial Funds

CITY OF AMERICAN CANYON
Statement of Changes in Fiduciary Net Position
Ficudiary Funds
June 30, 2021
120
274
121

STATISTICAL SECTION
This part of the City’s Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.

Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and well being have changed over time:

1. Net Position by Component

2. Changes in Net Position

3. Fund Balances of Governmental Funds

4. Changes in Fund Balances of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax:

5. Own Source Tax Revenue

6. Assessed Actual Value of Taxable Property

7. Direct and Overlapping Property Tax Rates

8. Principal Property Taxpayers

9. Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future:

10. Ratios of Outstanding Debt by Type

11. Ratios of General Bonded Debt Outstanding

12. Computation of Direct and Overlapping Debt

13. Computation of Legal Bonded Debt Margin

14. Debt Pledged Revenue Coverage
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place:

15. Demographic and Economic Statistics

16. Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs:

17. Full-Time Equivalent City Government Employees by Function/Program

18. Operating Indicators by Function/Program

19. Capital Asset Statistics by Function/Program
Sources
Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year.
275
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Governmental activities: Net investment in capital assets 253,484,193 $ 256,298,710 $ 264,170,866 $ 262,265,389 $ 265,385,854 $ 264,189,215 $ 263,939,254 $ 260,686,136 $ 261,844,024 $ 267,596,487 $ Restricted 13,585,903 12,513,568 12,856,505 13,031,111 13,009,697 13,908,483 24,809,820 27,372,270 29,460,378 32,192,383 Unrestricted 12,415,149 9,050,617 10,950,108 2,513,594 2,076,005 2,454,460 (266,869) 1,057,568 (1,568,807) (1,033,617) Total governmental activities net position 279,485,245 $ 277,862,895 $ 287,977,479 $ 277,810,094 $ 280,471,556 $ 280,552,158 $ 288,482,205 $ 289,115,974 $ 289,735,595 $ 298,755,253 $ Business-type activities: Net investment in capital assets 50,758,608 $ 49,583,193 $ 52,726,436 $ 51,267,144 $ 50,662,110 $ 49,753,722 $ 49,496,148 $ 49,791,720 $ 48,038,697 $ 47,260,429 $ Restricted 4,723,486 4,541,608 2,598,062 2,088,606 2,811,555 3,012,029 5,538,744 5,282,263 5,766,873 6,075,266 Unrestricted 6,695,379 7,190,877 8,214,087 4,224,005 6,993,828 9,422,288 11,766,749 13,269,512 15,043,433 17,697,676 Total business-type activities 62,177,473 $ 61,315,678 $ 63,538,585 $ 57,579,755 $ 60,467,493 $ 62,188,039 $ 66,801,641 $ 68,343,495 $ 68,849,003 $ 71,033,371 $ Primary government (City wide totals) Net investment in capital assets 304,242,801 $ 305,881,903 $ 316,897,302 $ 313,532,533 $ 315,007,964 $ 313,942,937 $ 313,435,402 $ 310,477,856 $ 309,882,721 $ 314,856,916 $ Restricted 18,309,389 17,055,176 15,454,567 15,119,717 15,821,252 16,920,512 30,348,564 32,654,533 35,227,251 38,267,649 Unrestricted 19,110,528 16,241,494 19,164,195 6,737,599 9,069,833 11,876,748 11,499,880 14,327,080 13,474,626 16,664,059 Total primary government net position 341,662,718 $ 339,178,573 $ 351,516,064 $ 335,389,849 $ 339,899,049 $ 342,740,197 $ 355,283,846 $ 357,459,469 $ 358,584,598 $ 369,788,624 $ Data Source: City of American Canyon Annual Comprehensive Financial Report. ------------------------------------------------------------------------------------------------------------- Prior Years --------------------------------------------------------------------------------------------------------- Schedule 1
City of American Canyon
Net Position by Component
Last Ten Fiscal Years
(Accrual basis of accounting)
122
276
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Expenses:Governmental activities:

General government 4,309,153 $ 5,069,455 $ 4,749,018 $ 5,647,996 $ 5,295,617 $ 5,074,386 $ 5,320,539 $ 5,968,757 $ 7,679,164 $ 6,844,132 $ Public safety 9,147,931 9,456,173 10,001,059 10,585,106 12,125,365 11,620,139 12,218,637 12,342,182 13,572,574 14,316,901 Public works 5,358,661 4,654,492 5,304,938 6,509,082 6,131,623 5,221,293 6,019,309 7,936,947 6,779,915 6,230,869 Community development 8,903,969 1,295,309 1,601,943 2,383,201 2,782,954 5,282,633 2,483,945 2,513,656 1,656,055 1,734,661 Parks and recreation 1,745,163 2,067,811 2,328,669 2,503,744 2,924,419 3,625,019 3,844,214 3,439,644 2,895,566 2,791,825 Storm Drain - - - - - - - - 315,909 350,946
Interest on long-term debt 448,057 446,187 344,223 329,915 278,204 262,354 246,458 229,456 249,866 163,633 Total governmental activities expenses 29,912,934 22,989,427 24,329,850 27,959,044 29,538,182 31,085,824 30,133,102 32,430,642 33,149,049 32,432,967 Business-type activities:

Water 4,894,501 $ 5,502,434 $ 6,191,545 $ 7,350,323 $ 5,362,693 $ 6,107,343 $ 6,022,713 $ 5,986,895 $ 6,997,224 $ 6,761,366 $ Wastewater 4,356,356 3,843,559 3,555,274 4,013,398 4,992,726 4,023,167 4,588,339 4,456,463 4,416,151 5,939,890 Recycled Water 18,586
Total business-type activities expenses 9,250,857 9,345,993 9,746,819 11,363,721 10,355,419 10,130,510 10,611,052 10,443,358 11,413,375 12,719,842 Total City government expenses 39,163,791 $ 32,335,420 $ 34,076,669 $ 39,322,765 $ 39,893,601 $ 41,216,334 $ 40,744,154 $ 42,874,000 $ 44,562,424 $ 45,152,809 $ Program Revenues:Governmental activities:

Charges for services:

General government 212,295 $ 184,060 $ 484,057 $ 534,179 $ 636,987 $ 724,671 $ 900,185 $ 599,289 $ 769,362 $ 518,482 $ Public safety 974,398 1,133,505 901,808 1,510,347 1,461,036 1,296,885 1,822,591 1,463,879 1,717,683 1,880,635 Public works 1,141,520 939,685 2,203,836 2,442,299 4,891,107 1,990,415 3,326,094 725,299 2,498,096 1,860,742 Community development 940,899 690,241 857,994 2,438,744 2,662,203 5,351,403 1,921,393 2,140,534 1,628,919 1,640,602 Parks and recreation 381,657 357,267 392,717 441,946 406,163 1,034,664 1,291,887 328,236 156,108 95,597 Operating grants and contributions 235,284 275,796 363,581 476,130 1,078,889 1,333,432 762,518 1,282,102 1,088,467 1,307,790 Capital grants and contributions 2,050,628 1,150,330 11,145,194 381,050 1,449,076 907,342 13,110,677 1,690,897 87,150 7,699,791 Total governmental activities program revenues 5,936,681 4,730,884 16,349,187 8,224,695 12,585,461 12,638,812 23,135,345 8,230,236 7,945,785 15,003,639 Business-type activities:

Charges for services:

Water 4,705,561 $ 4,892,290 $ 4,982,094 $ 4,333,543 $ 5,318,577 $ 7,066,769 $ 6,876,702 $ 6,931,105 $ 7,460,837 $ 8,525,517 $ Wastewater 3,558,663 3,733,461 3,845,647 3,914,276 3,973,672 4,434,945 4,365,272 4,427,087 4,424,515 4,722,446 Recycled Water 113,591
Operating grants and contributions - - 4,026 10,410 711,601 580,429 254,863 215,630 207,410 438,415 Capital grants and contributions 1,013,181 184,707 4,084,830 242,025 2,301,541 284,400 3,851,481 200,585 468,533 1,462,249 Total business-type activities programs revenues 8,810,458 9,277,405 12,916,597 8,500,254 12,305,391 12,366,543 15,348,318 11,774,407 12,561,295 15,262,218 Total City government program revenues 15,214,086 $ 13,541,342 $ 29,265,784 $ 16,724,949 $ 24,890,852 $ 25,005,355 $ 38,483,663 $ 20,004,643 $ 20,507,080 $ 30,265,857 $ (Continued)
Schedule 2
City of American Canyon
Changes in Net Position, Last Ten Fiscal Years
(Accrual Basis of Accounting)
-------------------------------------------------------------------------------------------------------- Prior Years ------------------------------------------------------------------------------------------------------- 277
123
Schedule 2 -Continued
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Net(Expense)Revenue:

Governmental activities (23,976,253) $ (18, $ (7, 258,543) $ (19, 980,663) $ (16, 734,349) $ (18, 952,721) $ (6,997,757) 447,012) $ (24, $ (25, 200,406) $ (17, 203,264) $ 429,328) Business-type activities 26,548 (535,535) 3,169,778 (3,414,199) 1,949,972 2,236,033 4,737,266 1,331,049 1,147,920 2,542,376Total City government (23,949,705) $ (18, $ (4, 794,078) $ (23, 810,885) $ (15, 148,548) $ (16, 002,749) $ (2,260,491) 210,979) $ (22, $ (24, 869,357) $ (14, 055,344) $ 886,952) General Revenues and Other Changes in in Net Position:Governmental activities:

Taxes:

Property taxes 10,343,648 $ 10, $ 10, 261,072 $ 11,480,330 599,981 $ 12, $ 12, 317,143 $ 13, 738,881 $ 15,084,618 840,597 $ 15, $ 16, 862,655 $ 156,774 Sales taxes 2,024,495 2,489,832 2,294,150 2,358,219 2,589,452 2,301,445 2,800,575 4,222,888 3,891,032 4,417,552Other taxes 2,215,564 2,632,783 2,785,624 3,002,106 3,076,637 3,076,198 3,197,726 3,179,812 2,542,370 2,313,850 Investment earnings 274,619 143,321 227,702 272,849 372,728 (1,047) 15,200 1,172,806 1,353,014 (75,937)Miscellaneous 875,336 111,822 485,625 300,765 524,995 543,725 616,199 568,578 777,427 831,482Transfers 1,110,118 997,363 1,702,165 994,725 (266,772) 868,412 (15,450) 605,473 1,396,387 2,066,071 Total governmental activities 16,843,780 16,636,193 18,095,247 18,408,994 18,614,183 19,527,614 20,454,847 24,834,175 25,822,885 25,709,792 Business-type activities
Investment earnings and other 66,177 517,929 755,294 617,971 630,994 392,925 613,734 816,278 753,975 1,493,566Transfers (1,110,118) (997,363) (1,702,165) (944,725) 266,772 (868,412) 15,450 (605,473) (1,396,387) (2,066,071) Total business-type activities (1,043,941) (479,434) (946,871) (326,754) 897,766 (475,487) 629,184 210,805 (642,412) (572,505)Total City government 15,799,839 $ 16, $ 17, 156,759 $ 18,082,240 148,376 $ 19, $ 19, 511,949 $ 21, 052,127 $ 25,044,980 084,031 $ 25, $ 25, 180,473 $ 137,287 Change in net position:Governmental activities (7,132,473) $ (1, $ 10, 622,350) $ (1,325,355) 114,584 $ 1, $ 1, 661,462 $ 13, 080,602 $ 633,769 457,090 $ $ 8, 619,621 $ 280,464 Business-type activities (1,017,393) (1,014,969) 2,222,907 (3,876,163) 2,847,738 1,760,546 5,366,450 1,541,854 505,508 1,969,871Total City government (8,149,866) $ (2, $ 12, 637,319) $ (5,201,518) 337,491 $ 4, $ 2, 509,200 $ 18, 841,148 $ 2,175,623 823,540 $ 1, $ 10, 125,129 $ 250,335 Data Source: City of American Canyon Annual Comprehensive Financial Report. --------------------------------------------------------------------------------------------- Prior Years ------------------------------------------------------------------------------------------ City of American Canyon
Changes in Net Position, Last Ten Fiscal Years
(Accrual Basis of Accounting)
278
124
Committed
Fiscal Year Nonspendable Restricted Committed Assigned Unassigned Total General
Fund Nonspendable
Special
Revenue and
Debt Service Capital Projects
Special
Revenue
Special
Revenue
Capital
Projects Special Revenue Capital Projects
Total All Other
Governmental
Funds
2021 $ 528,861 438,510 $ 6,387,027 $ 1,000,000 $ 3,850,226 $ $ 12,204,624 $ - $ 13,842,076 $ 9,251,023 $ 1,285,478 $ 4,776,137 $ - $ (628,984) $ - $ 28,525,730 2020 329,693 433,239 6,155,254 1,222,691 2,468,205 10,609,082 - 11,922,270 9,836,968 1,125,743 4,784,889 - (462,069) - 27,207,801 2019 350,225 426,935 6,021,464 1,222,691 2,337,950 10,359,265 - 11,801,060 7,808,693 - 5,871,283 - (1,008,280) (213,953) 24,258,803 2018 563,295 115,106 1,903,925 1,222,500 4,752,357 8,557,183 688 3,420,345 7,813,712 - 5,974,310 - (1,811,260) (260,895) 15,136,900 2017 687,237 141,751 6,117,954 1,201,941 215,304 8,364,187 688 2,456,754 4,869,873 1,347,000 3,848,526 - (594,550) (1,277,506) 10,650,785 2016 909,462 89,269 5,859,953 1,491,026 1,548,892 9,898,602 688 2,393,720 5,096,773 1,347,000 3,459,116 552,760 (820,055) (113,358) 11,916,644 2015 2,644,665 75,883 1,476,370 777,418 6,107,104 11,081,440 589,041 2,390,604 5,876,113 1,347,000 2,815,904 - (1,272,732) (1,335,082) 10,410,848 2014 2,467,641 69,535 1,461,807 872,295 5,970,052 10,841,330 553,448 2,235,092 6,088,807 1,347,000 2,411,746 - (1,143,857) (1,422,675) 10,069,561 2013 3,112,160 61,228 1,494,771 1,026,588 4,899,474 10,594,221 552,760 1,587,471 5,944,172 1,347,000 1,011,763 - 1,612,299 (1,338,207) 10,717,258 2012 3,073,931 37,527 1,449,532 1,110,230 4,560,773 10,231,993 552,755 3,135,456 6,806,475 1,387,400 103,000 - 2,482,445 (1,314,898) 13,152,633 Note: GASB Statement Number 54 was implemented in the 2011 fiscal year which changed the terminology used for fund balance reporting.Data Source: City of American Canyon Annual Comprehensive Financial Report. ------------------- Prior Years -------------------------- Schedule 3
City of American Canyon
Fund Balances, Governmental Funds
Last Ten Fiscal Years
Restricted Unassigned
General Fund All Other Governmental Funds
Assigned
279
125
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues:

Taxes 15,272 $ 15,313 $ 15,992 $ 17,896 $ 22,553 $ 19,242 $ 20,381 $ 30,520 $ 22,705 $ 22,656 $ Special assessments 435 447 455 471 488 550 583 581 638 668 Fines and forfeits 203 153 120 112 95 98 91 151 65 73
Licenses and permits 338 337 337 446 455 460 763 428 619 585 Intergovernmental 1,120 1,079 1,280 874 3,049 1,689 2,441 3,061 1,834 4,848 Charges for services 1,051 1,156 2,025 4,496 3,572 4,913 8,669 3,197 4,672 3,848 Other revenues 1,315 998 1,179 1,022 1,275 851 1,151 2,563 2,353 1,439 Total revenues 19,734 19,483 21,389 25,317 31,487 27,803 34,079 40,501 32,886 34,117 Expenditures:

General government 3,670 3,896 4,066 5,064 5,111 5,237 5,084 5,645 5,648 5,312 Public safety 8,897 9,377 9,554 9,734 10,731 11,063 12,043 12,362 12,930 13,800 Comm. Dev. and Public Works 4,278 4,557 5,496 6,597 5,453 7,619 5,446 6,482 6,753 4,432 Parks and Recreation 1,597 1,073 1,192 2,202 2,665 3,615 3,445 3,215 1,847 2,809 Principal 478 502 537 560 583 606 628 583 538 4,598
Interest 488 460 394 373 314 291 268 243 222 157
Debt issuance costs 158
Capital outlay 947 2,445 2,277 1,200 5,260 3,040 2,099 1,670 3,458 7,022 Total expenditures 20,355 22,310 23,516 25,730 30,117 31,471 29,013 30,200 31,396 38,288 Excess of revenues
over(under)
expenditures (621) (2, (2, 827) ( 127) 1,370 413) (3, 5,066 668) 10,301 1,490 (4, 171) Other Financing
Sources(Uses)
Proceeds from borrowing - 2,222 - - - - - - - 5,399
Payments to escrow agent - (2, - 465) - - - - - - -
Transfers in 4,028 4,065 5,447 3,742 9,050 5,403 4,289 5,207 5,973 9,873 Transfers out (2,918) (3, (3, 068) (2, 745) (10, 747) (4, 097) (4, 535) (4, 676) (4, 601) (7, 577) 875) Other sources 12
Sale of Assets - - 24 - - - - 18 - 10
Total other financing
Sources(Uses) 1,110 754 1,726 995 (1, 868 047) ( 623 387) 1,396 7,419 Net change in fund
balances 489 $ (2, $ (401) 073) $ 581 $ 323 $ (2, $ 4,679 800) $ 10,924 $ 2,886 $ 3,248 $ Debt service as a
percentage of noncapital
expenditures 5.0% 4.8% 4.4% 3.8% 3.6% 3.2% 3.3% 2.9% 0.0% 15.7% Data Source: City of American Canyon Annual Comprehensive Financial Report. (Modified accrual basis of accounting)
-------------------------------------------------------------- Prior Years -------------------------------------------------------- Schedule 4
City of American Canyon
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(In Rounded Thousands of Dollars)
126
280
Fiscal
Year Property Tax
Transient
Occupancy
Tax Franchise Tax
Cardroom
Admission Tax
Fire
Assessment
Fee Total
2011-2012 10,314 $ 930 $ 585 $ - $ 590 $ 12,419 $
2012-2013 10,240 1,064 577 147 593 12,621
2013-2014 10,569 1,249 618 261 588 13,285
2014-2015 11,353 1,406 673 232 597 14,261
2015-2016 12,348 1,509 722 168 607 15,354
2016-2017 12,705 1,546 727 166 600 15,744
2017-2018 13,807 1,593 738 201 614 16,953
2018-2019 14,951 1,549 751 226 639 18,116
2019-2020 15,781 1,141 785 175 659 18,541
2020-2021 16,096 885 815 103 689 18,588
Data Source: City of American Canyon Annual Comprehensive Financial Report and General Ledger. ------------------- Prior Years -------------------------- (Modified accrual basis of accounting)
Schedule 5
City of American Canyon
Own Source Tax Revenues by Source
Last Ten Fiscal Years
(In Rounded Thousands of Dollars)
127
281
Fiscal
Year Residential Commercial Industrial Vacant Land SBE Nonunitary Possessory Int. Unsecured Other Total Total Direct Rate 2011-2012 1,406,792 $ $ 138,176 $ 37,857 365,259 $ 1,454 $ 16,023 $ 168,278 $ 79 $ 2,133,918 $ 0.28%2012-2013 1,335,380 136,921 66,285 375,497 1,454 16,147 193,882 3,517 2,129,083 0.28%2013-2014 1,398,763 144,912 63,139 404,835 42 16,449 201,968 3,588 2,233,696 0.28%2014-2015 1,541,948 142,808 65,143 406,322 42 16,912 206,535 4,358 2,384,068 0.28%2015-2016 1,724,766 143,476 59,632 413,039 42 17,265 196,671 14,027 2,568,918 0.28%2016-2017 1,806,564 162,450 72,072 462,896 42 18,507 209,045 14,217 2,745,793 0.28%2017-2018 1,952,312 179,425 61,512 518,566 42 18,909 176,326 4,457 2,911,549 0.27%2018-2019 2,072,127 191,160 62,889 548,337 269 19,337 209,319 4,492 3,107,929 0.27%2019-2020 2,158,339 196,080 66,973 624,597 269 20,075 252,546 4,584 3,323,463 0.27% 2020-2021 2,219,659 207,421 654,200 76,869 269 21,107 229,837 83 3,409,449 0.27% Note: Exempt values are not included in Total.In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At thatpoint, the property is reassessed based upon the added value of the construction or at the pruchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currenlty available with respect to the actual market value of taxable property and is subject to the limitations described above.Data Source: Napa County Assessor 2010/11 - 2019/20 Combined Tax RollsThis report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of the City of American Canyon. ------------------- Prior Years -------------------------- Schedule 6
City of American Canyon
Assessed Value of Taxable Property
Last Ten Fiscal Years
(In thousands of dollars)
282
128
Agency 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Basic Levy1 1.000 % 1.000 % 1.000 % 1.000 % 1.000 % 1.000 % 1.000 % 1.000 % 1.000 % 1.000 % Napa College 0.025 0.025 0.027 0.026 0.026 0.025 0.024 0.024 0.021 0.019Napa Valey Unified School District 0.073 0.065 0.072 0.069 0.063 0.114 0.102 0.098 0.090 0.090Total Direct & Overlapping2 Tax Rates 0.097 0.090 0.099 0.095 0.089 0.140 0.126 0.122 0.110 0.111 City's Share of 1% Levy per Prop 133 0.296 0.296 0.296 0.296 0.296 0.296 0.296 0.292 0.292 0.293 Total Direct Rate4 0.281 0.277 0.276 0.276 0.276 0.276 0.274 0.275 0.271 0.271Notes:
1In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addtion to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voterapproved bonds. 2Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners. 3City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in tax ratio figures.
4Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information.

Data Source: Napa County Assessor 2010/11 - 2019/20 Tax Rate TableThis report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of the City of American Canyon. ------------------------------------------------------------------------- Prior Years ------------------------------------------------------------------- Schedule 7
City of American Canyon
Direct and Overlapping Property Tax Rates
For The Last Ten Fiscal Years
(Rates per $100 of assessed value)
283
129
Parcels Revenue
% of
Revenue Parcels Revenue
% of
Revenue Value
% of
Revenue
RAR2 NAPA LOGISTICS PARK LLC 1 92,310,000 $ 2.90% 92,310,000 $ 2.71% Industrial American Canyon Gen Fund
COCA COLA COMPANY 1 $70,837,520 30.82% 70,837,520 2.08% Unsecured American Canyon Gen Fund
SRI NAPA LLC ET AL 1 69,946,154 2.20% 69,946,154 2.05%
Residential American Canyon Gen Fund
BIAGI AND ASSOCIATES LLC 1 56,193,398 1.77% 1 775,140 0.34% 56,968,538 1.67% Industrial American Canyon Gen Fund
SDG HANNA COURT 411 LLC 2 53,280,854 1.68% 53,280,854 1.56% Industrial American Canyon Gen Fund
NAPA JUNCTION PARTNERS LLC 1 43,623,614 1.37% 43,623,614 1.28% Residential American Canyon Gen Fund
MEZZETTA 125 LP 1 39,989,371 1.26% 39,989,371 1.17%
Industrial American Canyon Gen Fund
BARRY CALLEBAUT USA LLC 1 37,271,450 16.22% 37,271,450 1.09% Unsecured American Canyon Gen Fund
SUTTER HOME WINERY INC 2 34,531,968 1.09% 34,531,968 1.01% Industrial American Canyon Gen Fund
WALMART REAL ESTATE BUSINESS TR 1 31,680,551 1.00% 1 1,975,250 0.86% 33,655,801 0.99% Commercial American Canyon Gen Fund
Top Ten Totals 10 421,555,910 13.27% 4 110,859,360 48.24% 532,415,270 15.61% City Totals $3,179,612,025 $229,837,649 $3,409,449,674
*Revenue includes Outer TRAs
Note: The 'Revenue' line for each owner is the estimated total revenue for that owner. Although these estimated calculations are performed on a parcel level, county auditor/controllers' offices neither calculate nor apportion revenues at a parcel level.Data Source: Napa County Assessor 2019/20 Combined Tax Rolls and the SBE Non Unitary Tax RollThis report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of the City of American Canyon.

Unsecured Combined
Owner
Schedule 8
City of American Canyon
2020/21 Top Ten Property Taxpayers
Primary Use & Primary
Agency
Secured
Based on Property Tax Revenue
284
130
Parcels Assessed Value
% of
Revenue Parcels
Assessed
Value
% of
Revenue Value
% of
Revenue
COCA COLA COMPANY 1 66,849,710 39.73% 66,849,710 $ 3.13% Unsecured American Canyon Gen Fund
SDG HANNA COURT 411 LLC 2 45,328,091 2.31% 45,328,091 2.12% IndustrialAmerican Canyon Gen Fund
SCANNELL PROPERTIES 91 LLC 1 39,019,774 1.99% 39,019,774 1.83% Industrial American Canyon Gen Fund
5500 EUCALYPTUS DRIVE APARTMENT 1 34,276,580 1.74% 34,276,580 1.61% ResidentialAmerican Canyon Gen Fund
SUTTER HOME WINERY INC 2 30,871,505 1.57% 30,871,505 1.45% Industrial American Canyon Gen Fund
SDG COMMERCE 232 LLC 4 30,560,429 1.55% 30,560,429 1.43% Industrial American Canyon Gen Fund
WALMART REAL ESTATE BUSINESS TR 1 27,043,316 1.38% 1 2,583,980 1.54% 29,627,296 1.39% Commercial American Canyon Gen Fund
MEZZETTA COURT VENTURES LLC 1 10,843,040 0.55% 1 10,317,220 6.13% 21,160,260 0.99% Industrial American Canyon Gen Fund
AMCAN BEVERAGES INC 1 21,086,616 1.07% 21,086,616 0.99% Industrial American Canyon Gen Fund
125 MEZZETTA COURT INC 1 20,822,389 1.06% 20,822,389 0.98% Industrial American Canyon Gen Fund
Top Ten Totals 14 259,851,740 13.22% 3 79,750,910 47.40% 339,602,650 15.92%City Totals 1,965,640,009 $ 168,227,831 $ 2,133,917,840 $ *Revenue includes Outer TRAs
Note: The 'Revenue' line for each owner is the estimated total revenue for that owner. Although these estimated calculations are performed on a parcel level, county auditor/controllers' offices neither calculate nor apportion revenues at a parcel level.Data Source: Napa County Assessor 2010/11 Combined Tax Rolls and the SBE Non Unitary Tax RollThis report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of the City of American Canyon.

Schedule 8
City of American Canyon
2011/12 Top Ten Property Taxpayers
Based on Property Tax Revenue
Owner
Secured Unsecured Combined
Primary Use & Primary
Agency
285
131
Fiscal Year Taxes Levied Percentage
Ended For The of
June 30 Fiscal Year Amount Levy
2012 10,343,648 10,343,648 100%
2013 10,261,072 10,261,072 100%
2014 10,599,981 10,599,981 100%
2015 11,480,330 11,480,330 100%
2016 12,317,143 12,317,143 100%
2017 12,738,881 12,738,881 100%
2018 13,840,597 13,840,597 100%
2019 15,084,618 15,084,618 100%
2020 15,862,655 15,862,655 100%
2021 16,156,774 16,156,774 100%
Note: Source is City of American Canyon Tax Collection records and Napa County Assessor records. Property taxes are levied and collected pursuant to an arrangement commonly referred to as the Teeter Plan. Under the Teeter Plan, the County allocates and remits to the City the full amount of each years tax levy, and the County then retains any delinquencies as collected by the County.
of The Levy
------------------------- Prior Years ----------------------- Schedule 9
City of American Canyon
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected Within The Fiscal Year
132
286
Total City
Business-type Activities Debt as a Total
General Lease Capital Capital State of Total Percentage City Debt Fiscal Obligation Revenue Bank Lease Lease California and City of Personal Per Year Bonds Bonds Financing Obligations Obligations Other Loans Debt Income Capita 2012 - $ 2,465 $ - $ 6,912 $ - $ 10,157 $ 19,534 $ 3.77% 983 $ 2013 - - 2,017 6,615 - 8,773 17,405 3.23% 870
2014 - - 1,792 6,303 - 7,331 15,426 2.74% 772
2015 - - 1,559 6,263 827 6,214 14,863 2.60% 731
2016 - - 1,318 5,892 2,408 5,505 15,123 3.67% 735
2017 - - 1,069 5,506 1,975 4,827 13,377 2.07% 637
2018 - - 813 5,104 1,532 4,131 11,580 1.86% 552
2019 - - 551 4,752 1,076 3,416 9,795 1.49% 475
2020 278 4,455 609 2,682 8,024 1.17% 385
2021 - - 845 4,672 4,769 1,928 12,214 1.67% 587
Note: It was determined in 2019 that the City was inadvertently referring to a 2012 bank financing agreement as a Lease Revenue Bond. The name was changed and debt service payments were moved to a separate column accordingly.

Data Source: City of American Canyon Annual Comprehensive Financial Report. ----------------------- Prior Years ---------------------- Governmental Activities
Schedule 10
City of American Canyon
Ratios of Outstanding Debt By Type
Last Ten Fiscal Years
(Dollars in Thousands except for Per Capita)
133
287
Percentage of
General Lease Actual Taxable
Fiscal Obligation Revenue Value of Per
Year Bonds Bonds Total Property Capita
2012 - 2, $ 2, 465,000 $ 0.12% 124 465,000 $
2013 - - - 0.00% -
2014 - - - 0.00% -
2015 - - - 0.00% -
2016 - - - 0.00% -
2017 - - - 0.00% -
2018 - - - 0.00% -
2019 - - - 0.00% -
2020 - - - 0.00% -
2021 - - - 0.00% -
Note: It was determined in 2019 that the City was inadvertently referring to a 2012 bank financing agreement as a Lease Revenue Bond. Amounts starting in 2013 were for this financing and were removed above.

Note: Debt service on the lease revenue bonds is financed by the use of general governmental financial resources available in the general fund and special revenue funds of the City.

Data Source: City of American Canyon Annual Comprehensive Financial Report. ----------------------- Prior Years ------------------------ Schedule 11
City of American Canyon
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
General Bonded Debt Outstanding
134
288
2020-21 Assessed Valuation: $3,409,449,674
Total Debt City's Share of
6/30/2021 % Applicable (1) Debt 6/30/2021
Napa Joint Community College District 82,693,448 $ 7.668% 6,340,934 $ Napa Valley Unified School District 489,359,855 11.626% 56,892,977 American Canyon Green Island Road Community Facilities District 100.000% 5,165,000 5,165,000 City of American Canyon 1915 Act Bonds 14,449,200 100.000% 14,449,200 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 82,848,111 $
Napa County Certificates of Participation 10,605,000 $ 7.734% 820,191 $ Napa County Board of Education Certificate of Participation 7.734% 1,085,467 14,035,000 Napa Valley Unified School District Certificates of Participation 11.626% 287,162 2,470,000 City of American Canyon Facilities Lease Financing 100.000% 4,569,064 4,569,064 City of American Canyon Equipment Financing 100.000% 5,305,593 5,305,593 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 12,067,477 $ F TOTAL DIRECT DEBT 9,874,657
TOTAL OVERLAPPING DEBT 85,040,931
COMBINED TOTAL DEBT $ (2) 94,915,588
Ratios to Assessed Valuation:

Total Direct Debt ($9,874,657) 0.30%
Total Overlapping Tax and Assessment Debt. 2.56%
Combined Total Debt 2.86%
Data Source: California Municipal Statistics, Inc.
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determinig the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

DIRECT AND OVERLAPPING GENERAL FUND DEBT:

OVERLAPPING TAX AND ASSESSMENT DEBT:

Schedule 12
City of American Canyon
Computation of Direct and Overlapping Debt
As of June 30, 2021
135
289
General Net
Fiscal Assessed Bonded Legal Debt Debt
Year Value Debt Limit Debt Margin Margin
2012 2,133,917,840 $ $ 2,465,000 80,021,919 $ 77,556,919 $ 3.08% 2013 2,129,083,162 79, 79,840,619 840,619 0.00%
2014 2,233,695,851 83, 83,763,594 763,594 0.00%
2015 2,384,068,041 89, 89,402,552 402,552 0.00%
2016 2,568,918,377 96, 96,334,439 334,439 0.00%
2017 2,745,793,523 102,967,257 102,967,257 0.00%
2018 2,911,549,010 109,183,088 109,183,088 0.00%
-
2019 3,107,928,907 116,547,334 116,547,334 0.00%
-
2020 3,323,463,102 124,629,866 124,629,866 0.00%
2021 3,409,449,674 127,854,363 127,854,363 0.00%
Notes:
(1) California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted when assessed valuations were based on 25% of full market value. This has since changed to 100% of full market value. Thus, the limit shown is 3.75% (one-fourth the limit of 15%).

Data Source: City of American Canyon Annual Comprehensive Financial Report.

Schedule 13
City of American Canyon
Computation of Legal Debt Margin
Last Ten Fiscal Years
----------------------- Prior Years --------------------- 136
290
Special Capital
Fiscal Assessment Impact
Year Collections Fees Principal Interest Coverage
2012 1,690,646 $ - $ 1, 555,000 $ 1.02 100,375
2013 1,744,914 - 1, 575,000 1.06 078,666
2014 1,687,609 - 1, 605,000 1.04 023,243
2015 1,701,083 - 680,600 1.03 978,177
2016 1,533,089 - 672,600 0.94 950,079
2017 1,512,432 - 702,800 0.93 921,059
2018 1,505,161 - 728,000 0.93 890,452
2019 1,508,336 - 1, 767,900 0.82 076,068
2020 1,514,977 - 580,719 1.80 260,544
2021 2,358,403 - 1, 530,000 1.33 237,446
Water Capital Less Net
Service Impact Operating Available
Revenues Fees Expenses Revenue Principal Interest Coverage 2012 4,744,183 $ 1,007,276 $ 3,174,917 $ 2,576,542 $ 54,983 $ 27,324 $ 31.30 2013 5,147,040 3, 179,580 1, 885,541 56,357 441,079 25,860 17.53 2014 5,296,807 2, 4, 454,741 3, 368,969 57,766 382,579 24,470 41.13 2015 4,612,345 5, 171,882 (1, 825,479 59,210 041,252) 23,008 (12.66) 2016 5,895,551 1, 3, 410,622 3, 785,935 60,646 520,238 21,538 42.83 2017 7,266,136 4, 149,456 2, 508,226 62,208 907,366 19,945 35.39 2018 7,134,533 2, 4, 270,458 5, 360,122 63,762 044,869 18,399 61.40 2019 7,357,422 4, 138,604 3, 365,061 65,357 130,965 16,785 38.12 2020 7,852,151 5, 332,487 2, 274,448 66,992 910,190 15,150 35.43 2021 10,024,822 1,035,539 5, 5, 118,753 68,666 941,608 14,287 71.63 Wastewater Capital Less Net
Service Impact Operating Available
Revenues Fees Expenses Revenue Principal Interest Coverage 2012 3,733,430 $ 5,905 $ 2, $ 904,004 $ 835,331 $ 538,876 $ 1.15 188,455 2013 3,996,640 5,127 2, 1, 422,454 579,313 553,426 2.17 173,513 2014 4,286,228 1, 2, 630,089 3, 480,480 435,837 568,368 4.73 158,167 2015 4,150,773 70,143 2, 1, 584,479 636,437 583,714 2.25 142,407 2016 4,234,717 2, 890,919 2, 161,955 963,681 599,475 4.08 126,221 2017 4,709,025 2, 134,944 2, 347,478 496,491 615,660 3.44 109,598 2018 4,713,142 1, 2, 581,023 3, 901,642 392,523 92,526 632,283 4.68 2019 4,835,296 61,981 2, 2, 859,602 037,675 74,994 649,355 2.81 2020 4,797,654 2, 136,046 2, 646,209 287,491 56,988 666,888 3.16 2021 4,941,788 3, 373,210 2, 086,833 228,165 56,989 684,893 3.00 Note: Water and wastewater revenues include operating revenues, interest revenues, and capital impact fees.

Operating expenses exclude depreciation and amortization Data Source: City of American Canyon Annual Comprehensive Financial Report. -------- Prior Years -------
Debt Service
State of California Water Loan
State of California Wastewater Construction Loan
Debt Service
-------- Prior Years ------- -------- Prior Years ------- Schedule 14
City of American Canyon
Pledged Revenue Coverage
Last Ten Fiscal Years
Debt Service
Special Assessment Bonds
137
291
Personal
Income Median
Fiscal (thousands Household Unemployment
Year Population of dollars) Income Rate
2012 19,862 517,643 $ 51,253 $ 9.60%
2013 20,001 539,507 83,581 8.20%
2014 19,989 563,790 83,609 6.50%
2015 20,374 571,557 81,955 5.40%
2016 20,338 411,763 75,997 5.40%
2017 20,570 646,021 83,673 5.00%
2018 20,990 622,133 83,673 4.70%
2019 20,629 657,387 91,705 4.20%
2020 20,837 688,744 101,792 3.70%
2021 20,802 732,403 101,792 10.00%
Source: HDL, Coren & Cone
Source: 2019-20 and prior, previously published ACFR
(1) Population Projections are provided by the California Department of Finance Projections. (2) Income Data is provided by the United States Census Data and is adjusted for inflation. (3) Unemployment rate is provided by the EDD's Bureau of Labor Statistics Department.

Schedule 15
City of American Canyon
Demographic and Economic Statistics
For The Last ten Fiscal Years
-------------------------- Prior Years ----------------------- -
138
292
Percentage Percentage
Number of Total City Number of Total City
Employer Rank Employees Employment Rank Employees Employment Walmart Supercenter 1 326 3.40% 1 415 8.30%
Napa Valley Unified School District (AC) 2 287 2.99%
GL Mezzetta 3 248 2.58% 2 300 6.00%
Coca-Cola Amcan Beverages 4 160 1.67% 3 135 2.70%
Ikea Distribution Services, Inc. 5 160 1.67%
Barry Callebaut 6 150 1.56%
A Bright Future 7 147 1.53%
Western Wine Services, Inc. 8 119 1.24%
City of American Canyon 9 114 1.19% 8 71 1.42%
Wine Direct Inc 10 110 1.15%
Safeway Inc #1883 4 101 2.02%
Sutter Home Winery 5 100 2.00%
Vineyard Brands Inc 6 58 1.16%
Vinpak Inc 7 50 1.00%
American Canyon Middle School 9 70 1.40%
Donaldson Way Elementary School 10 60 1.20%
Data Source: Business License
2011
Schedule 16
City of American Canyon
Principal Employers (Ten Largest)
2020
Calendar Year 2020 vs Calendar Year 2011
139
293
Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Administration
City Council 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 City Manager 2.15 2.15 2.15 2.55 2.55 3.50 2.50 2.50 3.00 3.00 City Clerk 1.40 1.40 1.40 1.65 1.65 2.00 2.00 2.00 2.00 2.00 Neighborhood Programs 1.00 1.00
Communications 1.00
Human Resources 1.50 1.50 - - - 2.20 2.00 2.00 1.00 2.00 Finance
Human Resources - - 1.50 2.20 2.20 - - - 0.00 0.00
Finance 4.60 4.60 4.60 4.30 4.80 4.80 4.50 4.10 4.10 4.10 Information Systems 0.20 0.20 0.20 - - - - - 0.00 0.00
Utility Billing 3.20 3.20 3.20 3.40 3.40 3.40 3.40 3.80 3.80 3.80 Public safety:

Police 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.00 Non Departmental 1.30 1.30 1.30 1.30 1.30 1.30 1.30 1.30 1.30 1.00 Community Development:

Planning 1.60 1.60 1.60 3.25 3.25 3.25 4.25 2.75 2.75 2.45 Building and Safety 3.25 3.25 3.25 3.25 4.25 4.25 3.75 3.65 3.65 2.95 Economic Development 0.45 0.45 0.45 0.54 0.54 - - - 0.00 0.00 Housing Services 0.10 0.10 0.10 - - - - 0.10 0.10 0.10
City Engineer 1.30 1.30 1.30 - - - - - 0.00 0.00
Affordable Housing 0.25 0.25 0.25 0.10 0.10 - - - - -
Parks and Recreation
Park Maintenance 5.35 5.20 5.35 5.40 5.40 6.50 5.40 5.40 - - Parks & Recreation Admin - - - 2.20 2.70 3.70 3.30 3.30 3.10 3.10 Recreation Programs 2.80 2.75 2.80 1.80 2.80 2.80 3.10 3.10 4.30 4.30 Aquatics Programs 2.30 2.30 2.30 1.60 1.60 1.50 1.90 1.90 1.90 1.90 Neighborhood Programs - - - - - - 1.00 - - -
Facility Rentals - - - - - - 0.30 0.30 0.30 0.30
Maintenance and Utilities
Maintenance & Utilities Admin 3.00
Streets Maintenance 2.70
Maintenance & Utilities Storm Drain 2.70
Parks Maintenance 5.40
Public Works:

Administration 3.90 3.90 3.90 3.50 3.50 3.50 3.50 3.50 3.00 2.00 Capital Projects 1.60 1.60 1.60 3.00 4.00 4.00 4.00 4.00 4.00 3.00 Street Maintenance 3.45 3.45 3.45 2.90 3.30 3.30 4.00 3.95 3.95 Storm Drain 1.95 1.95 1.95 2.00 2.60 1.60 1.90 2.35 2.35 0.70 Parks Maintenance - - - - - - - - 5.40
Fleet Operations 1.10 1.10 1.10 - - - - - - -
Ctiy Engineer - - - 1.00 1.00 1.00 1.00 1.50 1.50 1.50
Water:

Treatment and Distribution 9.05 9.05 9.05 9.08 10.08 11.25 11.55 11.25 11.75 11.25 Wastewater:

Collection and Treatment 12.00 12.00 12.00 12.23 9.73 9.40 11.10 11.25 10.75 9.25 Storm Water Quality 0.45 0.45 0.45 - - - - - 0.00 0.00
Solid Waste 0.35 0.35 0.35 0.35 3.35 3.35 3.35 3.10 3.10 2.30 Internal Service:

Building Maintenance - - - 1.00 1.00 1.00 1.00 1.05 1.05 1.05 Fleet Operations - - - 1.10 1.10 1.10 1.10 1.05 1.05 1.05 Information Systems - - - 0.10 0.10 0.10 0.10 0.10 0.10 0.10 Totals 73.30 73.10 73.30 77.50 84.00 86.50 89.00 88.00 88.00 85.00 Data Source: Human Resources Department
Schedule 17
City of American Canyon
Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
--------------------------------------- Prior Years --------------------------------------- 140
294
--------------------------------------------------------- Prior Years ----------------------------------------------------- 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Police:

Physical arrest 415 842 790 471 569 493 282 460 515 504 Traffic violations 2,001 1,639 1,336 971 886 1,189 1,204 635 601 696 Fire:

Emergency Responses 300 1,437 1,449 1,627 1,615 1,802 1,744 1,709 1,725 1,764 Structure Fires 14 6 6 17 20 20 21 19 71 80
Fire Loss (Thousand $) 135 - - - - - - - - -
Fire Engines 6 6 6 6 6 6 8 8 8 8
Inspections 279 264 199 229 216 393 382 325 292 179
Construction Inspection 111 108 50 44 78 100 97 171 107 122 Planning:

Building Permits Issued 296 299 360 520 524 496 511 428 571 598 Public works:

Miles streets resurfaced 0.12 - - 1.75 0.15 7.00 0.69 1.00 1.14 0.35 Parks:

Community events held 26 35 37 41 46 41 40 38 14 12
Swimming pool admissions 15,313 16,261 47,720 48,222 49,142 49,302 63,110 46,594 15,277 14,250 Water:

Number of new services 100 633 493 402 418 449 427 374 324 292 Daily average water
production in MGD 58.00 3.10 3.15 2.87 2.49 2.31 2.38 2.40 2.12 2.57 Daily average water
consumption in MGD 50.00 2.94 2.89 2.39 2.08 2.02 2.19 2.08 1.64 2.19 Data Source: Various departments within the City of American Canyon Schedule 18
City of American Canyon
Operating Indicators by Function/Program
Last Ten Fiscal Years
141
295
------------------------------------------------------- Prior Years ---------------------------------------------------- Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Police:

Stations 1 1 1 1 1 1 1 1 1 1
Patrol units 12 13 15 19 17 17 18 18 18 18
Fire:

Stations 2 2 2 2 2 2 2 2 2 2
Engines 8 8 8 8 8 8 9 8 8 8
Public works:

Miles of streets 38.1 38.1 38.1 38.1 38.1 38.1 38.1 38.1 52.3 112. 0 Streetlights 1,233 1,233 1,233 1,233 1,233 1,233 1,233 1,233 1,381 1,397 Traffic signals 4 4 4 4 4 4 4 4 6 6
Parks and recreation:

Community centers 3 3 3 3 3 3 3 3 3 3
Parks 22 22 22 22 22 22 22 22 22 22
Park Acreage 79 79 79 79 79 79 79 79 79 79
Water:

Miles of mains added - - - - - - - - - -
Number of services billed 5,529 5,565 5,593 5,594 5,621 5,654 5,646 5,595 5,693 5,724 Maximum plant capacity
in millions gallons 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 Storage capacity in
in millions gallons 4.70 4.70 4.70 4.70 4.70 4.70 4.70 4.70 4.70 4.70 Wastewater:

Miles of sewers added - - - - - - - -
Number of services billed 4,910 4,971 4,983 5,004 5,016 5,012 4,999 5,050 5,006 5,009 Maximum plant capacity
in million gallons 5 5 5 5 5 5 5 5 5 5
Recycled Water:

Miles of pipelines added - - - - 0.4 - - -
Number of services billed 12 13 15 20 30 46 43 30 48 62 Storage capacity
in million gallons 1 1 1 2.50 2.50 2.50 2.50 2.50 2.50 2.50 Data Source: Various departments within the City of American Canyon Schedule 19
City of American Canyon
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
142
296
550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728

MANAGEMENT LETTER
To the City Council and Management
City of American Canyon
American Canyon, California
In planning and performing our audit of the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of American Canyon (the City) as of and for the year ended June 30, 2021, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis.

Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses. Given these limitations during our audit, we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The following items noted in our current year audit have been presented for consideration:

Developer Contributions
During our audit, we noted the City received contributions on capital assets from developers which are required to be recorded at the acquisition value. We recommend the City obtain the estimated value of the contributed assets from the developer in the future to support the value recorded.

Capital Assets
A number of projects reported as construction in progress in the enterprise funds had no activity for many years. We recommend considering whether those projects are approved by Council and will be completed or should be removed. Note that feasibility studies are required to be expensed as incurred until the City Council approves the related project.

The following items noted in prior year audits have been presented for further consideration.

Closing Entries
297
To the City Council and Management
City of American Canyon