Agenda packet — Baldwin Park City Council, October 5, 2022

NOTICE AND CALL
OF A

SPECIAL MEETING
OF THE

CITY COUNCIL

TO THE MEMBERS OF THE AFOREMENTIONED AGENCIES AND THE CITY CLERK OF

THE CITY OF BALDWIN PARK

NOTICE IS HEREBY GIVEN that a Special Meeting is hereby called to be held on WEDNESDAY, October 5, 2022 at 5:00 PM.

Said Special Meeting shall be for the purpose of conducting business in accordance with the attached Agenda.

NO OTHER BUSINESS WILL BE DISCUSSED

Posted: September 29, 2022.

Emmanuel J. Estrada
Mayor

AFFIDAVIT OF POSTING

I, Marlen Garcia, City Clerk of the City of Baldwin Park hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City Hall bulletin board not less than 24 hours prior to the meeting of October 5, 2022.

Marlen Garcia,
City Clerk

AGENDA

BALDWIN PARK CITY COUNCIL

SPECIAL MEETING
COUNCIL CHAMBER - 14403 E. Pacific Avenue, Baldwin Park, 91706

October 5, 2022
5:00 PM

Audio Streaming will be available at:
https://www.youtube.com/channel/UCFLZ0_dDFRjy59rhiDZ13Fg/featured?view_as=subscriber http://baldwinpark.granicus.com/ViewPublisher.php?view_id=10 Audio Streaming Simultaneously in Spanish will be available at:
https://www.youtube.com/channel/UC3bPFBIHcoPIks1XqetmGcA

Emmanuel J. Estrada - Mayor
Daniel Damian - Mayor Pro Tem
Alejandra Avila - Council Member
Monica Garcia - Council Member
Paul C. Hernandez - Council Member

PLEASE TURN OFF ALL ELECTRONIC DEVICES

PUBLIC COMMENTS
The public is encouraged to address the City
Council or any of its Agencies listed on this
agenda. In accordance with Chapter 39 of the
Baldwin Park Municipal Code, Speakers must
address the Council as a whole and refrain
from making impertinent, slanderous, or
profane remarks or disrupt the peace of the
meeting.

COMENTARIOS DEL PUBLICO
Se invita al público a dirigirse al Concilio o cualquiera otra de sus Agencias nombradas en esta agenda.

De acuerdo con el capítulo 39 del Código Municipal
de la Ciudad de Baldwin Park, los comentaros deben
se dirigidos al Concilio como una sola entidad, y no
ser imper tinentes, difamatorios, o profanos, o
interrumpir la paz de la reunión.

CALL TO ORDER:

ROLL CALL: Council Members: Alejandra Avila, Monica Garcia, Paul C. Hernandez, Mayor Pro Tem Daniel Damian, and Mayor Emmanuel J. Estrada

PUBLIC COMMUNICATIONS
Three (3) minute speaking time limit
Tres (3) minutos será el limite para hablar

THIS IS THE TIME SET ASIDE TO ADDRESS THE CITY COUNCIL

PLEASE NOTIFY THE CITY CLERK IF YOU REQUIRE THE SERVICES OF AN INTERPRETER No action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The legislative body or its staff may: 1) Briefly respond to statements made or questions asked by persons; or 2) Direct staf f to investigate and/or schedule matters for consideration at a future meeting. [Government Code §54954.2]

ESTE ES EL PERIODO DESIGNADO PARA DIRIGIRSE AL CONCILIO

FAVOR DE NOTIFICAR A LA SECRETARIA SI REQUIERE LOS SERVICIOS DEL INTERPRETE No se podra tomar acción en algún asunto a menos que sea incluido en la agenda, o a menos que exista algúna emergencia o circunstancia especial. El cuerpo legislativo y su personal podran: 1) Responder brevemente a declaraciónes o preguntas hechas por personas; o 2) Dirigir personal a investigar y/o fijar asuntos para tomar en consideración en juntas proximas. [Codigo de Gobierno §54954.2]

If you wish to comment on agenda items, please email your name, City of residence, item number and a phone number where you will be available between the hours of 5:00 PM to 6:00 PM on October 5, 2022 to [email protected]. You will be contacted by a staff member and will be granted 3 (three) minutes to speak live during the meeting. If you are a non-English Speaker and require translation services in another language other than Spanish, or sign, please indicate your reques t in your communication up to 48 hours prior to the meeting. If large numbers of persons wishing to speak are gathered (a reduction of the speaking time allotted for each speaker may be announced). A one-hour limit may be placed on the time for public comm unications so that City business can be conducted, after which time, communications can resume.

OPEN SESSION/STUDY SESSION
• Cesar Chavez Foundation Presentation
Presented by Ron Garcia, Director of Community Development, and Cesar Toledo Project Manager

RECESS TO CLOSED SESSION

1. Conference With Legal Counsel—Anticipated Litigation Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code Section 54956.9:

Potential Case(s): Three (3)

2. Conference With Legal Counsel— Existing Litigation
Pursuant to paragraph (1) of subdivision (d) of Government Code Section 54956.9:

Case Name: ML Genesee Holdings LLC v. City of Baldwin Park Case No. 22STCV26486

Case Name: Rukli, Inc v. City of Baldwin Park Case No. 22STCV28634

CITY COUNCIL
SPECIAL MEETING – 5:00 P.M.

Case Name: Cetina, Huerta, Jimenez, Parra, Case No. 22STCV14121 Real, Valdivia v. City of Baldwin Park

Case Name: Daniel Rodriguez v. City of Baldwin Park Case No. 21STCV21129

Case Name: Mathew Rodriguez Case No. 2:22-cv-01069-FLA-MAR v. City of Baldwin Park

ADJOURNMENT

CERTIFICATION

I, Marlen Garcia, City Clerk of the City of Baldwin Park hereby that, certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City Hall bulletin board not less than 24 hours prior to the meeting of October 5, 2022.

Marlen Garcia
City Clerk
For further information regarding agenda items, please contact the office of the City Clerk at (626) 960-4011 ext. 466 or e- mail [email protected].

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Public Works Department or Risk Management at (626) 960-4011. Notification 48 hours prior to the meeting will enable staff to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 34.102.104 ADA TITLE II)
AGENDA

BALDWIN PARK CITY COUNCIL

REGULAR MEETING
COUNCIL CHAMBER - 14403 E. Pacific Avenue, Baldwin Park, 91706

October 5, 2022
7:00 PM

Emmanuel J. Estrada - Mayor
Daniel Damian - Mayor Pro Tem
Alejandra Avila - Council Member
Monica Garcia - Council Member
Paul C. Hernandez - Council Member

PLEASE TURN OFF ALL ELECTRONIC DEVICES DURING THE MEETING.

PUBLIC COMMENTS
The public is encouraged to address the City
Council or any of its Agencies listed on this
agenda on any matter posted on the agenda
or on any other matter within its jurisdiction.

In accordance with Chapter 39 of the
Baldwin Park Municipal Code, Speakers
must address the Council as a whole and
refrain from making impertinent, slanderous,
or profane remarks or disrupt the peace of
the meeting.

COMENTARIOS DEL PÚBLICO
Se invita al público a dirigirse al Concilio o cualquier otra de sus Agencias nombradas en esta agenda,
para hablar sobre cualquier asunto publicado en la
agenda o cualquier tema que esté bajo su
jurisdicción. De acuerdo con el capítulo 39 del
Código Municipal de la Ciudad de Baldwin Park, los
comentaros deben se dirigidos al Concilio como
una sola entidad, y no ser impertinentes,
difamatorios, o profanos, o interrumpir la paz de la
reunión.

City Council Agenda Page 2

CITY COUNCIL
REGULAR MEETING – 7:00 PM

CALL TO ORDER

INVOCATION

PLEDGE OF ALLEGIANCE

ROLL CALL
Council Members: Alejandra Avila, Monica Garcia, Paul C.

Hernandez, Mayor Pro Tem Daniel Damian , and Mayor Emmanuel J.

Estrada

REPORT FROM CLOSED SESSION

ANNOUNCEMENTS
The City Council are also members of the Board of Directors of the Housing Authority, and Finance Authority, which are concurrently convening with the City Council this evening and each Council Member is paid an additional stipend of $30 for attending the Housing Authority meeting and $50 for attending the Finance Authority meeting.

PROCLAMATIONS, COMMENDATIONS & PRESENTATIONS
• Active SGV Noches de las Luminarias Recognition for Outstanding City Staff Person Award
Presented to Yuriko Ruizesparza, Community Services Supervisor

PUBLIC COMMUNICATIONS
Three (3) minute speaking time limit
Tres (3) minutos será el límite para hablar

THIS IS THE TIME SET ASIDE TO ADDRESS THE CITY COUNCIL

PLEASE NOTIFY THE CITY CLERK IF YOU REQUIRE THE SERVICES OF AN INTERPRETER No action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances ex ist. The legislative body or its staff may: 1) Briefly respond to statements made or questi ons asked by persons; or 2) Direct staff to investigate and/or schedule matters for consideration at a future meeting. [Government Code §54954.2]

ESTE ES EL PERIODO DESIGNADO PARA DIRIGIRSE AL CONCILIO

FAVOR DE NOTIFICAR A LA SECRETARIA SI REQUIERE LOS SERVICIOS DEL INTERPRETE No se podra tomar acción en algún asunto a menos que sea incluido en la agenda, o a menos que exista algúna emergencia o circ unstancia especial. El cuerpo legislativo y su personal podran: 1) Responder brevemente a declaraciónes o preguntas hechas por personas; o 2) Dirigir personal a investigar y/o fijar asuntos para tomar en consideración en juntas proximas. [Codigo de Gobierno §54954.2]

If you wish to comment on agenda items, please email your name, City of residence, item number and a phone number where you will be available between the hours of 7:00 PM to 8:00 PM on September 21, 2022 to [email protected]. You will be contacted by a staff member and will be granted 3 (three) minutes to speak live during t he meeting. If you are a non- English Speaker and require translation services in another language other than Spanish, or sign, please indicate your request in your communication up to 48 hours prior to the meeting. If large numbers of persons wishing to speak are gathered (a reduction of the speaking time allotted for each speaker may be announced). A one hour limit may be placed on the time for public communications so that City business can be conducted, a fter which time, communications can resume.

City Council Agenda Page 3

CONSENT CALENDAR
All items listed are considered to be routine business by the City Council and will be approved with one motion. There will be no separate discussion of these items unless a City Councilmember so requests, in which case, the item will be removed from the general order of business and considered in its normal sequence on the agenda.

1. City of Baldwin Park’s Warrants and Demands
Staff recommends that the City Council ratify the attached Warrants and Demands Register.

2. Adoption of a Resolution to Continue Conducting City Council/Commission/Board Meetings Remotely in Accordance with the Brown Act Executive Order and AB 361
Staff recommends that the City Council adopt Resolution No. 2022- 055 to continue conducting City Council/Commission/Board Meetings remotely in accordance with the Brown Act executive orders and AB 361 (covering meetings held from October 5, 2022 through November 4, 2022) and re- evaluate the state of emergency every 30 days to make findings under the bill’s teleconferencing exemptions.

3. Approval of a One -Time City Hall- Closure, and Authorization to Offer Qualified Employees Time off During the Holidays
Staff recommends that the City Council:

1. Approve Resolution No. 2022- 056 entitled, “A Resolution of the City Council of the City of Baldwin Park, California, approving a One- Time City Hall Closure from December 27, 2022 through January 5, 2023, and Authorizing Qualified Employees Time off during the Holidays”; and

2. Direct the CEO to provide adequate notification to the public and take appropriate measures to ensure City Emergency Operations remain uninterrupted during the closure.

4. Ratify and Adopt a Temporary Employment of Kevin Gauthier (Retired Annuitant) Staff recommends that the City Council authorize the Mayor to execute a part -time, temporary employment agreement with Kevin Gauthier and make the necessary appropriation and budgetary adjustments.

5. Approval of a Contract with MIG to Provide Consulting Services to Prepare Objective Design Standards and Senate Bill 9 (SB 9) Development Standards Staff recommends that the City Council take the following actions:

1. Award a contract to MIG (Consultant) to prepare O bjective Design Standards and Senate Bill 9 (SB 9) development standards amend appropriate sections of the Zoning Code, Subdivision Regulations and preparation of appropriate CEQA documentation; and

2. Authorize the Mayor , or designee, to execute the attached agreement with MIG to provide consulting services in an amount not to exceed $216,447; and

3. Authorize the Director of Finance to appropriate $66, 447 from Fund No.235-General Plan Fees.

City Council Agenda Page 4

6. Selection of Consultants for As -Needed Building Plan Check and Inspection Services
Staff recommends that the City Council take the following actions:

1. Approve the three firms listed below to be used for As -Needed Building Plan Check and Inspection Services; and

2. Authorize the Mayor to execute a three-year service agreement up to $50,000 with each of the firms provide Building plans check and inspection services on an as - needed basis.

Consultant Location
RKA Consulting Group Walnut, CA
JLee Engineering, Inc. Alhambra, CA
Willdan Industry, CA

7. Nomination to Name the Community Room at the Serenity Homes Staff recommends that the City Council consider the nomination to name the community room at the Serenity Homes

8. Esperanza Villa Tiny Homes Pilot Program Status Report Staff recommends that the City Council receive and file this report.

9. Approve Final Parcel Map No. 83651 to Subdivide One (1) Lot into Two (2) Lots Staff recommends that the City Council accept the Final Parcel Map No. 83651 and authorize the City Clerk and staff to sign the Final Map.

10. Approve the Pun Group LLP to Provide Independent Professional Annual Audit Services
Staff recommends that the City Council:

1. Approve The Pun Group LLP to provide independent professional annual financial audit services for the next three fiscal years ending June 30, 2024, with an option to extend an additional two one- year periods ending June 30, 2025 and 2026, respectively; and

2. Authorize the CEO to sign the audit engagement letter subject to review and approval by the City Attorney

11. Update Grant Reimbursement and Revenue Availability Policy & Procedures, Accounts Payable and Disbursements Control Policies & Procedures, and Purchasing Policy and Procedures
Staff recommends that the City Council review and approve the following grants and accounting policies and procedures as follows:

1. Grants Reimbursement and Revenue Availability Policy & Procedures

2. Accounts Payable and Disbursements Control Policies & Procedures

3. Purchasing Policy & Procedures

12. Approval of Annual Statement of Investment Policy for Fiscal Year 2022-23 Staff recommends that the City Council receive and file the attached Statement of Investment Policy for Fiscal Year 2022-23.

City Council Agenda Page 5

CITY COUNCIL / CITY CLERK / CITY TREASURER / STAFF REQUESTS &

COMMUNICATION

• None

ADJOURNMENT

CERTIFICATION
I, Marlen Garcia, City Clerk of the City of Baldwin Park hereby certify that, under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this 5 th day of
October 2022.

Marlen Garcia
City Clerk

For further information regarding agenda items, please contact the office of the City C lerk at (626) 960- 4011 ext. 466 or via e- mail at [email protected].

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Public Works Department or Risk Management at (626) 960- 4011. Notification 48 hours prior to the meeting will enable staff to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 34.102.104 ADA TITLE II)

STAFF REPORT
ITEM NO. _________1________

TO: Honorable Mayor and Members of the City Council
FROM: Rose Tam, Director of Finance
DATE: October 5, 2022
SUBJECT: City of Baldwin Park’s Warrants and Demands

SUMMARY
Attached is the Warrants and Demands Register for the City of Baldwin Park to be ratified by the City Council.

RECOMMENDATION
Staff recommends that the City Council ratify the attached Warrants and Demands Register.

FISCAL IMPACT
The payroll for the last period was $617,136.40 and the attache d General Warrants Register was $754,307.18 for a total amount of $1,371,443.58.

BACKGROUND
The attached Claims and Demands report format meets the required information as set out in the California Government Code. Staff has reviewed the requests for expenditures for the appropriate budgetary approval and for the authorization from the department head or its designee. Pursuant to Section 37208 of the California Government Code, the Chief Executive Officer or his/her designee does hereby certify to the accuracy of the demands hereinafter referred. Payments released since the previous City Council meeting and the following is a summary of the payment released:

1. The last payroll of the City of Baldwin Park consist s of check number s 201634 to 201657 Additionally, Automated Clearing House (ACH) Payroll deposits were made on behalf of City Employees from control number 35353 to 35615 for the period September 4, 2022 through September 17, 2022 inclusive; these are presented and hereby ratified in the amount of $617,136.40.

2. General Warrants, with the bank drafts in the amount of $429,660.36 and checks from 238040 to 238186 in the amount of $324,646.82 for the period of September 8, 2022 to September 21, 2022, inclusive; in the total amount of $754,307.18 constituting of claims and demands against the City of Baldwin Park, are herewith presented to the City Council as required by law, and the same hereby ratified.

LEGAL REVIEW
Not Applicable

ATTACHMENT

1. Check Register

STAFF REPORT

ITEM NO. _______2_________

TO: Honorable Mayor and Members of the City Council
FROM: Enrique C. Zaldivar, Chief Executive Officer
By: Lourdes Morales, Chief Deputy City Clerk
DATE: October 5, 2022
SUBJECT: Adoption of a Resolution to Continue Conducting City Council/Commission/ Board Meetings Remotely in Accordance with the Brown Act Executive Order and AB 361

SUMMARY
Governor Gavin Newson signed Executive Order N -15-21 clarifying that cities may continue to meet remotely in accordance with procedures established by prior Executive Orders. On September 16 th Governor Newsom signed AB361 which allows cities to continue to meet remotely during proclaimed states of emergency under modified B rown Act requirements that are similar but not identical to the rules and procedures established by the previous Executive Brown Act Orders.

This bill, until January 1, 2024, would authorize a local agency to use teleconferencing without complying with th e teleconferencing requirements imposed by the Ralph M. Brown Act when a legislative body of a local agency holds a meeting during a declared state of emergency, as that term is defined, when state of local health officials have imposed or recommended meas ures to promote social distancing, during a proclaimed state of emergency.

Staff will continue in-person meetings with a virtual hybrid component under this new order.

RECOMMENDATION
Staff recommends that the City Counc il adopt Resolution No. 202 2-055 to continue conducting City Council/Commission/Board Meetings remotely in accordance with the Brown Act executive orders and AB 361 (covering meetings held from October 5, 2022 through November 4, 2022) and re-evaluate the state of emergency every 30 days to make findings under the bill’s teleconferencing exemptions.

FISCAL IMPACT
Not Applicable

BACKGROUND
On June 11, 2021, Governor Newsom issued Executive Order N -08-21, which among other things rescinded his prior Executive Order N-29-20 and set a date of October 1, 2021, for public agencies to transition back to public meetings held in full compliance with the Brown Act.

As various variants have surged in California, the legislature has taken action to extend the COVID-19 exceptions to the Brown Acts’ teleconference requirements, subject to some additional safeguards. AB 361 allows a local agency to use teleconferencing without complying with the Brown Act provisions in any of the following circumstances:

• The legislative body holds a meeting during a proclaimed state of emergency, and state or local officials have imposed or recommended measures to promote social distancing.

• The legislative body holds a meeting during a proclaimed state of emergency for the purpose of determining, by majority vote, whether as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.

• The legislative body hol ds a meeting during a proclaimed state of emergency and has determined, by majority vote that, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.

A local agency that holds a meeting under these circumstances would be required by AB 361 to do all of the following, in addition to giving notice of the meeting and posting agendas as required under the Brown act. These additional requirements are intended to protect the public’s right to participate in the meetings of local agency legislative bodies.

Pursuant to AB 361 local agencies are required to do all of the following in addition to meeting notice requirements under the Brown Act:

• Allow the public to access the meeting and require th at the agenda provide an opportunity for the public to directly address the legislative body pursuant to the Brown Act’s other teleconferencing provisions.
• In each instance when the local agency provides notice of the teleconferenced meeting or posts its agenda, give notice for how the public can access the meeting and provide public comment. • Identify and include in the agenda an opportunity for all persons to attend via a call -in or an internet-based service option; the legislative body need not provide a physical location for the public to attend or provide comments.
• Conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the public.
• Stop the meeting until public access is restored in the event of a service disr uption that either prevents the local agency from broadcasting the meeting to the public using the call -in or internet-based service option or is within the local agency’s control and prevents the public from submitting public comments (any actions taken d uring such a service disruption can be challenged under the Brown Act’s existing challenge provisions). • Not require comments be submitted in advance (though the legislative body may provide that as an option) and provide the opportunity to comment in real time. • Provide adequate time for public comment, either by establishing a timed public comment period or by allowing a reasonable amount of time to comment.
• If the legislative body uses a third-party website or platform to host the teleconference, and the third-party service requires users to register to participate, the legislative body must provide adequate time during the comment period for users to register and may not close the registration comment period until the comment period has elapsed.

AB 361 al so provides that, if the state of emergency remains active for more than 30 days, a local agency must make the following findings by majority vote every 30 days to continue using the bill’s exemption to the Brown Act teleconferencing rules:

• The legislative body has reconsidered the circumstances of the emergency; and • Either of the following circumstances exist: The state of emergency continues to directly impact the ability of members to meet safely in person, or State or local officials continue to impose or recommend social distancing measures.

The goal of AB 361 is “to improve and enhance public access to local agency meetings during the COVID-19 pandemic and future applicable emergencies, by allowing broader access through teleconferencing options” consistent with Executive Order N-29-20. The bill contains an urgency clause which became effective upon signing with a sunset of January 1, 2024.

ALTERNATIVES
Not Applicable

LEGAL REVIEW
This report has been reviewed by the City Attorney.

ATTACHMENTS

1. Resolution no. 2022-055

2. AB 361

RESOLUTION NO. 2022-055

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN

PARK, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO

IMPLEMENT TELECONFERENCE ACCESSIBILITY FOR

CONDUCTING PUBLIC MEETINGS PURSUANT TO ASSEMBLY BILL
361

WHEREAS, on March 4, 2020, the Governor of California proclaimed a State of Emergency to exist in California as a result of the threat of novel coronavirus disease 2019 (COVID-19); and

WHEREAS, OM March 12, 2020, the City Council adopted an Emergency order proclaiming a local emergency as defined, due to the threat of the existence and spread of COVID-19; and

WHEREAS, on March 17, 2020, the Governor of California executed Executive Order N-29-20 which suspended and modified specified provisions in the Ralph M. Brown Act (Government Code Section § 54950 et seq.) and authorized local legislative bodies to hold pu blic meetings via teleconferencing and to make public meeting accessible telephonically or otherwise electronically to all members of the public seeking to observe and address the local legislative body; and

WHEREAS, on June 11, 2021, the Governor of California executed Executive Order N-08-21 which extended the provisions of Executive Order N -29-20 concerning teleconference accommodations for public meetings through September 30, 2021; and

WHEREAS, on September 16, 2021, the Governor of California signed into law Assembly Bill 361 (AB 361, Rivas) (Stats. 2021, ch. 165) amending Government Code § 54953 and providing alternative teleconferencing requirements to conduct public meetings during a proclaimed state of emergency; and

WHEREAS, AB 361 (Stats. 2021, ch. 165) imposes requirements to ensure members of the public are able to attend and participate in public meetings conducted via teleconference, including:

• Notice of the means by which members of the public may access the meeting and offer public comment, including an opportunity for all persons to attend via a call - in option or an internet-based service option;

• The legislative body shall take no further action on agenda items when there is a disruption which prevents the public agency from broadcasting the meeting, or in the event of a disruption within the local agency’s control which prevents members of the public from offering public comments, until public access is restored;

• Prohibits the legislative body f rom requiring public comments to be submitted in advance of the meeting and specifies that the legislative body must provide an opportunity for members of the public to address the legislative body and offer comments in real time;

• Prohibits the legislativ e body from closing the public comment period until the public comment period has elapsed or until a reasonable amount of time has elapsed; and

WHEREAS, the City has already implemented and is in full compliance with the requirements listed above when co nducting public meetings via teleconference, which are now codified in Government Code § 54953(e)(2)(B-G); and

WHEREAS, pursuant to Government Code § 54953(e)(B), the legislative body shall hold a meeting during a proclaimed state of emergency for the purpose of determining, by majority vote, whether as a result of the emergency, meeting in person would present imminent risks to the health and safety of attendees. The City Council must make these findings no later than 30 days after the first teleconferenced meeting is held pursuant to AB 361 (Stats. 2021, ch. 165) after September 30, 2021, and must also make these findings every 30 days thereafter, in order to continue to allow teleconference accessibility for conducing public meetings.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DOES HEREBY RESOLVE AND ORDER AS FOLLOWS:

SECTION 1. The City Council of the City of Baldwin Park hereby declares that the recitals set forth above are true and correct, and incorporated into this resolution as finds of the City Council.

SECTION 2. The City Council hereby declares that a state of emergency as a result of the threat of COVID-19 still exists and continues to impact the ability of members of the public, the City Council, City Boards Commissions and Committees, City staff and consultant to meet safely in person when a large congregation meets.

SECTION 3. The State of California and the City of La Quinta continue to follow safety measures in response to COVID -19 as ordered or recommended by the Centers for Disease Control and Prevention (CDC), California Department of Public Health (DPH), and/or County of Riverside, as applicable, including facial coverings when required and social distancing.

SECTION 4. The City Council h ereby declares that, pursuant to the findings listed in this Resolution, the City Manager is authorized to utilize teleconferencing accessibility to conduct public meetings pursuant to AB 361 (Stats. 2021, ch. 165) and Government Code § 54953, as amended thereby.

SECTION 5. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Resolution is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council hereby declares that it would have adopted this Resolution and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared unconstitutional.

SECTION 6. This Resolution shall become effective immediately upon adoption.

PASSED, APPROVED, and ADOPTED this 5th day October, 2022.

_______________________________
EMMANUEL J. ESTRADA
MAYOR

ATTEST:

STATE OF CALIFORNIA
COUNTY OF LOS ANGELES SS:

CITY OF BALDWIN PARK

I, Marlen Garcia, City Clerk of the City of Baldwin Park do hereby certify that the foregoing Resolution No. 2022-055 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on October 5, 2022 and that the same was adopted by the following vote to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

MARLEN GARCIA

CITY CLERK

STAFF REPORT
ITEM NO. ________3_________

TO: Honorable Mayor and Members of the City Council
FROM: Enrique C. Zaldivar, Chief Executive Officer

DATE: October 5, 2022
SUBJECT: Approval of a One-Time City Hall-Closure, and Authorization to Offer Qualified Employees Time off During the Holidays

SUMMARY
This report requests City Council approval to close City Hall to visitors and costumers from December 27, 2022, through January 5, 2023 and offer qualified employees the opportunity to utilize accrued vacation, and/or holiday, and/or admin leave, and/or comp-time, and/or unpaid leave during the closure should the employees select to take time off.

RECOMMENDATION
Staff recommends that the City Council:

1. Approve Resolution No. 2022-056 entitled, “A Resolution of the City Council of the City of Baldwin Park, California, approving a One-Time City Hall Closure from December 27, 2022 through January 5, 2023, and Authorizing Qualified Employees Time off during the Holidays”; and

2. Direct the CEO to provide adequate notification to the public and take appropriate measures to ensure City Emergency Operations remain uninterrupted during the closure.

FISCAL IMPACT
The cost is negligible and will be offset by energy savings from underutilizing City Hall for a total amount of six working days.

BACKGROUND
The Christmas Holiday is a period of very low activity at City Hall. Many contractors, engineers, and architects’ offices are closed for the Holiday Break. The City Council has previously approved a One- Time City Hall Closure during the Christmas Holiday for General Employees (CEA, CMEA, and CCEA).

The level of City Services was not impacted in any significant way, and emergency operations were staffed appropriately with no complaints about the closure. Moreover, Council’s approval was very well received by the City of Baldwin Park’s eligible employees.

Due to the COVID-19 pandemic and endemic, and the need for staff to assist during this crucial period without the disruption of services, some staff has accrued a significant amount of vacation/admin/comp- time and has not had the ability take an unrelieved break. Approving this one-time closure will enable staff to take time off the books without the risk of losing those hours or transferring them to an additional bank of accruals.

Safety Employees will not be affected, and the Maintenance Yard (SEIU) already has provisions for light staffing during the holiday. Additionally, the city has notified the representing unions of the City’s intent for the temporary closure of City Hall.

ALTERNATIVES
The alternative is to keep City Hall open during the Christmas Holiday.

LEGAL REVIEW
This report does not require legal review.

ATTACHMENT

1. Resolution No. 2022-056
RESOLUTION NO. 2021-056

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN

PARK, CALIFORNIA, APPROVING A ONE -TIME C ITY HALL
CLOSURE FROM DECEMBER 27, 2022 THROUGH JANUARY 5, 2023

AND AUTHORIZING QUALIFIED EMPLOYEES TIME OFF DURING

THE HOLIDAYS

WHEREAS, Authorization of a one-time City Hall Closure will allow staff to take a much needed unrelieved break; and

WHEREAS, Approving this one -time closure will enable staff to take accumulated time off the books as a result of the pandemic, without the risk of losing those hours or transferring them to an additional bank of accruals; and

WHEREAS, City Council recognizes that due to significant slowdown in business activity during the Christmas Holiday, Council may e lect to close down City Hall December 27, 2022 through the January 5, 2023; and

WHEREAS, City Council instructs the City to provide adequate notification to Baldwin Park residents informing them of the City Hall closure; and

WHEREAS, City Council recognizes employees staffed in emergency operations that are legally required to be open for business, are exempt from this resolution.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DOES HEREBY RESOLVE AND ORDER AS FOLLOWS:

SECTION 1. The City Council of the City of Baldwin Park adopts Resolution No. 2022-056 to authorize a One -Time City Hall closure of December 27, 2022 through January 5, 2023, and authorizes qualified City Staff to utilize accrued vacation , and/or holiday, and/or admin leave, and/or comp-time, and/or unpaid leave during the closure.

PASSED, APPROVED, and ADOPTED this 5th day of October 2022.

_______________________________
EMMANUEL J. ESTRADA
MAYOR

ATTEST:

STATE OF CALIFORNIA
COUNTY OF LOS ANGELES SS:

CITY OF BALDWIN PARK

I, Marlen Garcia, City Clerk of the City of Baldwin Park do hereby certify that the foregoing Resolution No. 2022-056 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on October 5, 2022 and that the same was adopted by the following vote to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

MARLEN GARCIA

CITY CLERK

STAFF REPORT
ITEM NO. _________4________

TO: Honorable Mayor and Members of the City Council
FROM: Robert A. López
DATE: October 5, 2022
SUBJECT: Ratify and Adopt Resolution No. 2022-057 for Temporary Employment of Kevin Gauthier (Retired Annuitant)

SUMMARY
The Police Department has recently filled six vacancies at the rank of Sergeant . Thus, six of the ten existing Sergeant positions are or will be staffed with newly promoted personnel. Of the four existing Lieutenant positions, three will soon be staffed with newly promoted personnel. Additionally, one Captain position remains unfunded and vacant. Our one existing Captain will be attending training for twelve weeks beginning at the end of this month, returning in mid -December. For all these reasons, the Police Department is in need of temporary assistance/extra help in the Administration Bureau.

Kevin Gauthier worked for the Baldwin Park Police Department for 29 years and retired in good standing in 2012 at the rank of Sergeant . He has the knowledge, skills , and abilities to provide the needed assistance and wishes to do so. In order to help the Department perform its necessary tasks and minimize disruption due to the large number of personnel new to their ranks and in the absence of the Captain, the Police Department would like to retain his services on a temporary basis for approximately three to six months. Allowing Mr. Gauthier to return as a retired annuitant will give the police department the ability to continue with its day -to-day operations while the Captain is away and while the newly promoted personnel adapt to their new duties and responsibilities.

Mr. Gauthier will be retained as an extra help employee performing limited-duration work as defined by CalPERS’ Retired Annuitant Rules. He will work to help to eliminate a backlog, he will work on special project(s), internal audits , equipment procurement and he will perform work that is more than what regular staff can currently do, particularly in the absence of the Captain. Mr. Gauthier’s employment status as Sergeant reflects his rank at the time of his retirement and is intended to place his wages on the City salary schedule appropriate to his training, knowledge, and experience. His work will be administrative in nature, he will not be involved in the day-to-day operations of the Department and will have no functional supervisory oversight of other employees.

RECOMMENDATION
Staff recommends that the City Council authorize the Mayor to execute a part -time, temporary employment agreement with Kevin Gauthier and make the necessary appropriation and budgetary adjustments.

FISCAL IMPACT
The estimated cost of the agreement is $55,000. Budgeted police officer vacancies will absorb the cost of the agreement.

BACKGROUND
Section 7522.56 of the California Government Code states that a retiree can only be rehired by an agency for a maximum of 960 hours in a fiscal year. While it is requested that Mr. Gauthier’s services be retained at minimum until the Captain returns , there is some flexibility in making the agreement effective through March 25, 2023 . Under CalPERS restrictions, although the agreement can be terminated earlier, it cannot be extended past this date for any reason.

ALTERNATIVES
The alternative is to not approve the Resolution.

LEGAL REVIEW
This report has been reviewed and approved by the City Attorney as to legal form and content.

ATTACHMENTS

1. Temporary Employment Agreement

EMPLOYMENT AGREEMENT
This employment agreem ent is effective as of October 9, 2022, between the City of Baldwin Park (“Employer”) and Kevin Gauthier (“Retired Annuitant”).

1. The Re tired Annuitant served as a Police Sergeant for Employer. Employer desires to retain the services of Retired Annuitant as Extra Help Police Sergeant in order to utilize his experience, abilities, and knowledge until such time as vacant administrative rank positions in the Police Department are filled and the new employees trained and is therefore agreeing to engage his services as a Police Sergeant under the terms and conditions set forth.

2. Retired Annuitant desires to resume employment with Employer and is willing to do so under the terms and conditions set forth below.

a. THEREFORE, in consideration of the above recitals, and of mutual promises and conditions in this AGREEMENT, it is agreed as follows:

3. TERMS OF EMPLOYMENT. Subject to earlier termination as provided for in this AGREEMENT, Retired Annuitant shall be employed for a term beginning October 9, 2022, and ending no later than March 25, 2023.

4. DUTIES AND AUTHORITY. Employer shall employ Retired Annuitant as Extra Help Police Sergeant . Retired Annuitant shall be vested with full power and authority to direct and conduct all the business of the City of Baldwin Park as is provided for by the Baldwin Park Municipal Code and other applicable statutory provisions. Duties and assignments whi le in this capacity shall generally include administrative tasks in an office environment.

5. REASONABLE TIME AND EFFORT. During his employment, Retired Annuitant shall devote such time, interest, and effort to the performance of his AGREEMENT as necessary.

6. WAGES. During the term of this AGREEMENT, Employer agrees to pay Retired Annuitant the hourly rate of $52.75, payable in bi-weekly installments subject to all applicable withholding and deductions.

7. ADDITIONAL BENEFITS. Except as provided for above, or as required by State and Federal law, during the employment term, Retired Annuitant shall not be entitled to receive other benefits of employment generally available to Employer’s other employees.

8. TERMINATION OF AGREEMENT . Employer may terminate Retired Annuitant’s employment at any time during the term of this AGREEMENT.

9. INDEMNIFICATION BY EMPLOYER. Employer shall, to the maximum extent permitted by the law, indemnify and hold Retired Annuitant harmless for any acts or decisions made by him in the course and scope of employment. To the same, Employer will pay and advance all expenses, including reasonable attorney’s fees and costs of court approved settlements, actually and necessarily incurred by Employer in connection with the defense of any action suit or proceeding and in connection with any appeal, which has been brought against Retired Annuitant by reason of his performance of services as an officer or agent of the Employer.

10. TERMINATION OR RESIGNATION. Retired Annuitant may terminate this AGREEMENT by giving Employer prior written notice of resignation. Unless otherwise agreed to by the parties, termination of employment by resignation shall result in no post-resignation compensation being paid by Retired Annuitant.

11. CONFORMANCE WITH RETIREMENT LAW. This Agreement may only be modified, including extension of term, in writing by Retired Annuitant and Mayor and City Council or their designee provided that changes are in conformance with current California Public Employee’s Retirement law involving post retirement employment under Section 7522.56.

12. CITY COUNCIL APPROVAL. This AGREEMENT shall be of no force and effect unless or until approved by the City Council of Baldwin Park.

Executed on the 5th day of October 2022, in the City of Baldwin Park, Los Angeles County.

Signatures:

CITY OF BALDWIN PARK: RETIRED ANNUITANT:

_____________________ ____________________________ Emanuel Estrada, Mayor Kevin Gauthier

STAFF REPORT
ITEM NO. ________5_________

TO: Honorable Mayor and Members of the City Council FROM: Ron Garcia, Director of Community Development PREPARED BY: Melissa Chipres, Associate Planner

DATE: October 5, 2022
SUBJECT: Approval of a Contract with MIG to Provide Consulting Services to Prepare Objective Design Standards and
Senate Bill 9 (SB 9) Development Standards

SUMMARY
This report requests the City Council approve a contract with MIG to prepare Objective Design Standards and Senate Bill 9 (SB 9) development standards, amend appropriate sections of the Zoning Code, Subdivision Regulations, and preparation of the appropriate CEQA documentation.

RECOMMENDATION
Staff recommends that the City Council take the following actions:

1. Award a contract to MIG (Consultant) to prepare Objective Design Standards and Senate Bill 9 (SB 9) development standards amend appropriate sections of the Zoning Code, Subdivision Regulations and preparation of appropriate CEQA documentation; and

2. Authorize the Mayor, or designee, to execute the attached agreement with MIG to provide consulting services in an amount not to exceed $216,447; and

3. Authorize the Director of Finance to appropriate $66,447 from Fund No.235-General Plan Fees.

FISCAL IMPACT
There would be no adverse fiscal impact to the City’s General Fund as a result of this contract with the Consultant. The City applied and was awarded a LEAP planning grant from the State of California Housing and Community Development Department. The grant award is $300,000 of which $150,000, are allocated respectively to MIG in July of 2021 to update the Housing Element (6 th Cycle), and $150,000 to prepare O bjective Design Standards and Senate Bill 9 (SB 9) development standards, amend appropriate sections of the Zoning Code, Subdivision Regulations and preparation of the appropriate CEQA documentation . The remaining balance of the Consultant’s fee ($ 66,447) can be paid from Fund No. 235 General Plan Fee.

DISCUSSION
On June 1 , 202 2, staff issued a Request for Proposals (RF P) for professional s ervices to prepare Objective Design Standards and Senate Bill 9 (SB 9) development standards and amend specific related sections of the Zoning Code, Subdivision Regulations and prepare the appropriate CEQA documentation. Proposals were due on June 30, 2022. The city received proposals from the following four firms:

Consultant Location Budget
*MIG Pasadena $216,447
Interwest Irvine $249,886
$250,786 (Optionals)
The Arroyo Group Pasadena
$139,912
$149,512 (Optionals)
Rangwala Associate Woodland Hills $197,980

EVALUATION AND SELECTION OF CONSULTANT
The proposals were evaluated by a team comprised of three City staff members (three from Community Development and one from Engineering) and one outside consultant (JWA Urban Consultants, Inc.).

Upon review of the proposals, the evaluation team recommended that a set of questions be directed to each of the consultant teams for clarificat ion of specific sections of their individual Proposals. The responses to the clarification questions were received from each of the consultant teams . Responses to the clarification questions were received August 30, 2022.

The proposals were evaluated for completeness; creativity and relevant experience; qualifications and experience of key individuals and project team capacity; understanding of the scope of services ; and project schedule and cost of services. Based upon the evaluations, the evaluation team unanimously chose MIG as number one. MIG presented enthusiasm and interest as well as a comprehensive approach and methodology for the project and is also currently assisting several cities throughout California to complete objective standards and SB 9 regulations. MIG’s experience, willingness to collaborate with staff, and community engagement efforts make the MIG team the most qualified and best value to establish Objective Design Standards and SB 9 development standards to facilitate the development of residential projects.

LEGAL REVIEW
This report has been reviewed and approved by the City Attorney as to legal form and content.

ATTACHMENTS

1. Contract Agreement with MIG

2. Scope of Work

3. Schedule of Compensation

STAFF REPORT
ITEM NO. ________6_________

TO: Honorable Mayor and Members of the City Council FROM: Ron Garcia, Director of Community Development PREPARED BY: Long Tang, PE, Building Official
DATE: October 5, 2022
SUBJECT: Selection of Firms for As -Needed Building Plan Check and Inspection Services

SUMMARY
This report requests the City Council to approve three firms to provide as-needed building plan check and inspection services. This item is a continuation from the August 3, 2022, City Council meeting,

RECOMMENDATION
Staff recommends that the City Council take the following actions:

1. Approve the three firms listed below to be used for As-Needed Building Plan Check and Inspection Services; and

2. Authorize the Mayor to execute a three-year service agreement up to $50,000 with each of the firms provide Building plans check and inspection services on an as-needed basis.

Consultant Location
RKA Consulting Group Walnut, CA
JLee Engineering, Inc. Alhambra, CA
Willdan Industry, CA

FISCAL IMPACT
The department previously allotted $50,000 in the annual budget for these services. Expenditures in past years have not exceeded this amount and are not anticipated to do so. Even though three firms will be selected to provide the services, the total amount paid to all firms will not exceed $50,000 , combined.

DISCUSSION
The Building and Safety Division of the City issues permits, provide plan check services and inspections to all privately funded construction projects in the City. The division has five staff members. Since November 11, 2017, the division has contracted with Infrastructure Engineers, Inc., located in the City of Brea, to provide plan check and inspection services on an as -needed basis. These services are utilized when City staff members are out on leave or when workloads exceed a level that prevent the ability to respond and provide timely services. The current service agreement between the City and Infrastructure Engineers expires November 22, 2022.

OBJECTIVE
With the current staffing shortage experienced throughout the industry, Building and Safety is looking to select three firms to provide the aforementioned services. The goal is to solicit temporary staffing from each of the firm until the need is filled. In other words, if one firm does not have an inspector available, we can approach the second or third approved firm to secure the inspection services.

SELECTION OF QUALIFIED FIRMS
On August 15, 2022, staff issued a Request for Proposals (RFP) for As-Needed Building Plan Check and Inspection Services. On September 15, 2022, proposals were received from the following 13 firms:

Consultant Location
4LEAF, Inc. Newport Beach, CA
BPR Consulting Group Palos Verdes Estates, CA
Bureau Veritas Pasadena, CA
CSG Firms, Inc. Orange, CA
HRGreen Corona, CA
Infrastructure Engineers Brea, CA
Interwest Consulting Group Ontario, CA
JLee Engineering, Inc. Alhambra, CA
RKA Consulting Group Walnut, CA
TRANSTECH Engineers, Inc. Chino, CA
TRB + Associates Long Beach, CA
VCA Firms, Inc. Orange, CA
Willdan Industry, CA

The proposals were evaluated by a panel of three staff members consisting of the Building Official, the Associate Planner, and the Associate Civil Engineer. Each proposal was evaluated using the criteria listed below . Each criterion was assigned a weighted point value with a summation of the points representing the final score for the firm. The three firms were selected based on the average score each received from the evaluation.

1. Understanding and approach of objectives as detailed in the scope of services

2. Relevant experience and reputation of the firm as characterized by performance in projects of similar work as detailed in the scope of services

3. Qualifications, experience, and credentials of key personnel assigned to project

4. Experience with Local, Federal, and State procedures

5. Consultant’s proposed schedule of costs

6. Ability to adapt to the Building and Safety's operation

LEGAL REVIEW
None Required

ALTERNATIVES
The City Council may decide to reject all proposals and execute a new service agreement with Infrastructure Engineers.

ATTACHMENTS
None
ITEM NO. 7

STAFF REPORT

TO: Honorable Mayor and Members of the City Council
FROM: Manuel Carrillo Jr., Director of Recreation & Community Services DATE: October 5, 2022
SUBJECT: Nomination to Name the Community Room at the Serenity Homes

SUMMARY
The purpose of this staf f report is to consider the nomination to name the community room at the Serenity Homes.

RECOMMENDATION
Staff recommends that City Council consider the nomination to name the community room at the Serenity Homes.

FISCAL IMPACT
There is no fiscal impact to the General Fund at this time.

BACKGROUND
At their September 21, 2022, City Council Meeting , at the request of City N et with City Council consensus, directed staff to present at a subsequent meeting to consider the nomination to name the community room at the Serenity Homes after IKEA-Los Angeles Market.

Serenity Homes is a family interim housing tiny home site that consists of 16 modular units with locking doors, l ighting, air conditioning, heating, and electrical out lets. The site also contains restr ooms, showers, and laundry facilities as well as a communal meal space offering residents increased access to hygiene and a sense of community. An on-site computer room is available to facilitate homework and job training. Ci ty Net will provide on -site sup portive services such as case management, 24 -hour security, health and mental health services, and three (3) meals daily. The project is intended to serve as temporary bridge housing for an average anticipated family size of three (3) individuals, and capacity to serve larger families in two units for approximately three (3) to six (6) months before placement into permanent housing. City Net, an experienced service provider was successful in leveraging community partnerships within their network to assist t he project with a comprehensive donation for all furniture and interior designing services at the site.

Each 144 -square-foot Boss Cubez family module is fully furnished w ith a curated selection of IKEA furniture and accesso ries. IKEA also contributed wit h the furnishings for each of the units by assisting with interior design services to maximize every inch of the 144 -square-foot interiors with a final layout that includes twin bunk beds, a full sofa bed with underbed storag e, a 6 -drawer dresser , full -length mirror, corkboard, closet shelves and a shoe rack – valued at nearly $30,000. Staff from nearby IKEA stores also provided in-kind support by assembling the furniture within the units. We cannot thank IKEA enough for their generosity, for being a good neighbor and for demonstrating a genuine commitment to local communities. Therefore, we would like to request the naming of the community room as the IKEA – Los Angeles Market in grateful appreciation for their generous donation to Serenity Home s and for supporting our unhoused families. Presented before you is the nomination for City Council to consider the naming of the community room element of the Serenity Homes Project pursuant to the City -Wide Naming Policy.

ALTERNATIVES
The alternative is not to consider the nomination to name the community room element of the Serenity Homes Project.

LEGAL REVIEW
None required.

ATTACHMENT

1. Facility Naming Application

2. City-Wide Naming Policy

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City of Baldwin Park
Department of Recreation and Community Services
Application for Dedication and Naming
of Facilities and Parks

Applicant Information
Name: City Ne t (at the City Council Study Session Meeting on September 21, 2022 ) via Recreation a nd Community Services Department
Address: 4100 Baldwin Park Blvd. Baldwin Park, CA, 91706 Phone: (626) 813-5269
Email: [email protected]

My Recommendation is for: Naming a New Park or Recreation Facility Renaming Existing Park or Recreation Facility
Naming / Renaming a Portion of a New or Existing Park or Recreation Facility

Proposed Name of Park or Recreation Facility: IKEA-Los Angeles Market Community Room

Location / Property Description of Park or Recreation Facility: Community Room at Serenity Homes (Interim Family Housing Site) located at 13167 Garvey Ave. Baldwin Park, CA 91706 Current Name of Park or Recreation Facility (if applicable): Serenity Homes

Classification of Proposed Name (Check all that apply):

Historical Significance to Location
(e.g. historical event, landmark, person, or group of major significance to region/location) Commonly Recognized by Neighbors or Residents
Compliments the Theme of the Location, Neighborhood or Surrounding Area Deceased Individual (deceased for at least 1 year and has long standing affiliation with City)
Group or Organization (requires long-standing affiliation with City of 10 years or more) Other: Community Contribution Program for furniture and interior design se rvices valued at nearly $30,000

Please describe the reason(s) in support of the proposed name or renaming of this Facility (if more room is needed, please attach separate sheet and write “See Attached” below):

Page 2 ends

For recommendation of an Individual (whether deceased or living), please indicate individual’s long-standing affiliation with Baldwin Park (10+ years or more) of significant community service, involvement or contributions. Specifically indicate how this perso n has: (a) Enhanced the quality o f life/well -being of Baldwin Park’s residents, (b) Contributed to the preser vation of the Baldwin Park’s history and culture, (c) Made exemplary or meritorious contributio ns to Baldwin Park or its residents, or (d) Contribu ted to the acquisition, development or conveyance of land, bu ildings, structures or other amenities to the Baldwin Park Community (if more room is needed, please attach separate sheet and write “See Attached” below):

__N/A__________________________________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ Supporting Documentation (Required for recommendations of an Individual’s name):

I have included the following documentation to demonstrate broad-based community support for my recommendation:

Letters
Character references
Newspaper or journal articles
Petitions
Other Documentation:

The following conditions will apply to all Commemorative Dedication and Name Applications:

All applications submitted to the Facility Naming Committee for the purpose of naming or renaming a new or existing park/recreation facility must be filled out completely and accurately with supporting documentation in accordance with and as required by the City of Baldwin Park’s Policy for the Naming, Dedication and Sponsorship of City Facilities and Acceptance of Donations (hereinafter “The Policy”). The Policy is available on the City of Baldwin Park’s website, which can be found at www.baldwinpark.com and/or hard copies may be requested from the Recreation and Community Services Department.

The naming or renaming of a park or recreation facility will be considered only through this application process.

Incomplete, illegible and/or fraudulent applications will not be considered. The City of Baldwin Park, and Recreation and Community Services, reserves the right to verify the identity of the Applicant submitting this application to ensure its validity.

The Baldwin Park City Council will have the final decision as to the naming/renaming of a park or recreation facility and reserves the right to reject any and all proposed names and/or applications submitted for consideration.

Signature of Applicant: Verbal nomination at Study Session City Council Meeting on 9/21/22 Date of Submission:
9/26/22.

Return Completed Application Packets To:

City of Baldwin Park
Department of Recreation Community Services Department
4100 Baldwin Park Blvd.

Baldwin Park, CA 91706
Facility and Street Naming

Page 1 of 4 ends

CITY OF BALDWIN PARK

CITY-WIDE NAMING POLICY

PURPOSE: To establish uniform procedures for the naming or renaming of City Facilities and Streets to enhance the sense of honor and legacy in the City of Baldwin Park.

GENERAL POLICY
The following guidelines have been established to provide for a consistent procedure in the naming or renaming of City Facilities/Streets.

PROVISIONS

A. General Guidelines

1. The City Council shall have the final authority to name and rename all City Facilities/Streets.

2. The City Council shall have the final authority to designate the CEO or an appointee to create a committee for review and commemoration of Facilities/Street names and commemorative plaques and monuments.

3. Under extraordinary circumstances, the City Council may, with a majority vote of City Councilmembers, revoke the current name of any Facility/Street.

4. It is the intent of this policy to prohibit the changing of street names that have existing homes or businesses using the street name in their address, except under extraordinary circumstances with a majority vote of City Councilmembers.

5. No Facility/Street shall be named after a current seated elected or appointed official, until one year has passed, after the completion of term.

6. No Facility/Street/Monuments shall be named more than once after an individual or organization.

B. Qualifications for Naming of City Facilities

1. Qualifying criteria include the following:

a. City controlled Facilities may be named or renamed after any group, individual, or family, living or deceased that has made significant and substantial contributions of a service, cultural or historic nature to the City of Baldwin Park, as determined by the City Council’s designated public input process. Said contributions do not have to be financial in nature; they may include extensive service and / or support the City organization of the community in general.

b. The area in which the honoree made the most contribution should be considered when determining which Facility will be named after that person or group. That is, when possible, there should be a correlation between the service provided by the honoree and the Facility.

Facility and Street Naming

Page 2 of 4 ends

c. No Facility shall be named or renamed after a deceased individual until at least one (1) year has passed. This qualification is appropriate to establish a waiting period to ensure that an individual’s accomplishments and contributions will stand the test of time; and that decisions shall not be made on an emotional basis immediately following a person’s death.

d. When determining whether to rename a Facility, the party making the determination shall consider all factors he / she / they deem relevant, including whether some or all of the following accurately describe the person or organization for whom the Facility is proposed to be renamed:

i. The person or organization made lasting and significant* contributions to the protection of natural or cultural resources of the City of Baldwin Park; or

ii. The person or organization made substantial* contributions to the betterment of a specific Facility /Street consistent with the established standards for the Facility/Street; or

iii. The person or organization made substantial* contributions to the advancement of recreational opportunities with the City of Baldwin Park; or

iv. The person or organization was associated with an economic development or redevelopment activity; or

v. The person or organization had a positive impact on the lives of Baldwin Park’s residents; or

vi. The person or organization volunteered for ten (10) or more years of service to the community; or

vii. Upon the naming or renaming of a Facility, the name shall not be used for any other dedication or renaming.

viii. The City Council, in its sole and unlimited discretion, may remove or change the name of any Facility at any time, unless contractually obligated otherwise.

*Additional information as to how / why the contribution of the individual or organization was significant or substantial may be required.

C. Naming Criteria

1. Streets

a. Names for streets shall be unique and distinct. Similar sounding or duplicate street names shall not be considered

Facility and Street Naming

Page 3 of 4 ends

b. Street names shall be selected to either recognize natural features related to the Baldwin Park community or to recognize a person or organization that have made a lasting and significant contribution to the betterment of the City of Baldwin Park.

c. Names with the same theme are suggested for naming streets in an entire subdivision, as a means of general identification.

d. Discriminatory or derogatory names shall not be allowed.

e. For the purposes of this policy, the changing of street names that have existing homes or businesses using the street name in their address shall not be allowed, except under extraordinary circumstances with a majority vote of City Councilmembers.

2. City Facilities

a. For purposes of this Subsection C.2, City facilities refer to parks, buildings, or recreational facilities.

b. For new City facilities, the naming process shall begin as early in the project as possible.

c. City facility names shall be selected to either recognize natural features related to the Baldwin Park community or to recognize a person or organization that made a lasting and significant contribution to the betterment of the City of Baldwin Park.

d. Areas within City facilities that may be named separately from the main building include points of entry; rooms / patios within a City building; facility features (such as a column or fountain); walkways; trails, recreational facilities (such as group picnic areas, sports fields, water features, or park monuments); drive- ways; or other related items.

3. Commemorative Street signs, Plaques and Monuments

a. Commemorative street name signs are additions to the street name and will not change the street address. Existing street names shall be retained and a supplemental sign or plaque shall be installed beneath the existing street name signage. Names for the commemorative street name signs shall be selected to either recognize natural features related to the Baldwin Park community or to recognize a person or organization that have made a lasting and significant contribution to the betterment of the City of Baldwin Park.

b. Commemorative plaques shall be placed in public facilities or on monuments .

Names for the commemorative plaques shall be selected to recognize a person or organization that has made a lasting and significant contribution to the betterment of the City of Baldwin Park. Plaques may be used to id entify a particular room, lobby, bench or designated area.

Facility and Street Naming

Page 4 of 4 ends

D. Application Procedure:

1. Requests for naming and / or changing the name of a City Facility shall be gin by being submitted to the C EO’s o ffice in writing on the City’s Facility Naming Application Form. If the proposed Facility is in recognition of a person or organization, the applicant is required to provide clear evidence that the person or organization to be honored has made a significant and lasting contribution to the betterment of the City of Baldwin Park.

2. All submittals, whether from an individual, organization or City staff, must include the name and address of the submitter. No anonymous submittals will be accepted.

3. Upon receipt of the application, the CEO or his / her designee shall review the application. If the proposed Facility to be named / renamed is connected or associated with a park, the CEO or his / her designee shall provide the Facility Naming Application Form to the Director of Recreation and Community Services for public input & review. The Recreation Commission shall assist in the process, and then and render a recommendation to the City Council regarding the proposed name / rename.

4. Following that review, the CEO or his / her designee shall place the proposed facility naming / renaming item on a future City Council agenda for formal review and consideration by the City Council. If the request is denie d by the City Council, no further action is taken. If the City Council approves the request, staff shall be directed to go forward with implementing the naming of the Facility. The steps taken to implement the request will be developed as an internal City process. The decision of the City Council will be final.

ITEM NO. 8

STAFF REPORT

TO: Honorable Mayor and Members of the City Council FROM: Manuel Carrillo Jr., Director of Recreation & Community Services DATE: October 5, 2022
SUBJECT: Esperanza Villa Tiny Homes Pilot Program Status Report

SUMMARY
The purpose of this staff report is to provide a n update for the Esperanza Vi lla Tiny Homes P ilot Project.

RECOMMENDATION
Staff recommends that the City Council receive and file this report.

FISCAL IMPACT
There is no fiscal impact to the City at this time.

BACKGROUND
At their September 2 1, 2022 , City Counc il Study Session Councilmember Paul C. Hernandez with council consensus, requested an update for the Esperanza Villa Tiny Homes Pilot project.

In November 2021, the City of Baldw in P ark and San Gabriel Valley Regional Housing Trust (SGVRHT), in partnership with the San Gabriel Valley Council of Governments , opened Esperanza Villa tiny home bridge housing site. The interim housing for in dividuals experiencing homelessness with a local preference was created with funding sources from the State Budget Earmark and Measure H, in coordination by the SGVRHT, in partnership with the San Gabriel Valley Council of Governments. The San Gabriel Valley’s fir st tiny home villag e provides 25 units of br idge housing paired with on -site security, supportive services and 3 meals a day. The site is operated by Volunteers of America Los Angeles (VOALA), a supportive services provider that provides case management, j ob training, and co nnection to additional se rvices. On site amenities include shared restroom and showers, laundry room, dog run, and outdoor picnic areas. Each unit also provides heat, air-conditioning, a bed, a desk, and electrical outlet. Potential resi dents are referred by Union Station Homeless Services-SPA 3 lead service provider, LAHSA, Baldwin Park PD, and City Housing staff.

The tiny home pilot program was developed to help cities meet the immediate needs of individuals experiencing homelessness. Since its opening, Esperanza Villa has provided residents a safe, comfortable place to live while they wait to transition to permanent housing. A total of seven (7) residents have been successfull y placed in permanent housing . While several participants are currently holding housing vouchers and wor king with case managers to find an apartment unit. The remaining are working on alternative housing plans.

The image below indicates how the process for bridge/interim housing works:

Client Income Sources:

Supplemental Sec urity In come (SSI) , $841 month ly to meet basic needs for food, clothing and shelter. General Relief (GR), $221 monthly in cash aid . CalFresh (food stamps), $250 monthly on an EBT card . Clients receiving SSI and CalFresh may be able to support rent, especia lly in a shared housing model . Clients receiving GR and CalFresh require additional subsidy such as a housing voucher.

Types of housing subsidy include permanent and temporary solutions:

Permanent- Section 8 Housing Choice Voucher s, where clients may move into any unit that accepts Section 8 vouchers; client may take this voucher with them . Emergency Voucher (EHV) , provides voucher that will stay with t he tenant . Project Based Voucher (PBV ) is a t ype of voucher/subsidy stays with the unit and clients are matched to the unit. The temporary subsidy allows for time limited subsidy programs with temporary rental assistance or rapid rehousing (program ended June 2022).

Homeless System Challenges:
• Credit checks are required for units.
• Mismatch between voucher maximum and market rent
➢ Studio: $1,506
➢ 1 bedroom: $1,766; average rent for a 1-bedroom apartment is $1,800 • Transition between rapid rehousing program and new LAHSA program • Long waits for EHV clients to be matched by LAHSA
➢ 70,000 vouchers nationally
➢ 6,000 between LA County and LA City
➢ 43 vouchers issued to Baldwin Park Housing Authority
➢ Although Baldwin Park has its own housing authority, client referrals are matched through LAHSA
o Referred through HMIS to LAHSA; LAHSA refers applicants to housing authoriti es; HA confirms eligibility and issues vouchers
o 17 currently looking in BP area
o HUD waiver 120% of Fair Market Rate
• Need for additional housing navigation and landlord outreach • Need to increase income for non-voucher holders

Esperanza Villa Figures:
• 29% or Seven (7) clients have successfully exited to Permanent Housing Placements • Four (4) clients expected to be housed in the next 30 days ➢ Twenty-one or 83% of clients have applied for Emergency Housing Vouchers (EHV), while 32% confirmed placement on the wait list
➢ 20% of clients have voucher in hand and searching for permanent housing ➢ 20 participants on the waiting list for the site
• Twelve (12) or 48% of clients are on General Relief, $221 monthly in cash aid • Nine (9) or 36% of clients are on Supplemental Security Income (SSI), $841 monthly to meet basic needs for food, clothing and shelter
• Three (3) or 12% of clients are employed
• 40% of the clients are seniors
• 40% of the clients are female
• Year to Date Forty-Nine (49) clients served
• Year to Date Twenty-Four (24) alternative exits
• Calls for service in the area from Police have reduced since the site opened

Success Stories and Celebrations
The first Esperanza Villa resident placed in permanent housing was a 76 -year-old woman who had been homeless on and of f since 2014. After staying at th e tiny homes site for about 3 months, she is no longer homeless. The second client connected to permanent housing was also a senior woman.

She spent 4 months at Esperanza Villa before receiving a County Housing Choice Voucher.

Clients living at Esperanza Villa also celebrated holidays and events including:
• Thanksgiving Lunch
• Christmas Gift Cards (Senator Rubio)
• Christmas Luncheon & Dinner
• Valentine’s Day Gift Boxes
• Easter Egg Hunt
• Birthday Celebrations
• Bingo

Collaboration and Additional Funding Opportunities:
• Monthly collaborative meetings with housing partners, SGVRHT, and City to streamline housing plan processes
• SGVCOG landlord incentives and homeless programs
• Baldwin Park Housing Authority has supported expedited clien t connection to Emerge ncy Housing Vouchers
• The SGVCOG is launching a workforce development program at the sites:
➢ Goodwill
➢ God’s Pantry
• The SGVCOG launched Village 143 which collects donations that support the tiny home sites • Beginning August 31, 2022 , BP Housing Authority can increase pay ment standards to 120% Fair Market Rent, studio: $1,660 one-bedroom: $1,924
• The Baldwin P ark Charitable Relief Foundation has move -in funds available for clients 55+ through a grant from Kaiser Permanente
• Year two ( 2) operational f unding for Esperanza Vill a has been secured through Cities and Councils of Governments Interim Housing Services (CCOGIHS) Fund . The SGVRHT and SGVCOG are currently seeking a Site Operator to update the Operations and Serv ices Plan (Plan) for Esperanza Villa, a 25-unit tiny home br idge housing site in the City the Baldwin Park (City), and operate the site according to the Plan . The Request for Proposals was opened for bid on September 12, 2022 and closed on October 3, 2022. Year two (2) will operate from November 2022 through November 2023.

ALTERNATIVES
There is no alternative.

LEGAL REVIEW
No legal review required.

ATTACHMENTS
None

STAFF REPORT
ITEM NO. ________9_________

TO: Honorable Mayor and Members of the City Council
FROM: Sam Gutierrez, Director of Public Works
DATE: October 5, 2022
SUBJECT: Approve Final Parcel Map No. 83651 to Subdivide One (1) Lot into Two (2) Lots

SUMMARY
This report requests that the City Council authorize the approval of the Final Parcel Map 83651 pursuant to the State Subdivision Map Act and Section 152.09 of the City of Baldwin Park’s Municipal Code.

RECOMMENDATION
Staff recommends that the City Council accept the Final Parcel Map No. 83651 and authorize the City Clerk and staff to sign the Final Map.

FISCAL IMPACT
The approval of this Parcel map will have no impact to the City’s General Fund.

BACKGROUND
The subject property is currently comprised of one Parcel (APN: 8555-019-002) and is located near the southeast corner of the intersection of Bess Avenue and Syr acuse Avenue. On March 22, 2022, the Planning Commission approved Tentative Parcel Map No. 83651, to Subdivide one (1) lot into two (2) lots, to facilitate the creation of two single family residential lots within the R-1 zone pursuant the City’s Municipal Code Table 153.040.030. Engineering staff has reviewed the Final Map and finds that it substantially conforms to the TPM-83651conditions of approval.

ALTERNATIVES
A Final Parcel Map that is in substantial compliance with the previously approved tentative map cannot be denied approval (Government Code §66474.1). Further, if the Final Parcel Map is not approved at the first meeting or at the subsequent meeting from when the Final Parcel Map was presented for approval and the map is in conformance with the requirements of the Subdivision Map Act, the map will be deemed approved without any further action by the City Council (Government Code §66458).

Since the Final Parcel Map is both in substantial compliance with the previously approved tentative map and it is in conformance with the requirements of the Subdivision Map Act, there is no alternative but to approve.

LEGAL REVIEW
This report has been reviewed and approved by the City Attorney as to legal form and content.

ATTACHMENTS

1. Los Angeles County Assessor’s Map

2. Final Parcel Map No. 83651

3. Resolution 22-03

PM 83651

ITEM NO. _______10________

STAFF REPORT

TO: Honorable Mayor/Chair and Members of the City Council for the City of Baldwin Park and Housing Authority
FROM: Rose Tam, Director of Finance
DATE: October 5, 2022
SUBJECT: APPROVE THE PUN GROUP LLP TO PROVIDE

INDEPENDENT PROFESSIONAL ANNUAL AUDIT SERVICES

SUMMARY
The purpose of this staff report is to request the City Council to approve The Pun Group LLP for independent professional annual audit services.

RECOMMENDATION
Staff recommends that the City Council:

1. Approve The Pun Group LLP to provide independent professional annual financial audit services for the next three fiscal years ending June 30, 202 4, with an option to extend an additional two one-year periods ending June 30, 2025 and 2026, respectively; and

2. Authorize the CEO to sign the audit engagement letter subject to review and approval b y the City Attorney.

FISCAL IMPACT
There is projected savings with selecting The Pun Group LLP for the audit services. Audit services are currently budgeted in the FY 2023 adopted budget.

BACKGROUND
The City is required to have its financial records, transactions, procedures and policies audited on an annual basis by an independent audit firm. It is recommended by the Government Accounting Standards Board (GASB), which sets up the procedures for governmental agency audits and reports, that the local government agency should change audit firms every 5 to 7 years and consider using a different firm. Last year the City issued an RFP and selected Eide Bailly LLP from t he responding firms which came in with the lowest bid. Due to the continued and additional fee increase for the current and fu ture audits, staff is recommending The Pun Group LLP that was r anked #2 from last year’s RFP process to provide audit services as stated in the above recommendation.

The scope of audit services includes a financial audit and preparation of the financial statements which includes (but not limited to) the following:

• City of Baldwin Park, includ ing the preparation of the City’s Annual Comprehensive Financial Report (ACFR);
• Preparation of Annual State Controller’s Report and Street Report for the City; • A Single Audit of Federal grants to be performed to meet the requirements of the U.S. Office of Management and Budget (OMB) Circular A-133;
• An agreed-upon procedures review of the calculation of the City’s Appropriation Limit (GANN), as required by Section 1.5 of Article XIIIB of the California Constitution; • A management letter containing any comme nts or recommendations resulting from t he firm’s review of the systems of internal controls in connection with financial audits; and • A report communicating information related to the audit to those in charge of governance at the conclusion of the audits.

2 Below is the summary of proposed audit fees from The Pun Group LLP and they are committed to provide the said services at the fee structure stated:

FY2022 FY2023 FY2024 FY2025 FY2026
71,000$ 73,130$ 75,324$ 77,584$ 79,911$
Fee Schedule - Fiscal Year Ending June 30th
Optional

ALTERNATIVE
City Council may direct staff to search for other firms which will further delay the audit process.

LEGAL REVIEW
The City Attor ney has reviewed this report , the attached audit proposal letter and audit engagement letter from The Pun Group LLP.

ATTACHMENT

1. The Pun Group LLP audit proposal letter.

2. The Pun Group LLP audit engagement letter.

200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707

September 28, 2022

Ms. Rose Tam
Director of Finance
City of Baldwin Park
14403 E. Pacific Ave
Baldwin Park, CA 91706

Dear Ms. Tam:

First of all, thank you so much for reaching out and reconsidering our qualifications and audit work plan for the City of Baldwin Park for the Professional Auditing Services for the fiscal years ending June 30, 2022 through June 20, 2024, with the option to extend for additional two years. The Pun Group LLP (the “Firm”) has the knowledge and
experience necessary to become the City’s next public accounting firm, and the work plan to ensure a smooth audit process.

Our proposed fees
(1) for Professional Auditing Services for the fiscal years ending June 30, 2022 through June 20, 2024, with the option to extend for additional two years are as follows:

2022 2023 2024 2025 2026
Services
City Annual Comprehensive Financial
Report and Related Reports
53,000$ 54,590 $ 56,228 $ 57,915 $ 59,652 $ Single Audit - up to 3 Major Programs 12,500 12,875 13,261 13,659 14,069 GANN Limit Report 500 515 530 546 563 Annual State Controller's Report - City 3,500 3,605 3,713 3,825 3,939 Annual State Controller's Report - Street 1,500 1,545 1,591 1,639 1,688 Total for Fiscal Year (not to exceed) 71,000$ 73,130 $ 75,324 $ 77,584 $ 79,911 $ Fiscal Year Ending June 30th
Option

(1) Above Single Audit, fees are based on 3 (three) major programs. The fee for auditing additional major programs will be $5,000 each. The number of programs determined to be "major" will be based on OMB Uniform Guidance. The Engagement Team will discuss with the City's Management before starting Single Audit work.

City of Baldwin Park
September 28, 2022

Page 2 ends

We are committed to provide the said services at the fee structure stated. Additional services provided beyond the prescribed scope of services will be billed separately. We will proceed with advance communication and agreement with the City. Below is the hourly billing rates, delineated by staffing level:

Auditor’s Standard Hourly Billing Rates
Position Hourly Rate
Partner(s) $300
Manager(s) $250
Supervisor(s) $175
Senior Accountant(s) $150
Staff Account(s) $125
Our commitment to se
rving the City of Baldwin Park cannot be adequately conveyed in a letter, and I look forward to continuing the discussion with you. As the Managing Partner of the Firm, I’m assigned as your primary contact for contract negotiations. I’m also authorized to legally bind the Firm. Should you have any questions or wish to discuss this proposal, please do not hesitate to contact me at (949) 777-8801 or by email at [email protected].

Sincerely,
Kenneth H. Pun, CPA, CGMA | Managing Partner

200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707

September 28, 2022

City of Baldwin Park
14403 E. Pacific Ave
Baldwin Park, CA 91706

RE: Engagement of The Pun Group, LLP (the “Firm”)

We are pleased to confirm our understanding of the services we are to provide the City of Baldwin Park, California (the “City”) for the year ending June 30, 2022.

Audit Scope and Objectives

We will audit the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, including the related notes to the financial statements, which collectively comprise the basic financial statements, of the City as of and for the year ending June 30, 2022.

Accounting standards generally accepted in the United States of America (GAAP) provide for certain required supplementary information (RSI), such as management’s discussion and analysis (MD&A), to supplement the City’s basic financial statements. Such informa tion, 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. As part of our engagement, we will apply certain limited procedures to the City’s RSI in accordance with auditing standards generally accepted in the United States of America (GAAS). These limited procedures will consist of inquiries of management regarding 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 will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient appr opriate evidence to express an opinion or provide any assurance. The following RSI is required by GAAP and will be subjected to certain limited procedures, but will not be audited:

1) Management’s Discussion and Analysis
2) Budgetary Information
3) Budgetary Comparison Schedules – General Fund and Major Special Revenue Funds 4) GASB Statement No. 68 Required Schedules
5) GASB Statement No. 75 Required Schedules

We have also been engaged to repor t on supplementary information other than RSI that accompanies the City’s financial statements. We will subject the following supplemen tary information to the auditing procedures applied in our audit of the financial statements and certain add itional 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 GAAS, and we will provide an opinion on it in relation to the financial statements as a whole in a report combined with our auditor’s report on the financial statements.

1) Schedule of Expenditures of Federal Awards
2) Combining and Individual Fund Financial Statements
3) Budgetary Comparison Schedules – All Other Adopted Funds City of Baldwin Park
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September 28, 2022

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In connection with our audit of the basic financial statements, we will read the following other information and consider whether a material inconsistency exists between the other information and the b asic financial statements, or the other information otherwise appears to be materially misstated . If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 1) Introductory Section
2) Statistical Section
The objectives of our audit are to obtain reasonable a
ssurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and issue an auditor’s report that includes our opinions about whether your financial statements are fairly presented, in all material respects, in conformity with GAAP, and report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment of a reasonable user made based on the financial statements. The objectives also include reporting on:
 Internal control over financial reporting and compliance with provisions of laws, re gulations, contracts, and award agreements, nonco
mpliance with which could have a material effect on the financia l statements in accordance w
ith Government Auditing Standards.
 Internal control over compliance related to major programs and an opinion (or disclaimer of opinion) on compliance with federal statutes, regulations, and the t erms and conditions of federal awards that could have a direct and material eff
ect on each major program in accordance with the Single Audit Act Amendments of 1996 and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

Auditor’s Responsibilities for the Audit of the Financial Statements and Single Audit We will conduct our audit in accordance with GAAS; the standa rds for financia l audits contained in Government Auditing Standards, issued by the Comptroller General of the Unite d States; the Single Audit Act Amendments of 1996; and the provisions of the Uniform Guidance, and will include tests of accounting records, a determination of major program(s) in accordance with Uniform Guidance, and other procedures we consider necessary to enable us to express such opinions. As part of an audit in accordance with GAAS and Government Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit.

We will evaluate the appropriateness of accounting polic ies used and the reasonableness of significant accounting estimates made by management. We will al so evaluate the overall presentation of the financial statements, including the disclosures, and determine whether the financial statemen ts represent the underlying transactions and events in a manner that achieves fair presentation. We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of a
ssets, or (4) violations of laws or governmental regulations that are attributable to the government or to acts by management or
employees acting on behalf of the government. Because the determination of waste
and abuse is subjective, Government Auditing Standards do not expect auditors to perf orm specific procedures to detect waste or abuse in financial audits nor do the y expect auditors to provide reas onable assurance of detecting waste or abuse.

Becaus
e of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transacti ons, there is an unavoidable risk that some material misstatements or noncompliance may not be detected by us, even though the audit is properly planned and performed City of Baldwin Park
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in accordance with GAAS and Government Auditing Standards . In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements or on major programs. However, we will inform the appropria te level of management of any material errors, any fraudulent fina ncial reporting, or misappropriation of assets that come to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. We will include such matters in the reports required for a Single Audit.

Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors.

We will also conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the government ’s ability to continue as a going concern for a reasonable period of time.

Our procedures will include tests of documentary evidence s upporting the transactions recorded in the accounts, tests of the physical existence of inventories, and direct confirmation of receivables and certain assets and liabilities by correspondence with selected individuals, funding sources, cr editors, and financial institutions. We will also request written representations from your attorneys as part of the engagement.

We have identified management override of controls as a significant risk of material misstatement. As planning for the current period audit has not concluded, modifications may be made. If new significant risks are identified after the date of this letter, we will communicate them in writing to those charged with governance in a timely manner.

We may, from time to time and depending on the circumst ances, use third-party service providers in serving your account. We may share confidential information about yo u with these service providers but remain committed to maintaining the confidentiality and security of your info rmation. Accordingly, we maintain internal policies, procedures, and safeguards to protect the confidentiality of your personal information. In addition, we will secure confidentiality agreements with all service providers to main tain the confidentiality of your information and we will take reasonable precautions to determine that they have appropriate procedures in place to prevent the unauthorized release of your confidential information to others. In the event that we are unable to secure an appropriate confidentiality agreement, you will be asked to provide your consent prior to the sharing of your confidential information with the third-party service provider. Furthermore, we will remain responsible for the work provided by any such third-party service providers.

Our audit of financial statements does not relieve you of your responsibilities.

Audit Procedures—Internal Control

We will obtain an understanding of the government and its environment, including internal control relevant to the audit, sufficient to identify and assess the risks of material misstatement of the financial statements, whether due to error or fraud, and to design and perform audit procedures responsive to those risks and obtain evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud ma y involve collusion, forgery, intentional omissions, misrepresentation, or the override of inte rnal control. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial stat ements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards.

As required by the Uniform Guidance, we will perform tests of controls over compliance to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or de tecting material noncompliance City of Baldwin Park
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with compliance requirements applicable to each major federal award program. However, our tests will be less in scope than would be necessary to render an opin ion on those controls and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to the Uniform Guidance.

An audit is not designed to provide assu rance on internal control or to identif y significant deficiencies or material weaknesses. Accordingly, we will express no such opinion . However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards, Government Auditing Standards, and the Uniform Guidance.

Audit Procedures—Compliance

As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the City’s compliance with provisions of applicable laws, regulations, contracts, and agreements, including grant agreements. However, the objective of tho se procedures will not be to provide an opinion on overall compliance, and we will not express such an opini on in our report on compliance issued pursuant to Government Auditing Standards.

The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with federal statutes, regulations, and the terms and conditions of federal awards applicable to major programs. Our procedures will consist of tests of transactions and other applicable procedures described in the OMB Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of the City’s major programs. For federal program s that are included in the Compliance Supplement, our compliance and internal control procedures will relate to the compliance requirements that the Compliance Supplement identifies as being subject to audit. The purpose of these procedures will be to express an opinion on the City’s compliance with requirements applicable to each of its major programs in our report on compliance issued pursuant to the Uniform Guidance.

Other Services

We will also assist in preparing the financial statements and related notes of the City in conformity with U.S. generally accepted accounting principles and preparing the State Contro ller’s Report and Street Report based on information provided by you. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. We will perform the services in accordance with applicable professional standards. The other services are limited to the financial statements and related notes, services previously defined. We, in our sole professi onal judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities.

You agree to assume all management responsibilities relating to the financial statements and related notes, and any other nonaudit services we provide. You will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements a nd related notes, prior to their issuance and have accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating an individual, preferably from senior management, with suitable skill, knowledge, or ex perience; evaluate the adequacy and results of those services; and accept responsibility from them.

Responsibilities of Management for the Financial Statements and Single Audit

Our audit will be conducted on the b asis that you acknowledge and understand your responsibility for (1) designing, implementing, establishing, and maintaining effective internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstat ement, whether due to fraud or error, including internal controls over federal awards, and for evaluating and monitoring ongoing activities to help ensure that appropriate goals and objectives are met; (2) following laws and regulations ; (3) ensuring that there is reasonable assurance that City of Baldwin Park
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government programs are administered in compliance with compliance requi rements; and (4) ensuring that management and financial in formation is reliable and pr operly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles; for the preparation and fair presentation of the financial statements, schedule of expenditures of federal awards, and all accompanying information in conformity with accounting principles ge nerally accepted in the United States of America; and for compliance with applicable laws and regulations (including federal statutes), rules, and the provisions of contracts and grant agreements (including award agreements). Your res ponsibilities also include identifying significant contractor relationships in which the contractor has responsibility for program compliance and for the accuracy and completeness of that information.

You are also responsible for making drafts of financial st atements, schedule of expenditu res of federal awards, all financial records, and related informa tion available to us and for the accuracy and completeness of that information (including information from outside of th e general and subsidiary ledgers). You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, iden tification of all related pa rties and all related-party relationships and transactions, and other matters; (2) access to personnel, accounts, books, records, supporting documentation, and other information as needed to perform an audit under the Uniform Guidance; (3) additional information that we may request for the purpose of the a udit; and (4) unrestricted acc ess to persons within the government from whom we determine it necessary to obtain a udit evidence. At the conclusion of our audit, we will require certain written representations from you about the fi nancial statements; schedule of expenditures of federal awards; federal award programs; compliance with laws, re gulations, contracts, and grant agreements; and related matters.

Your responsibilities include adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements of each opinion unit taken as a whole.

You are responsible for the design and implementation of pr ograms and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecti ng the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the government complies with applicable laws, regulations, contracts, agreements, and grants. You are al so responsible for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, contracts, and grant agreements that we report.

Additionally, as required by the Uniform Guidance, it is management’s responsibility to evaluate and monitor noncompliance with federal statutes, regul ations, and the terms and conditions of federal awards; take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings; promptly follow up and take corrective action on reported audit findings; and prepare a summary schedule of prior audit findings and a separate corrective action plan.

You are responsible for identifying all federal awards received and understanding and complying with the compliance requirements and for the preparation of the schedule of expenditures of federal awards (including notes and noncash assistance received, and COVID-19-related concepts, such as lo st revenues, if applicable) in conformity with the Uniform Guidance. You agree to include our report on the schedule of expenditures of federal awards in any document that contains, and indicates that we have reported on, the schedule of expenditures of federal awards. You also agree to make the audited financial statements readily available to intended users of the schedule of expenditures of federal awards no later than the date of the schedule of expenditures of federal awards is issued with our report thereon. Your responsibilities include acknowledging to us in the written representation letter that (1) you are responsible for City of Baldwin Park
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presentation of the schedule of expenditures of federal awards in accordance with th e Uniform Guidance; (2) you believe the schedule of expenditures of fe deral awards, including its form and cont ent, is stated fairly in accordance with the Uniform Guidance; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for su ch changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the schedule of expenditures of federal awards.

You are also responsible for the preparation of the other Su pplementary Information, which we have been engaged to report on, in conformity with U.S. generally accepted accoun ting principles. You agree to include our report on the supplementary information in any document that contains and indicates th at we have reported on the Supplementary Information. You also agree to includ e the audited financial statements with any presentation of the supplementary information that includes our report thereon. Your r esponsibilities include acknowledging to us in the written representation letter that (1) you are responsible for presentation of the Supplementary Information in accordance with GAAP; (2) you believe the Supplementary Information, including its form and content, is fairly presented in accordance with GAAP; (3) that the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the Supplementary Information.

Management is responsible for establis hing and maintaining a process for tracki ng the status of audit findings and recommendations. Management is also responsible for identifying and provi ding report copies of previous financial audits, attestation engagements, perfo rmance audits, or other studies related to the objectives discussed in the Audit Scope and Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or studies. You are also responsible for providing manage ment’s views on our current findings, conclusions, and recommendations, as well as your planned corrective actions for the report, and for the timing and format for providing that information.

Assistance by Your Personnel

We will ask that your personnel, to the extent possible, prepare required schedules and analyses, and make selected invoices and other required documents available to our staff. This assistance by your personnel will serve to facilitate the progress of our work and minimize our time requirements.

Data Collection Form

At the conclusion of the engagement, we will complete the appropriate sections of the Data Collection Form that summarizes our audit findings. It is management’s r esponsibility to electronically submit the reporting package (including financial statements, schedule of expenditures of federal awards, summary schedule of prior audit findings, auditor’s reports, and corrective action plan) along with th e Data Collection Form to the federal audit clearinghouse.

We will coordinate with you the electronic submission and certification. The Data Collection Form and the reporting package must be submitted within the earlier of 30 calendar da ys after receipt of the audito r’s reports or nine months after the end of the audit period.

Independence

Professional standards require that a firm and its member s maintain independence throughout the duration of the professional relationship with a client. In order to preserve the integrity of our relationship, no offer of employment shall be discussed with any of Firm’s professionals assigne d to the audit, during the one-year period prior to the commencement of the year end audit. Should such an offer of employment be made, or employment commences during the indicated time period, we will consider this an indica tion that our independence has been compromised. As such, City of Baldwin Park
Engagement Letter
September 28, 2022

Page 7 ends

we may be required to recall our auditors’ report due to ou r lack of independence. In the event additional work is required to satisfy independence requirements, such work will be billed at our standard hourly rates.

Report Distribution and Other

We will provide copies of our reports to the City; however, management is res ponsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection.

Access to Working Papers

The audit documentation for this engagement is the pr operty of The Pun Group, LLP, and constitutes confidential information. However, subject to applicable laws and re gulations, audit documentation and appropriate individuals will be made available upon request and in a timely manner to the Oversight Agency for Audit or its designee, a federal agency providing direct or indirect funding, or the U. S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such a udit documentation will be provided unde r the supervision of The Pun Group, LLP personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies.

The audit documentation for this engagement will be retained for a minimum of seven (7) years after the report release date or for any additional period requested by the Oversight Agency for Audit. If we are aware that a federal awarding agency, pass-through entity, or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation.

The Firm is required to undergo a “peer review” every thr ee years. During the course of a Peer Review engagement, selected working papers and financial reports, on a sample basis, will be inspected by an outside party on a confidential basis. Consequently, the accounting and/or auditing work we performed for you may be selected. Your signing this letter represents your acknowledgement and permission to allow such access should your engagement be selected for review.

Timing

Kenneth H. Pun is the engagement part ner and is responsible for supervising the engagement and signing the reports or authorizing another individual to sign them. We expect to begin our audit on approximately November 1, 2022 and to issue our reports no later than March 31, 2023.

Fee

Our fee for these services will be $71,000 for the year ending June 30, 2022. Our fees are based on certain assumptions, including the required assistance described above. To the extent that certain circumstances arise during the engagement, our fee estimate may be significantly affected and a dditional fees may be necessary. Additional services provided beyond the described scope of services will be billed separately.

Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended if your account becomes 60 days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report(s). You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination.

City of Baldwin Park
Engagement Letter
September 28, 2022

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If the City is required to undergo a single audit in accord ance with the Federal Single Audit Act and the Uniform Guidance, Audits of States, Local Gove rnments, and Not-for-Profit Organizations, there will be an additional fee of $5,000 for each major program in excess of three (3). The number of programs determined to be a major program will be based on the determination required by the Unifor m Guidance and will be discussed with you prior to commencement of any audit work.

The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered dur ing the audit. If significant additiona l time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs.

Reporting

We will issue written reports upon completion of our audit of the City’s financial statements and the Single Audit. Our reports will be addressed to the City Council of the City. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to modify our opin ions, add a separate section, or add an emphasis-of-matter or other-matter paragraph to our auditor’s report, or if necessary, withdraw from this enga gement. If our opinions are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not form ed opinions, we may decline to express opinions or issue reports, or we may withdraw from this engagement.

The Government Auditing Standards report on internal control over financia l reporting and on compliance and other matters will state that (1) the purpose of the report is solely to describe the scope of tes ting of internal control and compliance and the results of that testing, and not to provi de an opinion on the effectiven ess of the entity’s internal control or on compliance, and (2) the report is an in tegral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal contro l and compliance. The Uniform Guidance report on internal control over compliance will state that the purpose of the report on intern al control over compliance is solely to describe the scope of testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Both reports will state that the report is not suitable for any other purpose.

Termination

We acknowledge the City’s right to terminate our services at any time, and the City acknowledges our right to resign at any time (including instances where in our judgment, our independence has been impaired or we can no longer rely on the integrity of management), subject in either case to our right to payment for all direct and indirect charges incurred through the date of termination or resignation or thereaf ter as circumstances and this agreement may require, plus applicable interest, costs, fees and attorneys’ fees.

Dispute Resolution Procedure, Waiver of Jury Trial, Jurisdiction and Venue for All Disputes, and Governing Law

We appreciate the opportunity to serve as the City’s aud itor and anticipate a productive, harmonious relationship. If the City becomes dissatisfied for any reason with the servi ces we have performed or the fees charged, we encourage the City to bring that to our attention immediately. Mo st such problems should be remedied by communication and discussion. However, a dispute could arise between us, rega rding the construction or application of this agreement and/or the performance of any services under this agreement, which cannot be resolved by discussion. The City and this Firm believe that such accountant- client disputes are more satisfactorily resolved through confidential, binding arbitration than by litigation in court. Therefore, the City and this Firm choose confid ential binding arbitration to resolve such disputes. It is understood and agreed that choosing binding arbitration waives a trial by jury.

City of Baldwin Park
Engagement Letter
September 28, 2022

Page 9 ends

The place of the confidential binding arbitration will be JAMS in Orange County, California. Arbitration proceedings may be commenced by either the City or this Firm, by gi ving all other interested parties written notice; and the proceedings shall be governed by the California Arbitration Act (Code Civ. Proc., § 1281 et seq.), except as is otherwise specified herein. The arbitrator must decide all disputes in accordance with the Californi a Arbitration Act, and the applicable rules of JAMS (except to the extent such rules conflict with this arbitration agreement). The arbitrator shall have the power to decide all matters, including legal questions raised by pleading or summary judgment motions. That decision shall be in accordance with California law; and the California Evidence Code shall govern all proceedings before the arbitrator. The arbitrator’s award shall be final and binding, and a judgment upon the award may be entered and enforced by any court of competent jurisdiction.

By entering into this arbitration agreement, the City and this Firm expressly waive the right to commence an action in court, except with respect to provisional remedies; and waive the right to trial by jury.

The City and this Firm each agree to submit to the jurisdiction of any state or federal court in Orange County, California, in any action or proceeding arising out of or relating to the enforcement of the arbitration provisions of this agreement, or for any other purpose. The City and this Firm agree not to bring any action or proceeding of any kind in any other court. The City and this Firm waive any defense of inconvenient forum to the maintenance of any action or proceeding in Orange County, California.

Most Recent External Quality Control Review

Government Auditing Standards require that we provide you with a copy of our most recent external peer review report and any letter of comment, and any subsequent peer review reports and letters of comment received during the period of the contract.

You have requested that we provide you with a copy of our most recent external peer review report and any subsequent reports received during the contract period. Accordingly, our 2021 peer review report accompanies this letter.

****

Agreement

This letter comprises the complete and exclusive statement of the agreement between the parties, superseding all proposals oral or written and all other communications between the parties. If any provision of this letter is determined to be unenforceable, all other provisions shall remain in force.

It is hereby understood and agreed that this engagement is being undertaken solely for the benefit of the City and that no other person or entity shall be authorized to enforce the terms of this engagement.

We appreciate the opportunity to be of service to you and believe this letter accurately summarizes the significant terms of our engagement. If you have any que stions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy, and return it to us.

Very truly yours,

The Pun Group, LLP

Kenneth H. Pun, CPA, CGMA
Managing Partner

RESPONSE:

This letter correctly sets forth the understanding of the City of Baldwin Park.

B y :

Title:

Date:

DrEFPRGROUP, CPAs�
8 Denison Parkway East. Suite 407
Corning, NY 14830
Report on the Firm's System of Quality Control
P 607.962.6891
TF 800.546. 7556
F 607.973.2174
w EFPRgroup.com
February 14, 2022
To the Owners of
The Pun Group, LLP
And the National Peer Review Committee
We have reviewed the system of quality control for the accounting and auditing practice of The Pun Group, LLP (the firm) in effect for the year ended December 31, 2020. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants (Standards).

A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System Review as described in the Standards may be found at www.aicpa.org/prsummary. The summary also includes an explanation of how engagements identified as not performed or reported in conformity with applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review rating.

Firm's Responsibility
The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. The firm is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reported in conformity with professional standards, when appropriate, and for remediating weaknesses in it system of quality control, if any.

Peer Reviewer's Responsibility
Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review.

Required Selections and Considerations
Engagements selected for review included engagements performed under Government Auditing Standards, compliance audits under the Single Audit Act and an audit of an employee benefit plan.

As a part of our peer review, we considered reviews by regulatory entities as communicated by the firm, if applicable, in determining the nature and extent of our procedures.

Opinion
In our opinion, the system of quality control for the accounting and auditing practice of The Pun Group, LLP in effect for the year ended December 31, 2020, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies) or fail. The Pun Group, LLP has received a peer review rating of pass.

EFPr< Gn.fup, CPAs, PLLL
EFPR Group, CPAs, PLLC
Corning, NY

ITEM NO. 11

STAFF REPORT

TO: Honorable Mayor and Members of the City Council
FROM: Rose Tam, Director of Finance
DATE: October 5, 2022
SUBJECT: Update Grant Reimbursement and Revenue Availability Policy & Procedures, Accounts Payable and Disbursements Control Policies & Procedures, and Purchasing Policy and Procedures

SUMMARY
The purpose of this staff report is to present updated grants and accounting related policies and procedures as recommended by the City’s independent auditors and to City Council for review and approval.

RECOMMENDATION
Staff recommends that the City Council review and approve the following grants and accounting policies and procedures as follows:

1. Grants Reimbursement and Revenue Availability Policy & Procedures

2. Accounts Payable and Disbursements Control Policies & Procedures

3. Purchasing Policy & Procedures

FISCAL IMPACT
There is no fiscal impact.

BACKGROUND
In response to the FY202-21 Annual Comprehensive Financial Report (ACFR) audit recommendations, Finance staff has created the Grant Reimbursement and Revenue Availability Policy & Procedures to assist departments for timely grant reimbursement processing and better cash flow and i nvestment management. Finance staff also reviewed and updated the existing Accounts Payable and Disbursements Control Policies & Procedures and the Purchasing Policy & Procedures to incorporate the recommendations from the auditors.

ALTERNATIVES
None

LEGAL REVIEW
This report and the attachment have been reviewed and approved by the City Attorney as to legal form and content.

ATTACHMENTS

1. Grants Reimbursement and Revenue Availability Policy & Procedures

2. Accounts Payable and Disbursements Control Policies & Procedures

3. Purchasing Policy & Procedures

City of Baldwin Park
Grants Reimbursement and Revenue
Availability Policy & Procedures
Effective October 5, 2022

Overview
City Departments a pply for grant s and when awarded by the granting agency , t he applicable City department will send the Finance department a copy of the executed grant award. The Finance department will review the award and set up the applicable budgeted revenue , expenditures, and any accounting transactions in the computerized General Ledger accounting system. The Finance department will review the grant award to identify how grant funds will be received and /or reimbursed.

Departmental Invoicing for reimbursements and Responsibility City departments are responsible for submitting invoices/reimbursement requests per the grant agreement.

However, the department must first request an invoice number from the Accounting Manager. For cost reimbursement-based invoicing, invoices will be based on transactions that has posted to the general ledger account for the grant project for the applicable invoicing period.

In lieu of defined invoicing period s in the grant agreement , departments will submit a quarterly billing invoice within 30 days after quarter end ed to the granting agency . Departments also need to submit a quarterly staff report within 60 days after the quarter ended to update the City Council on invoices submitted for reimbursement.

All payments/reimbursements for grants must be sent to the Finance Department for processing. If the department receives a check for a grant, it must be forwarded directly to Finance by the next business day with the assigned account coding and supporting documents.

Departments must inform granting agencies that payment(s) / Checks / Remittance Advice be directed to:

Finance Department
City of Baldwin Park
14403 E. Pacific Avenue, CA 91706
Definitions & Recognition of Unearned / Unavailable Revenue at Year End Unearned Revenue – Grant money received in advance of service or incurred grant expenditures.

Unavailable Revenue – Reimbursement for grant expenditures received or to be received after the fiscal year-end availability period.

The City recognizes grant revenue when incurring qualifying expenditures.

The City will use a 60-day availability period after the fiscal year end for all grants. Grant reimbursement received within the 60-day period will be recognized as revenue in the prior fiscal year.

Due to the timing of when the invoice is submitted to the granting agency and the granting agency internal review process, it is not uncommon for the City to receive reimbursement more than 60 days availability period after year end. In situations when the City receives reimbursement after the 60-day availability period, revenue will be recognized in the fiscal year received.

The classification and balance determination of accrued grant receivables and corresponding unavailable revenue, revenue will be done at year-end with respect to the availability period.

City of Baldwin Park
Accounts Payable and Disbursements Control Policies & Procedures Effective October 5, 2022

1 Purpose
The purpose of this policy is to establish control and accountability measures and provide guidelines for the proper processing of disbursements in a manner that will safeguard the assets of the City.

Policy
It is the policy of the City of Baldwin Park that the recording of equipment/assets or expenses and the related liability including payroll related expenses is performed by an employee independent of ordering and receiving. The amounts recorded are based on the invoice for the related goods and services. The Accounts Payable staff (A/P) of the Finance Department supports all City department needs by providing a timely and efficient manner to process payments in compliance with policies and procedures.

The City has three types of disbursements using the City’s Tyler accounting system:

1. Payment made by the City

2. Payment made by the Housing Authority

3. Payment made by the Successor Agency

All vendor and expense reimbursement checks will be produced in accordance with the following guidelines:

1. Generally, all vendors shall be paid within 30 days of submitting a proper invoice upon delivery of the requested goods and services.

2. Expenditures must be supported in conformity with the purchasing, travel expense and reimbursement policies of the City.

3. All invoices must be verified by the departments to ensure payments are appropriately made to correct vendors for the correct amount for goods and services delivered.

4. Invoices must be submitted within 3 business days after being received by the departments with the approval of the department head or their designee s as part of the A/P package submitted to the Finance Department for processing

5. All supporting documentation from the accounts payable package corresponding to the invoices will be given to the Accounting Manager and/or Director of Finance for their review and approval prior to printing the checks.

6. Total cash requirements associated with each check run is monitored by the designated Accountant, in conjunction with an available cash balance in the bank and upload the Positive Pay prior to the release of any checks.

7. Checks must be printed in numerical order.

8. The accounting system automatically assigns the check numbers, Checks should not be made payable to “bearer” or “cash”.

9. Checks will never be signed prior to being prepared. 2 Disbursement Procedures

1. Invoices received by Monday noon will be processed and paid on Thursday. Invoices received after Monday noon will be processed for payment the following Thursday . Special circumstances for payments will be evaluated on a case-by-case basis by either the Accounting Manager or Finance Director.

2. New Vendor – It is necessary for the designated Accountant to set up a new vendor before a requisition may be entered into the Purchasing accounting system. Each department must request the vendor to complete and provide the IRS Form W-9 and valid City business license.

The Management Analyst will create a requisition for purchas e order (PO) after the vendor is set up in the system.

3. The City obtains a completed Form W -9 from all vendors to whom payments are made. A record will be maintained of all vendors to whom a Form 1099 is required to be issued after calendar year-end. Payments to such vendors will be accumulated over the course of a calendar year.

4. Vendor invoices are normally sent to the respective Department or directly to Finance. Vendor statements should not be used to process for payment. Each department is responsible for verification of invoices for payment including the following:
a) Comparison of quantities billed on the invoices with quantities listed on the purchase order shown on the receiving documents.
b) Comparison of prices, discounts, and terms, with those specified on the purchase order. c) Proof of clerical accuracy of the invoice with respect to extension, mathematical accuracy, and deductions for discounts.

5. Preparation of an Accounts Payable (A/P Package)

6. The vendor invoices should be reviewed and approved by a department head or their designees in absence of the department head prior to being submitted for payment. All requests for payment to be submitted to Finance should include an A/P package.

Each A/P package contains the following documents:

a) Original itemized invoice or receipt. If the original invoice is not available (this should be the exception) a short-written explanation with the signature of the supervisor is required. b) Packing slip (if available)
c) Purchase Order/Direct Payment Request form including general ledger account number coding from the approved budget
d) For travel reimbursement request – travel authorization form signed by both employee and department head.
e) For credit card payments – signed by both employee and department head. f) Any other supporting documentation deemed appropriate.

All A/P packages must be approved by the department head. The approval indicates acknowledgment of satisfactory receipts of those goods or service agreements with all terms appearing on the invoices and general ledger account coding from the approved budget, and that the vendors are paid in full.
3 Recording and Processing of Accounts Payable / Disbursements

Regular Invoices
Information is entered into the accounting system from the approved and completed A/P packages.

All valid A/P transactions, properly supported with the required documentation, should be recorded in a timely manner.

The following procedures should be applied to each A/P Package by the Senior Finance/Finance Clerks:
a) Invoices and related general ledger account distribution codes are reviewed prior to posting to the accounting system.
b) Check the mathematical accuracy of the vendor invoice. c) Compare the nature, quality, and prices of items ordered per the vendor invoice to the packing slip and receiving report if applicable.
d) Review the general ledger distribution charged accounts and approved budget amount. e) Post all PO’s and direct requests for payment into the accounting system. f) All A/P transactions selected for payment will be reviewed, approved, and updated in the accounting system by the Accounting Manager/Director of Finance before the check run. g) After the approval of A/P transactions, the Senior Finance/Finance Clerk will print the checks and registers. It is the policy of the City that each check must be signed by two authorized check signers. Check signatures are set-up on the accounting system. h) Senior Finance/Finance Clerk will write down the series of checks and total amount in an A/P check log. Two copies of the check register including copies of checks are submitted to the Accounting Manager/Director of Finance for review, approval, and to update the check process in the accounting system.
i) The Accounting Manager/Director of Finance signs off on the check log and check registers to signify their review and approval before releasing the actual checks. j) After the A/P checks are processed, the charges are automatically posted and are reflected in the general ledger.
k) All check registers processed will be forwarded to another Senior Finance Clerk who does not process A/P to prepare and submit the positive pay to the bank. Check registers are also forwarded to the designated Accountant to monitor the available cash balance in the bank prior to the release of any checks (Refer to Positive Pay Procedures). l) The check will be mailed on the same day except for those checks picked up by the requesting department under emergency situations or special circums tances only. Staff who initiate the check request cannot be the same staff who pick up the check. For those checks received by the requesting department, the employee will sign the A/P log indicating that Finance released the check.
m) Check copies will be attached to the A/P Packages and will be sent to the Information Technology (IT) division to be stamped as “PAID” by the IT staff to avoid future double payment. In addition, accounts payable packages are also scanned to the document management system, Laserfiche. After the accounts payable packages are scanned, the A/P packages are returned to Finance to be filed by batch date.
n) all processed check registers from prior weeks will be presented to the City Council for their review and approval at the following scheduled City Council Meetings:

City Warrants including payroll - every 1st and 3rd Wednesday of the month Housing Authority and Successor Agency – every 3rd Wednesday of the month 4 Payroll Related Payments
All routine payroll related payments are processed by the Payroll Specialist. After completing the payroll process for each pay period, the Payroll Specialist will process payroll disbursements by entering the payroll liabilities transactions in Payroll/Accounts Payable module in the accounting system. The liabilities include but are not limited to IRS and State taxes, CalPERS retirement and health, vision and dental benefits, union dues and garnishments.

Once the payroll payable packet is completed by the Payroll Specialist, it will be submitted to the Accounting Manager/Director of Finance for review and approval. The Accounting Manager/Director of Finance will then update the payroll payable packet in the accounting system.

Payments such as (but not limited to) Federal, State taxes, CalPERS payments are processed through ACH and automatically debited to the City’s general bank account. Payment online is processed by either the Payroll Specialist, Accounting Manager and/or Director of Finance. After the payment is processed, the payroll packet is approved and updated in the accounting system.

Voided Checks and Stop Payments
There are times when a check would need to be voided out of the accounting system (e.g., check lost in the mail, stale check, or processed in error). In order for this process to occur, voided check approval and the following information must be obtained:
a) Check number
b) Amount
c) Date
d) Payee
e) Reason for void
f) Stop payment required *
g) Check being reissued – if required

*Stop payments are processed by the designated Accountant through online banking. A confirmation is printed and attached to the A/P package of the voided check.

Checks voided need to have proper notations in the accounting system and the check should be defaced by clearly marking it as “VOID”.

Wire Transfers
Wire transfers are used by the City whenever the City deems it is necessary and for the best interest of the City. It is a fast, reliable, and efficient payment method. The City uses this method for making payments to various service providers, such as investments bankers and debt service trustees. The designated Accountant handles the processing of wire transfer transactions to the bank (Refer to ACH and Wire Transfer Policy and Procedures).

The designated Accountant prepares the journal entries to record the wire-transfer transactions to the accounting system. The Accounting Manager/Director of Finance reviews and approves the journal entry in the system. The Management Analyst posts the journal entry to the general ledger.

5 Petty Cash Fund (PCF)
The Senior Finance/Finance Clerk who handles Cashiering and business licenses is the petty cash custodian and they are responsible for the proper safeguarding of petty cash monies. The total maximum amount held in the PCF is $800. Employees are allowed to request up to $50 from the PCF for City related expenditure reimbursements for emergency use only. If there is no immediate need, everything should be disbursed by check. A receipt containing a detailed breakdown of all purchases or services is required before reimbursement can be made as well as evidence that it is a City related expenditure.

The custodian is responsible for ensuring the cash on hand and receipts equal the authorized amount of the fund at all times. PCF must be kept separate from change funds, cash drawer, and any other collected revenue.

Petty Cash Fund Purchase
Disbursements from PCF must be properly documented and should be for a valid business purpose.

1. PCF may not be used for the following:
a) Items/receipts more than $50.00
b) Cashing of personal checks or providing personal loans c) Purchases which are required to be reported in a specific manner such as, but not limited to, personnel services, travel expenses and business meals.

2. Employees purchasing business related items using PCF should do the following:

a) Obtain prior approval from the department head.
b) Make the purchase by paying for the item with personal monies and obtain an itemized receipt or cash register sales slip.
c) Provide the petty cash request form with the proper supporting documents such as a receipt or cash register sales slip with the signature of the department head. d) Receive reimbursement for the purchase from the petty cash custodian when personal monies are used for the City’s business-related items.

Replenishment of Petty Cash Fund
PCF must be reimbursed at least once every 90 days or as needed during the fiscal year.

1. The petty cash reimbursement request or the amount to be requested must be completed through ‘Direct Payment Request”.

2. The Direct Payment Request form with the list of all expenses paid along with original receipts as a support of the direct payment request is submitted to the Accounting Manager/Director of Finance for review and approval before submitting to accounts payable for check preparation.

3. A reconciliation of the petty cash fund must be done on a regular basis to make sure the receipts plus cash on hand is equal to the amount of the authorized petty cash fund.

4. If receipts plus cash on hand are less than the authorized amount, this is an overage and must be deposited through the cashier register crediting the other revenue account with the description “petty cash overage”.

5. If the receipts plus cash on hand are less than the authorized amount, this is a shortage. If the amount is significant, it should be reported to the Accounting Manager/Director of Finance 6 immediately for investigation. If the amount is less than $5.00, report the shortage on the petty cash reimbursement request, charging the other operating expense account with the description “petty cash shortage”.

Year End Policy & Late Invoices
Departments must submit all prior fiscal year invoices to Finance within 60-days after the June 30th year end for processing and payment.

Invoices received after the 60-day period will be charged against the Departments’ current fiscal year budget. Departments must submit a justification at mid -year for any budget increases to the department due to late invoice submissions.

Invoices and corresponding A/P packages submitted to Finance for payment must be separated by fiscal year.
1 City of Baldwin Park
Purchasing Policy & Procedures
Effective October 5, 2022

Purpose: The purpose of this policy is to update the existing purchasing policy and procedures according to the amended Municipal Code for the purchase of supplies, services, and equipment at the lowest possible cost commensurate with quality needed; to exercise positive financial control over purchases; and to clearly define authority for the purchasing function. The Chief Executive Officer is designated as the purchasing officer.

It is the policy of the City of Baldwin Park (the City) to follow a practice of ethical and responsible procedures related to purchasing, agreements and contracts, and related forms of commitment. The purchase policy describes the principles and procedures that all staff shall adhere to in the completion of their designated responsibilities.

When Grant Funds are used to Fund or Partially Fund the Purchase

If grant funding will be used, it is the Program Manager’s responsibility to ensure that all applicable requirements of that funding are included in any contract/agreement/amendment/change order.

Additionally, it is the responsibility of the Program Manager to ensure compliance with all applicable requirements of the funding, including securing approval of grant prior to incurring any expenditure, approval of eligible expenditures, and reporting requirements, etc.

Purchasing Guidelines and Procedures
All department directors shall have the authority to initiate purchases on behalf of their department within the guidelines described in the City’s purchasing policy. Department directors may delegate purchasing authority to responsible individuals within their department. Directors shall inform the Finance Department of all designated individuals that may initiate/enter purchase requisition (PR) in the financial software system, Tyler Incode 10. The Management Analyst or designated individual will review the PR prior to the approval of the Accounting Manager and/or Director of Finance. Once the PR is approved, the Management Analyst in Finance will generate the purchase order (PO), forward it to the Accounting Manager and/or Director of Finance for review and approval, and then send it back to the requesting departments.

All purchase requests should be within the annual approved budget. All City purchases exceeding $5,000 require a purchase requisition (PR), purchase order (PO), and at least three (3) quotes except as otherwise provided in these policies and procedures. Purchases and contracts for supplies and equipment do not constitute a public project as defined by Cal. Pub. Cont. § 20161 shall require the following approvals:

Estimated Value of Contract Authority of Approval
$0 to $10,000 per vendor per fiscal year Respective Department Head $10,001 to $24,999.99 per vendor per fiscal year Chief Executive Officer Greater than $24,999.99 per fiscal year City Council
2 The above threshold approval level does not apply to the annual recurring maintenance cost such as gas, electricity, telephone; multi -year contracts such as software prog ram annual maintenance, copiers, and annual audits that were already approved by the City Council and included in the annual adopted budget.

All approved requisitions with all the required quotes and bids will be entered into the accounting system “INCODE 10” by the Management Analyst/designated individuals. At least three (3) quotes are required for purchases between $ 5,000 to $24,999.99. Informal bids (at least three (3) written price quotations) and/or formal bids (RFP) are required for purchase exceedin g of $24,999.99. A PO will be issued by the Finance Department only after the requisition has been approved at all levels.

The requisition must include the following information:

1. Vendor’s name (Based on Form W-9 as submitted by Vendor)

2. Description of item (goods/services) being requested for purchase

3. General ledger account number (refer to the approved budget line-item account #)

4. Amount of purchases (should not exceed the appropriated/approved budget amount)

5. Quantity

6. Quotations (at least 3)

7. Approved staff report- with the City Council Minutes attached/signed contract/agreement for purchase requisition is required.

8. All PRs must be approved by designated approver as mentioned above

9. All PRs should be approved by the Finance Manager and/or Finance Director for purchases of $5,000 and above
Vendor Files and Required Documentation
The Management Analyst/Accounts Payable Staff of the Finance Department shall maintain an electronic vendor profile and create a profile for each new vendor from whom the City purchases goods or services based on Form W-9.

Prior to issuing a PO for any vendor (regardless of whether a contract is involved), the respective department shall request a completed and signed Form W-9 from the vendor and submit it to the Finance Department/Management Analyst and inform the vendor to apply for a business license, if needed. Upon receiving the required documents, the Finance Department/Management Analyst will issue and distribute the PO to the respective departments.

Ethical Conduct in Purchasing
City officials and employees shall not make any attempt to realize personal gain directly and indirectly through a purchase or service provided to the City, including but not limited to the following:

1. City officials and employees or any member of their immediate family have any financial interest in the purchase or service.

2. A business or organization, in which the City officials and employees or any member of their immediate family have any financial interest, is involved in the purchase or service.

3. Any other person, business or organization, with whom the City officials and employees or any member of their immediate family is negotiating or has an arrangemen t concerning prospective employment, is involved in the purchase or service.
3 4. No City officials and employees operating a business outside of their current City employment shall do business or provide a service for the City through their outside employment.

5. Prohibit the sale of lien vehicles from City’s contracted tow vendor(s) to the City, City’s affiliated entities, employees, and elected officials.

6. Any in-kind gift or contribution over $50 (annually) by any vendor to city management or, city elected officials required to submit Form 700 shall be reported on Form 700 as required by Law.

7. Any in-kind gift or contribution by any vendor to individual employees not covered by Form 700 is prohibited. If such a gift is delivered, the employee shall turn it to the Department Director who shall either return the gift. In the case of gift items such as baskets, they may be raffled off at a City event or distributed among all employees in the department.

8. Any in-kind gift or contribution over $100 by any v endor to a city event shall be reported to the City Clerk’s Office and available to the public on the City's web site.

9. Expenditures of public funds for gifts or gift cards to employees and City officials are not authorized. This includes gifts purchased for employee and City official birthdays or other personal occasions except for city-sponsored events. Voluntary collections from staff would be an acceptable way of purchasing employee gifts.

10. Awards and recognitions to employees and City officials must be an item of tangible personal property (cannot be cash, cash equivalent, vacations, meals lodging, theater or sporting event tickets, stocks, bonds).

11. External awards and recognition are appropriate for presentation to people or organizatio ns external to City staff. External awards shall be determined by the City Council and CEO in advance.

Conflict of Interest Prohibited
The Code of Federal Regulations (2 CFR Part 200.318 (c)(1)) stated that “The Non - Federal entity must maintain written st andards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award, and administration of contracts. No employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of the non -Federal entity may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts. However, non -Federal entities may set standards for situations in which the financial interest is not substantial, or the gift is an unsolicited item of nominal value. The standards of conduct must provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents of the non - Federal entity”. All City of Baldwin Park employees and officials shall comply with these regulations; and shall not act as a principal or as an agent for a firm that does business with the City for six (6) months after th eir separation from the City.

Non-Discrimination Policy
4 All vendors/contractors who propose to perform any work or furnish any goods under agreements with the City of Baldwin Park shall agree to the following principles:
1) Vendors/contractors will not discriminate against any employee or applicant for employment because of race, religion, color sexual orientation or national origin, except where religion, sex, or national origin is a bona fide occupational qualification reas onably necessary to the normal operation of the vendors/contractors.

2) Vendors/contractors agree to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this non - discrimination clause. Notices advertisement and solicitations placed in accordance with Federal laws or regulations shall be deemed sufficient for meeting the intent of this section.

Awards to Debarred and Suspended Parties
The City of Baldwin Park will not make any award or permit (sub grant or contract) to any party which is debarred or suspended or is excluded from or ineligible for participation in Federal assistance programs.

See Federal Award Policy for more details.

Encumbrance of Funds
Except in the case of an emergency as determined by the CEO, the Department Heads shall not request any PO for supplies or equipment unless there is an existing unencumbered appropriation against which the purchase is to be charged.

Formal Contract Procedure
A. All contracts shall be by written contract with the lowest responsible bidder pursuant to the public contract procedure prescribed in Municipal Code §§ 34.27 through 34.33.

B. Where possible, preference shall be given to local bidders or vendors, if all other factors in the bidding process are equal.

C. A clause shall be incorporated in vendor’s contract to require that all donations, gifts, and free services provided by the vendor outside of their service agreement to any city elected officials, employee, City department, or City affiliated entities or events be documented and reported to the City.

Notice Inviting Bids
Notices inviting bids shall include a general description of the articles to be purchased, shall state where bid blanks and specifications may be secured, and the time and place for opening bids. The purchasing officer shall publicize each notice inviting bids in such manner as is calculated to advise all prospective bidders thereof.

A. Published Notices: Notices inviting bids shall be published at least ten (10) business days before the date of the opening of the bids. Such notices shall be published at least once in a newspaper of general circulation printed and published in the City and they shall be posted on the City’s official website and in at least three public places for posting public notices.

B. Bidders’ List : At least ten (10) days before proposals or bids are due, the department’s purchasing officer shall solicit sealed bids from all responsible perspective suppliers whose names are on the Bidders’ List or who have requested their names to be added thereto. The purchasing officer shall annually review the Bidders’ List and the City’s business license records and shall 5 make appropriate efforts to update the Bidders’ List to include businesses located in the City.

Bidder’s Security
When deemed necessary by the department’s purchasing officer, bidder’s security may be prescribed in the public notices inviting bids. The security shall be returned upon rejection of a bid; provided, that the successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed, unless the City is responsible for the delay.

The City Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the City Council awards the contract to the next lowest bidder, the amount of the lowest bidder’s security shall be applied by the City to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.

Bid Opening Procedure
Sealed bids shall be submitted to the City Clerk’s office and shall be identified as bids on the envelope.

Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection.

Rejection of Bids
In its discretion, the City Council may reject any and all bids presented and re-advertise for bids.

Award of Contracts
Contracts shall be awarded by the City Council to the lowest responsible bidder, except as otherwise provided in the City’s Municipal Code.

Tie Bids
If two or more bids received are for the same total amount or unit price, quality and service being equal and if the public interest will not permit the delay of re -advertising for bids, the City Council may accept the bid it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening.

Performance Bonds
The department’s purchasing officer shall have the authority to require a performance bond before entering into a contract in such amount as the departmen t’s purchasing officer shall find reasonably necessary to protect the best interests of the City. If a performance bond is required, the form and amount of the bond shall be described in the notice inviting bids (refer to the City Municipal Code).

Professional Services
Professional services are unique by their nature; therefore, they are not subject to competitive bidding.

When procuring specialized services, the City is principally dependent upon the skill, integrity, judgment, and ability of the service provider rather than the dollar cost of the direct labor and material. Pursuant to Section 37103 of the Government Code, “the legislative body may contract with any specially trained and experienced person, firm, or corporation for special serv ices and advice in financial, economic, accounting, engineering, legal or administrative matters. It may pay such compensation to these experts as it deems proper.” When contracting for architectural, landscape architectural, engineering, environmental, land surveying, and construction project management services, requirements of Sections 4525 through 4529.5 of the Government Code must be met unless the Chief Executive Officer determines that the services needed are more of a technical nature and involve li ttle professional judgment and that requiring bids would be in the public interest.”
6 For outsource services such as City Attorney, waste collection services, Information Technology, and other ongoing professional services, the City Council may extend such contracts upon evaluation and recommendation. Upon a successful evaluation, the contract may be extended.

The agreement will normally give both the City and the contractor/consultant the ability to end the contract with 30 days (or longer) notice and may give the City (or the City Council) the ability to terminate the agreement at any time.

Contracts for legal defense, legal advice, or legal services are specifically exempt from competitive bidding in the California Public Contract Code (“PCC”). The City of Baldwin Park will follow state law and the PCC regarding all legal services. PCC Section 10335.5 (c)(4) states as follows: “the following consulting services contracts are exempt from the advertising and bidding requirements of this article… (4) contracts for legal defense, legal advice or legal services.” See Public Contract Code 10335.5(c)(4)

Professional Services, except contracts for legal defense, legal advice, or legal services, shall be obtained by soliciting at least three (3) Requests for Proposals (RFP’s). For amounts up to $24,999.99, three verbal quotes can be obtained and the CEO may approve the agreement. For amounts between $25,000 and $100,000 three informal written quotes can be obtained. For amounts over $100,000, three formal written quotes are required. All agreements over $24,999.99 shall be approved by the City Council and signed by the Mayor. The City Council may also direct staff to waive the RFP process for professional services in the situation of emergency, in conformity with § 34.23 and under circumstances of when it is not in the best financial interest of the public.

For all professional service contracts, over $24,999.99, except contracts for legal defense, legal advice, or legal services, the standard Consultant Agreement shall be used and a separate “Scope of Work” attached.

Once completed, these documents shall be submitted to the City Attorney for review and approval.

Special Provisions

A. Sole Source Purchases:

Commodities and services that can be obtained from only one vendor are exempt from competitive bidding. Sole source purchases may include, but are not limited to, proprietary items sold directly from the manufacturer, items that have only one distributor authorized to sell in this area or a certain product proven to be the only acceptable option. All sole source purchases shall be supported by written documentation signed by the appropriate department head and forwarded to The Purchasing Officer or Designee. Final determination of whether or not an item is a valid sole source purchase will be made by the Purchasing Officer or Designee. A sole source decision is not permitted merely upon the grounds that such approach is the most convenient or that the subject is preferred by the staff.

B. Cooperative Purchases: Cooperative purchasing is used by municipalities in the purchase of goods and services. This arrangement offers the participants significant economies of scale.

Although one municipality may issue specifications and receive bids, each entity independently executes its own contract, administers the procurement function, and finances the purchase.

This is an acceptable practice that allows municipal agencies to “piggy -back” on contracts and bids for services and supplies issued by a wide range of other governmental agencies.

Cooperative purchasing agreements may be entered into with state, local governments, and non - profit entities.
7 C. Emergency Purchases : The City is not required to engage in either informal or formal competitive bidding in an emergency. The City Council delegates to the CEO the authority to waive any procedures in the Purchasing Guidelines that are not statutorily mandated when making emergency purchases of supplies, equipment, materials or services. “Emergency Purchases” shall be made only for the reasons of preserve or protect life, health or property or upon natural disaster or forestall a shutdown of essential public services.

D. Purchase Order Exemptions: Certain purchases are not readily adaptable to the open market and formal bidding process. These purchases are generally for items where the competitive bid process or obtaining quotes is not applicable or where a check is required to accompany the order.

Following is a list of allowable exemptions:

Advertisements and Notices Membership dues
Insurance Claims and Premiums Utility Payments
Subscriptions Travel Expense/Advances

Uniform Construction Cost Accounting Procedures
On October 15, 2014, the City Council adopted Resolution No. 2014-038, A Resolution of the City Council of the City of Baldwin Park, California, Adopting the Uniform Public Construction Cost Accounting Procedures in Accordance with Section 22000 to Section 22045 of the Public Contract Code.

Public project – as defined by the California Public Contract Code, is a project for the construction, reconstruction, erection, alteration, renovation, improvement, demolition, painting, repainting, or repair of any publicly owned, leased, or operated facility.

When contracting for public projects, the contract is awarded to the lowest responsible bidder.

Dollar Thresholds

Value of
Purchase
Purchase
Method
PO
Required
Level of
Approval
Agreement
Format
Under -
$60,000
Written
Quotes
Yes CEO CEO approved
contract
$60,000-
$200,000
Informal bid
process
Yes CEO CEO approved
contract
Over $200,000 Formal bid Yes City Council CEO approved
contract

Levels of Bidding Required

1. Force account, negotiations, or PO – public projects up to $60,000

2. Informal bidding procedures – public projects up to $200,000/CEO authority

• Notice inviting bids must be mailed to construction trade journals • Notice can also be provided to list created by City for category or work to be bid 8 • Notice can be sent to any other contractors or construction trade journal • If product/service is proprietary in nature, the City can limit notice to those contract(s) that can provide such product or service
• Notices must be sent at least 10 days before the bids are due • Award to lowest responsible bidder

3. Formal bidding procedures – public projects over $200,000

• Requires sealed bid procedure
• NON-COLLUSION AFFIDAVIT-BIDDER OF A PRINCIPAL CONTRACT (EXHIBIT B) needs to be included in the bid package
• Notice must state time and place for receiving and opening of sealed bids • Notice must be published at least 14 calendar days before opening of bid in newspaper of general circulation
• Notice must be sent electronically to publications listed in the City’s list at least 15 days before opening of bids
• Additional notice may be provided
• Award to lowest responsible bidder
Information for Mailed Notice
When submitting notices for bids for jobs, the following information should generally be included:
• Project title and contract number if applicable
• Cost range
• Location of site
• Who is taking bids – i.e., City of Baldwin Park Public Works Department • Date and time bids are due
• Contact address, phone, and e-mail
• Architect’s/Engineer’s address and phone number if applicable • Brief description of work to be done
• Location where plans may be obtained and if deposit is required/refundable • Percentage of bid bond/percentage of performance bond/percentage of payment bond

Use of Force Account
City Council may reject any bids presented if prior to rejecting such bids it declares the project can be more economically performed by City employees and written notice is provided to apparent low bidder.

ITEM NO. 12

STAFF REPORT

TO: The Honorable Mayor and Members of the City Council FROM: Rose Tam, Director of Finance
DATE: October 5, 2022
SUBJECT: Approval of Annual Statement of Investment Policy for Fiscal Year 2022-23
________________________________________________________________________________

SUMMARY
The City is required by the California Government Code to submit annually an Investment Policy for the current fiscal year. Attached is the In vestment Policy for Fiscal Year 2022-23. This is in accordance with the State Treasurer Investment Policy Guidelines for 2022.

RECOMMENDATION
Staff recommends that the City Council receive and file the attached Statement of Investment Policy for Fiscal Year 2022-23.

FISCAL IMPACT
None

BACKGROUND
The State of California Government Code requires each local entity adopt an annual Statement of Investment Policy. California Government Code Section 53600 et seq. allows a local agency having cash that is not required for the immediate use of the agency, to invest such portion of the money as it deems wise or expedient in certain types of investments. As reported in the monthly Treasurer’s Report, the City of Baldwin Park has investments with the State Local Agency Investment Fund (LAIF).The City has also invested a portion of its excess cash in Bank CD’s and Government Treasuries with a time frame to maturity of between 1 and 2 years. The Statement of Investment Policy is reviewed annually to include any new guidelines or legislation concerning the investing of City funds. The City’s cash management system is designed to forecast immediate cash requirements and invest surplus monies to the fullest extent while still considering safety and liquidity. Staff makes investment decisions with care, skill, prudence and diligence under the current prevailing circumstances. It acts in accordance under the prevailing prudent person rule of a person in like capacity (Civil Code Section 2261, et seq) and will also only make those investments allowable under State of California Government Code Section 53600 et seq and the City-adopted Statement of Investment Policy. The City’s Investment Policy is in compliance with the Government Code. The criteria for selecting investments in their order of priority are (1) safety, (2) liquidity, and (3) yield.

ALTERNATIVE
None. Current State Law mandates the City Council to review and adopt a Statement of Investment Policy annually.

LEGAL REVIEW
None required

ATTACHMENT

1. Statement of Investment Policy for the fiscal year 2022-23

Page 1 ends

CITY OF BALDWIN PARK

STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2022-2023

A. PURPOSE
The Investment Policy establishes guidelines for the investment of the City’s surplus cash that is not required to meet the daily cash obligations of the City. The Investment Policy outlines the investment objectives and the allowable investments in accordance with applicable laws of the State of California.

B. SCOPE

1. The Investment Policy applies to all financial assets of the City as included in the Annual Comprehensive Financial Report.

2. The Investment Policy applies to activities of the City regarding investing surplus cash of all funds, including:

a. General Fund
b. Housing Authority
c. Successor Agency
d. Financing Authority
e. Special Revenue Funds
f. Internal Service Funds
g. Trust & Agency Funds

C. DELEGATION OF AUTHORITY
The City Council has appointed the City’s elected Treasurer to be responsible for surplus cash management and investment decisions and transactions. Daily cash management responsibility has been delegated to the City’s Department of Finance. The Director of Finance, Accounting Manager, and the Assistant Accounting Manager shall ensure compliance with the City’s investment policy. All inves tment transactions will be approved by either the City Treasurer or the Director of Finance.

D. OBJECTIVES
The primary objectives, in order of priority, of the City of Baldwin Park’s investment activities are safety, liquidity and yield. The criteria for each are discussed below.

1. SAFETY: The safety and risk associated with an investment, refers to the potential loss of principal or interest or a combination of these two amounts. Safety of principal is the primary objective and only those investments considered to be very safe will be utilized by the City of City of Baldwin Park
Statement of Investment Policy
Fiscal Year 2022-2023

Page 2 ends

Baldwin Park. The City shall seek to ensure that capital losses resulting from securities default or the erosion of market value are avoided.

2. LIQUIDITY: This refers to the ability to “cash in” at any moment in time with minimal chance of losing a portion of the principal or interest. Liquidity shall remain sufficient to enable the City of Baldwin Park to meet anticipated operating needs a nd hold any investments to maturity.

3. YIELD: Yield is the potential dollar earnings an investment can provide; this is also described as the rate of return or “interest”. The City’s investment portfolio shall be managed to obtain market rates of interest while preserving and protecting capital in the overall portfolio.

E. ETHICS AND CONFLICTS OF INTEREST
Officials and employees involved in the investment process shall refrain from all personal business activity that could conflict with the management of the investment program or impairs their ability to make impartial investment decisions. All individuals involved shall disclose all gifts and income in accordance with California State Law.

F. STRATEGIES

1. The City shall maintain a cash management system which accurately monitors and forecasts revenues and expenditures enabling the City to invest surplus cash to the fullest extent possible.

2. The City shall apply the prudent investor standard in the context of managing the overall portfolio. When making investment decisions, the City shall act with care, skill, prudence, and diligence under circumstances then prevailing, including but not limited to, the general economic conditions and the anticipated needs of the City. The City would use the standard that a prudent person acting in a like capacity and familiarity with those matter s would use in the conduct of funds of like character and with like aims, to safeguard the principal while maintaining the appropriate liquidity.

3. The City shall manage the investment portfolio with a buy-and-hold strategy rather than seek optional returns through such techniques as swaps. The buy -and-hold strategy ensures the return of all invested principal monies. The latter approach would require an allocation of resources, the cost of which may be greater than the benefit realized.

G. INVESTMENT PORTFOLIO

1. The City is authorized to invest in certain types of securities in accordance with California Government Code Section 53601 et. seq. and 53635 et. seq. Authorized investments shall also include investments with the Local Agency Investment Fund (LAIF) in acc ordance with the California Government Code Section 16429.1. The city has further limited the types of City of Baldwin Park
Statement of Investment Policy
Fiscal Year 2022-2023

Page 3 ends

securities in which the city may invest. Only those securities listed in the Investment Policy are authorized investments. The following are authorized investments for the city:

ALLOWABLE INVESTMENT INSTRUMENTS PER STATE
GOVERNMENT CODE (AS OF JANUARY 1, 2022) APPLICABLE

TO ALL LOCAL AGENCIES

INVESTMENT
TYPE

MAXIMUM

MATURITYC

MAXIMUM

SPECIFIED
% OF

PORTFOLIOD

MINIMUM

QUALITY

REQUIREMENTS

GOV'T
CODE

SECTIONS
Local Agency Bonds 5 years None None 53601(a)
U.S. Treasury Obligations 5 years None None

53601(b)
State
Obligations— CA
And Others
5 years None None

53601(c)
53601(d)
CA Local Agency Obligations 5 years None None(a)

53601(e)
U.S Agency Obligations 5 years None None(a) 53601(f)
Bankers’ Acceptances 180 days 40% None 53601(g)
Commercial Paper—Non-Pooled
FundsF (under $100,000,000 of
investments)
270 days
or less
25% of the
agency’s money
Highest letter and
number rating by
an NRSRO

53601(h)(2)(c)
Commercial Paper —Non-Pooled Funds
(min. $100,000,000 of investments)
270 days
or less
40% of the
agency’s money
Highest letter and
number rating by
an NRSROH

53601(h)(2)(c)
Commercial
Paper— Pooled
FundsI
270 days
or less
40% of the
agency’s money
Highest letter and
number rating by
an NRSROH

53635(a)(1)
Negotiable Certificates of Deposit 5 years 30%J None(b) 53601(i) Non-negotiable Certificates of Deposit 5 years None None(b) 53630 et seq.

Placement
Service
Deposits
5 years 50% None 53601.8 and
53635.8
Placement Service
Certificates of Deposit 5 years 50% None 53601.8 and
53635.8
Repurchase Agreements 1 year None None 53601(j)
Reverse Repurchase Agreements and
Securities Lending Agreements 92 daysL
20% of the base
value of the portfolio NoneM 53601(j)
Medium-Term NotesN
5 years
or less 30% “A” rating category
or its equivalent or
better
53601(k)
Mutual Funds And Money
Market Mutual Funds N/A 20% Multiple
53601(l)
and
53601.6(b)
Collateralized Bank DepositsR 5 years None None 53630 et seq. and 53601(n)

City of Baldwin Park
Statement of Investment Policy
Fiscal Year 2022-2023

Page 4 ends

a fully secured by Federal Government
b per limit set by Federal Deposit Insurance Corporation

2. Money market mutual funds managed for or by the trustees, paying agents and custodian banks contracted by the City may be purchased as allowed under the California Government Code. Only funds holding U.S. Treasury or Agency obligations can be utilized.

3. No investment shall be made in any security underlying a repurchase agreement, other than a security with a term remaining to maturity in excess of five years.

4. No investment shall be made in any securi ty that could result in zero interest accrual if held to maturity. These include inverse floaters, range notes, or mortgage derived interest -only strips.

H. SAFEKEEPING AND COLLATERALIZATION
Securities purchased from a broker or dealer shall be held in third party safekeeping by the trust department of the City’s bank or other designated third -party trust, in the City’s name and control. All securities will be received and delivered using standard delivery -versus-payment procedure. Deposit-type securiti es (i.e. certificates of deposit) shall be collateralized in accordance with the State of California Government Code.

I. REPORTING REQUIREMENTS
The City Council will be provided a monthly Treasurer’s Report approximately 45 days following the end of the month. Data for investments will include purchase and maturity dates, par values, current principal, premium or discount, interest rate, description, book value, and market value.

Cash in the bank will be reported by entity at the amount on the monthly bank statements.

J. INVESTMENT POLICY
The City Council will be provided an annual Statement of Investment Policy for their approval during the first quarter of the fiscal year.

Mortgage Pass–Through and
Asset–Backed Securities
5 years
or less

20% “AA” rating category
or its equivalent or
better

53601(o)
County Pooled
Investment Funds N/A None None 27133
Joint Powers Authority Pool N/A None Multiple 53601(p) Local Agency Investment Fund (LAIF) N/A None None 16429.1 Voluntary Investment Program Fund N/A None None 16340

Supranational ObligationsU
5 years
or less

30% “AA” rating category
or its equivalent or
better

53601(q)
Public Bank Obligations 5 years None None 53601(r), 53635(c) and 57603

City of Baldwin Park
Statement of Investment Policy
Fiscal Year 2022-2023

Page 5 ends

K. QUALIFIED BROKER/DEALERS
The City shall only conduct investment transactions with banks, savings, and loans or with licensed broker/dealers.

L. INVESTMENT EARNINGS
Investment earnings from authorized investments are allocated quarterly to various funds based on their month end balances of the pooled portfolio.

Baldwin Park City CouncilOctober 5, 2022

Baldwin Park City Council
October 5, 2022