Agenda packet — Bell Gardens City Council, May 9, 2022 (part 1 of 2)

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CITY OF BELL GARDENS
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CITY COUNCIL

REGULAR MEETING
MONDAY, MAY 9, 2022, 6:00 PM
AGENDA
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On March 4, 2020, Governor Newsom proclaimed a State of Emergency in California as a result of the threat of COVID-19. On September 16, 2021, Governor Newsom signed Assembly Bill 361 ("AB 361"), which was effective immediately and amends Government Code section 54953 to allow a local legislative body to hold public meetings via teleconferencing and to make public meetings accessible telephonically or otherwise electronically to all members of the public seeking to observe and to address the local legislative body.

Pursuant to AB 361, please be advised that members of the Bell Gardens City Council may participate in meetings telephonically. The public may view the meeting and participate in public remotely.

ACCESSIBILITY: If requested, the agenda and backup materials will be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C.

Sec. 12132), and the federal rules and regulations adopted in implementation thereof. Any person who requires a disability-related modification or accommodation, in order to observe and/or offer public comment may request such reasonable modification, accommodation, aid, or service by contacting the City Clerk's office by telephone at 562-806-7704 or via email to [email protected] no later than one (1) hour before the scheduled meeting.

CALL TO ORDER

ROLL CALL OF CITY COUNCIL MEMBERS
Marco Barcena, Council Member
Alejandra Cortez, Council Member
Lisseth Flores, Council Member
Jorgel Chavez, Mayor Pro Tern
Maria Pulido, Mayor

CLOSED SESSION REPORT

PRESENTATIONS
• CALHOME GRANT OWNER-OCCUPIED REHABILITATION CHECK

PRESENTATION
• PROCLAMATION IN RECOGNITION OF NATIONAL PUBLIC WORKS WEEK - MAY15TH - MAY21ST
1 • BUILDING SAFETY MONTH PROCLAMATION
• NATIONAL POLICE WEEK MAY 11TH - 17TH AND PEACE OFFICERS MEMORIAL DAY - MAY 15, 2022
• PROCLAMATION IN RECOGNITION OF SKILLED NURSING DAY - MAY 12, 2022
• PROCLAMATION RECOGNIZING MENTAL HEALTH AWARENESS MONTH
• PROCLAMATION OF NATIONAL SMALL BUSINESS MONTH
• OLDERAMERICAN MONTH PROCLAMATION

PUBLIC COMMENTS ONAGENDAITEMS ONLY
(Three minutes per person)
PUBLIC PARTICIPATION: Pursuant to Government Code Section 54953, recently amended by AB 361 ,and given the current health concerns, members of the public can access meetings live at https://www.bellgardens.org/i-want-to/watch-city-council-meetings . Members of the public may participate via Zoom by clicking on the City Council's Meeting Calendar on the website. (Be sure to download the Zoom App), the meeting ID is: 813 3236 4343 and the Passcode is: 2021. Comments may also be made via the zoom app by using the "Raise Hand"feature on the zoom app,when it is your turn to speak the host will unmute you. Live comments mayalso be made by call-in users on zoom bydialing (669)900-9128,when prompted enter the Webinar ID:813 3236 4343#, followed by Passcode: *2021#. During the public comments press*9,when it is your turn to speak, the user will need to dial*6 to unmute. Comments will not be accepted in the QandA/Chat function of the zoom app. Members of the public may also submit comments electronically for consideration by the City Council by sending them to [email protected]. To ensure distribution to the members of the City Council prior to consideration of the agenda, please submit comments no later than one(1)hour prior to the meeting.Those comments, as well as any comments received after, will be distributed to the members of the City Council and will be made part of the official public record of the meeting. Contact the City Clerk's office at 562-806- 7704 or the receptionist's desk at 562-806-7700 for any questions.

CITY MANAGER'S REPORT
CONSENT CALENDAR(Items No. 1-6)
All matters listed under the Consent Calendar are considered to be routine and can be acted on by one roll call vote.There will be no separate discussion of these items unless members of the Successor Agency request specific items to be remowd from the Consent Calendar for separate action. Items called for separate discussion will be heard as the next order of business

1. GENERAL MOTION TO WAIVE FULL READING AND APPROVE

ORDINANCES BY TITLE ONLY PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 36934
I n order to expedite the conduct of business at City Council meetings, California State Law (California Government Code Section 36934) allows Ordinances to be read by title if a majority of the legislative body supports the motion to waive the full reading.

Recommendation:
2 It is staff recommendation that the City Council approve a general motion to waive full reading and approve Ordinances by title only pursuant to California Government Code Section 36934.

2. WARRANT REGISTERS AND WIRE TRANSFERS
In approving the action of receiving and filing the warrant registers, the official minutes of the Bell Gardens City Council should state that each individual member of the City Council is not voting on, influencing the outcome of, or participating in approving, accepting, receiving or filing any warrant which bears the name of the same council member, or pays for any costs or expenses, or otherwise benefits the same named council member. Each council member will not be participating, influencing or voting on any such warrant bearing their name or which benefits the same named council member, but with that exception is voting in favor of receiving and filing all other warrants contained in this report, unless otherwise noted on the record at the time of the approval of the action required by this report.

Recommendation:

It is staff's recommendation that the City Council receive and file the warrant registers, wire transfers, and net payrolls dated 04/07/22, 04/12/22, 04/19/22 and 04/20/22.

3. APPROVAL OF REIMBURSEMENT AGREEMENT FOR SHELTER BEDS

WITHIN THE SALVATION ARMY BELL SHELTER
Approve and authorize the City Manager to execute a Reimbursement Agreement for shelter beds within the Salvation Army Bell Shelter with the cities of Bell, Commerce, Cudahy, Huntington Park, Maywood, South Gate and Vernon, collectively referred to as the Local Coordinating Alliance 1 (LCA1) at an estimated cost of$63,000 for a term beginning March 1, 2022 and ending on June 30, 2023.

Recommendation:

It is staff's recommendation that the City Council:

1. Approve in form the Reimbursement Agreement for Shelter Beds within the Salvation Army Bell Shelter, with the understanding that the final term length and the final cost will be updated in a final agreement to reflect the actual parties that will be participating in the program and subject to the final form approved by the City Attorney and City Manager. The actual start date of the pilot program is dependent on the execution of this Agreement by the parties to the pilot program and the availability of shelter beds in the Salvation Army Bell Shelter based on Los Angeles County Department of Public Health guidance for homeless shelters; and

2. Appropriate approximately $16,000 in General Funds in the FY 2021-2022 Budget.

4. CONSIDERATION AND APPROVAL OF A 30-DAY RESOLUTION

REGARDING THE CONDUCT OF TELECONFERENCED MEETINGS OF

THE CITY COUNCIL AND OTHER CITY BODIES UNDER THE MODIFIED RULES SET FORTH UNDER GOVERNMENT CODE SECTION 54953(E)
3 AB 361 was signed in to law on September 16, 2021, and immediately went into effect, authorizing local government bodies continue to meet remotely contingent on their compliance of the newly amended Government Code Section 54953.

I n compliance with the modified rules set forth under Government Code Section 54953(e), the City Council is requested to reconsider the circumstances regarding the previously approved 30-day resolution authorizing teleconferenced meetings of the City Council and all other city bodies and either extend the authorization or terminate.

Recommendation:

It is staff's recommendation that the City Council adopt or approve the attached Resolution permitting the City conduct public meetings virtually for all public bodies subject to the Brown Act in accordance with the requirements of AB 361, which will require reauthorization every (thirty) 30 days.

5. SECOND READING OF ORDINANCE NO. 923 TO ADOPT A MILITARY EQUIPMENT POLICY ("POLICY") AS REQUIRED BY ASSEMBLY BILL 481 ("AB 481'1
The proposed Ordinance adopts a policy for Bell Gardens Police Department ("Department") in compliance with Assembly Bill 481 (Chiu) ("AB 481") to address the funding, acquisition, and use by the Department of items deemed "military equipment" by lawmakers. The policy meets the law's requirements by listing the Department's inventory of military equipment; outlining a process for the public to submit questions, concerns, and complaints in relation to the use of each type of equipment; providing for the preparation of an annual report subject to City Council review and approval; and establishing a webpage for updates and the posting of annual reports.

Recommendation:

It is staff's recommendation that the City Council by motion:

1. Waive the Second Reading and adopt Ordinance No. 923 approving the Military Equipment Policy ("Policy") in accordance with state law.

6. APPROVAL OF COMMUNITY PARTNER AGREEMENT WITH KABOOM Community Partner Agreement with Kaboom!, Inc. for construction of a new playground and play features at the Neighborhood Youth Center.

Recommendation:

It is staff's recommendation that the City Council by motion:
1 . It is staff's recommendation that the City Council authorize the City Manager to finalize the terms and conditions of the Agreement with Kaboom!, Inc. subject to approval by City Attorney
DISCUSSION (Item No. 7)

7. ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR 2020-21
4 This agenda report presents the June 30, 2021, audited financial reports to the City Council. The audited financial reports consist of the Annual Comprehensive Financial Report, The Single Audit and its Report on Internal Control over Financial Reporting, Compliance and Other Matters Based on the Audit, Report on Communication with Those Charged with Governance, and Independent Accountant's Report on Agreed-Upon Procedures to Appropriation Limit Worksheets. The recommended action for this item is to review, discuss, and file.

Recommendation:

It is staff recommendation that the following reports for the year ended on June 30, 2021, be reviewed, discussed, and filed by the City Council. • Annual Comprehensive Financial Report (ACFR)
• Single Audit Report of Schedule of Expenditures of Federal Awards. • Report on Communication with Those Charged with Governance and; • Independent Accountant's Report on Agreed-Upon Procedures Applied to Appropriation Limit Worksheets.

PUBLIC COMMENTS ON NON-AGENDA ITEMS UNDER THE SUBJECT

MATTER JURISDICTION OF THE CITY COUNCIL
(Three minutes per person)
PUBLIC PARTICIPATION: Pursuant to Government Code Section 54953, recently amended by AB 361 ,and given the current health concerns, members of the public can access meetings live at https://www.bellgardens.org/i-want-to/watch-city-council-meetings . Members of the public may participate via Zoom by clicking on the City Council's Meeting Calendar on the website. (Be sure to download the Zoom App), the meeting ID is: 813 3236 4343 and the Passcode is: 2021. Comments may also be made via the zoom app by using the "Raise Hand"feature on the zoom app,when it is your turn to speak the host will unmute you. Live comments mayalso be made by call-in users on zoom bydialing (669)900-9128,when prompted enter the Webinar ID:813 3236 4343#, followed by Passcode: *2021#. During the public comments press*9,when it is your turn to speak, the user will need to dial*6 to unmute. Comments will not be accepted in the QandA/Chat function of the zoom app. Members of the public may also submit comments electronically for consideration by the City Council by sending them to [email protected]. To ensure distribution to the members of the City Council prior to consideration of the agenda, please submit comments no later than one(1)hour prior to the meeting.Those comments, as well as any comments received after, will be distributed to the members of the City Council and will be made part of the official public record of the meeting. Contact the City Clerk's office at 562-806- 7704 or the receptionist's desk at 562-806-7700 for any questions.

CITY COUNCIL MEMBER COMMENTS

ADJOURNMENT
Posted by: Jane Halstead, City Clerk- May 5, 2022
5 CITY OF BELL GARDENS
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AGENDA REPORT
Item 1.
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

TO: Honorable Mayor and City Council Members
FROM: Michael B. O'Kelly, City Manager
BY: Jane Halstead, City Clerk
SUBJECT: GENERAL MOTION TO WAIVE FULL READING AND APPROVE

ORDINANCES BY TITLE ONLY PURSUANT TO CALIFORNIA
GOVERNMENT CODE SECTION 36934
DATE: May 9, 2022
RECOMMENDATION:

It is staff recommendation that the City Council approve a general motion to waive full reading and approve Ordinances by title only pursuant to California Government Code Section 36934.

BACKGROUND/DISCUSSION:

In order to expedite the conduct of business at Council meetings, California State Law(California Government Code Section 36934) allows Ordinances to be read by title if a majority of the Council supports the motion waiving the full reading. Most California cities adopt a standard motion at the beginning of each meeting in order to effectuate this waiver.

Since most of the Ordinances introduced and adopted consist of multiple pages of technical language, reading by title only allows the Council to eliminate the communication of redundant information and attend to other matters during the meetings. Otherwise, the entire Ordinance language will have to be read in full.

CONCLUSION:

Allowing ordinances to be read by title only, according to California State Law, will expedite the conduct of business at Council Meetings.

FISCAL IMPACT:

No fiscal impact.

APPROVED ELECTRONICALLY BY:

AGENDA REPORT
Item 2.
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

TO: Honorable Mayor and City Council Members
FROM: Michael B. O'Kelly, City Manager
BY: Manuel Carrillo, Director of Finance &Administrative Services SUBJECT: WARRANT REGISTERS AND WIRE TRANSFERS
DATE: May 9, 2022
RECOMMENDATION:

It is staff's recommendation that the City Council receive and file the warrant registers, wire transfers, and net payrolls dated 04/07/22, 04/12/22, 04/19/22 and 04/20/22.

BACKGROUND/DISCUSSION:

The attached warrant registers, wire transfers, and net payrolls are for 04/07/22, 04/12/22, 04/19/22 and 04/20/22. The warrant registers, wire transfers, and net payrolls reflect the financial obligations of the City for the above referenced dates.

CONCLUSION:

If the recommendation to the City Council is approved, then the warrant registers, wire transfers, and net payrolls dated 04/07/22, 04/12/22, 04/19/22 and 04/20/22 will be received and filed.

FISCAL IMPACT:
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ATTACHMENTS:

Exhibit 1 -Warrant Register
7 APPROVED ELECTRONICALLY BY:

Michael B. O'Kelly, City Manager
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CITY OF BELL GARDENS
ii rrrrrr, ' OFFICE OF THE CITY MANAGER
11f �

AGENDA REPORT
Item 3.
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

TO: Honorable Mayor and City Council Members
FROM: Michael B. O'Kelly, City Manager
BY: Hailes H. Soto, Senior Management Analyst
SUBJECT: APPROVAL OF REIMBURSEMENT AGREEMENT FOR SHELTER BEDS

WITHIN THE SALVATION ARMY BELL SHELTER
DATE: May 9, 2022
RECOMMENDATION:

It is staff's recommendation that the City Council:

2. Appropriate approximately$16,000 in General Funds in the FY 2021-2022 Budget.

BACKGROUND/DISCUSSION:

Bell Gardens, according to the last point-in-time count (January 2020) of the unsheltered homeless, is 83 individuals. Despite the use of LA-HOP, the City still find the need to offer immediate temporary housing. Bell Gardens, like all cities in the County, has unhoused individuals sleeping within our parks and right-of-way areas. City staff works with various County departments and homeless outreach partners to assist these individuals.

City outreach, however, is limited as we do have to stay within our limits as dictated by the 2018 Ninth Circuit Court decision in Martin v. Boise. The court found that a city cannot prosecute homeless individuals for sleeping in public when there are more unhoused individuals than available shelter beds. As a result, to execute sanitation cleanups and maintain public health and safety, cities need to develop systems of coordination where city staff knows when and how many shelter beds are available and have the resources to be able to provide shelter options to unhoused individuals that are affected by sanitation cleanups. In addition, it is critical that public safety agencies know how many shelter beds are available to them, and public safety agencies need access to shelter beds on an emergency basis. If a Bell Gardens Police officer encounters an individual in need during the night or on the weekend, the opportunity for that person to receive care and shelter, if they are willing to accept shelter, may be lost if the Officer does not have access to a shelter bed for that individual. If the willing unhoused individual can be provided a shelter bed, their options for accessing medical care, mental health care, drug, and alcohol counseling, and permanent housing are significantly improved. 25 The City of Bell Gardens is a participant in the regional Continuum of Care (CoC) system that provides shelter beds for all of Los Angeles County under LAHSA's Coordinated Entry System (County CES). For unhoused individuals to receive a shelter bed and the attendant services that accompany temporary shelter housing, such as: drug and alcohol counseling, health care and mental health services, employment services, benefits advocacy, and permanent housing placement, the City must request assistance and be assigned an available shelter bed from the County CES system. Without an available bed in the County CES system, unhoused individuals are not able to receive services or shelter. The CoC system faces a demand level for shelter beds that are not met with the existing inventory, as many cities do not provide shelter beds within their city limits.

The Salvation Army Bell Shelter is located adjacent to the City, in the City of Bell and the shelter receives unhoused residents from the regional CoC system. The Bell Shelter is one of the largest shelters in the nation, and the shelter provides a significant portion of the region's shelter beds.

The Salvation Army Bell Shelter complex provides a variety of supportive services and housing options. Shelter beds are only one segment of the critical regional resources that the Salvation Army provides within the City of Bell. The shelter beds at the Salvation Army Bell Shelter are funded through contracts with agencies such as LAHSA, the Veterans Administration, and the Los Angeles County Department of Mental Health (DMH). Existing contracts provide most of the operations revenue for the Salvation Army Bell Shelter, and without these contracts, the shelter would not be able to operate. The City of Bell Gardens does not currently have a separate contract for shelter beds at the Bell Shelter. Therefore, the City's only available resource to serve unhoused individuals is the overburdened CoC system, which limits the City's ability to directly address local homelessness issues.

The LCA1 cities and unincorporated areas (Bell, Bell Gardens, Commerce, Cudahy, East Los Angeles, Huntington Park, Maywood, South Gate, Vernon, and Walnut Park) surrounding the Salvation Army Bell Shelter face a disproportionate homelessness impact. Unhoused individuals that are transported to the Salvation Army Bell Shelter from the greater Los Angeles County region may not successfully transfer to permanent housing for a variety of reasons, may not accept the mental health or drug and alcohol treatment services provided at the Salvation Army Bell Shelter, or may refuse to conform to the rules necessary for a safe and orderly living environment for residents of the Salvation Army Bell Shelter. As a result of these personal choices, and despite the best efforts of the Salvation Army Bell Shelter staff, these individuals may increase the unhoused population in the LCA1 cities, the surrounding unincorporated communities, and in the adjacent Los Angeles River channel. Thus, improved subregional coordination between the affected Southeast Los Angeles (SELA) area LCA1 communities, Los Angeles County Supervisorial Districts 1 and 4, the Salvation Army Bell Shelter, the Gateway Cities Council of Governments (Gateway COG), and existing regional agencies and nonprofit service providers is necessary to address the complex issue of homelessness in a manner that improves quality of life in the SELA subregion and improves the efficiency and effectiveness of existing regional services for the unhoused.

In April of 2020, the City of Bell requested that the Salvation Army inform them of any shelter beds that have become available for contracting. I n June of 2021, the Salvation Army notified the City of Bell that a group of beds could become available due to an expiring contract. On July 28, 2021, the Bell City Council provided direction to staff to contact surrounding cities to determine interest in sharing the cost of a contract for the shelter beds. 26 As a recognition of the unique impact of homelessness in the SELA area around the Salvation Army Bell Shelter, a Social Services Collaborator Agreement between the City of Bell and the Salvation Army Bell Shelter was approved. This agreement secures thirty-six (36) shelter beds (either low barrier beds or bridge beds depending on the acuity of the unhoused individual's service needs) that the participating LCA1 cities can access, in addition to the shelter beds in the CoC system.

The City of Bell applied for and received $500,000 in Measure H Innovation Funds from the Gateway COG to support this shared shelter bed pilot program and to reduce the cost to the LCA1 cities by fifty percent (50%). The City of Bell has achieved consensus with the LCA1 cities to share costs equally for this innovative pilot program. Los Angeles County Supervisorial District 1 (Solis) and Supervisorial District 4 (Hahn) are in the process of separately contracting with the Salvation Army Bell Shelter to add six (6) additional shelter beds to this coordinated group of thirty-six (36) shelter beds that will result in a total of forty-two (42) shelter beds coordinated by the Homeless Services Liaison that is based in the City of Bell. The Gateway COG also awarded $182,435 to the City of Bell to continue funding the shared Homeless Services Liaison through June 30, 2023.

Equal Distribution of Costs
Several meetings of the LCA1 cities discussed how to distribute costs among the agencies, with several cost factors proposed. The LCA1 group looked at the following factors: population, general fund budget, five-year average of homeless point in time counts, city area in square miles, five-year average of homeless point in time counts by square mile, and equal share.

Based on the difficulty of finding consensus (as many cities preferred the cost factor which resulted in the lowest cost for their city), the need for all cities to be flexible in coordinating the inventory of shelter beds, the availability of funding from the Gateway COG and the American Rescue Act, and the recognition of the LCA1 cities that the success of this innovative pilot program would likely improve local response to homelessness and improve subregional homelessness coordination, the LCA1 cities agreed to share an equal one-eighth (1/8th) cost of the pilot program.

The contribution of Measure H Innovation Grant funds from the Gateway COG was critical in reducing the cost of the program for LCA1 cities with smaller populations and limited general fund resources. It is likely that without the Measure H Innovation Grant funds several of the cities would not be able to participate due to financial constraints and the opportunity to coordinate the SELA subregion would be lost.

Distribution of Shelter Bed Inventory and Shelter Bed Availabilitk The Agreement provides for four(4) shelter beds per LCA1 city, and four(4) shared public safety shelter beds. However, it is impossible to predict exactly how long a specific shelter bed will be occupied, how many unhoused individuals will accept shelter, and what the various demands will be from each of the LCA1 cities.

The LCA1 cities understand that this is a pilot program, and a high degree of flexibility, coordination, and analysis will be necessary to manage the shelter bed inventory in a manner that satisfies every LCA1 party. The Agreement clearly states the need for coordination and flexibility that is required of all participants for the pilot program to be successful. 27 It is expected that a high level of city, county and agency communication will result from this pilot program. The LCA1 cities will have to work cooperatively to balance their individual needs and ensure that each LCA1 city has access to shelter beds. There is also a risk that the LCA1 cities may not be able to achieve ninety percent (90%) occupancy of the shelter beds, as many unhoused individuals may choose not to accept shelter. If the LCA1 cities cannot maintain the desired shelter bed occupancy, the available shelter beds may be used by other SPA 7 cities.

This will be an incentive for the LCA1 cities to coordinate the shelter bed inventory so that this valuable resource is not underutilized or wasted.

Metrics and Program Analysis
The success of this pilot program is dependent not just on the flexibility and coordination of the parties, but also on the data that is developed to determine whether a subregional collaboration for homeless services can improve local service delivery and successfully supplement regional homelessness service delivery. The information from this program will be inputted into the County's Homeless Management Information System (HMIS) which will allow for analysis and auditing of the pilot program's effectiveness. The Agreement notes specific metrics and targets for pilot program success. If the parties can effectively coordinate in a manner that improves local homelessness response and supports regional homelessness response without waste or inefficiency, this pilot program can be a model for subregional homeless services that can address the concerns of local communities in a targeted manner.

CONCLUSION:

Upon Council's direction, staff will proceed with actions as directed.

FISCAL IMPACT:

The City will allocate approximately $63,000 of the General Fund for the City's share of the Reimbursement Agreement for Shelter Beds within the Salvation Army Bell Shelter. The FY 2021-2022 Budget will need to be amended to add approximately $16,000 in General Funds for the initial three (3) months. The remaining $47,000 will be incorporated into the Fiscal Year 2022- 2023 City Budget.

ATTACHMENTS:

Exhibit 1 - Reimbursement Agreement
APPROVED ELECTRONICALLY BY:

SHELTER BEDS WITHIN THE SALVATION ARMY BELL SHELTER
THIS REIMBURSEMENT AGREEMENT ("Agreement")is entered into as of March 2022 ("Effective Date") by and among the CITY OF BELL, a California charter city ("Bell'), the CITY OF BELL GARDENS, a California general law city ("Bell Gardens"),the CITY OF COMMERCE, a California general law city ("Commerce"), the CITY OF CUDAHY, a California general law city ("Cudahy"), the CITY OF HUNTINGTON PARK, a California general law city ("Huntington Park"), the CITY OF MAYWOOD, a California general law city ("Maywood"), the CITY OF SOUTH GATE, a California general law city ("South Gate"), and the CITY OF VERNON, a California charter city and municipal corporation ("Vernon'), collectively referred to herein as the "LCAl Members" and/or the"Parties".

RECITALS
A. The cities of Bell, Bell Gardens, Commerce, Cudahy, Huntington Park, Maywood, South Gate, and Vernon, are members of a Local Coordinating Alliance 1 ("LCAl"), a cooperative working group of eight (8) entities developed within the Gateway Cities Council of Governments for subregional homeless services coordination in the Southeast Los Angeles subregion of Service Planning Area 7 ("SPA 7"). The LCA1 Members have agreed to coordinate resources and services to address homelessness in the Southeastern Los Angeles region within a provisional pilot program as described / outlined pursuant to the terms in this Agreement.

B. Los Angeles County (First and Fourth Supervisorial Districts) ("County") will separately participate with The Salvation Army for the same services as set forth herein pursuant to separate agreements directly with the Salvation Army Bell Shelter.

C. A"Shelter Bed" is defined as an occupancy placement within a crisis housing bed or a bridge housing bed within the Salvation Army Bell Shelter located at 5600 Rickenbacker Rd, Bell, CA 9020, for a single adult (age 18 or over) participant referred into a program of comprehensive homeless support services within such shelter. Depending on the service needs of the particular unhoused individual, initial placement may occur in a crisis housing bed that is operated with a low barrier design or in a bridge housing bed. Both crisis and bridge housing beds are intended provide a safe and supportive twenty-four (24) hour residence to individuals experiencing homelessness while enabling assistance for them to obtain permanent housing. A low barrier design program is one in which no participant that is placed within the Salvation Army Bell Shelter shall be required to commit to sobriety, or to commit to an adherence to medications for physical or mental health conditions. Low barrier crisis housing beds are expected to be provided at the Salvation Army Bell Shelter in Building lE. Bridge housing beds are expected to be provided at the Salvation Army Bell Shelter sober living dormitories in Building 2AB for participants who prefer to live in a more stable environment. The Exhibit 1 29

number of beds provided in each housing type will be flexible to accommodate the shifting needs of the participants at any time.

D. It is expected that a number of participants entering the pilot program will have significant barriers to employment and housing. The Parties expect that there will be an on-site Salvation Army Bell Shelter employee who will provide group and individual psychotherapy for participants who need an advanced level of support and are open to engaging in behavioral health services.

E. Client level data for this pilot program will be entered into the Los Angeles Homeless Services Authority's ("LAHSA") Homeless Management Information System ("HMIS"). HMIS collects participant demographic data, as well as program and service utilization data for auditing, reporting, and to facilitate participant transfer and coordination among available regional homeless services programs.

F. The LCA1 Members currently participate in the Los Angeles County Coordinated Entry System ("County CES"), which provides for placements of individuals experiencing homelessness within occupiable shelter beds in Los Angeles County.

Due to the high demand for shelter beds within Los Angeles County, a shelter bed may not be immediately available to address the needs of the local unhoused population in the Southeast Los Angeles County subregion. Thus, the City of Bell has negotiated an agreement with The Salvation Army to procure the prioritized use of thirty-six (36) shelter beds for the eight(8)participating LCA1 Members, in recognition of the local impacts of homelessness experienced by the LCA1 Members.

G. The LCA1 Members, have collectively designated the City of Bell as the lead agency to coordinate the implementation of the pilot program proposed by this Agreement for the placement of homeless individuals within the Salvation Army Bell Shelter in an effort to address the unhoused population that the LCA1 Members seek to assist.

H. This pilot program will require a great deal of cooperation among the LCA1 Members in order to enable the efficient placement of homeless individuals currently to a Shelter Bed within the Salvation Army Bell Shelter.

I. The Salvation Army Bell Shelter, one of the largest shelters in the nation, is located within the City of Bell in the Southeast Los Angeles County subregion and accepts placements from throughout the Los Angeles County area through the County CES.

The Shelter Beds are contracted by various governmental and nonprofit entities, and the Salvation Army Bell Shelter, in recognition of the homeless housing impacts experienced by the LCA1 Members, has agreed to contract with the City of Bell for thirty-six (36) prioritized Shelter Beds to be allocated to the LCA1 Members' homeless population, based on certain conditions. 01135.0001/536707.2 -2-
Exhibit 1 30

J. The City of Bell will take the lead on behalf of the LCA1 Members plus the County to coordinate the prioritized use of forty-two(42) Shelter Beds within the Salvation Army Shelter through a Homeless Liaison (as such term is defined below), which shall be a designated staff member selected by the City of Bell to implement the pilot program under this Agreement that is separately funded by a Measure H Innovation Fund Grant reimbursement through the Gateway Cities Council of Governments.

K. To this end, the City of Bell and The Salvation Army, a California corporation ("Salvation Army") have entered into an agreement, dated March , 2022, as set forth in Exhibit A (the "Salvation Army Agreement"), whereby the City of Bell, has acquired the prioritized right for thirty-six (36) Shelter Beds within the Salvation Army Bell Shelter, and additional supportive services to serve the LCA1 Members' homeless housing population.

L. Separately, the City of Bell, as lead agency, applied for and received a $500,000 Measure H Innovation Fund Grant("Measure H Grant")from the Gateway Cities Council of Governments, which reduces the total cost of this pilot program to the eight (8) LCA1 Members. With Measure H Grant funds, the total estimated cost of the Salvation Army Agreement to the eight (8) participating LCA1 Members would be reduced by fifty percent(50%)from $999,324 to $499,324. In return for the Measure H Grant award, the LCA1 Members agree that if the thirty-six (36) Shelter Beds cannot be filled by the LCA1 Members, open placements will be made available to other SPA 7 communities with pre-approval of the designated Homeless Liaison. The total number of SPA 7 placements from outside of the eight (8) LCA1 Members may not exceed fifty percent (50%) of the thirty-six (36) Shelter Beds, which is eighteen (18) out of the thirty-six (36) Shelter Beds at any one time. Placements will not be available to other SPA 7 communities through this Agreement until Shelter Bed occupancy drops below ninety percent (90%) occupancy, or thirty-three (33) of the thirty-six (36) Shelter Beds.

M. The City of Bell shall appoint an individual to serve as a liaison to all LCA1 Members and the County (the "Homeless Liaison"), and shall work with the participating LCA1 Members and the County to coordinate the use of the prioritized Shelter Beds within the Salvation Army Bell Shelter in addition to any other beds that are made available through the County CES.

N. The Shelter Beds are designed to provide the LCA1 Members with an additional inventory of homeless shelter beds to address the significant impacts of homelessness the LCA1 Members are experiencing. If any individuals choose to leave a placement at the Salvation Army Bell Shelter, either of their own volition or for violating the rules and policies of the Salvation Army Bell Shelter, they will add to the unhoused population in the communities of the Southeast Los Angeles subregion. Thus, the pilot program proposed by the LCA1 Members is designed to provide an enhanced level of support, resources, and communication in order to ensure any placement of individuals within the Salvation Army Bell Shelter remain for as long as reasonably possible.
01135.0001/536707.2 -3-
Exhibit 1 31

O. The LCAI Members agree that the costs of this Agreement will be shared equally among all of the LCAI Members and they shall be required to pay their equal share each month during the term of this Agreement. If a LCAI Member chooses to withdraw from this Agreement, other cities within the SPA 7 area may be added to this Agreement with priority provided to communities closest to the Salvation Army Bell Shelter (which addition may require an amendment or supplement to this Agreement as determined by the City of Bell). The intent of the LCAI Members is to retain a minimum of eight (8) participating entities, in order to ensure,i)that the cost of this Agreement is not prohibitive for any one member and, ii) that the Shelter Beds remain ninety percent (90%) occupied during the term of this Agreement.

AGREEMENT
NOW,THEREFORE,in consideration of the preceding recitals and the mutual covenants hereinafter contained, the Parties agree as follows:

Section 1. Incorporation of Recitals. The recitals set forth above are hereby acknowledged and agreed to by the Parties and are incorporated in the terms of this Agreement. Specifically, the City of Bell is acknowledged and agreed to as the lead agency, and its appointed Homeless Liaison is acknowledged and agreed to, for purposes of this Agreement.

Section 2. Term; Termination.
(a) The term of this Agreement will commence on March 1, 2022 and end on June 30, 2023 (the "Term") for a total of 487 days.
(b) In addition, this Agreement may be terminated after June 30, 2022, (i) at the convenience of any LCAI Member following thirty (30) days prior written notice to the City of Bell, and/or (ii) upon a termination of the Salvation Army Agreement by the Salvation Army or the City of Bell pursuant to the terms of the Salvation Army Agreement.

The City of Bell, as lead agency, may replace any party that terminates this Agreement with another city within the SPAT area that executes an acknowledgement and acceptance of the terms of this Agreement (which, at the City of Bell's discretion, may require an amendment to this Agreement).
(c) In the event of any termination by a LCAI Member after June 30, 2022, and a replacement SPA 7 city is not immediately available to take such terminating Party's share of the costs/payments required herein, then the equitable share of costs for this Agreement (along with the allocation of the thirty-six (36) Shelter Beds for all LCAI Members)provided in Section 3 below shall be adjusted accordingly.

Section 3. Cost and Payment. It is agreed and acknowledged that the Parties will share the costs of this pilot program equally, and that, regardless of any ability of the City of Bell, the Homeless Liaison, and/ or the Salvation Army Bell Shelter to actually enable the utilization of any Shelter Bed within the Salvation Army Bell Shelter for any LCAI Member's homeless population, each LCAI Member shall be required to pay the monthly 01135.0001/536707.2 -4-
Exhibit 1 32

amount due under this Agreement on the first day of each month of the Term of this Agreement to the City of Bell in order for the City of Bell to pay any and all monthly invoices received from the Salvation Army without delay. If the invoice received by the City of Bell from the Salvation Army for the use of the Shelter Beds in any given month is less than the amount collectively paid by the LCA1 Members for such month,then the City of Bell shall promptly refund any such overcharge to each of the LCA1 Members on an equal basis.

As the City of Bell, as lead agency, was successful in procuring $500,000 in Measure H Grant funds from the Gateway Cities Council of Governments, the total cost for each of the Parties (as set forth below)is proportionally reduced during the term of the Measure H Grant fund term.

Total Agreement Cost
The total cost of the Salvation Army Agreement is $999,324 calculated at thirty-six (36) Shelter Beds per day at a cost of$57 per bed/per day for 487 days.

The City of Bell will invoice the Gateway Cities Council of Governments for $500,000 in Measure H Grant fund reimbursements, which would reduce the total cost of this Agreement to $499,324.

Los Angeles County First Supervisorial District will enter directly into a separate agreement with the Salvation Army Bell Shelter for four (4) additional Shelter Beds at a cost of$117,420. Los Angeles County Fourth Supervisorial District will enter directly into a separate agreement with the Salvation Army Bell Shelter for two (2) additional Shelter Beds at a cost of $58,710, to bring the total number of coordinated Shelter Beds in the Southeast Los Angeles subregion to forty-two (42)under this pilot program.

The eight (8) LCA1 Members will be invoiced monthly by the City of Bell for an equal one-eighth (1/8t') share. Each of the eight (8) LCA1 Members will be billed a maximum of$62,415.50 of the total Agreement of$499,324.

Monthly Invoice
The City of Bell, as lead agency, will submit the monthly invoice it receives from the Salvation Army pursuant to the Salvation Army Agreement, to each LCA1 Member upon five(5)business days of its receipt therefor, with, if applicable, backup documentation and related reports for the thirty-six (36) Shelter Beds.

Section 4. Specifications. The availability and use of the thirty-six (36) Shelter Beds allocated to each LCA1 Member shall be subject to the following specifications. In recognition of the complexity of the daily operations of the Salvation Army Bell Shelter, and the unknown personal,regional, and local factors which affect Shelter Bed availability, the Parties agree that a high level of communication, coordination, and flexibility is necessary to effectively use all available Shelter Beds, and to refrain from submitting Shelter Bed placements when inventory is not available. There is no guarantee that a Shelter Bed is available at any specific time, as the complex and shifting factors that affect 01135.0001/536707.2 -5-
Exhibit 1 33

Shelter Bed inventory are beyond the control of the City of Bell and the Salvation Army Bell Shelter. The purpose of this pilot program is to increase coordination and communication on homelessness within the LCA1 subregion, to develop data at a subregional level, and to develop improved and effective partnerships on a subregional level with regional service providers and nonprofit entities. (a) Initial Use of Crisis Housing Bed Inventory. Upon the notice from the Salvation Army of availability of Shelter Beds within the Salvation Army Bell Shelter, ten percent (10%) of the thirty-six (36) beds will be designated as public safety priority beds for emergency use by the public safety agencies of all LCA1 Members, for a total of four (4) beds. The remaining ninety percent (90%), or thirty-two (32) beds, will be prioritized as four (4) general inventory beds per each LCA1 Member. This distribution equals eight(8) LCA1 Members times four(4)beds each for a general inventory of thirty- two(32)beds. Initial intake into a public safety priority bed shall also require participation from a public safety agency(e.g.,Bell Police Department,Bell Gardens Police Department, Los Angeles County Sheriff, South Gate Police Department, Vernon Police Department, etc.). Once the new resident is placed in a public safety bed and completes the facility intake process,they will be rotated from the priority public safety bed into one of the thirty- two (32) general beds, if a general bed is available. If the LCA1 Members cannot fill the Shelter Bed inventory, and the Shelter Bed occupancy drops below ninety percent (90%), the Homeless Liaison may refer participants from non LCA1 Member SPA 7 cities to ensure that the Shelter Bed inventory is used efficiently up to a maximum of eighteen (18) non LCA1 Member SPA 7 placements at any one time. The LCA1 Members shall use best efforts to efficiently and effectively coordinate the shared use of available Shelter Beds to maintain ninety percent(90%)occupancy and meet their specific local needs depending on bed availability. The Salvation Army has agreed, pursuant to the Salvation Army Agreement to coordinate in good faith to plan transfers of homeless individuals to other available support programs, based on participant eligibility (i.e., Veteran's Administration program shelter beds,Department of Mental Health program shelter beds, Substance Abuse Prevention and Control program shelter beds)to increase the annual number of participants that can benefit from the forty (40) prioritized Shelter Beds under the Salvation Army Agreement. The LCA1 Members acknowledge and agree that the thirty-six (36) Shelter Beds are not actually reserved or dedicated to the LCA1 Members' homeless population, but are merely prioritized to them under the Salvation Army Agreement. Each day there shall be an analysis of the occupancy of Shelter Beds and allocations will be made available to each of the LCA1 Members through the Homeless Liaison in coordination with the LCA1 Members. As such, the effectiveness of this pilot program requires cooperation and consistent communication between the LCA1 Members and the Homeless Liaison, given the fluidity of available bed occupancy (and the rotation in and out of such beds by homeless individuals).
(b) Recalculation of Crisis Housing Bed Inventory. In order to ensure the full and efficient use of the thirty-six (36) prioritized Shelter Beds, cooperation and communication between the Parties is essential. Informal analysis and recalculation of Shelter Bed use ratios shall occur every week day during the Term of this Agreement, and as needed, to use the available Shelter Beds efficiently. An initial thirty (30) day use analysis will be provided to the LCA1 Members by the City of Bell and/or the Homeless 01135.0001/536707.2 -6-
Exhibit 1 34

Liaison after the Effective Date and a secondary sixty (60) day use analysis will be provided to the LCA1 Members, in order to determine and agree to the most efficient bed use ratios. Thereafter, quarterly reviews will occur to determine the efficient use of the Shelter Beds, and the effectiveness of this pilot program and how it could be improved.

Shelter Bed inventory flexibility is critical in order to effectively address conditions in the field (given the fact that individuals placed within the Salvation Army Bell Shelter will likely be rotating in and out frequently) and in order to assess the success of program participants in receiving housing placement. As this program is a pilot program and requires participant flexibility, all Parties will designate a public safety contact and a staff contact for the Homeless Liaison to coordinate activities and improve communication, each of which are designated on the signature page for each of the Parties below. (c) Shelter Bed Availability Limitations. If the Salvation Army Bell Shelter is experiencing COVID-19 quarantine limits or holds on resident intake upon the execution of the Salvation Army Agreement, the Salvation Army Bell Shelter will not initiate invoicing for Shelter Beds until the beds are available. Limitations on Shelter Bed availability may exist depending on the number of available Shelter Beds in the Salvation Army Bell Shelter's daily inventory. The Salvation Army Bell Shelter does not provide family shelter resources; thus LCA1 Members must coordinate placement of any such families to other shelters through the Homeless Liaison during business hours or call 211 ( www.2111a.org) to find suitable shelter or motel options for families in need. The Salvation Army Bell Shelter does not provide a kennel to shelter the pets of unhoused individuals in need. The thirty-six (36) Shelter Beds addressed in this Agreement are merely a supplement to the shelter beds available through the County CES. (d) Intake. New resident intake shall occur during regular business hours of 8:00 AM to 4:00 PM, Monday through Friday. The Salvation Army Bell Shelter provides 24 hour a day, seven day a week staffing, however the shelter has an inventory of four(4) safe rooms for intake and staff are required to perform COVID-19 protocols upon intake that limit the ability of the shelter to perform intake outside of regular business hours.

After hours domestic violence and/or other emergency placements are subject to the availability of an unoccupied safe room at the Salvation Army Bell Shelter. Emergency intake is available after hours, however due to a limited number of available safe rooms and due to COVID-19 protocols, after hours intake should only be for emergency situations. An after-hours call line that operates 24 hours a day will be provided to participating public safety agencies for use in the event of an after-hours emergency. (e) Length of Stay. Each participant will be limited to an initial stay of ninety (90) days. Two (90) day extensions are available upon request for participants actively working on a housing plan, for a maximum stay of 270 days for any individual participant.
(f) COVID-19 Protocols and Processes. The Salvation Army Bell Shelter restarted limited intake of residents into quarantine facilities on August 19, 2021. COVID- 19 protocols for intake include but are not limited to, i) any incoming participant is tested on the day of or on the day after intake regardless of vaccine status, ii) if an incoming participant is vaccinated, the participant may move into a public safety prioritized bed. If 01135.0001/536707.2 -7-
Exhibit 1 35

a participant is not vaccinated, they must remain in quarantine until two negative COVID- 19 tests are received. The second test occurs seven to eight days after the first, with results generally available within three days. Modular homes located on the greater Salvation Army Bell complex property serve as a first line of intake quarantine and are subject to availability.
(g) Homeless Liaison. The Homeless Liaison will coordinate daily with assigned Salvation Army Bell Shelter staff, in order to determine the daily inventory on weekdays of Shelter Bed availability and the roster of shelter residents, however, it shall not be required to ensure the availability of all thirty-six (36) Shelter Beds since such beds are only prioritized, they are not specifically reserved, and the LCA1 Members must coordinate with the Homeless Liaison in order to ensure allocation of Shelter Beds for proposed participants. The Homeless Liaison will coordinate daily with assigned LCA1 public safety agency assigned staff(as designated on the signature page to this Agreement) to report shelter bed inventory availability and to determine any planned public safety needs. The Homeless Liaison will coordinate daily with designated Salvation Army Bell Shelter staff to determine how many residents can be transferred to general bed inventory or to other programs to maximize Shelter Bed use. The City of Bell and the Homeless Liaison shall have no liability for any failure to ensure a placement of any LCA1 Member's proposed participant/homeless population within a Shelter Bed. (h) Reporting.
(i)Reporting by Salvation Army Bell Shelter: It is expected that the Salvation Army Bell Shelter will provide, i) daily inventory counts to the Homeless Liaison and, ii) a monthly report and invoice to the City of Bell and the Homeless Liaison. (ii) Reporting by the Homeless Liaison: the Homeless Liaison will reasonably endeavor to provide: i) a monthly report and the Salvation Army Bell Shelter invoice it received to all participating LCA1 cities and, ii) a quarterly report to the LCA1 Members and the Gateway Cities Council of Governments.
(iii) Participant level data will be entered into the LAHSA HMIS system for program reporting and auditing purposes.
(iv) The following metrics and expected outcome measures will be reasonably tracked and reported: i) a minimum of one hundred (100)unduplicated individuals will be served each year during the Term of this Agreement, with a goal of one hundred and fifty (150) unduplicated individuals over the Term of the Agreement, ii) twenty percent(20%) of participants (of those able to work — e.g. not disabled or retired) will be employed by the expected exit date and, iii) thirty percent (30%) of participants will exit to permanent housing and, iv) eighty five percent (85%) of participants will complete a housing plan and, v) ten percent (10%) of participants will exit to another level of care (DMH RIP or other stable housing location). However, there shall be no liability to any of the Parties if such metrics and/or outcome measures are not achieved
01135.0001/536707.2 -8-
Exhibit 1 36

Section 6. Defaults and Indemnification Provisions. (a) Defaults. In the event any of the Parties shall fail to pay its required share of the costs of the Shelter Beds in any given month during the Term of this Agreement(or any extension approved by the Parties),then such party shall be in immediate default under this Agreement, and the City of Bell shall be entitled to, and may sue for, the payment of all such unpaid amounts (and the defaulting party shall pay interest at the lesser of(i) 10% per annum, or(ii), the maximum rate permitted by law)from and after the due date of such monetary payment obligation until payment is actually received. The Parties acknowledge that money damages and remedies at law generally are inadequate and that specific performance is appropriate for the enforcement of this Agreement. Therefore, the remedy of specific performance shall be available to all Parties hereto. This subsection shall not limit any other rights, remedies, or causes of action that any party may have at law or equity.
(b) Indemnity by City of Bell. To the full extent permitted by law, the City of Bell agrees to indemnify, defend and hold harmless each of the other Parties, and their respective officers, employees and agents ("Indemnified Parties") against, and will hold and save them and each of them harmless from, any and all actions, claim, or liabilities that may be asserted or claimed by the Salvation Army, arising out of or in connection with any defaults or failures asserted under the Salvation Army Agreement against the City of Bell, and/or the City of Bell's negligent performance of the activities, work, or operations provided under this Agreement, except claims or liabilities occurring as a result of Indemnified Parties' negligence or willful acts or omissions. The indemnity obligations contained herein shall be binding on successors and assigns of the Parties and shall survive termination of this Agreement.
(c) Indemnity by Parties. To the full extent permitted by law, each of the Parties agree (based on, and only up to, the Parties' respective proportionate share of the costs due from each party as set forth in Section 3 above) to indemnify, defend and hold harmless the City of Bell and the Homeless Liaison, and their respective officers, employees and agents against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities that may be asserted or claimed by the Salvation Army, or any other person, firm or entity arising out of or in connection with the Shelter Beds, the Salvation Army Agreement, and/or this Agreement, except with respect to the negligent performance of the activities, work, or operations provided by the City of Bell or the Homeless Liaison under the Salvation Army Agreement or herein. The indemnity obligations contained herein shall be binding on successors and assigns of the Parties and shall survive termination of this Agreement. Notwithstanding anything to the contrary herein,in the event any of the Parties fail to make any payment due hereunder, which causes the City of Bell to fail to make the payments due under the Salvation Army Agreement, the Parties shall share in any costs, liabilities, or claims that result from the failure of such nonpayment and the City of Bell shall not be required to make any additional payment to the Salvation Army to cover such un-reimbursed amounts.
01135.0001/536707.2 -9-
Exhibit 1 37

Section 6. Miscellaneous Provisions.
(a) Notices. All notices or other communications under this Agreement shall be in writing and shall be delivered to the appropriate party at the address set forth below (subject to change from time to time by written notice to all other Parties to this Agreement). All notices, demands or other communications shall be considered as properly given if sent by: (a) electronic mail and regular mail; or (b) overnight express mail, charges prepaid. Notices so sent shall be deemed effective one (1)business day after mailing or the same day as sent for electronic delivery. For purposes of notice, the addresses of the Parties shall be as set forth on the signature pages contained herein. (b) Attorneys' Fees. If any of the Parties to this Agreement is required to or seeks to initiate or defend litigation against any other party, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys' fees. (c) Integration; Amendments. This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the Parties (including the Salvation Army Agreement). It is understood that there are no oral agreements between the Parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the Parties (other than the Salvation Army Agreement), and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by the City of Bell as the lead agency. The Parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.
(c) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. Signatures transmitted electronically shall be deemed originals for all purposes of this Agreement.
(d) Authority. The persons executing this Agreement on behalf of each of the Parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and(iv)the entering into this Agreement does not violate any provision of any other agreement to which said party is bound.
[SIGNATURES ON FOLLOWING PAGE]
01135.0001/536707.2 -10-
Exhibit 1 38

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.

CITY:

CITY OF BELL, a California charter city
Name:

Title:

Address: City Hall; 6330 Pine Ave, Bell, CA
90201
ATTEST:

Angela Bustamante, City Clerk
APPROVED AS TO FORM:

ALESHIRE& WYNDER, LLP
David J. Aleshire, City Attorney
01135.0001/536707.2 -11-
Exhibit 1 39

CITY:

CITY OF BELL GARDENS,
a California general law city
By:

Name:

Title:

Address:

Public Safety Contact:

Staff Contact:

CITY:

CITY OF COMMERCE,
a California general law city
By:

Name:

Title:

Address:

Public Safety Contact:

Staff Contact:

CITY:

CITY OF CUDAHY,
a California general law city
By:

Name:

Title:

Address:

Public Safety Contact:

Staff Contact:
01135.0001/536707.2
Exhibit 1 40

CITY:

CITY OF HUNTINGTON PARK,
a California general law city
By:

Name:

Title:

Address:

Public Safety Contact:

Staff Contact:

CITY:

CITY OF MAYWOOD,
a California general law city
By:

Name:

Title:

Address:

Public Safety Contact:

Staff Contact:

CITY:

CITY OF SOUTH GATE,
a California general law city
By:

Name:

Title:
01135.0001/536707.2
Exhibit 1 41

Address:

Public Safety Contact:

Staff Contact:

CITY:

CITY OF VERNON,
a California charter city
By:

Name:

Title:

Address:

Public Safety Contact:

Staff Contact:
01135.0001/536707.2
Exhibit 1 42

CITY OF BELL GARDENS
ii rrrrrr, ' OFFICE OF THE CITY MANAGER

AGENDA REPORT
Item 4.
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

TO: Honorable Mayor and City Council Members
FROM: Michael B. O'Kelly, City Manager
BY: Jane Halstead, CMC City Clerk
SUBJECT: CONSIDERATION AND APPROVAL OF A30-DAY RESOLUTION

REGARDING THE CONDUCT OF TELECONFERENCED MEETINGS OF

THE CITY COUNCILAND OTHER CITY BODIES UNDER THE MODIFIED RULES SET FORTH UNDER GOVERNMENT CODE SECTION 54953(E)
DATE: May 9, 2022
RECOMMENDATION:

BACKGROUND/DISCUSSION:

On March 4, 2020, Governor Gavin Newsom proclaimed a State of Emergency throughout the state of California, in response to the rapid spread and threat of the Novel Coronavirus (COVID- 19). On the same day, the Los Angeles County Board of Supervisors and Los Angeles County Department of Public Health ("LACDPH") declared a local emergency and local public health emergency throughout Los Angeles County. On March 17, 2020, the City of Bell Gardens City Council ("City Council") declared a local emergency due to COVID-19 and have reviewed the need for a local emergency at least once every 60 days since the initial declaration pursuant to Government Code Section 8630(c).

Currently, the state-declared emergency remains in effect. In addition, LACDPH has issued a series of Health Officer Orders containing recommendations for keeping individuals safe, reducing risk, and preventing the spread of COVI D-19. As stated, the most recent Health Order by the LACDPH, effective as of April 22, 2022, Los Angeles County is currently experiencing increases in COVI D-19 cases, positivity rates, and COVI D-19 hospitalizations are no longer in decline.

On September 16, 2021, Governor Newsom signed Assembly Bill (AB) 361 (Rivas, 2021), which authorizes local agencies to continue to hold public meetings remotely under modified teleconferencing requirements set forth in the Brown Act (Government Code section 54953(b)(3)) during a state-declared emergency, as that term is defined, and when either state or local health officials have imposed or recommended measures to promote social distancing, or in situations when the legislative body has determined that meeting in person would present imminent risks to the health or safety of attendees. AB 361 went into effect immediately and sunsets on January 1, 2024.
43 On Monday, April 25, 2022, the City passed Resolution Number 2022-36, ratifying the proclamation of a State of Emergency by Governor Newsom on March 4, 2020, and re- authorizing remote teleconference meetings of the City Council, City Boards, and all Commissions of the City of Bell Gardens, for the period from April 25, 2022, through May 25, 2022, pursuant to Brown Act provisions.

Under AB 361, legislative bodies of the City can meet remotely during a declared State of Emergency by the Governor that includes the jurisdictional boundaries of the City, if the legislative body determines that one of the following is also true:

1. State or local officials have imposed or recommended social distancing; or 2 . To determine, by a majority vote, whether to hold remote meetings as a result of the State of Emergency, because meeting in person would present imminent risks to the health or safety of attendees; or
3 . The legislative body holds a meeting having already determined by a majority vote to hold remote meetings.

Modified Brown Act requirements underAB 361, include, among other provisions, that:

Members of the public must be allowed to address the body and offer comments in real-time during the meeting.

I n the event of a technical disruption, the public agency cannot take any further action on the agenda until the issue is resolved.

Public agencies may not require public comments be submitted in advance (this is still a permissible option but cannot be the only option).

Members of the public must be given a reasonable time to register to provide public comment, if necessary, and agencies that provide a timed public comment period shall not close the remote public comment option until that timed period has expired.

Once the initial authorizing resolution is adopted, ongoing authorization every thirty (30) days is required by majority vote. If the legislative body desires to continue using the teleconference exception, it must confirm the circumstances of the State of Emergency thirty (30) days after the first teleconference meeting and every thirty (30) days thereafter. Resolution Number 2022-36 expires on May 25, 2022, staff recommends the City Council adopt the attached resolution to avoid any lapse.

CONCLUSION:

If approved, the following will be adopted or approved:
1) The attached Resolution authorizing the City conduct public meetings virtually for all public bodies subject to the Brown Act in accordance with the requirements of AB 361, which will require reauthorization every(thirty) 30 days.

FISCAL IMPACT:

There is no fiscal impact to the City.

ATTACHMENTS:
44 Exhibit 1 - Resolution No. 2022-38
APPROVED ELECTRONICALLY BY:

Michael B. O'Kelly, City Manager
Stephanie Vasquez,Assistant CityAttorneyfor Rick R. Olivarez, City Attorney Manuel Carrillo, Director of Finance and Administrative Services 45 RESOLUTION NO. 2022-38

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL

GARDENS, CALIFORNIA, RATIFYING THE PROCLAMATION OF A

STATE OF EMERGENCY BY GOVERNOR NEWSOM ON MARCH 4, 2020, AND AUTHORIZING REMOTE TELECONFERENCE

MEETINGS OF THE CITY COUNCIL, CITY BOARDS, AND ALL

COMMISSIONS OF THE CITY OF BELL GARDENS, FOR THE PERIOD FROM MAY 9, 2022, THROUGH JUNE 8, 2022, PURSUANT TO BROWN

ACT PROVISIONS
WHEREAS, Coronavirus, also known as COVID-19, was first reported in China in December 2019, it has now spread throughout the state of California, including throughout the City of Bell Gardens ("City");
WHEREAS, on March 4, 2020, California Governor Gavin Newsom declared a State of Emergency in response to the rising cases of COVID-19 throughout the state of California;
WHEREAS, on March 4, 2020, the Los Angeles County Board of Supervisors and Los Angeles County Department of Public Health ("LACDPH") declared a local emergency and local public health emergency in response to the spread of COVID-19 throughout the County;
WHEREAS, on March 13, 2020, the President of the United States declared a National Emergency due to the continued spread and the effects of COVID-19; WHEREAS, on March 17, 2020, the City of Bell Gardens City Council ("City Council') declared a local emergency due to COVID-19, and have reviewed the need for a local emergency at least once every 60 days since the initial declaration pursuant to Government Code Section 8630(c);
WHEREAS, on March 17, 2020, Governor Newsom issued Executive Order N-29- 20, which allowed local governments meet remotely without adherence to the traditional teleconferencing rules set forth in the Ralph M. Brown Act ("Brown Act"), this waiver was extended through September 30, 20217 by Executive Order N-08-21; WHEREAS, on September 16, 2021, Governor Newsom signed into law Assembly Bill No. 361 ("AB 361"), which, until January 1, 2024, authorizes a local agency to use teleconferencing without complying with the teleconferencing requirements imposed by the 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 or local health officials have imposed or recommended measures to promote social distancing or when the legislative body has determined that meeting in person would present imminent risks to the health or safety of attendees;
Exhibit 1 46

Resolution No. 2022-38
WHEREAS, as stated the most recent Public Health Order ("Health Order") by the LACDPH, effective as of April 22, 2022, Los Angeles County is currently experiencing increases in COVID-19 cases, positivity rates, and COVID-19 hospitalizations are no longer in decline;
WHEREAS, AB 361 requires legislative bodies that hold teleconferenced meetings under its abbreviated teleconferencing procedures to give notice of the meeting and post agendas, as described, to allow members of the public to access the meeting and address the legislative body, to give 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, and to conduct the meeting in a manner that protects the statutory and constitutional rights of the parties and the public appearing before the legislative body;
WHEREAS, AB 361 requires the legislative body 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; WHEREAS, AB 361 prohibits the legislative body from requiring public comments to be submitted in advance of the meeting and specifies that the legislative body must provide an opportunity for the public to address the legislative body and offer comment in real time;
WHEREAS, AB 361 prohibits the legislative body from closing the public comment period and the opportunity to register to provide public comment, until the public comment period has elapsed or until a reasonable amount of time has elapsed, as specified; WHEREAS, all City Council, Board, and Commission meetings are open and public, as required by the Brown Act, so that any member of the public may attend, participate, and watch the City Council or City Commission conduct their business; WHEREAS, on December 13, 2021, the City Council adopted Resolution No. 2021-105 ratifying the proclamation of a State of Emergency by Governor Newsom on March 4, 2020, and authorizing remote teleconference meetings of the City Council, City Boards, and all Commissions of the City of Bell Gardens, for the period from December 13, 2021, through January 12, 2022, pursuant to Brown Act provisions; WHEREAS, on January 10, 2022, the City Council adopted Resolution 2022-03, authorizing remote teleconference meetings of the City Council, City Boards, and all Commissions of the City of Bell Gardens through February 9, 2022; WHEREAS, on January 24, 2022, the City Council adopted Resolution 2022-08, authorizing remote teleconference meetings of the City Council, City Boards, and all Commissions of the City of Bell Gardens through February 23, 2022; 2 of 5
Exhibit 1 47

Resolution No. 2022-38
WHEREAS, on February 14, 2022, the City Council adopted Resolution 2022-12, authorizing remote teleconference meetings of the City Council, City Boards, and all Commissions of the City of Bell Gardens through March 16, 2022; WHEREAS, on February 28, 2022, the City Council adopted Resolution 2022-18, authorizing remote teleconference meetings of the City Council, City Boards, and all Commissions of the City of Bell Gardens through March 30, 2022; WHEREAS, on March 14, 2022, the City Council adopted Resolution 2022-23, authorizing remote teleconference meetings of the City Council, City Boards, and all Commissions of the City of Bell Gardens through April 13, 2022; WHEREAS, on April 11, 2022, the City Council adopted Resolution 2022-27, authorizing remote teleconference meetings of the City Council, City Boards, and all Commissions of the City of Bell Gardens through May 11, 2022; WHEREAS, on April 25, 2022, the City Council adopted Resolution 2022-36, authorizing remote teleconference meetings of the City Council, City Boards, and all Commissions of the City of Bell Gardens through May 25, 2022; WHEREAS, the City finds that the continuous spread of COVID-19, specifically with regard to the highly transmissible variants, throughout the community has caused, and will continue to cause, conditions of peril to the safety of persons within the City that are likely to be beyond the control of the City;
WHEREAS, the City continues to enforce measures to promote social distancing which include recommending staff and civilians wear masks in City buildings as well as posting COVID-19 safety measures throughout City buildings and on the City website; WHEREAS, in light of the continuing State declaration of emergency resulting from the COVID-19 pandemic, the continuing recommendation by Los Angeles County Public Health officials for masking at indoor events, and the imminent risks to the health and safety of attendees at meetings conducted in person due to the spread of COVID-19, the City Council desires to make the findings required by AB 361 to allow the City Council and all City Boards and Commissions to continue to meet under AB 361's abbreviated teleconferencing procedures.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Bell Gardens as follows:

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

SECTION 2. The City Council finds that local officials, specifically, the Los Angeles County Department of Public Health, has continued to recommend social distancing measures.
3of5
Exhibit 1 48

Resolution No. 2022-38
SECTION 3. The City Council hereby ratifies the Governor of the State of California's Proclamation of State of Emergency, effective as of its issuance date of March 4, 2020.

SECTION 4. The City Manager or designee and legislative bodies of the City are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution including, continuing to conduct open and public meetings in accordance with Government Code section 54953(e) and other applicable provisions of the Brown Act.

SECTION 5. This Resolution shall take effect immediately upon its adoption and shall be effective starting May 9, 2022, until the earlier of June 8, 2022, or such time as the City Council adopts a subsequent resolution in accordance with Government Code section 54953(e)(3) to extend the time during which the legislative bodies of the City of Bell Gardens may continue to teleconference without compliance with paragraph (3) of subdivision (b) of section 54953.

SECTION 6. All portions of this Resolution are severable. If any section, subsection, sentence, clause, phrase or portion of this Resolution is for any reason held invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Resolution.

SECTION 7. The City Clerk shall attest and certify to the passage and adoption of this Resolution and enter it into the book of original resolutions, and it shall become effective immediately upon its approval.

PASSED, APPROVED and ADOPTED this 9t" day of May 2022.

THE CITY OF BELL GARDENS
Maria Pulido, Mayor
APPROVED AS TO FORM: ATTEST:

Rick Olivarez Jane Halstead
City Attorney City Clerk
4of5
Exhibit 1 49

CITY OF BELL GARDENS
ii rrrrrr, ' OFFICE OF THE CITY MANAGER

AGENDA REPORT
Item 5.
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

TO: Honorable Mayor and City Council Members
FROM: Michael B. O'Kelly, City Manager
BY: Scott Fairfield, Chief of Police
SUBJECT: SECOND READING OF ORDINANCE NO. 923 TO ADOPT A MILITARY EQUIPMENT POLICY ("POLICY")AS REQUIRED BYASSEMBLY BILL
481 ("AB 481")
DATE: May 9, 2022
RECOMMENDATION:

It is staff's recommendation that the City Council by motion:

1. Waive the Second Reading and adopt Ordinance No. 923 approving the Military Equipment Policy ("Policy") in accordance with state law.

BACKGROUND/DISCUSSION:

On September 30, 2021, Governor Gavin Newsom signed into law Assembly Bill 481 ("AB 481"), relating to the use of "military equipment" by law enforcement agencies in California. AB 481 seeks to provide transparency, oversight, and an opportunity for meaningful public input on decisions regarding whether and how military equipment is funded, acquired, and used by law enforcement agencies. AB 481 (Exhibit No. 2), codified at California Government Code sections 7070 through 7075, requires a law enforcement agency to obtain authorization from its governing body, via adoption of a military equipment use policy via ordinance, approving the use of military equipment.

Pursuant to AB 481, the ordinance adopting the military equipment policy must be adopted at a regular meeting of the City Council. For law enforcement agencies that seek to continue use of military equipment acquired prior to January 1, 2022, the approval process must commence by May 1, 2022. AB 481 requires that the proposed policy be provided to the City Council and posted on the Police Department's website for at least 30 days prior to the public meeting at which the policy is considered. Pursuant to AB 481, the City Council may only approve the military equipment policy if it makes the following determinations:
(A) The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety. (B) The proposed military equipment use policy will safeguard the public's welfare, safety, civil rights, and civil liberties.
(C) If purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety. 50 (D) Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance.

Once adopted, AB 481 requires the governing body (City Council) to annually review the ordinance for approval or disapprove a renewal of the authorization for a type, as defined, of Military Equipment or amend the Military Equipment Policy if the policy does not comply with the standards established by law. AB 481 also requires annual reporting on the military equipment identified in the policy, and an annual community engagement meeting regarding the annual report.

Bell Gardens Police Department (BGPD) seeks the City Council's adoption of the attached Ordinance No. 923 (Exhibit No. 1), approving the Department's Military Equipment Policy (AttachmentA to Exhibit 1), allowing BGPD to continue to use the vital safety equipment specified therein.

Bell Gardens Police Department is committed to using the most up to date tools and equipment to safeguard the community and many items deemed to be Military Equipment, as defined below, are in fact utilized by the Bell Gardens Police Department, and law enforcement agencies across the country, in order to specifically reduce risk to the community. These items provide officers with the ability to safely resolve volatile situations which otherwise might rise to the level of a lethal force encounter. To that end, the equipment items noted in this report, and in the accompanying Military Equipment Policy, also provide Bell Gardens Police Officers with vital tools that facilitate compliance with its Use of Force Policy.

The term Military Equipment, as used in AB 481, in fact does not necessarily indicate equipment that has been used by the military. Only two items out of the full 2022 Military Equipment List report were obtained from the Federal 1033 program. The first equipment item is one (1) Armored Personnel Vehicle obtained from the Federal 1033 program on April 22, 2021 (listed as Item 2 under Category 2 (Armored Personnel Vehicle)). The second equipment item are twelve (12) M4 rifles obtained from the Federal 1033 program on July 24, 2014 (listed as Item 3 under Category 9 (Specialized Firearms & Ammunition)). The Bell Gardens Police Department continues to utilize the Federal 1033 program.

AB 481 Definition of Military Equipment(Government Code 7070) Assembly Bill 481 has created Government Code 7070 to designate the following 15 categories of items as military equipment:

1. Unmanned, remotely piloted, powered aerial or ground vehicles.

2. Mine-resistant ambush-protected (MRAP)vehicles or armored personnel carriers.

3. High mobility multipurpose wheeled vehicles (HMMWV), commonly referred to as Humvees, two and one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. However, unarmored all-terrain vehicles (ATVs) and motorized dirt bikes are specifically excluded from this subdivision.

4. Tracked armored vehicles that provide ballistic protection to their occupants and utilize a tracked system instead of wheels for forward motion.

5. Command and control vehicles that are either built or modified to facilitate the operational 51 control and direction of public safety units.

6. Weaponized aircraft, vessels, or vehicles of any kind.

7. Battering rams, slugs, and breaching apparatuses that are explosive in nature. However, items designed to remove a lock, such as bolt cutters, or a handheld ram designed to be operated by one person, are specifically excluded from this subdivision.

8. Firearms of .50 caliber or greater. However, standard issue shotguns are specifically excluded from this subdivision.

9. Ammunition of .50 caliber or greater. However, standard issue shotgun ammunition is specifically excluded from this subdivision.

10. Specialized firearms and ammunition of less than .50 caliber, including assault weapons as defined in Sections 30510 and 30515 of the Penal Code, with the exception of standard issue service weapons and ammunition of less than .50 caliber that are issued to officers, agents, or employees of a law enforcement agency or a state agency.

11. Any firearm or firearm accessory that is designed to launch explosive projectiles.

12. "Flashbang" grenades and explosive breaching tools, "tear gas," and "pepper balls," excluding standard, service-issued handheld pepper spray.

13. Taser Shockwave, microwave weapons, water cannons, and the Long Range Acoustic Device (LRAD).

14. The following projectile launch platforms and their associated munitions: 40mm projectile launchers, "bean bag," rubber bullet, and specialty impact munition (S I M)weapons.

15. Any other equipment as determined by a governing body or a state agency to require additional oversight.

Bell Gardens Police Department is currently in possession of items in Categories 1, 2, 9, 12, and 14 from the above list.

In accordance with the procedure set forth under AB 481, the Police Department's draft Military Equipment Policy §706 was first made available on the Police Department's website on March 24, 2022 — more than 30 days before the public meeting at which the policy is to be first considered by the City Council. The draft Military Equipment Policy includes a list of newly defined military equipment currently in the Bell Gardens Police Department's possession. The Police Departments website provides a means for the public to submit complaints, concerns, or questions about the use of each specific type of military equipment.

AB 481 Approval of the Military Equipment Use Policy(Government Code 7071) California Government Code Section 7071(d)(1) states the following:
"The governing body shall only approve a military equipment use policy pursuant to this chapter if it determines all of the following:
(A) The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety. (B) The proposed military equipment use policy will safeguard the public's welfare, safety, civil rights, and civil liberties.
(C) If purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety.
(D) Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying 52 military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance."
The military equipment identified in the Military Equipment Policy is necessary because there are no reasonable alternatives that can achieve the same objectives of officer and civilian safety. The Military Equipment Policy will safeguard the public's welfare, safety, civil rights, and civil liberties.

The military equipment identified in the Military Equipment Policy is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety. All prior military equipment use complied with the City's policies that were in effect at the time. Additionally, all items currently in possession of the Bell Gardens Police Department have been approved during the associated budgetary periods commensurate with the items purchased.

AB 481 Funding,Acquisition and Use of Military Equipment(Government Code 7071) I n accordance with California Government Code Section 7071(a)(1), the adoption of a military equipment use policy by ordinance, would give the Police Department the approval from City Council to do the following:
(A) Request military equipment made available pursuant to Section 2576a of Title 10 of the United States Code.
(B) Seek funds for military equipment, including, but not limited to, applying for a grant, soliciting or accepting private, local, state, or federal funds, in- kind donations, or other donations or transfers.
(C)Acquire military equipment either permanently or temporarily, including by borrowing or leasing.
(D) Collaborate with another law enforcement agency in the deployment or other use of military equipment within the territorial jurisdiction of the governing body. (E) Use any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body pursuant to this chapter. (F) Solicit or respond to a proposal for, or enter into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of, military equipment.
(G)Acquire military equipment through any means not provided by this paragraph.

AB 481 Annual Reporting Requirements (Government Code 7072) Should the Police Department receive approval from the City Council for a military equipment use policy pursuant to Government Code Section 7071, the Police Department will submit an annual report for each type of military equipment used within one year of approval, and annually thereafter.

At a minimum, and as required by Government Code Section 7072(a), the report will include the following:

1. A summary of how the military equipment was used and the purpose of its use.

2. A summary of any complaints or concerns received concerning the military equipment.

3. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response.

4. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report.
53 5. The quantity possessed for each type of military equipment.

6. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.

Should the City Council choose to adopt proposed Ordinance No. 923, AB 481 would require the City Council to review the Ordinance at least annually and vote on whether to renew the Ordinance. This would include a review of whether each type of military equipment identified in the annual report provided by the Police Department has complied with the standard for approval. The Police Department's annual report would include the use of military equipment, any complaints received, any internal audits or other information about violations of the Bell Gardens Police Department Military Equipment Policy §706, and the cost of such use and other similar information. The Police Department's webpage would be utilized for distribution of any updates to the above materials, as well as the annual report. If approved by the City Council, the Police Department's first annual report would be distributed on or around March 2023.

PUBLIC CONTACT:

The Police Department released the Military Equipment List and Draft Lexipol Policy 706 to the community via its webpage on Thursday, March 24, 2022.

A Notice of Public Hearing was published in the Bell Gardens Review on April 14, 2022, in accordance with Government Codes. A Notice of Public Hearing was posted in three public locations within the City limits and on the City's website.

On April 28, 2022 the City Council conducted a public hearing and first reading.

CONCLUSION:

Staff believes the proposed Ordinance and Policy of the Police Department is compliant with the State regulations as described under AB 481. The intent of AB 481 is to increase transparency, accountability, and oversight surrounding the use of military equipment. Moreover, the military equipment currently in use by the Bell Gardens Police Department provides police officers equipment essential to day—to—day patrol operations, responses to critical incidents, and protects and promotes the welfare and safety of the community we serve. Accordingly, staff recommends City Council approval of the proposed Ordinance and Policy of the Bell Gardens Police Department.

FISCAL IMPACT:

No fiscal impact.

ATTACHMENTS:

Exhibit 1 - Ordinance No. 923
Exhibit 2 -Assembly Bill No. 481
APPROVED ELECTRONICALLY BY:

Michael B. O'Kelly, City Manager
Stephanie Vasquez,Assistant CityAttorneyfor Rick R. Olivarez, City Attorney 54 Manuel Carrillo, Director of Finance and Administrative Services 55 ORDINANCE NO. 923

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BELL

GARDENS, CALIFORNIA, ADOPTING A MILITARY EQUIPMENT

POLICY GOVERNING THE USE OF MILITARY EQUIPMENT PURSUANT TO ASSEMBLY BILL 481
WHEREAS, on September 30, 2021, Governor Gavin Newsom signed into law Assembly Bill 481 (creating Government Code Section 7070, et seq.), relating to the use of military equipment by California law enforcement agencies; and WHEREAS, AB 481 became effective January 1, 2022 and is codified at Sections 7070 through 7075 of Chapter 12.8 to Division 7 of Title 1 of the California Government Code; and
WHEREAS, AB 481 seeks to provide transparency, oversight, and an opportunity for meaningful public input on decisions regarding whether and how military equipment is funded, acquired, or used; and
WHEREAS, the term "military equipment" is defined in California Government Code Section 7070; and
WHEREAS, AB 481 requires, among other things, that a law enforcement agency obtain approval of the governing body, by an ordinance adopting a military equipment use policy that includes a description of the equipment, quantity, capabilities, expected lifespan, purposes and authorized uses, fiscal impact, legal and procedural rules governing authorized uses, required training, and mechanisms to ensure compliance with the agency's use policy, prior to taking certain actions relating to the funding, acquisition or use of military equipment, including military equipment acquired prior to January 1, 2022; and
WHEREAS, the Bell Gardens Police Department is in possession of certain items of equipment that qualify as "military equipment" under AB 481; and WHEREAS, the Bell Gardens Police Department has prepared a proposed Military Equipment Policy, attached hereto as Attachment "A" and incorporated herein; and WHEREAS, pursuant to Government Code section 7071(a)(2), if seeking to continue the use of any military equipment that was acquired prior to January 1, 20227 the Bell Gardens Police Department was obligated to, and has met the requirement, of commencing a City Council approval process for the Military Equipment Policy no later than May 1, 2022; and
WHEREAS, the Bell Gardens Police Department made the proposed Military Equipment Policy available on the Police Department's website for at least 30 days prior Exhibit 1 56

Ordinance No.923
to the first public meeting concerning the proposed Military Equipment Policy on April 25, 2022; and
WHEREAS, a Notice of Public Hearing was published in the Bell Gardens Review on April 14, 2022 in accordance with Government Codes; and WHEREAS, as required by AB 481, the City Council determines as follows:
(a) the military equipment inventoried and presented to the City Council is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety; and
(b) the proposed Military Equipment Policy will safeguard the public's health, welfare, safety, civil rights, and civil liberties; and (c) the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety; and (d) prior military equipment use complied with the applicable equipment use policy (which included equipment now defined as military equipment) that was in effect at the time, or if prior uses did not comply with the accompanying Military Equipment Policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance; and
WHEREAS, as further required by Government Code section 7071(a)(2), if the City Council does not approve the continuing use of military equipment, including by adoption pursuant to a Military Equipment Policy, within 180 days of submission of the proposed Military Equipment Policy to City Council, the Bell Gardens Police Department shall cease its use of the military equipment until it receives the approval of City Council in accordance with this Ordinance; and
WHEREAS, the Military Equipment Policy and supporting information must be approved by the governing body by ordinance, and reviewed annually; and WHEREAS, the City Council of the City of Bell Gardens, having received the information required under AB 481 regarding the Bell Gardens Police Department's use of military equipment as defined in said law, deems it to be in the best interest of the City to approve the Military Equipment Policy as set forth herein.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BELL GARDENS DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Recitals. The recitals above are true and correct and incorporated herein by reference.

SECTION 2. Approval of Military Equipment Policy. The City Council, having received the information required under AB 481 regarding the Bell Gardens Police Department's use of military equipment as defined in said law, deems it to be in the best interest of the City to and hereby approves the Military Equipment Policy attached hereto Exhibit 1 57
2 of 24

Ordinance No.923
as Attachment "A". The Military Equipment Policy shall govern the approval, acquisition, use and reporting of military equipment by the Bell Gardens Police Department.

SECTION 3. CEQA. This Ordinance is not a project within the meaning of Section 15378 of the California Environmental Quality Act (CEQA) Guidelines because it has no potential to result in physical change in the environment, directly or indirectly.

This Ordinance is also exempt under CEQA Guideline 15061(b)(3) because it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment.

SECTION 4. Uncodified Ordinance. This Ordinance shall not be codified in the Bell Gardens Municipal Code unless and until the City Council so ordains.

SECTION 5. Severability. If any section, subsection, subdivision, sentence, clause, phrase or portion of this Ordinance, 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 Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 6. Effective Date. This Ordinance shall take effect thirty (30) days after its final passage.

SECTION 7. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance, causing it to be posted as required by law, and it shall be effective thirty (30) days after its adoption.

PASSED, APPROVED and ADOPTED this 9t" day of May, 2022. [Signatures on the following page]
Exhibit 1 58
3 of 24

Ordinance No.923

THE CITY OF BELL GARDENS
Maria Pulido, Mayor
APPROVED AS TO FORM: ATTEST:

Rick Olivarez Jane Halstead
City Attorney City Clerk
Exhibit 1 45924

Ordinance No.923
ATTACHMENT "A"

MILITARY EQUIPMENT POLICY
Exhibit 1 56b24

Pokcy Bell Gardens Police Department
' • Bell Gardens PD Policy Manual
Military Equipment
706.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment (Government Code § 7070; Government Code § 7071; Government Code § 7072).
706.1.1 DEFINITIONS
Definitions related to this policy include (Government Code § 7070):

Governing body—The elected or appointed body that oversees the Department.

Military equipment— Includes but is not limited to the following:
• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
• Firearms and ammunition of .50 caliber or greater,excluding standard-issue shotguns and standard-issue shotgun ammunition.
• Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.
• Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
• TASERO Shockwave, microwave weapons, water cannons, and long-range acoustic devices (LRADs).
• Kinetic energy weapons and munitions.
• Any other equipment as determined by a governing body or a state agency to require additional oversight.

Ordinance No.923 Bell Gardens Police Department
Bell Gardens PD Policy Manual
Military Equipment
706.2 POLICY
It is the policy of the Bell Gardens Police Department that members of this department comply with the provisions of Government Code § 7071 with respect to military equipment. 706.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police should designate a member of this department to act as the military equipment coordinator.The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all military equipment at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of Bell Gardens Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting.

2. Preparing for public questions regarding the department's funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the department website(Government Code § 7072).
(g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner.
706.4 MILITARY EQUIPMENT INVENTORY
The following constitutes a list of qualifying equipment for the Department:

See attachment
706.5 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the department website at least 30 days prior to any public hearing concerning the military equipment at issue (Government Code § 7071). The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):

Ordinance No.923 Bell Gardens Police Department
Bell Gardens PD Policy Manual
Military Equipment
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this department. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above. 706.6 COORDINATION WITH OTHER JURISDICTIONS
The Bell Gardens Police Department participates in a statewide law enforcement mutual aid system as a component of the Standardized Emergency Management System (SEMS).The Los Angeles County Sheriffs Department plays a crucial role within the county of Los Angeles, along with our neighboring jurisdictions in providing mutual aid during times of crisis or need.ln planned or exigent circumstances, and with the approval of the Chief of Police or their designee, military equipment may be deployed by these law enforcement partners to promote the safety and security of Bell Gardens community members.

The Chief of Police or their designee will provide information during the annual report on the use of military equipment within the city limits of Bell Gardens by other law enforcement partners during Bell Gardens Police Department operational incidents.
706.7 ANNUAL REPORT
Upon approval of a military equipment policy,the Chief of Police or the authorized designee should submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072).

The Chief of Police or the authorized designee should also make each annual military equipment report publicly available on the department website for as long as the military equipment is available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in department inventory. 706.8 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which Copyright Lexipol,LLC 2022/03/24,All Rights Reserved. 8 {�4 Military Equipment-3 Exhibit 1 Published with permission by Bell Gardens Police Department 6S

Ordinance No.923 Bell Gardens Police Department
Bell Gardens PD Policy Manual
Military Equipment
the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.

Copyright Lexipol,LLC 2022/03/24,All Rights Reserved. q� Military Equipment-4 96424
Exhibit 1 Published with permission by Bell Gardens Police Department

Ordinance No.923

BELL GARDENS POLICE DEPARTMENT MILITARY EQUIPMENT

1. Unmanned Aerial,Remotely Piloted,Aerial Vehicle (Category 1) al Quantity Description, Ca )abilities and Purchase Cost:

Two (2) "Mavic 2 Pro Zoom Flight Drones manufactured by DJI Technology. These drones are equipped with Hasselblad cameras, with 3-axis gimbal, HDR 4K video, adjustable aperture, 20MP 1" CMOS sensors. Additionally, the drones are equipped with a Hasselblad L 1 D-20c camera with a 20MP 1"CMOS Sensor,the Mavic 2 camera drone allows the department to capture aerial shots in color and detail,up to 31 minutes flight time, 44 mph max speed, 907G takeoff weight, 3-axis gimbal for steady shots, 8GB internal storage, SD card support up to 128 GB, Functions include Active Track

2.0, Omnidirectional Obstacle Sensing, Hyper lapse, Low-Noise Design, Adjustable Aperture, HDR Photos, the standard remote controller offers up to 135 minutes of battery life on a full charge.

Initial Cost- $6,691.
b) Purpose:

These drones are to be used in response to incidents to enhance officer and community safety, improve scene containment and stabilization. Assist in traffic collision reconstruction. Assist in resolving critical incidents or can be flown for areal safety checks at planned community events. These drones can cover a large area quickly and can be equipped with thermal sensors. These make them effective in search and rescue operations.
c) Authorized Use:

Only authorized operators who have completed the required training and Federal Aviation Association (FAA) certification shall be permitted to operate the UAS.

Expected Lifes an:

The manufacturer, DJI, does not offer a specific lifespan on this product. Depending on how the UAV is cared for, stored, transported, flown, and the climate and weather conditions the drone is flown in will dictate (extend or minimize) the lifespan of the product.
e) Fiscal Im )act-.

Annual maintenance cost- $0.00. The drone is warranted and equipped with additional components.
fJ Training:

All Department UAS operators are licensed by the Federal Aviation Administration for UAS operation. In addition, each operator must attend a basic UAS operator course and ongoing in-service training.
1 March 24 2022
Exhibit 1 10(3pt24

Ordinance No.923

BELL GARDENS POLICE DEPARTMENT MILITARY EQUIPMENT
g) Legal and Procedural Rules
Use is established in FAA Regulation 14 CFR Part 107, and the Department's UAS policy(Unmanned Aerial System (UAS) Operations). It is the policy of the Department to utilize UAS only for official law enforcement purposes and according to State and Federal law.

2. Armored Personnel Carrier JC#je o -y 2`
a) Quantity,Descri tion Ca abilities and Cost:

One (1) 2009 Caiman Six-wheeled vehicle, Type 1 Allison 3700SP Gen IV transmission, 7.2 Diesel engine-powered personnel carrier with ballistic glass and armor rated to .50 caliber. The Caiman is designed to provide ballistic protection during rescues and tactical events. It is designed to withstand multiple bullet strikes from small arms fire as well as low-level explosions and is equipped with emergency lights/siren, a public address system, and the words "Police Rescue" on each side. A common use for the Caiman includes citizen and officer rescues, evacuations and the deployment of officers. The Caiman is a regional mutual-aid asset that can be deployed to surrounding cities as well as community outreach events for display.

Initial cost $0. The vehicle was obtained through the United States Military, Law Enforcement Support Office, 1033 program.
b) Purpose:

To be used in response to critical incidents to enhance officer and community safety, improve scene containment and stabilization, assist in resolving critical incidents, or display at a community event.
c) Authorized Use:

The use of armored vehicles shall only be authorized by a watch commander based on the specific circumstances of a given incident. Armored vehicles shall be used only by officers trained in their deployment and in a manner consistent with the Department Policy and Training.
d) Expected Lifespan
Lifespan depends on the use and maintenance of the vehicle. e) Fiscal Iml act:

Annual maintenance$0 - $1,000.
f) Training:
2 March 24 2022
Exhibit 1 11(y624

Ordinance No.923

BELL GARDENS POLICE DEPARTMENT MILITARY EQUIPMENT
Armored vehicles may only be operated by employees who possess the proper licensing and have been trained in the proper use of the vehicle. Employees designated as operators of the armored vehicle shall receive training in the safe operation and care for the vehicle and show competence before operating. g) Legal and Procedural Rules:

Use is established in the Department Manual (Vehicle Use,Vehicle Maintenance, and Specialty Vehicle Deployment). It is the policy of the Department to utilize armored vehicles for official law enforcement purposes, in conjunction with State and Federal law.

3. Specialized Firearms and Ammunition (Category 9)
a) Quantity, Description, Ca abilities and Purchase Cost:

Twenty-two (22) Colt Carbine Rifles, six (6) Heckler & Koch 416 Rifles, four (4) DPMS Panther Oracle Rifles, two (2) Bushmaster Rifles, two (2) Smith & Wesson M&P Rifles, twelve (12) Hydra-Matic Division GM Rifle, and Twelve (12) M-4 platform rifles, capable of accurately stopping an armed subject at various distances.

The rifles are lightweight, air-cooled, gas-operated, magazine-fed, shoulder-fired weapons designed for semi-automatic fire. The rifles do not have an expiration date and will need to be serviced or replaced when the rifle fails or breaks.

Initial cost: The rifles were obtained over a Twenty(20)year period through purchases, trade-ins, and the United States Military, Law Enforcement Support Office, 1033 program.

The Winchester 5.56 mm ammunition is used as a lethal option designed to stop a violent encounter. The projectile is capable of penetrating soft body armor worn by armed subjects.

1. The Winchester 5.56 mm, 64 grain Bonded Solid Base is the primary duty ammunition deployed during potential lethal encounters.

One (1) .308 Ruger American Bolt Action Rifle and One (1) LaRue .308 semi- automatic rifle. They are capable of accurately stopping an armed subject at various distances. The .308 rifle is a shoulder-fired weapon designed for single-action fire.

The rifle does not have an expiration date and will need to be serviced or replaced when the rifle fails or breaks. The Federal.308 Bonded Tip is used as a lethal option designed to stop a violent encounter. The projectile is capable of penetrating soft body armor worn by armed subjects.

Initial cost: $0 rifle was donated.

1. Federal .308 Win Tactical Bonded Tip 168 Grain is the primary duty ammunition deployed during potential lethal encounters. 3 March 24 2022
Exhibit 1 12(yt24

Ordinance No.923

BELL GARDENS POLICE DEPARTMENT MILITARY EQUIPMENT
b) Purpose-
To be used as a precision weapon to address a threat with more precision and/or at greater distances than a handgun, if present and feasible within Department Policy and Applicable Law.
c)Authorized Use:

Only members that are POST certified Peace Officers and have completed The POST Firearms/Tactical Rifle Course.
d) Expected Lifes pan:

Carbine Rifle—No expiration.

Ammunition- Winchester 5.56 mm, 64 grain Bonded Solid Base—No expiration. .308 Rifle—No expiration.

Ammunition - Federal .308 Win Tactical Bonded Tip 168 Grain—No expiration. e) Fiscal Impact:

Carbine Rifle annual maintenance $0 - $1000. Annual cost: $0 - $1000, duty ammunition cost: $1500, excluding training rounds.
.308 Caliber Rifle annual maintenance cost: $0, duty ammunition $75, excluding training rounds.
f) Training:

Officers receive POST certified training and on-going in-service training above POST standards. Once certified, authorized users must qualify with the rifle quarterly. g) Legal and Procedural Rules:

Use is established in the Department Manual (Use of Force, Firearms, and Patrol Rifles). It is the policy of the Department to utilize these rifles and the associated munitions only for official law enforcement purposes, according to State and Federal law.

4. Diversionary Devices Cate or 12 :
f uanti f Descri tion Ca abilities and Purchase Cost:

Diversionary Devices, also known as flashbangs, distraction devices, light/sound devices, and noise/flash diversionary devices, provide law enforcement with an effective tool that may assist in resolving tactical incidents. The devices create a loud report, heat, and brilliant light because they are "low explosive" devices. They are excellent for use during high-risk entry scenarios and other tactical applications. They 4 March 24 2022
Exhibit 1 13(9624

Ordinance No.923

BELL GARDENS POLICE DEPARTMENT MILITARY EQUIPMENT
may disorient/confuse subjects for a few seconds(lag time),providing law enforcement with an opportunity to end hostile situations peacefully.

Initial cost- $1,400.
a) Purpose and authorized use:

The purpose of a diversionary device is to temporarily disorient a hostile subject's senses. It is designed to produce a disorienting flash of light of approximately 7 million candela and an intensely loud"bang"of greater than 170 decibels. Only BGPD Special Operation Team (SOT) members who have completed a California Police Officers Standards&Training SWAT academy are authorized to use the device. Refer to BGPD policy 404 - Special Operations Team procedures. SOT operators must complete an 80-hour SWAT academy and are subject to ongoing extensive classroom and practical application training in the use of Diversionary Devices. Additionally, SOT operators regularly train on safe device deployments in various operational settings. b) Expected Life. )an:

Five (5) year shelf life.
c) Fiscal Impact:

The department orders fifty (50) devices triennially; however, orders can be made biennially depending on usage. These bulk purchases are approximately $2000. d) Training:

Officers must attend diversionary device training that is conducted by a certified instructor. Additionally, officers will receive ongoing in-service training on the use of diversionary devices.
e) Legal and Procedural Rules:

Use is established in the Department Manual (Use of Force and Diversionary Devices -Flashbangs). It is the policy of the Department to utilize diversionary devices only for official law enforcement purposes, and according to State and Federal law regarding the use of force.

5. Explosive Breaching Tools (Category 12):
a) Description, Quantity, Capabilities, and Purchase Cost Explosive breaching uses a minimal amount of explosives to achieve 100%penetration of the location to be breached. Detonating Cord is a thin, flexible plastic tube usually filled with pentaerythritol tetranitrate (PETN, pentrite). With the PETN exploding at a rate of approximately 6400 m/s, any common length of detonation cord appears to 5 March 24 2022
Exhibit 1 14(5�24

Ordinance No.923

BELL GARDENS POLICE DEPARTMENT MILITARY EQUIPMENT
explode instantaneously. It is a highspeed fuse that explodes rather than burns and is suitable for detonating high explosives.

Initial cost: $500.

A blasting cap is a small sensitive primary explosive device generally used to detonate a larger,more powerful,and less sensitive secondary explosive such as TNT,dynamite, or plastic explosive. Blasting caps come in various types, including non-electric caps, electric caps, and fuse caps.

Initial cost: $500.
b) Expected Lifespan:

Ten(10) year shelf life or until used.
c) Purpose and authorized use:

The purpose of explosive breaching is to allow tactical teams immediate entry with minimal risk to themselves, the victims, and the suspects. All officers who use explosive breaching tools shall attend 40 hours of explosive breaching instruction and should additionally receive quarterly training for explosive operations. d) Fiscal Impact:

Detonating Cord, initial cost: $300, replace as needed. Detonating Cord, cost: $1 per foot. Fiscal: $0 - $300.

Blasting Cap, initial cost: $216. Cost per unit: $12, quantity: 18, replace as needed. e) Training:

Officers utilizing explosive breaching must be certified by a certified breaching instructor. Additionally, members certified in explosive breaching will receive ongoing in-service training.
f) Legal and Procedural Rules:

It is the policy of the Department to utilize explosive breaching only for official law enforcement purposes, according to State and Federal law.

6. Breaching Shotgun (Category 12):
6 March 24 2022
Exhibit 1 157624

Ordinance No.923

BELL GARDENS POLICE DEPARTMENT MILITARY EQUIPMENT
a) Description, Quantity, Capabilities and Purchase Cost The Breaching Shotgun allows breachers to safely utilize shotgun breaching rounds to destroy deadbolts, locks, and hinges. The stand-off attached to the end of the barrel allows for positive placement of the shotgun into the correct position and vents gases to prevent overpressure. The weapon can also defeat windows and sliding glass doors with a flashbang round. A less lethal 2.4inch 12-gauge shotgun round firing a ballistic fiber bag filled with 40 grams of lead shot at a velocity of 270-290 feet per second (FPS). Remington 870 Breaching Shotgun, Quantity: 2.

Initial cost: $1,000.

The round is fired from a breaching shotgun and is used to destroy deadbolts, locks, and hinges. Breaching rounds.

Initial cost: $150.
b) Purpose of breaching tools:

To safely gain entry into a structure.
c) Authorized Use:

Explosive breaching may only occur after authorization by the Incident Commander, SWAT commander in the field, and appropriate team supervisor. d) Lifespan:

Breaching Shotgun- Twenty-five (25) years
Blasting Caps- Ten(10) years
Detonating cord- Ten(10) years
Annual maintenance is approximately$0 - $500.
e) Fiscal Impact:

Remington 870 Breaching Shotgun- Initial cost: $1000. Annual impact$0 - $100.

Breaching rounds—Cost: $5 per round, quantity: 30. Annual impact $0 - $150. f) Training:

Officers utilizing a breaching shotgun must be certified by a certified breaching instructor. Additionally, members of will receive ongoing in-service training.
7 March 24 2022
Exhibit 1 16-M24

Ordinance No.923

BELL GARDENS POLICE DEPARTMENT MILITARY EQUIPMENT
g) Legal and Procedural Rules:

It is the policy of the Department to utilize breaching shotguns and the associated munitions only for official law enforcement purposes, according to State and Federal law.

7. Tear Gas/Chemical Munitions (Category 12)
a) Qua itit Description, Capabilities, and Purchase Cost:

Chemical agent munitions, commonly called "tear gas," are used as a non-lethal option/tool to disperse rioting subjects/barricaded suspects per Bell Gardens Police Department Policy and applicable law. Generally, chemical agents can be used to dislodge a suspect from a location with the least possible danger to the community, police, and suspect during high-risk tactical incidents. Chemical agents can prevent an armed suspect from accurately firing at the community and/or officers. They can also be used in limited instances during civil unrest when objectively reasonable to defend against a threat to life or serious bodily injury to any individual, including the officer, or bring a dangerous and unlawful situation safely and effectively under control.

CS (Chlorobenzylidenemalononitrile) and OC (Oleoresin Capsicum). CS is an irritating agent and lachrymator (irritates the eyes and causes tears to flow). CS has been medically tested in the UK and US, specifically by the U.S.Army.There are no known allergic reactions to CS. OC was de-regulated in California in 1996, is endorsed by the FBI, and is available to civilians to possess (2.5 oz. or less) legally. OC is an inflammatory agent that causes involuntary eye closure (open in 2-5 minutes) and respiratory inflammation (subsides in approximately 2 minutes).

Chemical Munitions:

SAF-Smoke White is a pyrotechnic grenade emitting non-irritant SAF Smoke through multiple emission ports to cover large areas for 30 to 40 seconds. It may be launched or hand-thrown.

Cost: $33.83 per munition. Replace as needed.

Triple-Chaser CS consists of three separate canisters pressed together with separating charges between each. When deployed, the canisters separate and land approximately 20 feet apart, allowing increased area coverage in a short period of time. This grenade can be hand thrown or launched from a fired delivery system. The 8 March 24 2022
Exhibit 1 171E�24

Ordinance No.923

BELL GARDENS POLICE DEPARTMENT MILITARY EQUIPMENT
grenade is 6.5 in.by 2.7 in. and holds an approximately 3.2 oz.of active agent payload.

It has an approximate burn time of 20-30 seconds.

Cost: $35.25 per munition. Replace as needed.

The Spede-Heat CS Grenade is a high volume,continuous burn.It expels its payload in approximately 20-4- seconds. The payload is discharged through four gas ports on the top of the canister, three on the side, and one on the bottom. This launchable grenade is 6.12 in. by 2.62 in. and holds approximately 2.9 Oz of active agent. It has an approximate burn time of 20-40 seconds.

Cost: $23.92 per munition. Replace as needed
The Pocket Tactical CS Grenade is small and lightweight.The 0.0 oz.of active agent will burn approximately 20-40 seconds. At 4.75 in. by 1.4 inches in size, it easily fits in most tactical pouches. This is a launchable grenade; however, it is typically used as a signaling or covering device. Though this device is slightly over four inches in length, it produces a smoke cloud so fast that it appears to be an enveloping screen created by a full-size tactical grenade.

Cost: $23.50 per munition. Replace as needed.

Tri-Chamber Flameless CS Grenade allows the contents to burn within an internal can and disperse the agent safely with reduced fire risk. The grenade is designed primarily for indoor tactical situations to detect and/or dislodge a barricaded subject.

This grenade will deliver approximately.70 oz. of agent during its 20-25 seconds burn time. The Tri-Chamber Flameless Grenade can be used in crowd control as well as tactical deployment situations by Law Enforcement and Corrections but was designed with the barricade situation in mind. Its applications in tactical situations are primarily to detect and/or dislodge barricaded subjects. The purpose of the Tri-Chamber Flameless Grenade is to minimize the risks to all parties through pain compliance, temporary discomfort, and/or incapacitation of potentially violent or dangerous subjects. The Tri-Chamber Flameless Grenade provides the option of delivering a pyrotechnic chemical device indoors, maximizing the chemicals' effectiveness via heat and vaporization while minimizing or negating the chance of fire to the structure.

The Tri-Chamber Flameless Grenade is NOT to be launched utilizing a launching cup.

Cost: $41.60 per munition.Replace as needed.

CS Flameless Expulsion Grenade is a compact, non-pyrotechnic, chemical agent device that provides safe expulsion without fire risk. It is safe to use inside of a residence.Unlike pyrotechnical grenades,the contents of this device are expelled upon actuation of a CO2 cartridge that will affect a confined area of approximately 1500 square feet. This grenade is 7.5 in. by 1.65 in. and delivers approximately .16 oz/ of active agent during its 3-second discharge time.

Cost: $41.60 per munition. Replace as needed.
9 March 24 2022
Exhibit 1 181D�24

Ordinance No.923

BELL GARDENS POLICE DEPARTMENT MILITARY EQUIPMENT
OC Flameless Expulsion Grenade is a compact, non-pyrotechnic, chemical agent device that provides safe expulsion without fire risk. It is safe to use inside of a residence.Unlike pyrotechnical grenades,the contents of this device are expelled upon actuation of a CO2 cartridge that will affect a confined area of approximately 1500 square feet. This grenade is 7.5 in. by 1.65 in. and delivers approximately .16 oz/ of active agent during its 3-second discharge time.

Cost: $41.60 per munition. Replace as needed.

The Stinger CS Rubber Ball Grenade is a maximum effect device that delivers four stimuli for psychological and physiological effects: rubber pellets, light, sound, and CS. The Stinger® Grenade is most widely used as a crowd management tool by Law Enforcement and Corrections. The Stinger® Grenade has an initial 1.5-second delay that initiates fuse assembly separation,followed by another .5 second delay before the blast, which is sufficient to project the rubber balls and chemical agent in a 50-foot radius.

Cost: $40.50 per munition. Replace as needed.

The Stinger OC Rubber Ball Grenade is a maximum effect device that delivers four stimuli for psychological and physiological effects: rubber pellets, light, sound, and CS. The Stinger® Grenade is most widely used as a crowd management tool by Law Enforcement and Corrections. The Stinger(t Grenade has an initial 1.5-second delay that initiates fuse assembly separation, followed by another .5 second delay before the blast, which is sufficient to project the rubber balls and chemical agent in a 50-foot radius.

Cost: $40.50 per munition. Replace as needed.

OC Aerosol Grenade 6 oz. will deliver its payload of 1.3% MC% OC in 20-25 seconds. This is an atomized mist that enhances the pungent 1.3% OC formulation.

Ideal for area denial areas like attics, garages, etc. This device has minimum clean-up.

The canister may also be handheld to direct the spray pattern.This product is designed to provide room-clearing ability with minimum clean up requirements Cost: $40.50 per munition. Replace as needed.

Riot Control CS Grenade is designed specifically for outdoor use in crowd control situations with a high-volume continuous burn that expels its payload in approximately 20-40 seconds through four gas ports located on the top of the canister.

This grenade can be used to conceal tactical movement or to route a crowd. The volume of smoke and agent is vast and obtrusive. This launchable grenade is 6.0 in. by 2.35 in. and holds approximately 2.7 oz. of active agent.

Cost: $37.40 per munition. Replace as needed.
b) Purpose
10 March 24 2022
Exhibit 1 19-p424

Ordinance No.923

BELL GARDENS POLICE DEPARTMENT MILITARY EQUIPMENT
To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for the use of the less-lethal weapon systems may include,but are not limited to:
a.Self-destructive, dangerous and/or combative individuals. b.Riot/crowd control and civil unrest incidents.
c.Circumstances where a tactical advantage can be obtained. d.Vicious animals.
e.Training exercises or approved demonstrations.
f.Non-lethal force.
c) Authorized Use:

Only officers who have received POST certification or manufacturer-specific training in the use of chemical agents are authorized to use chemical agents and, in a manner, consistent with the Department Policy and Training.
d) Ex)ected Lifes .an:

All munitions lifespan is 5 years from the date of manufacture. e) Fiscal Ind r
Initial cost$1500 per munition category. The fiscal impact of the chemical munitions is between$0—$2000 annually, depending on usage.
f) Training:

Officers utilizing chemical agents must be certified by a chemical agent instructor.

Additionally, officers will receive ongoing in-service training. g) Legal and Procedural Rules:

Use is established in the Department Manual (Use of Force and Chemical Agents). It is the policy of the Department to utilize chemical agents only for official law enforcement purposes, and according to State and Federal law, including those regarding the use of force.

S. Projectile Launch Platforms and Associated Munitions—40mm Launchers(Catemory 14)
a) Ouantity Descri.tion Ca abilities and Purchase Cost:
11 March 24 2022
Exhibit 1 20IDt24

Ordinance No.923

BELL GARDENS POLICE DEPARTMENT MILITARY EQUIPMENT
Quantity: (2)Defense Technology 40mm Launcher,(2)Penn Arms 40mm Launcher, (2) Armor Holdings 40mm Launcher.

Capabilities: 40mm launchers can fire a variety of munitions with a maximum effective range of one hundred twenty (120) feet. 40mm launchers can deliver 40mm munitions in the form of chemical agents, sponge baton rounds, or combined use sponge baton OC chemical agent rounds.

Usage: As defined in department policy, 40mm launchers utilized with less-lethal sponge baton rounds are deployed to impact subjects demonstrating assaultive behavior or life-threatening behavior.40mm launchers utilized with less-lethal sponge baton rounds may also be used to control an actively resistive subject reasonably believed to possess or have immediate access to a deadly weapon within the force guidelines of the department policy. Officers'primary objective in using an extended range impact weapon is to gain compliance, overcome resistance, or prevent serious injury or death to officers, victims, or suspects.

Lifespan: Penn Arms 40mm Launchers—No lifespan indicated by the manufacturer.

Lifespan varies on operational usage and wear.

Defense Technology 40mm Launchers — Two (2) year limited warranty.

The manufacturer indicates no lifespan. Lifespan varies on operational usage and wear.

Cost: Three (3) Defense Technology 40 min Launchers- Initial cost: $3000.

Two (2) Penn Arms 40 mm Launchers- Initial cost: $2000.

Two (2)Armor Holdings -Arms 40 mm Launchers- Initial cost: $2000. 40mm Munitions - Ferret 40mm Powder/Liguid Barricade Penetrator Round. CS Manufacturer: Defense Technology
Manufacturer Description: The Ferret 40mm Barricade Penetrating Round uses a powder chemical agent to primarily dislodge barricaded subjects and to deny areas of refuge. The nose ruptures upon impact and instantaneously delivers its payload.

It is a frangible projectile that utilizes fins and barrel rifling to offer spin stabilization. It is designed to penetrate barriers, such as windows, particleboard, doors, and interior walls, and is primarily used by tactical teams.

Cost: $24.50 each
40mm Munitions - Direct Impact 40mm OC Crushable Round Manufacturer: Defense Technology
12 March 24 2022
Exhibit 1 21-A24

Ordinance No.923

BELL GARDENS POLICE DEPARTMENT MILITARY EQUIPMENT
Manufacturer Description_ The 40mm Direct Impact munition is a point-of-aim, point-of impact direct-fire round. An excellent solution whether you need to incapacitate a single subject or control a crowd.

Cost: $20.50 each
40mm Munitions - Direct Impact 40mm CS Crushable Round Manufacturer: Defense Technology
Manufacturer Description: The 40mm Direct Impact munition is a point-of-aim, point-of impact direct-fire round. An excellent solution whether you need to incapacitate a single subject or control a crowd.

Cost: $30.50 each
40mm Munitions - 'Exact Im.act 40mm Standard Range Sponge Round Manufacturer: Defense Technology
Manufacturer Description: The Exact Impact 40 mm Sponge Round is a point-of- aim, point-of-impact direct-fire round. This lightweight, high-speed projectile consists of a plastic body and sponge nose that is spin-stabilized via the incorporated rifling collar and the 40 mm launcher's rifled barrel. The round utilizes smokeless powder as the propellant and, therefore, has exceptionally consistent velocities.

Used for Crowd Control, Patrol, and Tactical Applications.

Cost: $18.75 each
b) Training,•
All officers receive training on the use of the 40mm launcher with the sponge round.

This training occurs during qualification and through ongoing in-service training taught by Department instructors.

Special Operation Team personnel receive additional training on chemical munitions by an approved chemical agent school and/or training facilitated by a Department- certified chemical agent instructor.
c) Le ral and Procedural Rules:

Use is established in the Department Manual (Use of Force, Specialty Impact Munitions (SIM) Less-Lethal, Chemical Agents, and Oleoresin Capsicum—OC). It is 13 March 24 2022
Exhibit 1 22-pJ24

Ordinance No.923

BELL GARDENS POLICE DEPARTMENT MILITARY EQUIPMENT
the policy of the Department to utilize the SIM launchers and munitions only for official law enforcement purposes and according to State and Federal law, including those regarding the use of force.

9. Projectile Launch platforms and associated munitions—Beanbag Shotguns(Category 14)
Beanbag Shotgun
a) Ouantitv, Description, Ca .abilities and Purchase Cost:

Quantity: (7) Remington 870 12 Gauge Multi-Shot Beanbag that has been modified with an orange stock and fore-end.

Capabilities: Beanbag shotguns can fire a 12-gauge beanbag round with a maximum effective range of sixty (60)feet.

Usage: Beanbag shotguns utilized with beanbag rounds may be deployed to impact subjects demonstrating assaultive behavior or life-threatening behavior, as defined in Department Procedure 1.04, Use of Force. Beanbag shotguns utilized with beanbag rounds may also be used to control an actively resistive subject reasonably believed to possess or have immediate access to a deadly weapon within the force guidelines of department Use of Force policy. Officers' primary objective in using an extended range impact weapon is to gain compliance, overcome resistance, or prevent serious injury or death to officers, victims, or suspects. Beanbag shotguns combined with beanbag rounds are authorized to be used by any officer that has been trained in its use and maintains current extended range impact weapon qualifications.

Cost: The Remington 870, 12 Gauge shotgun was converted from a lethal weapon to a non-lethal weapon capable of firing a Super-Sock Bean Bag munition.

Beanba., Shot un Munitions - J12GA Su .er-Sock Bean Bag Ammunition Manufacturer Description: The Model 2581 Super-Sock is in its deployed state immediately upon exiting the barrel. It does not require a minimum range to unfold" or "stabilize." The Super-Sock is an aerodynamic projectile, and its accuracy is relative to the shotgun,barrel length,environmental conditions,and the operator. The Super-Sock is first in its class, providing the point control accuracy and consistent energy to incapacitate violent, non-compliant subjects momentarily. The effective range is 75ft.

Cost: $4.85 each per round. Replace as needed.
b) Purt;)ose:
14 March 24 2022
Exhibit 1 23-A24

Ordinance No.923

BELL GARDENS POLICE DEPARTMENT MILITARY EQUIPMENT
To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.
c) Authorized Use:

Situations for the use of the less-lethal weapon systems may include, but are not limited to:
a. Self-destructive, dangerous and/or combative individuals. b. Riot/crowd control and civil unrest incidents.
c. Circumstances where a tactical advantage can be obtained. d. Potentially vicious animals.
e. Training exercises or approved demonstrations.
d) Expected Lifes aan:
40mm Launcher: No expiration
40mm Sponge Munition—5 years
Bean Bag Launcher—5 years
Bean Bag Munitions—5 years
e) Fiscal Impact:
40mm Launcher—$0 and $250 annually
40mm Munitions—$0 and $500 annually. Does not include training rounds.

Beanbag Shotgun—$0 and $1000 annually.

Beanbag Munitions—$0 and $250 annually. Does not include training rounds. f) Training:

All officers are trained in the Remington 870 less-lethal shotgun with the 12-gauge Super-Sock Bean Bag round. This training occurs by a POST certified less lethal instructor and through ongoing in-service training taught by Department instructors. g) Legal and Procedural Rules:

Use is established in the Department Manual (Use of Force and Specialty Impact Munitions (SIM) Less-Lethal). It is the policy of the Department to utilize the SIM launchers and munitions only for official law enforcement purposes and according to State and Federal law, including those regarding the use of force. 15 March 24 2022
Exhibit 1 241D624

STAFF OF CALIFORNIA

AUTHENTICATED
I
ELECTIMIKLEGALMATERIAL_
Assembly Bill No.481
CHAPTER 406
An act to add Chapter 12.8(commencing with Section 7070)to Division 7 of Title I of the Government Code,relating to military equipment. [Approved by Governor September 30,2021.Filed with
Secretary of State September 30,2021.]

LEGISLATIVE COUNSEL'S DIGEST
AB 481,Chiu.Law enforcement and state agencies:military equipment:
funding,acquisition, and use.

Existing law designates the Department of General Services as the agency for the State of California responsible for distribution of federal surplus personal property,excepting food commodities,and requires the department to,among other things,do all things necessary to the execution of its powers and duties as the state agency for the distribution of federal personal surplus property,excepting food commodities,in accordance with specified federal law. Existing law, the Federal Surplus Property Acquisition Law of 1945, authorizes a local agency, as defined, to acquire surplus federal property without regard to any law which requires posting of notices or advertising for bids,inviting or receiving bids,or delivery of purchases before payment, or which prevents the local agency from bidding on federal surplus property.

Existing federal law authorizes the Department of Defense to transfer surplus personal property, including arms and ammunition, to federal or state agencies for use in law enforcement activities,subject to specified conditions, at no cost to the acquiring agency.

This bill would require a law enforcement agency, defined to include specified entities, to obtain approval of the applicable governing body,by adoption of a military equipment use policy, as specified, by ordinance at a regular meeting held pursuant to specified open meeting laws, prior to talcing certain actions relating to the funding,acquisition,or use of military equipment, as defined.The bill would also require similar approval for the continued use of military equipment acquired prior to January 1,2022.The bill would allow the governing body to approve the funding, acquisition, or use of military equipment within its jurisdiction only if it determines that the military equipment meets specified standards. The bill would require the governing body to annually review the ordinance and to either disapprove a renewal of the authorization for a type,as defined, of military equipment or amend the military equipment use policy if it determines, based on an annual military equipment report prepared by the law enforcement agency, as provided, that the military equipment does not comply with the above-described standards for approval. The bill would specify these provisions do not preclude a county or local municipality from implementing 92 Exhibit 2 80

Ch.406 —2—
additional requirements and standards related to the purchase, use, and reporting of military equipment by local law enforcement agencies. "1:'his bill would also require a state agency,as defined,to create a military equipment use policy before engaging in certain activities,publish the policy on the agency's internet website, and provide a copy of the policy to the Governor or the Governor's designee, as specified. The bill would also require a state agency that seeks to continue use of military equipment acquired prior to:January :1,2022,to create a military equipment use policy.

This bill would also include findings that the changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities,including charter cities.

By adding to the duties of local officials with respect to the funding, acquisition, and use of military equipment, this bill would impose a state-mandated local program.

The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.

This bill would make legislative findings to that effect.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

The people of the State of California clo enact cis follows:

SECTION 1. The Legislature finds and declares all of the following:
(a) The acquisition of military equipment and its deployment in our communities adversely impacts the public's safety and welfare, including increased risk of civilian deaths,significant risks to civil rights,civil liberties, and physical and psychological well-being, and incurment of significant financial costs. Military equipment is more frequently deployed in low-income Black and Brown communities,meaning the risks and impacts of police militarization are experienced most acutely in marginalized communities.
(b) The public has a right to know about any funding,acquisition,or use of military equipment by state or local government officials, as well as a right to participate in any government agency's decision to fund, acquire, or use such equipment.
(c) Decisions regarding whether and how military equipment is funded, acquired, or used should give strong consideration to the public's welfare, safety, civil rights, and civil liberties, and should be based on meaningful public input.
92 Exhibit 2 81

-3— Ch.406
(d) Legally enforceable safeguards, including transparency, oversight, and accountability measures,must be in place to protect the public's welfare, safety, civil rights, and civil liberties before military equipment is funded, acquired, or used.
(c) The lack of a public forum to discuss the acquisition of military equipment jeopardizes the relationship police have with the connnIfflity, which can be undermined when law enforcement is seen as an occupying force rather than a public safety service.

SEC. 2. Chapter 12.8 (commencing with Section 7070) is added to Division 7 of Title I of the Governinent Code, to read:

CHAPTER 12.8. FUNDING,ACQUISITION,AND USE OF MILITARY

EQUIPMENT
7070. For purposes of this chapter,the following definitions shall apply:
(a) "Governing body" means the elected body that oversees a law enforcement agency or,if there is no elected body that directly oversees the law enforcement agency,the appointed body that oversees a law enforcement agency. In the case of a law enforcement agency of a county, including a sheriff's department or a district attorney's office,"governing body"means the board of supervisors of the county.
(b) "Law enforcement agency"means any of the following:
(1) A police department, including the police department of a transit agency, school district, or any campus of the University of California, the California State University, or California Community Colleges. (2) A sheriff's department.
(3) A district attorney's office.
(4) A county probation department.
(c) "Military equipment"means the following:
(1) Unmanned,remotely piloted,powered aerial or ground vehicles. (2) Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers.1-lowever,police versions of standard consumer vehicles are specifically excluded from this subdivision.
(3) High mobility multipurpose wheeled vehicles(I-IMMWV),commonly referred to as Humvecs, two and one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached.However, unarmored all-terrain vehicles (ATVs) and motorized dirt bikes are specifically excluded from this subdivision.
(4) Tracked armored vehicles that provide ballistic protection to their occupants and utilize a tracked system instead of wheels for forward motion. (5) Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. (6) Weaponized aircraft, vessels,or vehicles of any kind. (7) Battering rams, slugs, and breaching apparatuses that are explosive in nature. However, items designed to remove a lock, such as bolt cutters, 92 Exhibit 2 82

Ch.406 —4—
or a handheld ram designed to be operated by one person, are specifically excluded from this subdivision.
(8) Firearms of.50 caliber or greater.However,standard issue shotguns are specifically excluded from this subdivision.
(9) Ammunition of.50 caliber or greater.However,standard issue shotgun ammunition is specifically excluded from this subdivision. (10) Specialized firearms and ammunition of less than .50 caliber, including assault weapons as defined in Sections 30510 and 30515 of the Penal Code, with the exception of standard issue service weapons and ammunition of less than .50 caliber that are issued to officers, agents, or employees of a law enforcement agency or a state agency. (11) Any firearm or firearm accessory that is designed to launch explosive projectiles.
(12) "Flashbang" grenades and explosive breaching tools, "tear gas," and "pepper balls," excluding standard, service-issued handheld pepper spray.
(13) Trier Shockwave, microwave weapons, water cannons, and the Long Range Acoustic Device(LRAD).
(14) The following projectile launch platforms and their associated munitions: 40mm projectile launchers, "bean bag," rubber bullet, and specialty impact munition(SIM)weapons.
(15) Any other equipment as determined by a governing body or a state agency to require additional oversight.
(16) Notwithstanding paragraphs(1)through(15),"military equipment" does not include general equipment not designated as prohibited or controlled by the federal Defense Logistics Agency.
(d) "Military equipment use policy"means a publicly released, written document governing the use of military equipment by a law enforcement agency or a state agency that addresses,at a minimum,all of the following:
(1) A description of each type of military equipment,the quantity sought, its capabilities, expected lifespan, and product descriptions from the manufacturer of the military equipment.
(2) The purposes and authorized uses for which the law enforcement agency or the state agency proposes to use each type of military equipment. (3) The fiscal impact of each type of military equipment, including the initial costs of obtaining the equipment and estimated annual costs of maintaining the equipment.
(4) The legal and procedural rules that govern each authorized use. (5) The training, including any course required by the Commission on Peace Officer Standards and Training, that must be completed before any officer,agent,or employee of the law enforcement agency or the state agency is allowed to use each specific type of military equipment to ensure the full protection of the public's welfare,safety,civil rights,and civil liberties and full adherence to the military equipment use policy.
(6) The mechanisms to ensure compliance with the military equipment use policy, including which independent persons or entities have oversight 92 Exhibit 2 83

—S— Ch.406
authority, and, if applicable, what legally enforceable sanctions arc put in place for violations of the policy.
(7) For a law enforcement agency,the procedures by which members of the public may register complaints or concerns or submit questions about the use of each specific type of military equipment, and how the law enforcement agency will ensure that each complaint, concern, or question receives a response in a timely manner.
(e) "State agency" means the law enforcement division of every state office,officer,department,division,bureau,board,and commission or other state body or agency, except those agencies provided for in Article IV (except Section 20 thereof)or Article VI of the California Constitution. (f) "Type" means each item that shares the same manufacturer model number.
7071. (a) (1) A law enforcement agency shall obtain approval of the governing body,by an ordinance adopting a military equipment use policy at a regular meeting of the governing body held pursuant to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter I of Fart I of Division 3 of Title 2) or the Ralph M.

Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), as applicable, prior to engaging in any of the following:
(A) Requesting military equipment made available pursuant to Section 2576a of Title 10 of the United States Code.
(B) Seeking funds for military equipment, including,but not limited to, applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers. (C) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(D) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the territorial jurisdiction of the governing body.
(E) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body pursuant to this chapter.
(F) Soliciting or responding to a proposal for, or entering into an agreement with,any other person or entity to seek finds for,apply to receive, acquire,use, or collaborate in the use of,military equipment. (G) Acquiring military equipment through any means not provided by this paragraph.
(2) No later than May 1, 2022, a law enforcement agency seeking to continue the use of any military equipment that was acquired prior to January

1.,2022,shall commence a governing body approval process in accordance with this section. If the governing body does not approve the continuing use of military equipment,including by adoption pursuant to this subdivision of a military equipment use policy submitted pursuant to subdivision (b), within 180 days of submission of the proposed military equipment use policy to the governing body, the law enforcement agency shall cease its use of 92 Exhibit 2 84

Ch.406 —6—
the military equipment until it receives the approval of the governing body in accordance with this section.
(b) In seeking the approval of the governing body pursuant to subdivision (a), a law enforcement agency shall submit a proposed military equipment use policy to the governing body and make those documents available on the law enforcement agency's internet website at least 30 days prior to any public hearing concerning the military equipment at issue. (c) The governing body shall consider a proposed military equipment use policy as an agenda item for an open session of a regular meeting and provide for public comment in accordance with the Bagley-Keene Open Meeting Act(Article 9 (commencing with Section 11120) of Chapter I of Part I of Division 3 of Title 2) or the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), as applicable.
(d) (1) The governing body shall only approve a military equipment use policy pursuant to this chapter if it determines all of the following:
(A) The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety. (B) The proposed military equipment use policy will safeguard the public's welfare,safety, civil rights,and civil liberties. (C) If purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety.
(D) Prior military equipment use complied with the military equipment use policy that was in effect at the time,or if prior uses did not comply with the accompanying military equipment use policy,corrective action has been taken to remedy nonconforming uses and ensure future compliance. (2) In order to facilitate public participation,any proposed or final military equipment use policy shall be made publicly available on the internet website of the relevant law enforcement agency for as long as the military equipment is available for use.
(c) (1) The governing body shall review any ordinance that it has adopted pursuant to this section approving the funding,acquisition,or use of military equipment at least annually and, subject to paragraph(2),vote on whether to renew the ordinance at a regular meeting held pursuant to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter I of Part I of Division 3 of Title 2) or the Ralph M.

Brown Act (Chapter 9 (commencing with Section 54950) of Part I of Division 2 of Title 5),as applicable.
(2) The governing body shall determine, based on the annual military equipment report submitted pursuant to Section 7072, whether each type of military equipment identified in that report has complied with the standards for approval set -forth in subdivision (d). If the governing body determines that a type of military equipment identified in that annual military equipment report has not complied with the standards for approval set forth in subdivision(d), the governing body shall either disapprove a renewal of the authorization for that type of military equipment or require modifications 92 Exhibit 2 85

--7-- Ch,4U6
to the military equipment use policy�~ in a manner that will� resolve the lack of compliance.(f) Notwithstanding subdivisions (a)to (e), inclusive, if a city contracts with another entity for law enforcement services, the city shall have the authority to adopt a military equipment use policy based on local community 7072. kJ A law enforcement agency that receives approval for a military enforcementequipment use policy pursuant to Section 7071 shall submit to the governing body an annual military equipment report for each type of military equipment approved by the governing body within one year of approval,and annually thereafter for as long as the military equipment is available for use.The law ~
agency shall also make each annual military equipment report immediately preceding calendar year for each type of militaryrequired by this section publicly available on its internet website for as long as the military equipment is available for use.The annual military equipment report shall, at a minimum, include the following information for the "(1) A Summary of how the military equipment was used and the purpose of its use.
(2) A surnmary of any complaints or concerns received conceming the military equipment.
(3) The results of any internal audits, any information about violations of the military equipment use policy,and any actions taken in response. (4) The total annual cost for each type of military equipment,including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what Source funds will be provided for the military equipment in the calendar year following submission ofthe annual military equipment report.(5) The quantity possessed for each type of military equipment. equipment(6) If the law enforcement agency intends to acquire additional military (b) Within 30 days of submitting and publicly releasing an annual military equipment report pursuant to this section,the law enforcement agency shall /
questionshold at least one well-publicized and conveniently located comnumity engagement meeting, at which the general public may discuss and ask — regarding the annual_ military equipment
enforcement agency's funding,acquisition,or use of military equipment. 7073. (a) A state agency shall create a military equipment use policy prior U) engaging - following: available pursuant to Section | 2576uo[Title l0of the United States Code.
(2) Seeking funds for military equipment, including, but not limited to, applying for a grant, solicitingor accepting private, /uou4 state, or federal ±boda, iu-kjuddmza|ioua'or other donations ortransfers. (3) Acquiring military equipment either poonu000t)y or temporarily, including hy borrowing orleasing.
vz
Exhibit 86

Ch.406 —8—
(4) Collaborating with a law enforcement agency or another state agency in the deployment or other use of military equipment within the territorial jurisdiction of the governing body.
(5) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body pursuant to this chapter.
(6) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, or to apply to receive, acquire,use,or collaborate in the use of,military equipment. (7) Acquiring military equipment through any means not provided by this subdivision.
(b) No later than May 1,2022,a state agency seeking to continue the use of any military equipment that was acquired prior to January 1,2022,shall create a military equipment use policy.
(c) A state agency that is required to create a military equipment use policy pursuant to this section shall do both of the following within 180 days of completing the policy:
(1) Publish the military equipment use policy on the agency's internet website.
(2) Provide a copy of the military equipment use policy to the Governor or the Governor's designee.
7074. The Legislature finds and declares that ensuring adequate oversight of the acquisition and use of military equipment is a matter of statewide concern rather than a municipal affair as that term is used in. Section 5 of Article XI of the California Constitution.Therefore,this chapter applies to all cities, including charter cities and shall supersede any inconsistent provisions in the charter of any city,county, or city and county. 7075. Nothing in this chapter shall preclude a county or local municipality from implementing additional requirements and standards related to the purchase, use, and reporting of military equipment by local law enforcement agencies.

SEC. 3. The Legislature finds and declares that Section 1 of this act, which adds Chapter 12.8(commencing with Section 7070)to Division 7 of Title 1 of the Government Code,furthers,within the meaning of paragraph (7)of subdivision(b)of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies.Pursuant to paragraph(7)of subdivision(b)of Section 3 of Article I of the California Constitution.,the Legislature makes the following findings:

Requiring local agencies to hold public meetings prior to the acquisition of military equipment further exposes that activity to public scrutiny and enhances public access to information concerning the conduct of the people's business.

SEC.4. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district under this act would 92 Exhibit 2 87

—9— Ch.406
result from a legislative mandate that is within the scope of paragraph (7) of subdivision(b) of Section 3 of Article I of the California Constitution.

O
92 Exhibit 2 88

CITY OF BELL GARDENS
ii rrrrrr, ' OFFICE OF THE CITY MANAGER

AGENDA REPORT
Item 6.
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

TO: Honorable Mayor and City Council Members
FROM: Michael B. O'Kelly, City Manager
BY: Elizabeth Nava, Director of Recreation and Community Services SUBJECT: APPROVAL OF COMMUNITY PARTNER AGREEMENT WITH KABOOM DATE: May 9, 2022
RECOMMENDATION:

It is staff's recommendation that the City Council by motion:
1 . It is staff's recommendation that the City Council authorize the City Manager to finalize the terms and conditions of the Agreement with Kaboom!, I nc. subject to approval by City Attorney BACKGROUND/DISCUSSION:

In 2021, Recreation and Community Services Staff submitted a grant to Kaboom!, Inc. for the construction of a new playground and installation of new play equipment in Bell Gardens. The City was selected to proceed in the grant process and is being recommended for funding for a new playground at the Neighborhood Youth Center. In order to obtain funding partners, Kaboom! requires that the City enter into a Community Partner Agreement with them and their funding partner that will be identified once the City moves further along in the grant process.

Kaboom!, Inc. is a non-profit organization that partners with Landscape Structures, Inc. to build and install new playgrounds and play structures in high need communities. Kaboom will provide the funding through funding partners for a basic installation of play equipment, and the City is responsible for a match of $8,500 plus the cost for the surfacing. We estimate the cost of pour in play surfacing for the Neighborhood Youth Center to be approximately $60,000. Staff is currently waiting on estimates from Landscape Structures for surfacing. Once it's received staff will return to Council for final approval.

Kaboom! playground projects heavily involve the use of volunteers for the installation of the equipment. The City is responsible for recruiting and coordinating approximately 60 volunteers to help with this process. Volunteers will work with professionals from Landscape Structures, Inc. to build and install the playground equipment.

Once approval is given, we anticipate that it would take a few months to complete the entire project and hope to have a ribbon-cutting for the playground in the early fall.

CONCLUSION:

The City will benefit greatly with this partnership with Kaboom! as they will provide most of the funding for a brand new, ADA compliant playground for our community to enjoy. 89 FISCAL IMPACT:

It is estimated that the total project cost will be approximately$200,000. The City's portion of this project includes the required eight thousand five hundred dollars ($8,500) match as well as the cost for the surfacing which is anticipated to be approximately sixty thousand ($60,000). Staff will return to Council for final approval once estimates are received for the surfacing. Staff will request that general funds be appropriated from the FY 2022-23 Budget to cover the cost of the City's portion of this project.

ATTACHMENTS:

Exhibit 1 - Resolution No. 2022-39
Exhibit 2 - Community Partner Agreement with KABOOM!
Exhibit 3- Packet
Exhibit 4- Scope of Work
APPROVED ELECTRONICALLY BY:

Michael B. O'Kelly, City Manager
Stephanie Vasquez,Assistant CityAttorneyfor Rick R. Olivarez, City Attorney Manuel Carrillo, Director of Finance and Administrative Services 90 RESOLUTION NO. 2022-39

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL

GARDENS, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A COMMUNITY PARTNER AGREEMENT WITH KABOOM!,
INC. FOR THE CONSTRUCTION OF A NEW PLAYGROUND AND

INSTALLATION OF NEW PLAY EQUIPMENT
WHEREAS, Kaboom!, Inc. is a non-profit organization that partners with Landscape Structures, Inc. to build and install new playgrounds and play structures in high need communities; and
WHEREAS, in 2021, the Recreation and Community Services Department submitted a grant to KABOOM!, Inc. for the construction of a new playground and installation of new play equipment; and
WHEREAS, the City of Bell Gardens was selected to proceed in the grant process and is being recommended for funding for a new playground at the Neighborhood Youth Center; and
WHEREAS, in order to obtain funding partners, KABOOM!, Inc. requires the City to enter into a Community Partner Grant Agreement and their funding partner that will be identified at a later date; and
WHEREAS, Kaboom will provide the funding through funding partners for a basic installation of play equipment and the City will be responsible for a match of $8,500 plus the cost for the surfacing; and
WHEREAS, it is the City Council's desire to enter into a Community Partner Agreement with KABOOM!, Inc.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Bell Gardens as follows:

SECTION 1. The City Council of the City of Bell Gardens hereby finds that the above recitals are true and correct and incorporated them herein by this reference.

SECTION 2. Based upon the above recitals, the staff report accompanying this Resolution and such other oral and written evidence, the City Council authorizes the City Manager to finalize the terms and conditions of the Agreement with Kaboom!, Inc. subject to approval by City Attorney and submit all documents including, but not limited to applications, agreements, payment requests and so on, which may be necessary for the completion of the aforementioned project.

Exhibit 1 91

Resolution No. 2022-39
SECTION 3. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions, and it shall become effective immediately upon its approval.

PASSED, APPROVED, and ADOPTED this 9t" day of May, 2022.

THE CITY OF BELL GARDENS
Maria Pulido, Mayor
APPROVED AS TO FORM: ATTEST:

Rick Olivarez Jane Halstead
City Attorney City Clerk
2 of 2
Exhibit 1 92

4 KABOOM!

COMMUNITY PARTNER AGREEMENT
May 5, 2022
KABOOM!, Inc. (referred to herein as KABOOM!) is pleased that The City of Bell Gardens (referred to herein as the Community Partner) has agreed to collaborate with KABOOM! and a funding partner to be determined at a later date (referred to herein as the Funding Partner)in the construction of a new play space at the Neighborhood Youth Center, 7117 El Selinda Ave, Bell Gardens, CA 90201 (the"Project"). This Community Partner Agreement(this"Agreement"), which sets forth the Community Partner's obligations in connection with the Project and certain matters on which the parties have agreed, will, when executed by the duly authorized representatives of each party, supersede any prior agreements and represent the complete legally binding agreement between the parties regarding the Project. The Community Partner acknowledges and agrees the primary source of funding for the Project is a contribution from the Funding Partner. In the event that such a contribution is not funded, then this agreement shall immediately terminate upon written notice thereof from KaB00M!.

1. Obligations of the Community Partner. The Community Partner shall work with KABOOM!and the Funding Partner as well as community residents to design, plan, and build the Project. By executing this Agreement, the Community Partner is unconditionally agreeing to each of the following obligations, in each case meeting the requirements provided by KABOOM!:
(a) Fundraising. In support of the Project, the Community Partner must contribute $8,500 to KABOOM!, which will apply the funds directly to the purchase of the equipment. KABOOM!will invoice the Community Partner for such amount promptly following the execution of this Agreement,which amount must be paid in full at least thirty (30)days prior to the Project's Build Week (as defined below). (b) Project Site.
(i) Ownership. At the time of execution of this Agreement, the Community Partner shall provide KABOOM! with proof of land ownership evidenced by either a deed granting title to the property to the Community Partner or a letter from the property owner showing approval for the Project. The Community Partner is the owner of the play space in its entirety, for the lifetime of the product, including the equipment and/or safety surfacing at the time purchased by KABOOM! and/or the Funding Partner. (ii) Permits. Prior to Build Week, the Community Partner shall obtain or cause to be obtained all necessary permits and licenses regarding the installation, possession, and use of the play space in compliance with applicable laws and regulations.
(iii) Preparation. The Community Partner shall ensure that the Project site is safe for volunteers and children, which responsibility includes: (1) preparing the site for the installation of the Project at least two weeks before Build Week, which may include removing existing equipment, footers, and safety surfacing, grading the land, repairing existing surfacing and removing fencing (2) conducting up to two (2) utility checks as reasonably requested by KABOOM! with the appropriate utility companies, with the first test being completed on or before Design Day (as defined below) and with all utility check documentation provided upon completion to the KABOOM! Project Manager who shall supervise the planning and installation of the equipment (the "Project Manager"); and (3) conducting up to two (2) soil site tests as reasonably requested by KABOOM!,with the first test being completed on or before Design Day and with all soil check documentation provided to the Project Manager upon completion. The Community Partner Exhibit 2 93

is responsible for undertaking any necessary risk mitigation should the soil be deemed unsafe for children and volunteers.
(iv) Safety and Security. The Community Partner shall ensure the security of equipment, tools, supplies, and well-being of the adults and children from the beginning of the preparation activities until the conclusion of Build Week, including any postponement. This includes designating a Community Partner staff member or volunteer to serve as the safety leader onsite. This safety leader will register volunteers, ensure they have signed waivers, ensure they wear required cloth face coverings, ask that they leave the project site if exhibiting symptoms of illness, and post signage for the project from the CDC (a copy of which has been provided).
(c) Maintenance. Maintenance of the facility and supervision of its use is the sole responsibility of the Community Partner. The Community Partner shall collaborate with KABOOM! during the Project planning process to develop a maintenance program (a copy of which has been provided) for the play equipment and, with the support of the property owner (if owner is a separate party), shall maintain the equipment and the property before and after the Build Week to ensure a safe and attractive playspace. In furtherance of the foregoing, in the event any equipment included in the Project no longer is permitted for any reason to be located at its original site of construction or such site is no longer controlled by the Community Partner for any reason, then the Community Partner promptly shall notify KABOOM! following its becoming aware of such situation and shall, at the Community Partner's sole cost and expense, use its best efforts to take such steps as may be necessary to promptly and safely relocate the equipment(including any permanent signage and other fixtures) to an alternate site that serves children or shall use its best efforts to ensure that the successor controlling person of such site shall continue to make such equipment available to children in the same manner contemplated as of the Build Week and maintain (or permit the Community Partner to maintain) such play equipment in accordance with the maintenance program. Guidance and materials for the purpose of developing a maintenance plan for the playground are available, upon request, from the play equipment and safety surfacing manufacturers.

The Community Partner will finance, install, and maintain alternative surfacing in the form of rubber tile or pour in place rubber as playground safety surfacing meeting all safety guidelines as established by the American Society for Testing and Materials(ASTM F2223 and ASTM-1292)and the Consumer Product Safety Commission's Handbook for Playground Safety, for the lifetime of the playground. (1) The rubber surfacing must be installed within two (2)weeks following Build Week. (2)Community Partner will identify the surfacing vendor who must meet current safety standards in partnership with the KABOOM! Build Manager. (3) Community Partner will coordinate delivery and installation of the safety surfacing. (4) Community Partner, with the support of KABOOM!, will provide site preparation and the required sub-surfacing of asphalt or concrete, for the alternative surfacing as deemed appropriate by the surfacing manufacturer using technical guidance from the KABOOM! Build Manager. (5) Community Partner will ensure that a representative of the surfacing vendor is coordinating with the KABOOM! Build Manager pre-build and is present during the Build Week. This will help assure that the representative's specifications are being met before and during the pouring of cement. The representative will approve the plumbness of the decks and the height to which cement is being poured in the holes to avoid potential problems after the playground is installed. (6) Community Partner will secure the playground, prohibiting children from playing on it until the surfacing is in place and is safe to play on
(d) Design Day. In the event Public Health guidelines and public health conditions permit public gatherings, the Community Partner agrees to host a KABOOM! facilitated Design Day event with at least twenty (20) adult volunteers and twenty (20) youth. Such adult volunteers shall remain engaged in the planning activities throughout the Project's planning process.

In the event Public Health guidelines and public health conditions do not permit or preclude public gatherings, the Community Partner agrees to participate in KABOOM! facilitated Design events remotely and virtually.

Exhibit 2 94

The Community Partner will recruit at least twenty (20) adult volunteers and twenty (20) youth. Such adult volunteers shall remain engaged in the planning activities throughout the Project's planning process. (e) Build Week. The Community Partner shall recruit 40-60 community volunteers, approximately 10-25 per day, to participate in a 3-4 day installation event for the Project, which will occur on a date mutually agreed upon by both parties, and which is referred to herein as the Build Week. The Community Partner shall ensure that all volunteers sign a waiver (a copy of which has been provided). During the Build Week, the Community Partner shall provide food,water, tools, dumpsters, music, hand washing and/or hand sanitizing facilities, and restroom facilities for all volunteers on each day.
(f) Promotion; Intellectual Property. The Community Partner shall seek prior approval from KABOOM! and/or the Funding Partner for any materials that reference the Project or contain the name, trademarks, service marks, logos and other intellectual property(collectively, and together with all goodwill attached or which shall become attached to any of the them, the "Marks") of KABOOM! and/or the Funding Partner, including press releases, fliers, and promotional materials. The Community Partner acknowledges and agrees that each of KABOOM! and the Funding Partner is the sole owner of all right, title, and interest in and to its respective Marks. The parties acknowledge that KABOOM! and the Funding Partner may take all steps to protect their Marks as they deem appropriate. Any use of the Marks will inure to the sole benefit of KABOOM! or the Funding Partner (as applicable). The Community Partner shall not use the Marks in any manner that would harm the reputation of KABOOM! or the Funding;Partner or disparage or negatively,reflect upon the Marks.

Upon expiration of or termination of this Agreement for any reason„the Community Partner shall cease all use of the Marks. The Community Partner shall collaborate with KABOOM! and the Funding Partner to secure media coverage for the Project.
(g) Signage. The Community Partner shall allow the names and logos of KABOOM! and the Funding Partner to be displayed on permanent signage (a copy of which has been provided), and shall be no greater than 19%2 inches wide by 30 '/4 inches tall and mounted on poles in a mutually agreed location. If applicable, the Community Partner shall allow individual instructional signs to accompany the equipment. (h) Costs. The Community Partner is solely responsible for and shall hold KABOOM! and the Funding Partner harmless from any costs incurred by the Community Partner for any prior site preparation, upgrades, or improvements, or any equipment or materials purchased to supplement those secured by KABOOM!. (i) Warranty. The equipment and the safety surfacing related to the Project may be covered under warranty by the applicable manufacturers (a copy of which has been provided). The Community Partner acknowledges that any warranties and/or guarantees on any equipment or material are subject to the respective manufacturer's terms thereof, and the Community Partner agrees to look solely to such manufacturers for any such warranty and/or guarantee. Neither KABOOM! nor the Funding Partner nor any of their respective affiliates, directors, officers, managers, partners, members, shareholders, employees, agents or representatives,,have made nor are in any manner responsible or liable for any representation, warranty, or guarantee, express or implied, in fact or in law, relative to any equipment or material, including its quality, mechanical condition or fitness for a particular purpose. (j) Insurance.The Community Partner is self-insured and is responsible for providing coverage for its own employees and against liability for bodily injury, death and property damage that may arise out of or be based on the use of the playground at "Community Partner location", from 7 (seven) calendar days before the Build Day and for a minimum of one year afterward, in each case, in amounts not less than one million dollars($1,000,000). This self- insurance shall be primary and non-contributing with any other insurance covering KABOOM! and its funding partners.
(k) Indemnification. The Community Partner shall indemnify and hold harmless KABOOM!, the Funding Partner and their respective affiliates, directors, officers, managers, partners, members, shareholders, employees, agents, and representatives from any and all losses, liabilities, claims, actions, fees, and expenses(including interest and penalties due and payable with respect thereto and reasonable attorneys' and accountants'fees and any other reasonable out-of-pocket expenses incurred in investigating, preparing, defending, or settling Exhibit 2 95

any action), including any of the foregoing arising under, out of or in connection with any breach of this Agreement, any actions associated with this Project or resulting from the use of any play property and equipment, including those for personal injury, death, or property damage, except to the extent resulting from the gross negligence or willful misconduct of such indemnified person. This provision shall survive any termination or expiration of this Agreement.
(1) Data and Reporting Requirements. The Community Partner shall distribute and complete play-related surveys, provided by KABOOM!,to its stakeholders, including parents/caregivers,volunteers,and staff(i)promptly following the execution of this agreement (ii) 2 weeks following the completion of the Project (iii) 12 months after the completion of the Project.
(m) Code of Conduct. The Community Partner agrees to comply with the build site rules (a copy of which has been provided). The Community Partner shall allow the build site rules to be displayed on site and communicate and enforce the build site rules for all participants in the Project's Design Day and Build Week events.
(n) Post-Build Week. The Community Partner shall use its commercially reasonable efforts to provide, and otherwise shall cooperate in good faith with KABOOM! regarding obtaining, such other information related to the Project as KABOOM!from time to time may request.

2. Obligations of KABOOM!.
(a) Project. KABOOM! shall provide technical and organizational leadership and guidance for the Project and shall:
(i) Coordinate Funding Partner participation,facilitate design, including regular planning meetings, and work with vendors to procure equipment and materials in a timely manner, except to the extent that safety surfacing other than engineered wood fiber is used,which shall be procured by the Community Partner. (ii) On the behalf of and in collaboration with the Community Partner, KABOOM! shall manage construction logistics for the Project, coordinate site preparation activities with the Community Partner, inventory equipment and materials, and assure that the necessary small hand tools and materials and other general supplies are available on the Build Week; Lead the Build Week activities, including the coordination of Build Week volunteers.
(iii) Make available certain educational and promotional materials related to the Project. (b) Inspection. KABOOM!, in collaboration with the Community Partner, will secure an Installation Supervisor to review the structure at the conclusion of the Build Week to ensure that the structure is safe and built to all appropriate standards and guidelines, unless the installation is not completed during the Build Week due to failure of the Community Partner, in which case the Community Partner shall secure the Installation Supervisor.
(c) Promotion. KABOOM!will provide proposed promotional materials relating to the Project for the Community Partner's review and approval, which approval shall not be unreasonably withheld or delayed. (d) Website Listing. KABOOM!will place the playspace on its list of KABOOM! builds on the KABOOM! website, and KABOOM! will send information to the Community Partner on maintenance programming and enhancements.

3. Build Week Postponement.
(a) COVID-19 Public Health Compliance. The Project Manager will monitor public health guidelines and local conditions to ensure adherence to public health safety at specific timelines prior to Build Week. If the project does not meet requirements, KABOOM!, the Funding Partner, and the Community Partner will agree on a postponement date at least 1 month later than the original Build Week and if health indicators allow project Exhibit 2 96

completion. If health indicators do not allow project completion within close to the originally scheduled date, project will be rescheduled on a mutually agreed upon date or converted to a professional installation with no volunteers participating in building the playspace.
(i) If a project does not meet requirements at 6 weeks out, the design process will be completed and KABOOM! will work with relevant parties(playground manufacturer, playground safety surfacing and construction materials)to reschedule deliveries.
(ii) If a project does not meet requirements at 4 weeks out, the equipment may already be in manufacturing, KABOOM! will work with the manufacturer to halt manufacturing if possible and find a storage solution if not possible.
(iii) If a project does not meet requirements at 2 weeks out, KABOOM! will reschedule deliveries of construction materials and arrange storage for any materials that cannot be rescheduled together with the Community Partner.
(iv) If a project does not meet requirements at 1 week out or less, KABOOM! will reschedule deliveries of construction materials and arrange storage for any materials that cannot be rescheduled together with the Community Partner.
(v) If health indicators do not allow project completion on the reschedule date, the project will need to be postponed and rescheduled when health indicators allow project completion. (b) Weather or other conditions unrelated to COVID-19. The Build Week shall not be postponed except when weather or other conditions jeopardize the safety of the volunteers or threaten the structural integrity of the playspace. The decision to postpone the Build Week will be made by majority agreement of the representatives of KABOOM!, the Community Partner, and the Funding Partner, except where such decision must be made by KABOOM! on the construction site and representatives of the Community Partner and the Funding Partner are not available for consultation. In the event that the Build Week is postponed, KABOOM!, the Community Partner, and the Funding Partner shall develop a plan for rescheduling the Build Week at the next earliest date possible for each party.The Funding Partner shall be responsible for all additional expenses related to the rescheduled Build Week, including, without limitation, equipment, labor and materials, storage and travel costs and expenses; provided, however, that the Funding Partner shall be notified of the estimated amount of such additional expenses in connection with rescheduling of the Build Week. Notwithstanding the foregoing, in the event that the date of the Build Week is cancelled or changed as a result of the Community Partner's failure to satisfy its obligations in connection with the Project, then the Community Partner shall be liable to KABOOM! and the Funding Partner for all such additional expenses related to the rescheduled Build Week,

4. Funding Partner Relations. KABOOM! has a separate contract with the Funding Partner pursuant to which the Funding Partner has agreed to provide financial and human resources for the Project. In recognition of the Funding Partner's contribution of such resources, the Funding Partner shall receive first placement on any recognition materials developed for the Project, including signage, banners, T-shirts, press releases, website and newsletter stories, and flyers, and the Community Partner shall not solicit sponsors or donors in relation to the Project whose products or services directly compete with the products or services of the Funding Partner as identified to the Community Partner by KABOOM! and/or the Funding Partner. In the event the Community Partner solicits other sponsors or donors, then the Community Partner shall not permit such sponsors or donors to compete with the Funding Partner for signage and sponsorship recognition.

5. Termination. In the event that the Community Partner fails to make the payments required under Section 1(a) or otherwise breaches this Agreement, KABOOM! may terminate this Agreement upon written notice to the Community Partner of such termination. Furthermore, if either party is delayed or prevented from fulfilling any of its obligations hereunder by any cause beyond its reasonable control, including acts of God, acts or omissions of civil or military authorities,fire, strike, flood, riot, act of terrorism, war, transportation delay, or inability due to such Exhibit 2 97

causes to obtain required labor, materials or facilities, such party shall not be liable hereunder for such delay or failure and either party may terminate this Agreement if the other is unable to perform any obligation hereunder for a period longer than ten (10) calendar days due to such force majeure event, in which case KABOOM! shall refund to the Community Partner any amounts paid to KABOOM!, less expenses already committed and/or incurred prior to the date of such termination. If, upon termination as provided herein, the sum due KABOOM! by the Community Partner exceeds the sum paid to KABOOM! hereunder, the Community Partner shall pay KABOOM!for any such additional sum due upon presentation of appropriate documentation within thirty(30)days of invoice. Except as set forth above, upon any termination, this Agreement shall become void and have no effect, and no party shall have any liability to the other party, except that nothing herein will relieve any party from liability for any intentional breach of this Agreement prior to such termination.

6. General Provisions. The Community Partner represents to KABOOM! that all information provided by it to KABOOM!, including in the application, is true, correct and complete in all respects and does not omit any information relevant to the Project. Each party has all requisite power and authority, including any necessary approval by its governing body, to execute and deliver this Agreement, and to perform its obligations hereunder.

This Agreement may not be assigned or transferred by either party without the prior written consent of the other party hereto. This Agreement shall inure to the benefit of and be binding upon the parties hereto, their respective successors and permitted assigns, and where expressly stated, their affiliates and representatives. This Agreement shall be governed by and construed under the laws of the State of CA, without regard to conflicts of laws principles to the extent that the application of the laws of another jurisdiction would be required thereby. This Agreement may be altered, modified, or amended only by a written document signed by both parties. This Agreement may be executed in two or more counterparts, each of which shall be an original and all of which,when taken together, shall constitute the same agreement and may be delivered by facsimile or electronic mail transmission with the same force and effect as if originally executed;copies hereof were delivered. Any notices required or permitted to be given hereunder shall be sent by certified or registered United States mail, postage prepaid, by personal delivery addressed to the applicable party or by facsimile or electronic mail transmission (the receipt of which is confirmed) at the address set forth under such party's signature below. The Funding Partner shall be an intended third party beneficiary of Sections 1(b), (e), (f), (g), (h), (i), and Q) and Sections 2(b), 3, 4 and 6 of this Agreement and is entitled to enforce its rights under such sections as if it were a party to this Agreement.

Exhibit 2 98

By executing this Community Partner Agreement where indicated below, each of KABOOM! and the Community Partner agrees, as of the date identified above, to be legally bound by all of the terms and provisions set forth above.

City of Bell Gardens KABOOM!, Inc.

By: By:

Name: Michael B. O'Kelly Name: Gerry Megas
Title: City Manager Title: Chief Financial Officer Address: Address:
7100 Garfield Ave. 4301 Connecticut Ave. NW, Suite ML-1 Bell Gardens, CA 90201 Washington, DC 20008
T: (562)806-7700 T: (202)464-6180
e-mail: [email protected] F: (202)659-0210 e-mail: gmegas(c7kabaom.org
Approved as to form:

By:

Rick Olivarez, City Attorney
Contact information for the person who should receive KABOOM! invoices:

Name: Elizabeth Nava Telephone number: (562)806-7650 Mailing Address: Email: [email protected] 8000 Park Lane
Bell Gardens, CA 90201
Exhibit 2 99

VKABOOM41
Exhibit Packet
n t y rt n e r ,,,

TABLE OF CONTENTS
CDC Signage Section 1 (b)iv P. 1
Maintenance Plan I Section 1 (b)v
— Playground P. 2
Playspace Volunteer Build Day Waiver Section 1 (d) P. 6 Playspace Signage I Section 1 (f)
— Playground P. 7
Warranty I Section 1 (h)
— Playground P. 9
Code of Conduct I Section 1 (1) P. 11
KABOOM! Corporate Sponsor Policy P. 12
Exhibit 3 100

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Exhibit 3 101

Playspace and Surrounding Project Maintenance Plan for: 2 It is very important for our children's safety that we make sure that the playspace is kept in a good and safe condition to decrease and/or eliminate injuries. This maintenance plan is to ensure that we keep the playspace in a good working condition so the children can have it to play on for years to come. The maintenance of the playspace system and surrounding projects installed at will be comprised of daily, weekly, and annual inspections by the The daily inspection is to be completed by all house parents and staff using the playspace.The focus of these daily inspections should include:
• Note and report and splinters, loose fasteners, broken equipment and incidents of vandalism • Check safety zones (slides)for any objects such as trash, bottles and anything that may be a hazard to the children • Pick up litter
• Check surfacing (wood fiber) in high-use areas. Rake over any areas that may have become worn away by use • Note excess water as in draining or on equipment other than rain or condensation The weekly inspection will be performed by a . Note: The resident children can be utilized to assist with the weekly inspection. This inspection will encompass all of the items mentioned in the daily inspection as well as checking the following:
• Grounds upkeep
• Surfacing
• General hazards
• Equipment deterioration (chipped paint, rust)
• Security of bolts, nuts, and fasteners
An annual inspection will be performed by a or a certified playspace safety inspector.

The inspection will include, but not be limited to the following:
• Inspection of key areas for signs of wear, tear and vandalism • Check and tighten all bolts, nuts, and fasteners
• Lubricate any moving parts
• Measure, evaluate and make recommendations as to the condition and depth of the safety surface • Complete a written maintenance report
• Meet with staff to discuss report and to answer any questions or to identify any areas to watch If any safety problems are noted in these inspections, the problems will be corrected within hours. If the safety problems cannot be corrected in a timely manner, the playspace will be temporarily closed until safety issues are corrected.

Complete documentation of virtually everything related to the playspace, including original specifications, bid documents, purchase orders, warranties, and insurance certificates, as well as manufacturer recommendations, parts lists, scaled drawings, audit records, completed inspection checklists, repair schedules and work orders will be retained permanently.

All Reports will be kept in and will be available for review by KABOOM! Exhibit 3 102

Maintenance Inspection
The following checklist will be used to determine the condition of our playspace. The person completing the inspection will sign off the checklist. The checklist will be kept on file at and will be available for review by KABOOM!
Name of park or playspace:

Name of inspector:

Date of inspection:

Time of inspection:

Weather conditions at time of inspection:

Number of playspace users:

REPAIR PRIORITY-
1 —Imminent Hazard (Repair Immediately)
2 —Scheduled Maintenance (Repair Next Visit)
3 —Planning (To Administration for$_)
4 —No issues to date
Repair
Pla s ace Specifics Priority Comments
Playspace Upkeep
Check entire playspace area for miscellaneous debris or litter such as trip hazards, broken glass, poor drainage areas, and no obstruction of play.

Check to make sure that trash receptacles are being
emptied.

Check for any damage to equipment or other playspace
feature caused by the following: Vandalism, general
wear, broken equipment, and missing equipment.

Check the condition of the Sign. Is it present, visible, and in good shape?
Surfacing
What type of surfacing is used?
What is the depth of current surfacing?
Check for equipment that does not have adequate
safety surfacing under and around it, and for surfacing materials that have deteriorated
What areas need surfacing or raking?
General Hazards:Equipment General
Check all equipment and other playspace features for
any hazards that may have emerged. It is important to
check slides, climbing apparatus, and composite play
structures for the following:
no head entrapment or entanglement
Exhibit 3 103

All hardware in good condition with no loose screws or
bolts
capped ends
no sharp points, corners, edges, or loose welds
no protrusions or projections
no pinch, crush, or shearing points
no tripping hazards
no suspended hazards (cables, wires, ropes)
no equipment> 7 ft. high
no worn/frayed cables
smooth surfaces
no exposed footings
no loose steps, handholds, or rails
no loose step/ring/rung
General Hazards:Equipment Specific
SWINGS
S-hooks closed
good chains/seats/hangers
Deterioration of Equipment
Check all equipment and other playspace features for
rust, rot, and cracks, with special attention to the
possible corrosion where structures come in contact
with the ground.

Check for unstable anchoring or equipment.

Security of Hardware
Check for any loose or worn connecting, covering, or
fastening hardware devises; for example, check the S -
hooks at both ends of suspending elements of swings
and all connection points on flexible climbers wear.

Check all moving parts, such as swing bearing hangers
for wear.

Make sure all other moveable joints or connection
pieces are properly covered and not entanglement or
entrapment hazards.

Equipment Use Zones
Check for obstacles in equipment use zones (see CPSC
guidelines for definition of use zones).

Exhibit 3 104

Repair
Surrounding Area Priority Comments
General Hazards:Material Specific
Check all equipment and other playspace features for
rust, rot, cracks, and splinters, with special attention to the possible corrosion where structures come in contact with the ground.

Check for unstable anchoring or equipment.

Metal
No Rust or corrosion
Concrete
No cracked or broken pieces
Paint
Chipped paint
Wood
No wood rot
No mold
Check for any loose or worn connecting,protruding,
covering, or fastening hardware
Check for unstable
No splinters
General Hazards:Project Specific
Fencing/backstops
Metal Fence
Check that all anchors are secure and that there are no breaks or fray in fencing structure
Wooden Fence
Check that all boards are secure. Replace any boards
or posts that have rot.

Sandbox
Rake out and maintain clean sand
Garden
Watering (Daily)
Weeding (Weekly)
Deadheading (clip old flowers) (Seasonally)
Mulching (Seasonally)
**Vegetable Gardens will require more frequent
attention depending on plants
DATES REPAIRS COMPLETED : (Note Items Repaired) BY:

IF SKETCH IS NEEDED, DRAW ON REAR OF FORM.

Exhibit 3 105

6 2022 Playspace Volunteer Build Day Waiver
KABOOM! PLAYSPACE PROJECT—VOLUNTEER WAIVER AND RELEASE
This form must be signed by or on behalf of each volunteer who will participate in or otherwise be involved with the construction of the FP, CP and KABOOM! Playspace Build(the"Playspace Build"or the"Project"),or will be on the construction site of the Playspace Build, occurring Build Month, Day,Year in City,State.If you are unable to read this print, please speak with the person handling volunteer registration for assistance.

The KABOOM!project and activities will include the playspace construction,side projects and play enhancement projects on and in the periphery of the playspace construction site including,without limitation,building interiors at or near the site.The"playspace construction site"is the physical space where the playspace is being installed;the playspace construction projects are any activities directly related to the installation and placement of the playspace equipment,the mixing of concrete,and/or moving safety surfacing onto the playspace site.Volunteers under age 18(or under 19 in AL and NE)may not work on the"playspace construction site",as defined above.Volunteers under 18 but who meet this state's minimum age for employment may work on the side projects,such as beautification and play enhancement projects,and other non-playspace construction site projects and may help with preparation for the build day only if they have received and delivered KABOOM!written approval from a parent or legal guardian for participation.Any children under state's minimum age for employment will not be supervised by KABOOM!in any way or be allowed to participate in playspace or non-playspace construction projects managed by KABOOM!;however KABOOM!will work with the community partner to procure supplies for use by these children and to help them plan projects that are occurring on a site that is distinctly separated from the playspace construction site.No children under this state's legal working age should be on the playspace construction site.

I understand that I will be spending the day(s)as a volunteer for the Project and will liabilities,suits,losses,damages,costs,expenses,and fees,including,without be participating at my own risk.I acknowledge that my participation is voluntary and limitation,court costs and attorneys'fees,of any and every nature of character, does not constitute a condition or requirement of employment.I further acknowledge including,without limitation,for death,personal injury and/or loss of property, that the Project will occur at a construction site and that the construction site will be a whether anticipated or unanticipated,directly or indirectly,whether caused,in whole potentially dangerous place.I attest that I am physically fit and prepared for this or in part,by the sole or concurrent negligence or wrongdoings,strict liability or fault event and these activities. of the Released Parties or otherwise,arising out of or connected in any way with my I will not create an unsafe situation for other individuals or myself nor will I use any participation in the Project or any side projects in connection with the Project. tool or engage in any task with which I am not completely comfortable.I will abide by I acknowledge that I have read the foregoing paragraph and know and understand all applicable federal,state and local laws,as well as the rules and directions of the the full contents and effects of it.IF BUILD IS IN CALIFORNIA KEEP THIS sponsors and coordinators.If I see any situation that I feel is unsafe,I will SECTION, IF NOT,REMOVE: I understand the full nature,extent,and import of immediately call it to the attention of KABOOM!or a safety coordinator.If I bring any Section 1542 of the California Civil Code and of the entire release stated in the children or young adults with me to participate in the Project, I will be solely foregoing paragraph. Accordingly,I waive and relinquish,any and all rights or responsible for providing for their safety and will keep them under close supervision benefits that I may have under the provisions of Section 1542 of the California Civil at all times.FOR EACH PARTICIPANT UNDER 18(19 in AL and NE),THE Code,which reads as follows:"A general release does not extend to claims which PARENT OR GUARDIAN MUST FILL OUT A SEPARATE WAIVER.I understand the creditor does not know or suspect to exist in its favor at the time of executing the that a volunteer may be at the Project to provide medical treatment in the event of an release,which if known by him must have materially affected his settlement with the injury,and if necessary to assist in arranging transportation to medical facilities,but debtor."I hereby grant KABOOM!,FP and CP full and complete permission to use acknowledge that neither KABOOM!nor any other of the Released Parties(as my name and likeness,including any photographs,videography and interview defined below)are in any way responsible for providing such medical volunteer or footage and quotations from me obtained in connection with the Project(whether or treatment. not at the Project Build or otherwise)in legitimate promotions of the Project and to On behalf of myself,as well as my heirs,executors,administrators and assigns,I further the mission and vision of KABOOM!.in any and all media now known or hereby forever release,discharge,waive and agree to indemnify and hold harmless hereinafter developed without restriction or compensation.

KABOOM!,FP,CP,Landscape Structures Inc.and/or Connor Sport Court I understand that I have given up substantial rights by signing this Waiver and International,and any additional sponsors of the Project,along with their respective have signed it freely and voluntarily without any inducement,assurance or officers,directors,agents,employees,contractors,successors and assigns,and any guarantee being made to me and I INTEND MY SIGNATURE TO BE A volunteers to whom I give my consent to provide medical treatment to me or to any COMPLETE AND UNCONDITIONAL RELEASE of all liability of Released Parties children or young adults under my supervision("Released Parties"),from and to the greatest extent allowed by law. against any and all claims,demands,actions,causes of action,obli ations, Adult Volunteer(Age 18+ Volunteer Under Age 18 Or under 19 in AL and NE I am here to volunteer from: Please fill out a SEPARATE waiver for your child—use this section ONLY _CP (I am a:_staff member/—non-staff member)
_Local Community
FP
Signature of Parent or Legal Guardian of Participant
Signature of Participant Date
Printed Name of Participant Printed Name of Parent or Legal Guardian Do you affirm that your child or dependent meets this state's minimum age Address requirements for employment?
u Yes,my child may volunteer a No,my child cannot volunteer City State Zip
Email Address Printed Name of Child Participant Date u I would not like to receive information about KABOOM!in the future. u I would not like to receive information about CP in the future.

Exhibit 3 106

7 Playground Sign
Back Side FRONT SIDE
Welcome ii2
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Play Safely!
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ci iidren 21 r, 5 year's s ::, `"' au,,I e with Thies kid-inspired l lo" si oce was made adult supervisiloin, required. possiWe 'through the fuurWinq and oil �afee�� power of �uin"�� 9�lm�q
0 'r gut fk,':ur, to 1 iWp bluild art a�auirrrre p� a�yspa�u^es that 0 spark uarauia»wn't dl� pportlaui~nA4 as for every kind aveirr where,. Part"er>>, >, KAB�111t1t111111111111111111111111111111111111111111T1111 , . `" '1111111111111111DJ1J1111111111J1J1J1J1J1J1J1J1J1J1J1J1J1J1J1J1119J1J1J1J1J1J11111111111D11111111J1111111111111111111111,1111D11J1J1JllJ11JJl1JJJJJJJJJJJ1111111111111111111111111111J1J1J1J11JJJJJJJ1111111111111111111J111�111�J1JllJlJIIIJIIIIJIIIIJJJJJJll1J111 00' I1 and d i s co�mimulnity.

Installation over a hard surface such as concrete, Sign dimensions: 19.5"W x 27.725"H asphalt, or packed earth may result in serious injury 9 or death from falls. Drawstrings have entangled on
slides and other playground equipment causing
strangulation, REMOVE helmets, drawstrings,
scarves, and other accessories around the neck
prior to playing on the playground.

Surfacing and play surfaces may become HOT and
cause burns. Check for hot surfaces prior to playing
on the playground. Wet surfaces may be slippery.

Use with caution to avoid falls.

Exhibit 3 107

Playground Sign
Back Side FRONT SIDE
Welcome
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K'I*'d'S
Rule.
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ach Play Safely`/,
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This playspace Laois designed for
children o i",2" of i gi,o withThis kid-inspired playspace was mod aduR supervision recommended. prossible through, the, funding and r r r uu; r ri o, W i al ��I� �r # �� a � d1unteel power off n in �n w
��pairk a nHi nited��ropportuuuinit' errs for weu-�"tlwudl,�ew�eryw nor r Ira a� a C V SWIG fll� �r �� Ala e u � ,,,l«lIIIII�JI�ll�11�11�11�11�l�l�ll�ll�l�l�ll�l��l�rl��l�ll��rl�l�rl�rl��l�rl��rl�l��rl�ll�ll�ll�ll��l�rl�rl�rl�l��l�11�1, K 01 O Ill i and this c o rau itul a t; . ��JJJ11 11J1' ��
Installation over a hard surface such as concrete,
asphalt, or packed earth may result in serious injury Sign dimensions: 19.5"W x 27.725"H or death from falls. Drawstrings have entangled on
slides and other playground equipment causing
strangulation, REMOVE helmets, drawstrings,
scarves, and other accessories around the neck
prior to playing on the playground.

Surfacing and play surfaces may become HOT and
cause burns. Check for hot surfaces prior to playing
on the playground. Wet surfaces may be slippery.

Use with caution to avoid falls.

Exhibit 3 108

9 I uil III IIIIIIUII�llllllllllllull l�ll�lllllll�pllllllll,I II �� ';��I;lu�� Jb I
� �IU� ��r�a I::::)IIEquipment
I ul ul�IIII lull I�I � ' o Warranty
structures You Ihacualr WIrd,
b°` a All the warranties commence on date of Manufacturer's invoice.Should any failure to conform to the above express warranties appear within the II IIIIIVI IIII p applicable warranty period,Manufacturer shall,upon being notified in writing romptly after
iscovery of
ect
ithin
1 N1 n Vu q per period,correct such nonconformity r ity either b Urepairinean applicable e part or
P Y Y repairing Y P
parts,or by making available a replacement part within 60 days of written notification.Manufacturer shall deliver the repaired or replacement part or parts to the site free of charge, but will not be responsible for providing labor or the cost of labor for the removal of the defective art or parts,the P
installation of any replacement part or parts or for disposal costs of any V I10Immu �� °01°ul part or parts. Replacement parts will be warranted for the balance of the UIIVIIi V uuuuu uu uu uuuu a uuuu uu�uuuu original warranty.

THIS WARRANTY IS EXCLUSIVE AND IN LIEU OF ALL OTHER
m'm m WARRANTIES,WHETHER EXPRESSED OR IMPLIED,INCLUDING BUT NOT

LIMITED TO ANY WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE.
m m m IIII m m m t m m _ m m The remedies hereby provided shall be the exclusive and sole remedies of �I10 the purchaser.Manufacturer shall not be liable for any direct,indirect,special, I I Idliji l u u uu I IVu��l ulplmuu uutlu uu
m m Imllm p m m m incidental or consequential damages.

Manufacturer neither assumes nor authorizes any employee,representative 01I II V IPA
or any other person to assume for Manufacturer any other liability in connection with the sale or use of the structures sold,and there are no oral UIIVhilll� m r ® r m agreements or warranties collateral to or affecting this agreement. The warranties stated above are valid only if the structures and/or equipment are erected in conformance with Landscape Structures'installation instructions ml m m IIII m _ m m and maintained according to the maintenance procedures furnished by Landscape Structures Inc.; have been subjected to normal use for the VI purpose for which the goods were designed; have not been exposed to saltwater or salt spray; have not been subject to misuse, negligence, vandalism,or accident;have not been subjected to addition or substitution of parts;and have not been modified,altered,or repaired by persons other than ul _ ul III
I � III°IIm ® ®�" m��° uduu uuuuuuu Manufacturer or Manufacturer's designees in any respect which,in the judgement of Manufacturer, affects the condition or operation of the structures.

To make a claim,send your written statement of claim,along with the original IIIII job number or invoice number to: Landscape Structures Inc. 601 7th IIII ® ® ® m Street South,Delano,Minnesota,55328-8605.

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PRICING:Landscape Structures'list prices do not include RETURN POLICY:As an indication of our commitment to delivery and handling charges. Prices are subject to our customers, Landscape Structures will accept change without notice. returns of new structures and/or new equipment TERMS: To tax-supported institutions and those with purchased within 60 days of the original invoice date. established credit: net 30 days from the date of the Advance notification is necessary to ensure proper invoice. 1.5%per month thereafter;freight charges are credit.Parts not included in this return policy are custom prepaid and applied to the invoice. parts (including PlayShaperO posts), as well as used TAXES:Landscape Structures' list prices do not include or damaged parts. A 20% restock fee plus all return applicable taxes,if any. freight charges will apply to all product returns. NOTE:

WEIGHTS:Weights are approximate and may vary. All parts are subject to inspection upon return. Parts DELIVERY: If delivery of the equipment is by common returned damaged may not receive a full credit.For this carrier, and there is damage or a shortage, notify the reason,it is important that all returned parts are properly carrier at once and sign delivery documents provided packaged to prevent damage while in transit. by the carrier noting the damage or shortage. Most PRODUCT CHANGES: Because of our commitment to products are delivered on large pallets and will require safety, innovation, and value, we reserve the right to a forklift or similar equipment to unload as a unit on the change specifications at any time. site. PLEASE CONTACT US AT:

INSTALLATION:All playstructures and/or equipment are Landscape Structures Inc. delivered unassembled and packaged with recyclable 601 7th St. South materials.For a list of factory-certified installers in your Delano, MN 55328-8605 area, please contact your Landscape Structures 888.438.6574(inside the U.S.A.) playground consultant. 763.972.5200(outside the U.S.A.) SERVICE: We have knowledgeable, qualified playground playlsi.com consultants throughout the world who are available to help you before, during and after the sale. Landscape
Structures has exclusive design software that features all of our parts and pieces in pull-down menus. With this
software, your playground consultant can design a
playground layout that meets not only your needs, but
ASTM and CPSC standards as well. In addition,we have
a full staff of NPSI-certified designers, along with 2D and 3D drawing capabilities and custom capabilities to assist you with your playground plans. k�ld/l
structures
Exhibit 3 110

11 Build Site Expectations and Code of Conduct
KABOOM! believes a playspace Build site should be a safe, inclusive environment with a welcoming atmosphere for each participant. Across the site, from balloons and playful banners to managing tool safety, participants at a KABOOM! Build site should feel comfortable, respected and able to participate in a meaningful way. All participants (including employees, vendors, visitors and volunteers) shall comply with the following practices and code of conduct:
• No smoking, alcohol or drugs
o KABOOM! sites are non-smoking, tobacco-free areas (this includes chewing tobacco and electronic cigarettes). Participants wishing to take a break to use tobacco products must leave the Build site area and are expected to comply with applicable laws and regulations further prohibiting the use of tobacco products in or around the property (example: smoke-free school zone). o The use of alcoholic beverages or drugs is prohibited anywhere in or around the Build site. • Family-friendly language
o All Build Days should feel like a celebration that is inclusive and respectful to all participants. KABOOM! will work with the Community Partner to incorporate upbeat music into the day. The music must be family- friendly, with no expletives, nor any lyrics or content that may be demeaning to any race, religion, gender identity, age, ethnicity, sexual orientation, disability or other characteristic. o Participants must not use profane or obscene language on a KABOOM! Build sites. o Language or innuendos that degrade or demean a person of any race, religion, gender identity, age, ethnicity, sexual orientation, disability or other characteristic are prohibited on a KABOOM! Build site. • Safety
o A KABOOM! Build is an active construction site. There are many deep holes and other moving parts on a KABOOM! site. Volunteers are reminded to be careful and mindful of safety for everyone throughout the day.
o There will be no power tools operated on Build Day, with the exception of corded or cordless drills. Anyone operating a drill should wear safety goggles.
o Gloves, dust masks, ear plugs and other safety supplies are available for participants' use. o While KABOOM! Builds happen rain or shine, a clearly outlined evacuation plan will be in place prior to Build Day in the event of lightning or extremely inclement weather. o Youth may participate in the youth activities area or other projects designated by the KABOOM! staff outside of the playground footprint, but not in the playground footprint. • Open Carry
o KABOOM! is committed to providing a safe and inviting atmosphere for all of our volunteers and staff. We request that participants do not bring firearms onto our playgrounds even in states where 'open carry' is permitted.

Any participant observing a violation of this code of conduct, should promptly advise a KABOOM! staff member on site. The staff member will advise the Community Partner so that it may address the situation with the individual(s) involved. All KABOOM! staff members on site shall endeavor to promote a safe, welcoming, inclusive and fun environments for all participants.

Exhibit 3 111

Corporate Sponsorship Policy 12
The purpose of the Corporate Sponsorship Policy is to ensure that recognition of the play space project and the new play space area are reserved for the Community Partner and the Funding Partner.

The Community Partner must ensure the following:
^ Volunteers recruited from organizations, companies, or local businesses should be in limited to groups of1Oorless
^ No branded clothing or signage from groups other than the Community and Funding Partner can be worn during Build Week
^ Volunteers cannot wear hats,shirts, buttons, etc. identifying them as part of another group organization
^ Only the Funding Partner, Community Partner, and KABOOM! will have permanent signage or recognition on the project mite. Otherportnereoftheconnnnunitypr jectconberecognizedon temporary mignoge. such oeobanner.
^ Community Partners cannot solicit support from direct competitors of the Funding Partner ^ If a restaurant donates food,they may include menus or cards on the serving table Exhibit 112

KABOOM!
KABOOM ! Playground Project
Site Preparation—Neighborhood Youth Center
Construction Specifications
Site Prep -Complete by Insert Date
• At least two weeks in advance of Build Week, community partner will:
o Remove existing playground equipment, if applicable o Remove existing playground footers, if applicable
o Remove existing rubber surfacing, if applicable
o Remove grass
o Grade site to 2%max slope
o Patch/replace asphalt(asphalt should have 4" minimum depth and 2%max slope), if applicable
o Repair playground border/curb, if applicable
o Consider and install all drainage needs
o Dig test holes-3 holes, 3' deep and 12" diameter. Dig sites should be spread over the entire site-holes should not be right next to each other.The purpose is to test the digging conditions over the entire site. Send 4 pictures to Community Build Manager-1 of entire site and 1 of each hole with a view of the bottom. • All excavated materials are to be removed from the facility. • In advance of Build Week, community partner and Planning Committee to take responsibility in receiving:
o Utility check confirming location of any underground utilities. o Any applicable building permits
o Soil test confirming acceptable lead and arsenic levels in the soil Build Week—Begins Insert Date
• During Build Week, KABOOM! will provide:
o Professional Playground Installer to layout and dig holes in playground footprint o All playground equipment and site amenity project equipment (i.e benches, paint, etc.) o KABOOM! staff to oversee deliveries and storage of materials, as well as oversee various site prep tasks (to be determined)
o Small hand tools (tape measures, wrenches, string line, etc.) 0 40-foot storage container
• During Build Week, community partner and Planning Committee will provide:
o Large Tools (see KABOOM! "Planning Chart—Tools Page" for details) o Dumpster (30 yards)
o Portable restrooms (if applicable)
Post-Build—Complete by Insert Date
Exhibit 4 113

VKIABOOM!
• Following the Build Day, community partner will be responsible for keeping kids and community members off of the playground for 72 hours. Any play on the new structure within this window could result in damage to the playground.

Please see "Planning Chart" for full details on all project requirements Exhibit 4 114

CITY OF BELL GARDENS
ii rrrrrr, ' OFFICE OF THE CITY MANAGER

AGENDA REPORT
Item 7.
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

TO: Honorable Mayor and City Council Members
FROM: Michael B. O'Kelly, City Manager
BY: Manuel Carrillo, Director of Finance and Administrative Services Rimo Hanson, Accounting Manager
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR 2020-21
DATE: May 9, 2022
RECOMMENDATION:

It is staff recommendation that the following reports for the year ended on June 30, 2021, be reviewed, discussed, and filed by the City Council.
• Annual Comprehensive Financial Report (ACFR)
• Single Audit Report of Schedule of Expenditures of Federal Awards. • Report on Communication with Those Charged with Governance and; • Independent Accountant's Report on Agreed-Upon Procedures Applied to Appropriation Limit Worksheets.

BACKGROUND/DISCUSSION:

The City is required to conduct an annual independent audit of its financial statements. The City contracted with Gruber and Lopez, Inc., Certified Public Accountants to conduct the audit. The Auditors performed procedures to obtain audit evidence about the amounts and disclosures in the financial statements in order to provide an opinion of the financial statements and to report on compliance, internal controls and suggestions for improvements.

The auditors have issued an unmodified ("clean") audit opinion meaning that the financial statements (Exhibit 1) present fairly in all material respects, the financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Bell Gardens as of June 30, 2021 and the changes in financial position for the 2020-21 fiscal year in accordance with accounting principles generally accepted in the United States. The ACFR presents the City's audited financial information and financial disclosures. The ACFR has been submitted to the Government Finance Officers Association to be considered for the Certificate in Achievement for Excellence in Financial Reporting.

The Single Audit Report on Federal Awards (Exhibit 2) received an unmodified opinion from the Auditors. The Auditors opined that the City complied in all material respects with the compliance requirements described in the OMB Compliance Supplement for each major federal program.

There were three major programs that were audited for fiscal year June 30, 2021; Department of Transportation for Lubec and Eastern Street Improvements and Garfield rehabilitation projects (expended $1,094,689), COVI D-19 Corona Virus Relief Fund (Expended $832,000) and 115

COVI D-19 American Rescue Plan Emergency Assistance (expended for revenue replacement $5,025,082).

The City did conduct a Single Audit this year due to meeting the annual minimum dollar threshold of $750,000 in federal expenditures (Exhibit 2). The Single Audit Act of 1984 and Single Audit Act Amendments of 1996 establish uniform audit requirements for local governments expending federal awards greater than $750,000 a year. The audit is on an "entity-wide" basis and imposes additional requirements in relation to testing of, and reporting on, internal control and compliance with laws and regulations related to grants and contracts applicable to the City's federally funded programs.

The Report on Communication with those Charged with Governance (Exhibit 3) reports on significant audit matters. The report notes that there were no difficulties encountered during the audit, no significant adjustments as a results of audit procedures, and no disagreements with management.

The Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets (Exhibit 4) reports the results of specific procedures on the City's calculation of the appropriation limit in accordance with guidelines published by the League of California Cities. No exceptions were noted.

CONCLUSION:

The auditor reports for the audit performed for the fiscal year of June 30, 2021, have been presented to the City Council with a recommendation to review, discuss, and file.

FISCAL IMPACT:

No fiscal impact.

ATTACHMENTS:

Exhibit 1 - Comprehensive Annual Financial Report
Exhibit 2 - Singe Audit Report on Schedule of Expenditures of Federal Awards Exhibit 3 - Report on Communication with those Charged with Governance Exhibit 4 - Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheet Exhibit 5 - Presentation
APPROVED ELECTRONICALLY BY:

Michael B. O'Kelly, City Manager
Stephanie Vasquez,Assistant CityAttorneyfor Rick R. Olivarez, City Attorney Manuel Carrillo, Director of Finance and Administrative Services 116

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POLICE EXPLORERS
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FISCAL YEAR ENDING JUNE 30 2021
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Exhibit 1 117

CITY OF BELL GARDENS,

CALIFORNIA

COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended June 30, 2021
Prepared by:

Finance and Administrative
Services Department
Exhibit 1 118

(this page intentionally left blank)
Exhibit 1 119

CITY OF BELL GARDENS
Comprehensive Annual Financial Report
Year Ended June 30, 2021

TABLE OF CONTENTS
Page
INTRODUCTORY SECTION:

Letter of Transmission i
City Officials vi
Organization Chart vii
GFOA Certificate of Achievement for Excellence in Financial Reporting viii FINANCIAL SECTION:

Independent Auditors' Report 1
Managements' Discussion and Analysis 4
Basic Financial Statements
Government-wide Financial Statements:

Statement of Net Position 13
Statement of Activities 14
Fund Financial Statements:

Balance Sheet— Governmental Funds: 16
Reconciliation of the Balance Sheet of Governmental Funds to Statement of Net Position 17
Statement of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds 18
Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to Statement of Activities 19 Statement of Fund Net Position—Proprietary Funds 20 Statement of Revenues, Expenses and Changes in Fund Net Position —Proprietary Funds 21
Statement of Cash Flows—Proprietary Funds 22
Statement of Fiduciary Net Position—Private-Purpose Trust Funds 23 Statement of Changes in Fiduciary Net Position—Private-Purpose Trust Funds 24 Notes to the Financial Statements 25
Exhibit 1 120

CITY OF BELL GARDENS
Comprehensive Annual Financial Report
Year Ended June 30, 2021

TABLE OF CONTENTS, (CONTINUED)
Page
FINANCIAL SECTION, (CONTINUED):

Required Supplementary Information
Budgetary Comparison Schedule—General Fund 70
Budgetary Comparison Schedule—Low and Moderate Housing
Special Revenue Fund 71
Notes to Required Supplementary Information 72 Schedule of Proportionate Share of the Net Pension Liability and Related Ratios -Miscellaneous 73
Schedule of Plan Contributions—Defined Benefit Pension Plan -Miscellaneous 74 Schedule of Proportionate Share of the Net Pension Liability and Related Ratios - Safety 75
Schedule of Plan Contributions—Defined Benefit Pension Plan - Safety 76 Schedule of Changes in the Net OPEB Liability and Related Ratios 77 Schedule of Plan Contributions— OPEB Plan 78 Supplementary Information
Combining Balance Sheet—Nonmaj or Governmental Funds 80 Combining Statement of Revenues, Expenditures and Changes in Fund Balances—Nonmaj or Governmental Funds 84
Budgetary Comparison Schedules— Special Revenue Funds:

Public Safety Augmentation 88
COPS State (SLESF) 89
State Gas Tax 90
Asset Forfeiture 91
Waste Management 92
Community Development Block Grant 93
Proposition A 94
Proposition C 95
Air Quality Improvement 96
Recycling Grants 97
Post Employment Benefits 98
Measure R 99
ABC Grants 100
COPS Grant 101
Anson Ford Park 102
Exhibit 1 121

CITY OF BELL GARDENS
Comprehensive Annual Financial Report
Year Ended June 30, 2021

TABLE OF CONTENTS, (CONTINUED)
Page
Supplementary Information, (Continued)
Measure M 103
Office of Traffic Safety Grant 104
Budgetary Comparison Schedules— Capital Projects Funds:

Transportation Development Act 105
Capital Improvement Projects 106
STATISTICAL SECTION:

Net Position by Component 108
Changes in Net Position 109
Program Revenues by Function/Program 111
Fund Balances— Governmental Funds 112
Changes in Fund Balances— Governmental Funds 113 Tax Revenues by Source—Governmental Funds 115
Assessed Value and Estimated Actual Value of Taxable Property 116 Direct and Overlapping Property Tax Rates 117
Principal Property Tax Payers 118
Property Tax Levies and Collections 119
Taxable Sales by Category 120
Direct and Overlapping Sales Tax Rates 121
Principal Sales Tax Remitters 122
Ratios of Outstanding Debt by Type 123
Ratios of General Bonded Debt Outstanding 124 Direct and Overlapping Governmental Activities Debt 125 Legal Debt Margin Information 127
Pledged Revenue Coverage 128
Demographic and Economic Statistics 129
Full-time Equivalent City Government Employees by Function/Program 130 Principal Employers 131
Operating Indicators by Function/Program 132
Capital Asset Statistics by Function/Program 133 Exhibit 1 122

(this page intentionally left blank)
Exhibit 1 123

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The Honorable Mayor and City Council
City of Bell Gardens, California
It is the policy of the City of Bell Gardens to annually publish a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of certified public accountants.

Pursuant to that requirement, we hereby issue the comprehensive annual financial report for the City of Bell Gardens (the City) for the fiscal year ended June 30, 2021.

This report consists of management's representations concerning the finances of the City of Bell Gardens. Consequently, management assumes full responsibility for the completeness and reliability of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Bell Gardens has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Bell Gardens' financial statements in conformity with GAAP. Since the costs of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements are free from material misstatement.As management,we assert that,to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

Gruber and Associates, PC, a firm of licensed certified public accountants, has issued an unmodified ("clean") opinion on the City of Bell Gardens' financial statements for the year ended June 30, 2021. The independent auditor's report is located at the front of the financial section of this report.

Management's discussion and analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. This letter of transmittal complements the MD&A and the financial statements, and it should be read from that perspective and in conjunction with all other sections of the comprehensive annual financial report(CAFR).

Profile of the Government
The City of Bell Gardens was incorporated in 1961 under the general laws of the State of California and is located in Southern California in the southeastern portion of Los Angeles County, approximately 11 miles southeast of Los Angeles. The City has a land area of 2.4 square miles and a population of 42,845. Bell Gardens is a general law City and uses the Council/City Manager form of government. Five City Council representatives are elected to four-year year terms of office by popular majority vote of Bell Gardens residents. The Mayor and Mayor Pro-Tem are selected from among the City Council members. The City Manager serves at the pleasure of the City Council to administer the City's affairs and to carry out policies established by the City Council.
i
Exhibit 1 124

The City is divided into seven departments of City Administration, City Clerk, Police, Public Works, Finance and Administrative Services, Community Development, and Recreation and Community Services. These departments provide a full range of services, including police protection, the construction and maintenance of City streets and sidewalks, recreational activities, cultural events, transportation, and water service to a portion of the City residents. Fire, paramedic and library services are provided by the County of Los Angeles. Animal control services are provided by the Southeast Area Animal Control Authority (SEAACA).

The annual budget serves as the foundation for the City's financial planning and control. The appropriated budget is prepared by fund, department(e.g., police) and line item. The City Council and Manager charge department directors with the responsibility of controlling department budgets. Budgetary control is exercised through an on-line computerized system, which interfaces with the City's general ledger. The system maintains an on-going record of budget balances throughout the year based on actual expenditures and unfilled purchase orders.

The City Council has the legal authority to amend the budget at any time during the year. The City Manager has the authority to re-appropriate expenditures within a fund. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the General Fund and major special revenue funds, this comparison is presented as part of the required supplementary information in the accompanying financial statements. For governmental funds that have appropriated annual budgets, other than the General Fund and major special revenue funds, this comparison is presented in the supplementary section of the accompanying financial statements.

Factors Affecting Financial Condition
On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19), a global pandemic. The COVID-19 outbreak in the United States has caused business disruption through mandated and voluntary closing of businesses. Although statewide safety measures were lifted in June 2021 and businesses are now allowed to operate without restrictions, the City anticipates the pandemic will continue to affect the City's local economy and financial outlook.

Prior to the pandemic, the Bicycle Casino(the Bike) provided over 40% of the City's General Fund revenues. In December 2015, the Bike completed a one-hundred room four-star luxury hotel as an addition to the Casino. The construction of the luxury hotel increased the Casino's revenue capabilities. In fiscal year 2018-19, the Bike revenue reached its highest revenue at$14,329,829.

In fiscal year 2020-21, due to COVID-19, the Bike generated $6,728,349 which is $7.6 million lower than fiscal year 2018-19, a normal year without COVID. However, in fiscal year 2021-22, the Bike revenue is on target to reaching its' new high of$14.4 million.

Although these rapid changes have created uncertainty relating to revenue estimates and expenditures for the fiscal year 2020-21, the City anticipated a reduction of its major revenue sources when the fiscal year 2020-21 budget was first adopted. However, only the Bicycle Casino revenues was down. The City received a positive increases in all other major revenue sources.

The major revenue sources of the City include Bicycle Casino Revenue, In-Lieu Vehicle, Property leases, Sales Tax, Measure A add-on (0.75%) sales tax and Property tax. The following are highlighted items affecting financial conditions.
ii
Exhibit 1 125

The City completed the billboard project and the advertising agreement in early fiscal year 2021-

22. The estimated revenue generated from the billboard is$160K for the first year and thereafter $140K per year. The City is expected to have another billboard lease agreement approved in 2022. In addition, the City's water rates increased was approved on July 26, 2021. Anticipated Year 1 revenues from the water rates increased is expected to cover 46% of the fiscal year 2021- 22 estimated expenditure cost of $3,273,704. This fee increase will help to offset some operational cost and capital improvements to the Water fund.

During fiscal year 2020-21, Recreation Department partnered up with the County and assisted in the State Rent Relief program where staff assist residents with reviewing the application documents and collected $1 million. In addition, Recreation Department also provided Food Program Reimbursement which the City collected $223K.

To assist the residents and community during pandemic, City Council conducted a public hearing on the proposed amendments to the FY2019-20 and FY2020-21 Community Development Block Grant (CDBG) programs in order to allocate supplemental funds from the Coronavirus Aid, Relief and Economic Security Act (CARES Act) to help residents of the City. Programs that are being supported by this funding are: small non-essential business assistance grant, residential rental assistance grants, childcare subsidy, and emergency utility assistance grants.

The City has allocated $400,000 of general fund to support residents in various programs such as Bell Gardens' scholarship funds, homework/learning WIFI, recreation leaders (to provide homework assistance, tutoring and educational classes at the Homework/Learning Centers), emergency food programs, and small business assistance programs.

Furthermore, the Community Family Services Center was formed because of the need for a variety of social, human, education, and community services during the pandemic. Staff recognized the need to centralize services to assist residents with rental assistance, education, emergency food services, utilities assistance, housing counseling, COVID testing and vaccinations, senior meal delivery and other consumer action services. Going forward staff plans to continue to provide residents with access to consumer action needs, unemployment benefits, disability claims, WIC, health and wellness programs, special populations programming and coordination of non-profit service providers.

Finally, as discussed later in the Management Discussion and Analysis, the economic uncertainty still exists today due to the ongoing COVID-19 pandemic, the City will continue to monitor and take action necessary to ensure that the City responds to the challenge of the pandemic and maintains a reasonably conservative and cautious outlook for budgeting and fiscal management to ensure the City's ability to respond to increasing costs of services and potential weakness in revenue.

Relevant Financial Polices
City management is responsible for establishing and maintaining an internal control structure designed to ensure that City assets are protected from loss, theft, or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in iii
Exhibit 1 126

conformity with accounting principles generally accepted in the United States of America as prescribed by the Governmental Accounting Standards Board (GASB)and the American Institute of Certified Public Accountants (AICPA). The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of controls should not exceed the benefits likely to be derived, and the valuation of costs and benefits requires estimates and judgments by management.

The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of general, special revenue, debt services and capital projects funds are included in the annual appropriated budget.

The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the individual fund level. The City also maintains an encumbrance accounting system as a technique of accomplishing budgetary control.

As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. State statutes require an annual audit of the City's financial records by independent certified public accountants.

As a result, the independent accounting firm of Lopez&Gruber and Associates, PC was selected to perform the audit for the fiscal year ended June 30, 2021. The auditors' unqualified (clean) opinion on the basic financial statements and accompanying footnotes is included in the Financial Section of this report (CAFR).

Long-Term Financial Planning
In 2008, the City implemented a reserve policy in which they initially committed $1,000,000 for contingencies and added $200,000 per year until the amount committed for contingencies reached 10% of the General Fund's expenditures. As of June 30, 2021, the amount committed for contingencies is $3,500,000 with $200,000 budgeted for the fund in fiscal year 2021-2022 Two of the biggest challenges to the City's long-term financial sustainability is the unfunded pension obligations for City employees under the California Public Employees' Retirement System (CALPERS) and the growing City's retiree healthcare liability. In order to proactively mitigate the impacts of significant increases in future pension costs, the City Council authorizes staff to explore and potentially issue the Pension Obligation Bonds with the guidance of the municipal advisor. At this time, the City is actively pursuing the validation process needed to issue Pension Obligation Bonds.

As a means to reduce the burden on city finances and to provide additional services to the community, the City will continue to search and apply for grant opportunities and monitor local and national economic trends.

Awards
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Bell Gardens, California, for its comprehensive annual financial report for the fiscal year ended June 30, 2020. To qualify for the Certificate of Achievement, the governmental entity must publish an easily readable and efficiently organized CAFR, the contents of which conform to program standards. Such report must satisfy accounting principles generally accepted in the United State of America, as well as all applicable legal requirements.
iv
Exhibit 1 127

The Certificate of Achievement is valid for only one year. The City believes this CAFR continues to conform to the Certificate of Achievement Program requirements and will be submitting it to GFOA for consideration of the annual award.

Acknowledgements
The dedication of the Finance Department staff made it possible to prepare this report in a timely manner. We wish to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. We would like to express a sincere thank you to Rimo Hanson, Accounting Manager and her staff for their dedicated efforts. The City also recognizes the contributions and positive working relationship with the Grubber& Lopez,lnc.

Finally, we wish to express our sincere appreciation to the Mayor and City Council for their continued leadership, support, and professionalism in the management of the City's finances.

Respectfully submi d„ '' w`
Michael B. O'Kelly Manuel Carrillo
City Manager Director of Finance and Administration v
Exhibit 1 128

City of Bell Gardens
City City Council
Officials Marco Barcena Mayor
Maria Pulido Mayor Pro Tern
Alejandra Cortez Councilmember
Jorgel Chavez Councilmember
Lisseth Flores Councilmember
Administration and Department Heads
Michael B. O'Kelly
City Manager
Vacant
Assistant City Manager
Bradley Scott Fairrield
Chief of Police
Manuel Carrillo
Director of Finance & Administrative Services
Gustavo Romo
Director of Community Development
Rozanne Adanto
Director of Recreation & Community Services
Grissel Chavez
Director of Public Works
Jane Halstead
City Clerk
Rick R. Olivarez
City Attorney
Douglas Benash
City Engineer
Exhibit 1 129

City of Bell Gardens
Organization Chart
Residents of Bell Gardens
Mayor and City Council
5 Elected Officials
1 Full Time
City Clerk City Manager City Attorney
3 Full Time 3 Full Time
Police Public Works
71 Full Time 28 Full Time
Finance&Admin. Services Community Development
9 Full Time 10 Full Time
Recreation&Community Services
11 Full Time
Exhibit 1 130
vii

0,
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Bell Gardens
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
0,0 _ P. Arw-�ee
Exectitive Director/CEO
Exhibit 1 131..

Vill

R UBER anid LOPEZ, M,
iffi�IIi"f of (F..F'1fIF:IED Plll$E..IQ.:.A C(�(.IIN1AN :'r To the Honorable Mayor and Members of the City Council
City of Bell Gardens, California
Independent Auditors' Report
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Bell Gardens, California (City), as of and for the year ended June 30, 2021 and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.

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

Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit.We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Bell Gardens, California, as of June 30, 2021, and the respective changes in financial position, and where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. 1 ..ax(r' ) 0 00 4
Exhibit 1 132

City Council
City of Bell Gardens, California
Page Two
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, the schedule of proportionate share of the net pension liability and related ratios, schedule of plan contributions — defined benefit pension plan, schedule of changes in the net OPEB liability and related ratios, schedule of plan contributions — OPEB plan, and the budgetary comparison information identified as Required Supplementary Information (RSI) in the accompanying table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board,who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America,which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements,and other knowledge we obtained during our audit of the basic financial statements.We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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

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

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

Other Reporting Required By Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 22, 2021 on our consideration of the City of Bell Gardens' internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Bell Gardens' internal control over financial reporting and compliance.

Gruber and Lopez,Inc.

Newport Beach, California
December 22,2021
2 Exhibit 1 133

MANAGEMENT'S DISCUSSION AND ANALYSIS
3 Exhibit 1 134

CITY OF BELL GARDENS

MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Bell Gardens, we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City of Bell Gardens for the fiscal year ended June 30, 2021. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal and the City's financial statements.

This report consists of the following report sections: management's discussion and analysis (this section), the basic financial statements, required supplemental information, and other supplemental information section that presents combining statements for nonmajor governmental funds. The basic financial statements are presented in two different formats:
government-wide financial statements and fund financial statements. The government-wide financial statements include the statement of net position and the statement of activities. These statements provide both long-term and short-term information about the City's overall financial condition. All amounts, unless otherwise indicated, are expressed in millions of dollars.

FINANCIAL HIGHLIGHTS
Government-wide:
• At June 30,2021, the City's assets and deferred outflows of resources totaled $192 million and total liabilities and deferred inflows of resources were $144 million. The assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $61 million (net position). Of this amount, the unrestricted net position was negative $53.6 million due to the investment in capital asset reserve of$99 million. • For the fiscal year ended June 30, 2021, net position increased by $1.7 million. The total revenues from programs and general revenues were $46.3 million, and total expenses for all functions and programs were $44.6 million. • Of the total revenues of $46.3 million, program revenues were $19.7 million and general revenues and transfers were $26.6 million. Program revenues are divided into three categories: Charges for services, $2.8 million; Operating grants and contributions, $13.1 million; and Capital grants and contributions, $3.8 million.

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements, which are comprised of three components: 1) Government-Wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to the Basic Financial Statements.

This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-Wide Financial Statements
The Government-Wide Financial Statements designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business. These statements include all assets and deferred outflows of resources of the City as well as all liabilities (including long-term debt) and deferred inflows of resources. Additionally, certain eliminations have occurred as prescribe by the statement in regard to inter-fund activity, payables, and Exhibit 1 A5

receivables.

The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities. These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private- sector companies. All of the current year's revenues and expenses are taken into account, regardless of when cash is received or paid.

The Statement of Net Position presents information on all of the City's assets, liabilities, and deferred inflows/outflows of resources. The difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources is reported as net position. Over time, increases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The Statement of Activities presents information showing how the City's net position changed during the year. All changes in net position are reported as soon as the underlying event occurs, regardless of timing of related cash flows.

In the Statement of Net Position and the Statement of Activities, we separate the City's activities as follows:

Governmental Activities
Most of the City's basic services are included here, such as general government, public safety, public works, community development, and parks and recreation. Taxes, state and federal grants finance most of these activities.

Business-Type Activities
The City charges a fee to customers to cover all or most of the costs of certain services it provides. The City's water utility and golf course operations are reported as business-type activities.

The Government-Wide Financial Statements include not only the City itself (known as the primary government), but also the legally separate entity of the Bell Gardens Financing Authority. The City is financially accountable for this entity and the financial information for this blended component unit are reported within the financial information presented for the primary government itself.

Fund Financial Statements
The fund financial statements provide detailed information about the City's most significant funds. Some funds are required to be established by State law and bond covenants. However, management establishes many other funds to help control and manage money for particular purposes and to show that it is meeting legal responsibilities for using certain taxes, grants, and other funding sources.

The fund financial statements include statements for each of the three categories of activities — governmental, proprietary, and fiduciary. The governmental activities are prepared using the current financial resources measurement focus and the modified accrual basis of accounting.

The business-type activities are prepared using the economic resources measurement focus and the accrual basis of accounting. The fiduciary activities are agency funds which only report assets and liabilities and do not have a measurement focus.

Exhibit 1 1536

Governmental Funds—The Governmental Funds are used to account for essentially the same functions reported as governmental activities in the Government-Wide Financial Statements.

However, unlike the Government-Wide Financial Statements, Governmental Funds Financial Statements focus on current financial resources, which emphasize near-term inflows and outflows of spendable resources as well as balances of spendable resources at the end of the fiscal year. This information is essential in evaluating the City's near-term financial requirements.

To better understand the City's long-term and short-term requirements, it is useful to compare the City's Governmental Fund Statements with the governmental activities in the Government- Wide Financial Statements. A reconciliation of the statements is provided for both the governmental fund balance sheet and the statement of revenues, expenditures and changes in fund balances to facilitate this comparison.

The City of Bell Gardens maintains twenty-seven (27) governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Low and Moderate Housing fund, and Capital Improvement Projects fund which are reported as major funds. Data from the other twenty-three (23) governmental funds are combined into a single, aggregate presentation in the non-major governmental funds. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements in the Supplementary Information section of this report.

The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General fund to demonstrate its compliance with this budget.

Proprietary Funds—The City maintains only one type of proprietary fund, the enterprise fund for its water utility and golf course. Enterprise funds are used to report the same functions presented as business-type activities in government-wide financial statements.

Fiduciary Funds—As a result of the dissolution of the redevelopment agency, the city maintains a fiduciary fund, which consists of a private purpose trust fund used to account for the assets and liabilities of the former Community Development Commission and the allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former Community Development Commission are paid in full and assets have been liquidated.

Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the Government-Wide and Fund Financial Statements. The combining statements referred to earlier in connection with the non-major governmental funds and enterprise funds are presented immediately following the required supplementary information.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
As stated in the financial highlights above, at June 30, 2021, the City's net position (excess of assets over liabilities) was $61 million. This includes an increase of$1.7 million from prior year's net position. Net position may serve over time as a useful indicator of a government's financial position.

Exhibit 1 'IES7

The following is the condensed Statement of Net Position for the fiscal years ended June 30, 2021 and 2020. Approximately $94 million (154%) of the governmental activities net position consist of the City's investment in capital assets such as land, buildings, structures, machinery and equipment, less any related debt to acquire those assets that is still outstanding. These assets are used to provide services to the citizens of the City of Bell Gardens; therefore, they are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since capital assets themselves cannot be used to liquidate these liabilities.

Governmental Activities Business-type Activities Total 2020 2021 2020 2021 2020 2021
Current and other assets $ 74,758,498 $ 87,479,747 $ (2,836,735) $ (3,485,580) $ 71,921,763 $ 83,994,167 Capital assets 99,848,641 101,820,402 6,595,818 6,427,635 106,444,459 108,248,037 Total assets 174,607,139 189,300,149 3,759,083 2,942,055 178,366,222 192,242,204 Deferred outflows of resources 12,285,064 13,288,816 126,571 180,384 12,411,635 13,469,200 Total deferred outflowof resources 12,285,064 13,288,816 126,571 180,384 12,411,635 13,469,200 Current and other liabilities 4,523,810 12,304,822 495,363 488,169 5,019,173 12,792,991 Long-term liabilities outstanding 119,192,794 127,839,407 2,616,834 2,582,228 121,809,628 130,421,635 Total liabilities 123,716,604 140,144,229 3,112,197 3,070,397 126,828,801 143,214,626 Deferred intflows of resources 4,292,629 1,129,152 50,821 39,841 4,343,450 1,168,993 Total deferred inflows of resources 4,292,629 1,129,152 50,821 39,841 4,343,450 1,168,993 Net position:

Net investment in capital assets 94,319,104 94,260,557 4,864,055 5,011,259 99,183,159 99,271,816 Restricted 14,869,823 15,278,715 399,479 399,339 15,269,302 15,678,054 Unrestricted (50,305,957) (48,223,688) (4,540,898) (5,398,397) (54,846,855) (53,622,085) Total net position $ 58,882,970 $ 61,315,584 $ 722,636 $ 12,201 $ 59,605,606 $ 61,327,785 Exhibit 1 IM

Statement of Activities
The following is the condensed Statement of Activities for the fiscal years ended June 30, 2021 and 2020. The government-wide Statement of Activities is used to report changes in the net position reported on the government-wide statement of assets.

Governmental Activities Business-Type Activities Total 2020 2021 2020 2021 2020 2021
Revenues:

Charges for services $ 1,912,631 $ 1,541,387 $ 1,289,367 $ 1,280,882 $ 3,201,998 $ 2,822,269 Operating grants and contrib 4,613,116 13,102,459 - 4,613,116 13,102,459 Capital grants and contrib 2,129,774 3,857,745 2,129,774 3,857,745 General revenues:

Sales Taxes 2,902,461 3,923,189 2,902,461 3,923,189 Transient occupancy taxes 595,441 410,282 595,441 410,282 Franchise taxes 4,052,142 4,202,690 4,052,142 4,202,690 Business license taxes 255,447 233,315 255,447 233,315 Property taxes 1,521,691 1,554,677 1,521,691 1,554,677 Othertaxes 4,063 5,789 4,063 5,789 Motor vehicle in lieu 4,901,583 5,243,723 - 4,901,583 5,243,723 Used of money and property 4,664,367 4,139,105 641 24 4,665,008 4,139,129 Card club taxes 11,231,347 6,728,349 - 11,231,347 6,728,349 Other 212,054 134,181 212,054 134,181
Total Revenues 38,996,117 45,076,891 1,290,008 1,280,906 40,286,125 46,357,797 Expenses
General government 12,322,003 9,494,894 - - 12,322,003 9,494,894 Public safety 24,409,260 16,262,137 24,409,260 16,262,137 Community development 1,114,821 1,433,333 1,114,821 1,433,333 Parks and recreation 3,011,198 2,720,633 3,011,198 2,720,633 Public works 13,245,178 12,654,001 - 13,245,178 12,654,001 Interest and fiscal charges 160,317 224,813 - 160,317 224,813 Water Utility - - 2,283,601 1,641,054 2,283,601 1,641,054 Goff course 230,571 204,753 230,571 204,753 Total Expenses 54,262,777 42,789,811 2,514,172 1,845,807 56,776,949 44,635,618 Increases(Decreases)in net assets
before transfers (15,266,660) 2,287,080 (1,224,164) (564,901) (16,490,824) 1,722,179 Transfers 6,559 145,534 (6,559) (145,534) - Changes in Net Position (15,260,101) 2,432,614 (1,230,723) (710,435) (16,490,824) 1,722,179 Net Position-beginning of the ye 74,143,071 58,882,970 1,953,359 722,636 76,096,430 59,605,606 Restatement of Net Position - - -
Net Position-end of the year $ 58,882,970 $ 61,315,584 $ 722,636 $ 12,201 $ 59,605,606 $ 61,327,785 Governmental Activities
The City's net position from governmental activities totaled $61 million. The cost of all governmental activities this year was $43 million. Overall, the City's governmental program revenues totaled $19 million. The city paid the remaining "public benefit' portion of governmental activities from $17 million in taxes (some of which could only be used for certain programs) and $10 million with other revenues, such as interest earnings, in-lieu motor vehicle fees and general entitlements.

Exhibit 1 V9

Revenue highlights:

Revenues for the City's governmental and business-type activities were $46 million, an increase of approximately $6.1 million or 15%, from $40 million in the preceding fiscal year. Important key elements of significant changes for governmental activities were as follows. • The largest revenue source was operating grants and contributions, a program revenue, at $13.1 million which increased by $8.5 million or 184% from the preceding fiscal year.

The major increases were from general government and public works of$5.8 million and $2.4 million respectively and are detail as follow. The city received the Coronavirus Aid, Relief Economic Security (CARES) Act of $524k, American Rescued Plan, Coronavirus Fiscal Recovery of $5 million, food program of $223K and $1 million from Recreation Department assisting the state for the rent relief program. • The second largest revenue source was card club revenue, a general revenue, at $6.7 million, which decreased $4.5 million, or 40% from the preceding fiscal year. This is due to the interruption of the casino's operation during the on-going pandemic. • The third largest revenue source was capital grants and contributions, a program revenue, at$3.9 million, which increased $1.7 million, or 81 % from the preceding fiscal year. Capital Grants and contributions were for public works capital projects. • The fourth largest revenue source was sales taxes, a general revenue, at $3.9 million, which increased $1 million, or 35% from the preceding fiscal year. This amount represents General Fund share which is the 1% Bradley—Burns Uniform Local sales and use tax. In addition, the City received its' first quarter sales tax from Measure A add-on (0.75%) which was $699k.

Expense highlights:

Governmental activity expenses decreased by $11.5 million as compared to the prior year. The majority of the decreases were from general government and public safety of $2.8 million and $8.1 million respectively.

Business Type Activities
The City's business-type activities' net position decreased by $710k. The key elements of the net results include:
• Revenues decreased by $9k primarily due to a decrease in water sales and service charges.
• Expenses decreased by $668K. Water utility expenses decreased by $643K, and golf course expenses decreased by $25k.
• Transfers out from the water enterprise to general fund to pay the water bond was $146 K.

FUND FINANCIAL STATEMENT ANALYSIS
The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Exhibit 1 VO

Governmental Funds
The focus of the City's governmental funds is to provide information on short-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements.

As of fiscal year ended June 30, 2021, the City's governmental funds reported combined ending fund balance of $28.2 million of which a negative of $339,835 is Unassigned from Capital Grants Fund due to timing of receipts, which did not meet the revenue recognition criteria for governmental funds. The remainder of the total governmental fund balance is allocated as follows: 1) $4.4 million is for non-spendable items, such as prepaid expenses, interfund loans to Water Fund and advances to other funds; 2) $5.9 million is restricted by law or contractual agreements with other agencies for specific spending; and 3) $18.2 million is for contingencies, post-employment benefits, compensated absences and interfund loans receivable.

Proprietary Funds
The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Factors concerning these funds have already been addressed in the discussion of Government-Wide Financial Analysis of business-type activities.

GENERAL FUND AND THE OTHER MAJOR FUNDS BUDGETARY HIGHLIGHTS The original adopted General Fund expenditure budget for this fiscal year was $30,819,863.

However, this amount includes a built-in vacancy savings of$585,000. During the year, there were additional appropriations and carryovers bringing the ending General Fund expenditure budget to $34,189,899. The amount above included $200,000 budgeted in General Fund for contingencies.

Low- and Moderate-Income Housing, a Special Revenue Fund was budgeted accordingly to the 20% set-aside loan payment to the City from the Successor Agency. In fiscal year 2020-21, the total budgeted amount was $248K as compared to fiscal year 2019-20 of$121 k.

Capital Improvement Projects, a Capital Projects Fund is used to account for capital projects and property acquisitions funded with Federal, State, and other agency grants and restricted funds. For fiscal year 2020-21 newly appropriated capital projects work plan programmed was $2.6 million and the remainder of$8.4 million was carried over from fiscal year 2019-20. At the end of fiscal year 2020-21, the budget total increased to $18 million due to additional added appropriations for new projects.

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City of Bell Gardens has $108.2 million invested in capital assets, as compared to $106.4 million in the prior year. In fiscal 2021, capital assets increased by approximately $1.8 million primarily due to an increase in construction in progress. Business-type activities decreased by $168k from annual depreciation expenditures. Additional information about the City's capital assets can be found in Note 5 of this report.

Exhibit 1 161

Capital Assets at Year-End
(Net of Depreciation)
For the Year Ended June 30
Governmental Activities Business-Type Activities Totals 2020 2021 2020 2021 2020 2021
Land $ 67,249,714 $ 67,249,714 $ 1,011,000 $ 1,011,000 $ 68,260,714 $ 68,260,714 Buildings 8,793,115 8,486,559 - - 8,793,115 8,486,559 Equipment 1,958,328 1,555,677 4,245,018 4,095,975 6,203,346 5,651,652 Construction in Progress 2,021,588 5,767,029 - - 2,021,588 5,767,029 Infrastructure 19,825,896 18,761,423 - - 19,825,896 18,761,423 Intangibles - - 1,339,800 1,320,660 1,339,800 1,320,660 Total $ 99,848,641 $ 101,820,402 $ 6,595,818 $ 6,427,635 $ 106,444,459 $ 108,248,037 Long-term Debt
At year-end, the City had $135 million in long-term debts including bonds, notes, pension obligations, capital lease payable, other post-employment benefit obligations, and accrued leaves. Long-term debt increased by $9 million as compared to the prior year amount of $7.7 million. The most significant increase is city entered into a master equipment lease purchase for improvements on 4/30/21 of $2.2 million and from pension obligations which increased by $6.8 million. The City did not issue or refund long-term debt during the year. The other decreases were due to scheduled principal payments totaling $203K. Additional information about the City's long-term debt can be found in Note 6, 7 and 8 on this report.

Outstanding Long-Term Debt
For Fiscal Year Ended June 30
Governmental Activities Business-Type Activities Totals 2020 2021 2020 2021 2020 2021
Accrued Leave Payable $ 3,222,332 $ 3,610,130 $ $ $ 3,222,332 $ 3,610,130 Other post employment obligations 74,652,340 79,076,782 74,652,340 79,076,782 Net Pension Liability 40,950,046 43,399,539 40,950,046 43,399,539 CJPIA Retrospective Deposit Liability (37,472) (9,212) (37,472) (9,212) Southern California Edison On Bill 4,102 500 4,102 500 Financing
2015 Lease Revenue Refunding 5,020,000 4,835,000 5,020,000 4,835,000 Bonds
Capital Lease payable - 2,239,435 - 2,239,435 2004 Water Refunding Revenue - - 1,730,000 1,415,000 1,730,000 1,415,000 Bonds
Unamortized bond premium 509,537 485,410 1,763 1,376 511,300 486,786 Total $ 124,320,885 $ 133,637,584 $ 1,731,763 $ 1,416,376 $ 126,052,648 $ 135,053,960 Exhibit 1 J42

ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
The City of Bell Gardens' finances are dependent on the local and national economies. The COVID-19 pandemic has caused business disruption through mandated and voluntary closings of businesses which has drastically reduced revenues from the Bike casino revenue, but other revenues such as sales tax and many other sources which the City depends to fund important government services were overall not affected. During the fiscal year 2020-21 budget, the General Fund had a projected deficit of $2,700,000 after considering other various revenues and reduction in expenditures. The City defunded five (5) positions, by funding 75% Code Enforcement positions with CDBG funds, lowering recreation and community services programming plus an additional city-wide expenditure cut.

The fiscal year 2021-22 budget offers a sense of hope and a return to the City's normal operations after the past year of turmoil and financial uncertainty caused by the pandemic. The General Fund projected a surplus of $7.3 million in fiscal year 2021-22 largely due casino revenue expecting to operate at full capacity, American Rescue Plan allocation, Measure A add- on sales tax, sales & use tax, state rent relief program, and other revenue sources. The budget for fiscal year 2021-22 also reduces the hiring freeze and adds staff to improve service levels and restores recreation programs. Aside from the reopening of programs, the city also added the Community Services Center which provides various services to the Bell Gardens' community. Furthermore, the City continues to invest in technology as it seeks new and innovative ways to provide services to its customers.

A separate but important revenue source is the federal COVID-19, American Rescue Plan Act.

During fiscal year 2020-21, the City received its first tranche of the State and Local Fiscal Recovery Funds (SLFRF) of $5 million. This funding is used to mitigate the fiscal effects stemming from the public health emergency caused by the novel coronavirus also known as COVID-19.

From an operating expenditures perspective, rising pension costs are due to CalPERS utilizing various assumptions to estimate the net pension liability and the required contributions in order to meet future pension obligations. One of those assumptions is the discount rate, which may significantly impact the City's total net pensions liability. The City has consistently taken steps to mitigate the impacts of increases in pension costs by pre-paying the annual UAL. In addition, increasing health insurance costs will place a continued drag on City finances. The total OPEB liability also has a long-term fiscal impact on the City's total net position. As of fiscal year 2020- 21, total liability for retiree healthcare is over $79 million.

The City's fiscal year 2021-22 operating budget reflect its commitment to foster steady, controlled growth and provide the highest level of service to the community. Questions or requests for information regarding the City of Bell Gardens' 2021-22 budget should be sent to the Finance Department at the address below.

CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City of Bell Gardens' finances and to show the City's accountability for money received. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City's Finance Department, at the City of Bell Gardens, 7100 Garfield Avenue, Bell Gardens, CA 90201.

Exhibit 1 113

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12 Exhibit 1 144

CITY OF BELL GARDENS
Statement of Net Position
June 30,2021
Primary Government
Governmental Business-Type
ASSETS Activities Activities Total
Current assets:

Cash and investments(note 2) $ 22,224,860 20,338 22,245,198 Receivable:

Accounts 1,528,900 202,829 1,731,729
Notes and loans(note 3) 8,972,432 - 8,972,432 Accrued interest 5,762 5,762
Internal balances(note 4) 4,108,086 (4,108,086) - Advances to Successor Agency 38,780,900 38,780,900 Prepaid items 196,633 196,633
Due from other governments 9,007,708 9,007,708 Total current assets 84,825,281 (3,884,919) 80,940,362 Noncurrent assets:

Cash and investments with fiscal agent(note 2) 2,654,466 399,339 3,053,805 Capital assets(note 5):

Non-depreciable 73,016,743 1,011,000 74,027,743 Depreciable,net 28,803,659 5,416,635 34,220,294 Total capital assets 101,820,402 6,427,635 108,248,037 Total noncurrent assets 104,474,868 6,826,974 111,301,842 Total assets 189,300,149 2,942,055 192,242,204

DEFERRED OUTFLOWS OF RESOURCES
Pensions(note 7) 9,116,128 103,546 9,219,674 OPEB(note 8) 4,172,688 76,838 4,249,526 Total deferred outflows of resources 13,288,816 180,384 13,469,200

LIABILITIES
Current liabilities:

Accounts payable 2,003,979 135,782 2,139,761 Accrued liabilities 613,147 5,098 618,245 Interest payable 18,618 16,902 35,520
Unearned revenue 7,192,292 - 7,192,292 Deposits payable 336,796 - 336,796 Bonds,notes,and claims payable-due within one year(note 6) 334,925 330,387 665,312 Compensated absences-due within one year(note 6) 1,805,065 - 1,805,065 Total current liabilities 12,304,822 488,169 12,792,991 Noncurrent liabilities:

Bonds,notes,and claims payable-due in more than one year(note 6) 7,216,208 1,085,989 8,302,197 Net pension liability(note 7) 42,231,348 481,673 42,713,021 Net OPEB liability(note 8) 76,586,786 1,014,566 77,601,352 Compensated absences-due in more than one year(note 6) 1,805,065 - 1,805,065 Total noncurrent liabilities 127,839,407 2,582,228 130,421,635 Total liabilities 140,144,229 3,070,397 143,214,626

DEFERRED INFLOWS OF RESOURCES
Pensions(note 7) 1,105,450 17,142 1,122,592 OPEB(note 8) 23,702 22,699 46,401
Total deferred inflows of resources 1,129,152 39,841 1,168,993

NET POSITION
Net investment in capital assets 94,260,557 5,011,259 99,271,816 Restricted for:

Community development projects 10,319,260 - 10,319,260 Public safety 1,040,278 1,040,278
Parks and recreation 231,990 231,990
Capital projects 3,687,187 - 3,687,187 Debt service - 399,339 399,339
Total restricted 15,278,715 399,339 15,678,054 Unrestricted (48,223,688) (5,398,397) (53,622,085) Total net position $ 61,315,584 12,201 61,327,785 See accompanying notes to the basic financial statements.

Exhibit 1 145

CITY OF BELL GARDENS
Statement of Activities
For the Year Ended June 30, 2021
Program Revenues
Operating Capital Total
Charges for Grants and Grants and Program
Functions/Programs Expenses Services Contributions Contributions Revenue Primary Government:

Governmental activities:

General government $ 9,494,894 162,745 5,855,759 - 6,018,504 Public safety 16,262,137 650,065 767,008 - 1,417,073 Community development 1,433,333 267,283 187,849 - 455,132 Parks and recreation 2,720,633 14,879 - - 14,879 Public works 12,654,001 446,415 6,291,843 3,857,745 10,596,003 Interest on fiscal charges 224,813 - - - - Total governmental activities 42,789,811 1,541,387 13,102,459 3,857,745 18,501,591 Business-type activities:

Water 1,641,054 1,061,040 - - 1,061,040 Golf Course 204,753 219,842 - - 219,842 Total business-type activities 1,845,807 1,280,882 - - 1,280,882 Total primary government $44,635,618 2,822,269 13,102,459 3,857,745 19,782,473 General revenues:

Taxes:

Card club gross receipt tax
Property taxes,levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Business license taxes
Other taxes
Total taxes
Motor vehicle in lieu-unrestricted
Use of money and property
Other
Transfers
Total general revenues and transfers
Change in net position
Net position-beginning of year
Net position-end of year
See accompanying notes to the basic financial statements. 14 Exhibit 1 146

Net(Expense)Revenue and Changes in Net Position
Primary Government
Governmental Business-Type
Activities Activities Total
(3,476,390) - (3,476,390)
(14,845,064) - (14,845,064)
(978,201) - (978,201)
(2,705,754) - (2,705,754)
(2,057,998) - (2,057,998)
(224,813) - (224,813)
(24,288,220) - (24,288,220)
- (580,014) (580,014)
- 15,089 15,089
- (564,925) (564,925)
(24,288,220) (564,925) (24,853,145)
6,728,349 - 6,728,349
1,554,677 - 1,554,677
410,282 - 410,282
3,923,189 - 3,923,189
4,202,690 - 4,202,690
233,315 - 233,315
5,789 - 5,789
17,058,291 - 17,058,291
5,243,723 - 5,243,723
4,13 9,105 24 4,13 9,129
134,181 - 134,181
145,534 (145,534) -
26,720,834 (145,510) 26,575,324
2,432,614 (710,435) 1,722,179
58,882,970 722,636 59,605,606
$ 61,315,584 12,201 61,327,785
15 Exhibit 1 147

CITY OF BELL GARDENS
Balance Sheet
Governmental Funds
June 30, 2021
Special Capital
Revenue Projects
Fund Fund
Low and Capital Nonmajor Total
General Moderate Improvement Governmental Governmental Fund Housing Projects Funds Funds
ASSETS
Cash and investments (note 2) $ 9,927,525 1,067,204 5,844,674 5,385,457 22,224,860 Receivables:

Accounts 1,504,049 218 - 24,633 1,528,900 Notes and loans (note 3) 105,324 6,727,883 - 2,139,225 8,972,432 Interest 4,517 - - 1,245 5,762
Prepaid items 196,633 - - - 196,633 Due from other governments 7,033,673 - 1,463,292 510,743 9,007,708 Due from other funds (note 4) 4,275,787 - - - 4,275,787 Advances to Successor Agency 38,015,952 764,948 - - 38,780,900 Restricted assets:

Cash and investments with
fiscal agents (note 2) 2,224,631 - 429,835 - 2,654,466 Total assets $ 63,288,091 8,560,253 7,737,801 8,061,303 87,647,448

LIABILITIES
Accounts payable $ 849,647 - 603,085 551,247 2,003,979 Accrued liabilities 613,147 - - - 613,147 Deposits payable 279,649 - - 57,147 336,796 Unearned revenue - - 7,192,292 - 7,192,292 Due to other funds (note 4) - - - 167,701 167,701 Total liabilities 1,742,443 - 7,795,377 776,095 10,313,915

DEFERRED IN FLOWS OF RESOURCES
Unavailable revenue 39,067,577 7,492,831 278,255 2,295,036 49,133,699 Total deferred in flows
of resources 39,067,577 7,492,831 278,255 2,295,036 49,133,699 FUND BALANCES(note 12)
Nonspendable 4,410,043 - - - 4,410,043 Restricted - 1,067,422 - 4,847,850 5,915,272 Assigned 18,068,028 - - 146,326 18,214,354 Unassigned - - (335,831) (4,004) (339,835) Total fund balances (deficits) 22,478,071 1,067,422 (335,831) 4,990,172 28,199,834 Total liabilities, deferred
inflows and fund balances $ 63,288,091 8,560,253 7,737,801 8,061,303 87,647,448 See accompanying notes to the basic financial statements.

Exhibit 1 168

CITY OF BELL GARDENS
Reconciliation of the Governmental Funds Balance Sheet
to the Government-wide Statement of Net Position
June 30,2021
Fund balances of governmental funds $ 28,199,834 Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities were not current financial resources. Therefore,they were not reported in the governmental funds balance sheet. Capital assets were adjusted as follows:

Capital assets 150,530,440
Accumulated depreciation (48,710,038)
Certain revenues were not available to pay for current-period expenditures and,therefore,were deferred in funds. 49,133,699
Long-term debt and compensated absences have not been included in the governmental fund activity:

Lease Revenue Refunding Bonds (4,835,000)
Unamortized bond premiums/discounts (485,410) Southern California Edison On Bill Financing Agreement (500) Capital Lease Payable (2,239,435)
CJPIA General Liability Retrospective Asset(deposit) 9,212 Compensated absences (3,610,130)
Proportionate share of net pension liability has not been included in governmental fund activity. (42,231,348) Deferred outflows related to contributions made after the actuarial measurement date for the net pension liability. 4,479,893
Deferred outflows and inflows related to unrecognized actuarial gains and losses for the net pension liability. 3,530,785
Net OPEB liability has not been included in governmental fund activity. (76,586,786) Deferred outflows and inflows related to unrecognized actuarial gains and losses for the net OPEB liability. 4,148,986
Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds. (18,618)
Net position of governmental activities $ 61,315,584 See accompanying notes to the basic financial statements.

Exhibit 1 149

CITY OF BELL GARDENS
Statement of Revenues,Expenditures and Changes in Fund Balances Governmental Funds
For the Year Ended June 30,2021
Special Capital
Revenue Projects
Fund Fund
Low and Capital Nonmajor Total
General Moderate Improvement Governmental Governmental Fund Housing Projects Funds Funds
Revenues:

Taxes and assessments $ 13,422,846 - - 4,919,937 18,342,783 Licenses and permits 461,485 - - - 461,485 Intergovernmental 12,292,191 - 3,108,818 4,163,987 19,564,996 Charges for services 116,094 - - 97,968 214,062 Use of money and property 4,563,898 89,711 23 16,332 4,669,964 Fines and forfeitures 500,420 - - - 500,420 Contributions 250,000 - - - 250,000 Other revenue 1,477,231 - - 19,378 1,496,609 Total revenues 33,084,165 89,711 3,108,841 9,217,602 45,500,319 Expenditures:

Current:

General government 5,753,427 - - 1,016,204 6,769,631 Public works 3,943,078 - - 5,975,283 9,918,361 Public safety 14,594,110 - - 332,980 14,927,090 Community development 1,120,694 - - 312,639 1,433,333 Parks and recreation 2,595,714 - - 124,919 2,720,633 Capital outlay 793,148 - 3,554,734 1,651,556 5,999,438 Debt service:

Interest and fiscal charges 249,556 - - - 249,556 Principal retirement 188,602 - - - 188,602 Total expenditures 29,238,329 - 3,554,734 9,413,581 42,206,644 Excess(deficiency)of revenues
over(under)expenditures 3,845,836 89,711 (445,893) (195,979) 3,293,675 Other financing sources(uses):

Transfers in(note 4) 145,534 204,860 - 1,072,750 1,423,144 Transfers out(note 4) (1,153,424) - - (124,186) (1,277,610) Proceeds from capital lease 2,239,435 - - - 2,239,435 Total other financing sources(uses) 1,231,545 204,860 - 948,564 2,384,969 Net change in fund balances 5,077,381 294,571 (445,893) 752,585 5,678,644 Fund balances,beginning of year 17,400,690 772,851 110,062 4,237,587 22,521,190 Fund balances(deficit),end of year $22,478,071 1,067,422 (335,831) 4,990,172 28,199,834 See accompanying notes to the basic financial statements.

Exhibit 1 ISO

CITY OF BELL GARDENS
Reconciliation of the Governmental Funds Statement of Revenues,Expenditures,and Changes in Fund Balance to the Governmental-wide Statement of Activities For the Year Ended June 30,2021
Changes in fund balances of governmental funds $ 5,678,644 Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlay as expenditures. However,in the government-wide statement of activities,the cost of those assets are allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation expense exceeded capital outlays in the current year,net of disposals and internal service fund activity.

Capital outlay 4,328,271
Depreciation expense (2,356,510)
Repayment of bond principal is an expenditure in the governmental funds,but the repayment reduces long-term liabilities in the statement of net position. The issuance of new debt is revenue in the governmental funds,but increases long-term liabilities in the statement of net position.

Repayment of long-term debt:

Lease Revenue Refunding Bonds 185,000
Southern California Edison On Bill Financing Agreement 3,602 CJPIA General Liability Retrospective Payable (28,260) Amortization bond premiums/discounts 24,127 Issuance of long-term debt:

Capital Lease Payable (2,239,435)
Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period 616 Revenues in the government-wide statement of activities that did not provide current financial resources were not reported as revenues in the governmental funds. (423,428) Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and,therefore,are not reported as expenditures in governmental funds (387,798) Pension obligation expenses reported in the statement of activities do not require the use of current financial resources and,therefore,are not reported as expenditures in the governmental funds. 2,251,365 To record as an expense the net change in other post employment benefits liability in the statement of activities. (4,603,580)
Change in net position of governmental activities $ 2,432,614 See accompanying notes to financial statements.

Exhibit 1 1§1

CITY OF BELL GARDENS
Statement of Fund Net Position
Proprietary Funds
June 30,2021
Business-Type Activities -Enterprise Funds
Golf
Water Course Totals
ASSETS
Current assets:

Cash and investments(note 2) $ - 20,338 20,338 Receivables:

Accounts 202,827 2 202,829
Restricted:

Cash and investments with fiscal agents(note 2) 399,339 - 399,339 Total current assets 602,166 20,340 622,506 Noncurrent assets:

Capital assets,net of accumulated depreciation(note 5): 6,427,635 - 6,427,635 Total noncurrent assets 6,427,635 - 6,427,635 Total assets 7,029,801 20,340 7,050,141

DEFERRED OUTFLOWS OF RESOURCES
Pensions(note 7) 103,546 - 103,546
OPEB(note 8) 76,838 - 76,838
Total deferred outflows of resources 180,384 - 180,384

LIABILITIES
Current liabilities:

Accounts payable 135,782 - 135,782
Accrued liabilities - 5,098 5,098
Interest payable 16,902 - 16,902
Due to other funds (note 4) 4,108,086 - 4,108,086 Long-term debt-due within one year(note 6) 330,387 - 330,387 Total current liabilities 4,591,157 5,098 4,596,255 Noncurrent liabilities:

Long-term debt-due in more than one year(note 6) 1,085,989 - 1,085,989 Net pension liability (note 7) 481,673 - 481,673 Net OPEB liability (note 8) 1,014,566 - 1,014,566 Total noncurrent liabilities 2,582,228 - 2,582,228 Total liabilities 7,173,385 5,098 7,178,483

DEFERRED INFLOWS OF RESOURCES
Pensions(note 7) 17,142 - 17,142
OPEB(note 8) 22,699 - 22,699
Total deferred inflows of resources 39,841 - 39,841

NET POSITION
Net investment in capital assets 5,011,259 - 5,011,259 Restricted for:

Debt service 399,339 - 399,339
Unrestricted (5,413,639) 15,242 (5,398,397) Total net position $ (3,041) 15,242 12,201 See accompanying notes to the basic financial statements.

Exhibit 1 1�2

CITY OF BELL GARDENS
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2021
Business-Type Activities -Enterprise Funds
Golf
Water Course Totals
Operating revenues:

Sales and service charges $ 1,047,521 219,842 1,267,363 Other revenues 13,519 - 13,519
Total operating revenues 1,061,040 219,842 1,280,882 Operating expenses:

Administration and general 540,089 49,595 589,684 Cost of sales and services 857,161 155,158 1,012,319 Depreciation (note 5) 168,183 - 168,183 Total operating expenses 1,565,433 204,753 1,770,186 Operating income (loss) (504,393) 15,089 (489,304) Non-operating revenues (expenses):

Investment income 21 3 24
Interest expense and fees (75,621) - (75,621) Total non-operating revenues (expenses) (75,600) 3 (75,597) Income (loss)before transfers (579,993) 15,092 (564,901) Transfers out(note 4) (145,534) - (145,534) Change in net position (725,527) 15,092 (710,435) Net position at beginning of year 722,486 150 722,636 Net position (deficit), end of year $ (3,041) 15,242 12,201 See accompanying notes to the basic financial statements.

Exhibit 1 ?93

CITY OF BELL GARDENS
Statement of Cash Flows
Proprietary Funds
For the year ended June 30,2021
Business-Type Activities-Enterprise Funds
Golf
Water Course Totals
Cash flows from operating activities:

Cash received from customers and users $ 1,064,312 219,840 1,284,152 Cash paid to suppliers for goods or services (848,654) (181,699) (1,030,353) Cash paid to employees for services (309,101) (50,093) (359,194) Net cash provided(used by)operating activities (93,443) (11,952) (105,395) Cash flows from noncapital financing activities:

Transfers in(out)from/to other funds (145,534) - (145,534) Cash borrowed from other funds 633,486 - 633,486 Net cash provided(used by)noncapital financing activities 487,952 - 487,952 Cash flows from capital and related financing activities:

Principal paid on capital debt (315,000) - (315,000) Interest paid on capital debt (79,670) - (79,670) Net cash provided(used by)capital and related financing activities (394,670) - (394,670) Cash flows from investing activities:

Investment income 21 3 24
Net cash provided(used by)investing activities 21 3 24 Net increase(decrease)in cash and cash equivalents (140) (11,949) (12,089) Cash and equivalents,beginning of year 399,479 32,287 431,766 Cash and equivalents, end of year $ 399,339 20,338 419,677 FINANCIAL STATEMENT PRESENTATION:

Cash and investments $ - 20,338 20,338 Cash and investments with fiscal agent 399,339 - 399,339 Total cash,cash equivalents, and investments $ 399,339 20,338 419,677 Reconciliation of operating income to net cash provided by operating activities:

Operating income (loss) $ (504,393) 15,089 (489,304) Adjustments to reconcile operating income (loss)
to net cash provided(used)by operating activities:

Depreciation 168,183 - 168,183
Changes in operating assets and liabilities:
(Increase)decrease in accounts receivable 3,272 (2) 3,270 Increase(decrease)in accounts payable 8,507 (26,541) (18,034) Increase(decrease)in accrued liabilities - (498) (498) Increase(decrease)in net pension liability and net OPEB liability,net of deferred outflows and inflows 230,988 - 230,988 Total adjustments 410,950 (27,041) 383,909 Net cash provided(used)by operating activities $ (93,443) (11,952) (105,395) See accompanying notes to the basic financial statements.

Exhibit 1 M

CITY OF BELL GARDENS
Statement of Fiduciary Net Position
Private-Purpose Trust Funds
June 30,2021
Private-
Purpose Trust
Fund
Successor
Agency of the
Former
Community
Development
Commission
ASSETS
Cash and investments (notes 2 and 13) $ 3,206,906 Receivables:

Notes and loans (note 13) 8,215,556
Accrued interest 596
Restricted assets:

Cash and investments with fiscal agents (notes 2 and 13) 2,758,710 Capital assets:

Capital assets, not being depreciated (note 13) 1,773,001 Total assets 15,954,769

DEFERRED OUTFLOWS OF RESOURCES
Pensions (note 7) 65,204

LIABILITIES
Current liabilities:

Accounts payable 16,256
Interest payable 311,871
Long-term liabilities:

Due in one year(note 13) 1,810,171
Due in more than one year(note 13) 53,504,013
Net pension liability(note 7) 686,518
Net OPEB liability(note 8) 1,165,830
Total Liabilities 57,494,659

DEFERRED INFLOWS OF RESOURCES
Pensions (note 7) 237,758

NET POSITION
Held in trust for other purposes (41,712,444) Total net position $ (41,712,444)
See accompanying notes to the basic financial statements.

Exhibit 1 255

CITY OF BELL GARDENS
Statement of Changes in Fiduciary Net Position
Private-Purpose Trust Funds
For the year ended June 30, 2021
Private-
Purpose Trust
Fund
Successor
Agency of the
Former
Community
Development
Commission
Additions:

Taxes $ 4,172,111
Investment income 226,190
Other income 49,264
Total additions 4,447,565
Deductions:

Contractual services 76,384
Interest expense 1,122,660
Contributions to other governments 250,000
Total deductions 1,449,044
Change in net position 2,998,521
Net position (deficit), beginning of year (44,710,965) Net position (deficit), end of year $ (41,712,444) See accompanying notes to the basic financial statements.

Exhibit 1 �46

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
Year ended June 30, 2021
(1) Organization and Summary of Significant Accounting Policies a. Description of the Reporting Entity
This report includes all fund types of the City of Bell Gardens (the "primary government"), as well as the Bell Gardens Financing Authority (the Authority). The Authority meets the definition of a "component unit", and is presented on a "blended" basis, as if it were part of the primary government. Although the Authority is a legally separate entity, the governing board of the entity is comprised of the same membership as the City Council. The City may impose its will on the component unit, including the ability to appoint, hire, reassign or dismiss management. There is also a financial benefit/burden relationship between the City and the Authority.

The City of Bell Gardens, California (City) was incorporated on August 1, 1961. The City operates under a Council-Manager form of government and provides the following services: general government, public safety, public works, recreation and community development.

The Bell Gardens Financing Authority (Authority) was created on November 28, 1988, under a Joint Exercise of Powers Agreement by and between the City of Bell Gardens and the former Bell Gardens Community Development Commission (former Commission). The Authority was established pursuant to the laws of the State of California with authority to acquire the former RDA's bonds as provided in Section 6588 of the Government Code of the State of California. The former RDA has determined that "significant public benefits" will be derived by the former RDA in undertaking the issuance of the bonds and their sale to the Authority and resale to the underwriter, in furtherance of the corporate purposes of the former RDA.

Separate financial statements are not prepared for the Authority. b. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of activities of the primary government.

For the most part, the effect of interfund activity has been removed from these statements, and elimination have been made to minimize the double counting of internal activities. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, 25 Exhibit 1 157

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(1) Organization and Summary of Significant Accounting Policies (continued) b. Government-wide and Fund Financial Statements (continued) services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and the major individual enterprise fund are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recoded when earned and expenses are recorded when the liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measureable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal year.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, claims and judgments are not recognized until paid.

The City's fiduciary funds consist of a private purpose trust fund which is reported using the "economic resources" measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Property taxes, charges for services, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measureable and available only when cash is received by the government.

The City reports the following major governmental funds:
26 Exhibit 1 158

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(1) Organization and Summary of Significant Accounting Policies (continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (cont.) • The General Fund is the general operating fund of the City. All general tax revenues and other receipts that are not allocated by law of contractual agreement to some other fund are accounted for in this fund. General operating expenditures not paid through other funds are paid from the General Fund.
• The Low and Moderate Housing Fund was established to account for the assets of the former Community Development Commission's Low and Moderate Housing Fund.

The fund accounts for transactions related to affordable housing activities. Revenues include repayments of loans that will be recorded for use into this fund for affordable housing activities.
• Capital Improvement Projects Fund — These funds account for the financial resources to be used for the acquisition or construction of major capital facilities.

The City reports the following major proprietary fund:
• The Water Enterprise Fund accounts for the financial activity of the City's water utility. The costs of providing these services to the general public are financed or recovered primarily through user charges.

Additionally, the City reports the following fund types:
• Special Revenue Funds — These funds account for proceeds of specific revenue sources that are legally restricted or otherwise assigned for specific purposes. • Capital Projects Funds — These funds account for the financial resources to be used for the acquisition or construction of major capital facilities. • The Private-purpose Trust Fund — The fund is used to account for the assets and liabilities of the former community development commission and the allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former community development commission are paid in full and assets have been liquidated.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments in lieu of taxes and other charges between the government's water function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Amounts reported as program revenues include 1) charges to members, customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments.

Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. 27 Exhibit 1 159

CITY OF BELL GARDENS

Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Water Enterprise Fund are charges to customers for sales and services. Operating expenses for the enterprise fund includes the cost of sales and services, administrative expenses, and depreciation on capital assets.

All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first then use unrestricted resources as needed. d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity Cash and Investments
Investments are reported in the accompanying statement of net position at fair value.

Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments.

The City pools cash and investments of all funds, except for assets held by bond trustees and fiscal agents. Each fund's share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income, earned by the pooled investments, is allocated to the various funds based on each fund's average cash and investment balance.

For purposes of the statement of cash flows, the City considers all highly liquid investments (including restricted assets)with maturity of three months or less when purchased to be cash equivalents. Cash invested in the City's cash management pool is also considered to be cash equivalents.

Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangement outstanding at the end of the fiscal year are referred to as either"due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as"internal balances."
28 Exhibit 1 160

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(1) Organization and Summary of Significant Accounting Policies (continued) d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity Cont.

Advances, as reported in the fund financial statements, are offset by a nonspendable fund balance account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.

All trade and property tax receivables are shown net of an allowance for uncollectibles.

Under California law, property taxes are assessed and collected by the counties at 1% of assessed value plus other increases approved by the voters. Property taxes collected go into a pool and are then allocated to the cities based on a predetermined formula. The City of Bell Gardens accrues only those taxes which are received from the County of Los Angeles within 60 days after year end.

Lien date: January 1
Levy date: June 30
Due dates: November 1,February 1
Delinquent dates: December 11, April 11
Inventories and Prepaid Items
Inventories of material and supplies (if material) are carried at cost on a first-in, first out (FIFO) basis. The City uses the consumption method of accounting for inventories.

Certain payments to vendors reflect costs applicable to future accounting periods and are recoded as prepaid items in both government-wide and fund financial statements.

Restricted Assets
Restricted assets represent unexpended bond proceeds, interest earning thereon and reserve amounts of certificates of participation and tax allocation bonds. Under the related resolutions and indentures, the remaining proceeds are restricted for the use of future construction of improvements to the respective projects, for debt service or for reserve requirements. The majority of these assets are held by trustees and fiscal agents. 29 Exhibit 1 161

CITY OF BELL GARDENS

Capital Assets
Capital assets, which include property, plant, equipment, intangible assets and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated assets are valued at acquisition value of the assets on the date on which they were contributed. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. The City utilizes a capitalization threshold of$5,000410,000 depending on asset type.

Depreciation is charged to operations using the straight-line method over the estimated useful lives of the assets as follows:

Buildings and improvements 20-40 years
Equipment 3-15 years
Infrastructure 20-50 years
Water rights 100 years
Deferred outflows/inflows of resources
In addition to assets, the statement of financial position and governmental fund balance sheet will sometimes report a separate section for deferred ou flows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items that qualifies for reporting in this category. One is the deferred charge on refunding reported in the business-type Statement of Net Position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The second are deferred outflows relating to the net position liability reported in the government-wide and in the business-type Statements of Net Positions. These outflows are the results of contributions made after the measurement period, which are expensed in the following year, and of adjustments due to difference in proportions and the difference between actual contributions made and the proportionate share of the risk pool's total contributions. These amounts are deferred and amortized over the expected average remaining service life time.
30 Exhibit 1 162

CITY OF BELL GARDENS

Deferred outflows/inflows of resources (continued)
In addition to liabilities, the statement of financial position and governmental fund balance sheet will sometimes report a separate section for deferred inflows of resources.

This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has two items, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, one item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: property taxes and grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second are deferred inflows relating to the net pension obligation reported in the government-wide and in the business-type Statements of Net Positions. These inflows are the result of the net difference between projected and actual earnings on pension plan investments. This amount is deferred and amortized straight-line over a five-year period.

Compensated absences
The cost of earned but unused vacation and sick leave, for which the City has a future obligation to pay, is recognized in the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they become due and payable as a result of employee resignations or retirements. Typically, the City liquidates its compensated absences with general fund resources.

Long-Term Obligations
In the Government-wide Financial Statements, long-term debt and other long-term obligations are reported as liabilities in the appropriate activities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.

Bond issuance costs are no longer reported as deferred charges and amortized over the term of the related debt, instead they should be expensed in the period incurred. Bond issuance costs are immediately expensed in the Government-wide Financial Statements in addition to the Proprietary and Fiduciary Fund Statements in accordance with GASB No.

65. In the Fund Financial Statements, with the exception of advances from other funds, long-term liabilities are not presented. Governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Consequently, long term debt is shown as a 31 Exhibit 1 163

CITY OF BELL GARDENS

Long-Term Obligations (continued)
reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the Government-wide Statement of Net Position.

In the Government-wide Financial Statements, interest payable on long-term debt is recognized as the liability is incurred for governmental activities and business-type activities. In the Fund Financial Statements, only propriety fund types recognize the interest payable when the liability is incurred.

Fund Balances and Spending Policy
In the Governmental Fund Financial Statements, fund balances are classified in the following categories:

Nonspendable — Items that cannot be spent because they are not in a spendable form, such as prepaid items and inventories, items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan fund.

Restricted—Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributions, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.

Committed— Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, The City Council is considered the highest authority for the City and approves such commitments through council resolutions and/ or similar documents. These committed amounts cannot be used for any other purposes unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment.

Assigned — Assigned fund balances encompass the portion of net fund resources reflecting the government's intended use of resources that are neither restricted or committed. Assignment of resources can be done by the highest level of decision making (City Council Resolution) or by a committee or official designated for that purpose. The City Council has designated the City Manager for the purpose to assign fund balance for specific departmental projects.
32 Exhibit 1 164

CITY OF BELL GARDENS

Fund Balances and Spending Policy (cont.)
Unassiy_ne — The General Fund is the only fund that may report a positive unassigned fund balance amount. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

In July 2008, through Resolution 2008-17, the City Council adopted a fund balance reserve policy. The policy consists of establishing an economic contingency reserve by placing liquid cash in a financial institution in compliance with the investment policy in the amount of $1,000,000 commencing July 1, 2008 and adding $200,000 to the established reserve fund each fiscal year thereafter. The City Council's goal is to achieve a minimum of 10% of the annual General Fund appropriations as committed fund balance in the General Fund.

When both restricted and unrestricted resources are available for use when an expenditure is incurred, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. It is the City's policy to consider committed amounts as being reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those fund balance classifications could be used.

Net Position Flow Assumption
Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted — net position and unrestricted — net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government's policy to consider restricted — net position to have been depleted before unrestricted—net position is applied.

In the Government-Wide Financial Statements, net position are classified in the following categories: Net Investment in Capital Assets consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position are restricted by external creditors, grantors, contributors, laws or regulations of other governments. Unrestricted Net position is all net position that do not meet the definition of "invested in capital assets, net of related debt" or "restricted net position."
33 Exhibit 1 165

CITY OF BELL GARDENS

Fund Balance Flow Assumption
Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government's policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
e. Use of Estimates
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions.
f. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Bell Garden's California Public Employees' Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
g. New Accounting Pronouncements
The City adopted Statement on Governmental Accounting Standards (GASB Statement) Nos. 84, Fiduciary Activities and 90, Majority Equity Interest, all of which did not have an effect in the financial statements.
34 Exhibit 1 166

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(2) Cash and Investments
As of June 30, 2021, cash and investments, including cash and investments with fiscal agent, were reported in the accompanying financial statements as follows:

Governmental activities $24,879,326
Business-type activities 419,677
Fiduciary funds 5,965,616
Total cash and investments $31,264,619
The City of Bell Gardens maintains a cash and investment pool that is available for use for all funds. Each fund type's position in the pool is reported on the combined balance sheet as cash and investments. The City has adopted an investment policy, which authorizes it to invest in various investments.

As of June 30, 2021, the carrying amount of the City's deposits was $4,402,715 and the bank balance was $18,299,840. The $1,026,773 difference represents outstanding checks and other reconciling items.

The California Government Code requires California banks and savings and loan associations to secure a City's deposits by pledging government securities with a value of 110% of a City's deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City's total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an "Agent of Depository" has the effect of perfecting the security interest in the name of the local governmental agency.

Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency. 35 Exhibit 1 167

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(2) Cash and Investments (continued)
Investments Authorized by the City's Investment Policy
Under provision of the City's investment policy, and in accordance with Section 53600 of the California Government Code, the following investments are authorized:

Maximum Maximum
Maximum Percentage Investment
Investment Types MatupAy Of Portfolio in One Issuer U.S. Treasury Bills,Bonds and Notes 5 years None None U.S. Government Agency Securities 5 years None None Bills of Exchange 180 days 40% 15%
Commercial Paper 270 days 40% 15%
Negotiable Certificates of Deposit 5 years 30% 15% Repurchase Agreements 92 days None 15%
Reverse Repurchase Agreements 92 days None 15% Local Agency Investment Fund(LAIF) N/A None None Medium Term Corporate Notes 5 years 30% 15% Investments Authorized by Debt Agreements
The above investments do not address investment of debt proceeds held by a bond trustee/fiscal agent. Investments of debt proceeds held by a bond trustee are governed by provision of the debt agreements, rather than the general provision of the California Government Code or the City's investment policy.

Investments in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy or debt agreements, and the actual rating, by Standard and Poor and Moody's as of year-end for each investment type:
36 Exhibit 1 168

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(2) Cash and Investments (continued)
Minimum Ratings as of Year End
Legal Not
Investment Type Rating AAA AA A Rated Local Agency
Investment Fund $ 8,176,193 N/A - - - 8,176,193 Held by Fiscal Agent:

Money Market Funds 3,587,884 N/A - - - 3,587,884 Total $11,764,077 - - - 11.764.077 Concentration of Credit Risk
The City's investment policy does not impose restrictions on the maximum percentage it can invest in a single type of investment. As of June 30, 2021, in accordance with GASB Statement No. 40 requirements, the City is exposed to concentration of credit risk whenever they have invested more than 5% of their total investments in any one issuer.

As of June 30, 2021, the City was not exposed to concentration of credit risk.

Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party.

The custodial credit risk for investments is the risk that, in the event of the failure of a counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party.

Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF). As of June 30, 2021, none of the City's deposits or investments were exposed to custodial credit risk.

Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. 37 Exhibit 1 169

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(2) Cash and Investments (continued)
The City's investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City's investment policy states that, with the exception of the investment of bond proceeds and LAIF, investments may not exceed five years in maturity. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk.

Remaining Investment Maturities
Less than 1 to 3 4 to 5
Investment Type 1 Year Years Years Total
Local Agency Investment Fund $ 8,176,193 - - 8,176,193 Held by Fiscal Agent:

Money market Mutual Funds 3,587,884 - - 3,587,884 Total 11.764.077 - - 11,764,077 Fair Value Classifications
Fair value measurements are categorized based on the valuation inputs used to measure fair value: Level 1 inputs are quoted prices in active markets for identical asset assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Investments categorized as Level 2 are valued using market approach using quoted market prices.

Investments' fair value measurements are as follows as of June 30, 2021:

Fair
Investment Type Value Level 1 Level 2 Level 3 Local Agency Investment Fund $ 8,176,193
Held by Fiscal Agent:

Money Market Mutual Fund 3,587,884
Total $11,764,077
Investments in the LAW investment pool and money market mutual funds are uncategorized as deposit and withdrawals are made on the basis of$1 and not fair value. 38 Exhibit 1 170

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(3) Notes and Loans Receivable
Notes and loans receivable at June 30, 2021, consist of the following:
a. During 1992-93, the Bell Gardens former RDA entered into a loan agreement with Nehemiah West Housing Corporation for the development of low to moderate-income housing. The loan amount is $1,000,000 originally due October 13, 1994, and bearing interest at the rate of 12% per annum compounded after its due date. The balance as of June 30, 2021 is $399,329. The City's Low and Moderate Housing Fund has recorded unavailable revenue as of June 30, 2021 for the remainder of the outstanding loan. b. As of June 30, 2021, the City had deferred loans receivable pertaining to housing rehabilitation loans and micro business loans given under the Community Development Block Grant Program in the amount of $361,618 which has also been recorded as unavailable revenue.
c. The City and Southern California Water Company executed an agreement effective July 1, 1990, providing for reimbursement to the City of certain costs incurred by the City for water system improvements. The total reimbursement has been estimated at approximately $466,563 and is to be repaid in annual installments. As of June 30, 2021, the balance of the receivable was $70,083 which has also been recorded as unavailable revenue.
d. During 1997-98, the City instituted a deferred loan program for academic scholarships.

As of June 30, 2021, the balance of the loans outstanding is $362,884 which has also been recorded as unavailable revenue.
e. As of June 30, 2021, the City has $35,241 in settlements receivable. The City is scheduled to receive $3,600 annually toward the receivable. f. The Bell Gardens former Commission is required by State Law to set aside funds to create and preserve housing that is affordable to low and moderate income families and individuals. The City has decided to utilize these funds for a second mortgage and/or closing costs, as needed for low-to-moderate income first time homebuyers. The City has established a not-to-exceed cap of $33,000 per case on an as needed basis. The Bell Gardens First Time Home Buyer Program is a deferred equity share loan secured by a second deed of trust and note with an annual rate of 3%. The loan shall become due and payable only when the property is sold, leased or transferred. Repayment terms of principal, shared equity and interest at 3% per annum simple interest vary depending on the year sold or transferred. After the twentieth year, the loan is forgiven. The former Commission's share of equity in the property shall not exceed the proportional investment as a percentage of the original purchase price. The balance of the First Time Home Buyer Program as of June 30, 2021 is $833,940 which has also been recorded as unavailable revenue. As a result of dissolution of the Community Development Commission, the loan receivable was transferred to the City's Low and Moderate Housing Fund.
39 Exhibit 1 171

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(3) Notes and Loans Receivable (continued)
g. On March 22, 2011, Terra Bella, LLP, a California limited partnership (the Borrower) and the Bell Gardens former RDA entered into an owner participation agreement to develop a senior affordable housing project consisting of 65 units. Pursuant to the agreement, the former Commission has provided financial assistance in the amount of $2,600,000 for the partial acquisition, construction, operation and maintenance of the units plus $32,000 on preconstruction loans. The promissory note shall bear simple interest at a rate of 3% per annum which is recorded as unavailable revenue. Payments shall be made annually in arrears on May 1. The entire unpaid principal balance, together with all accrued and unpaid interest, shall be due on the date which is 57 years from the date a certificate of occupancy is issued for the last residential unit in the project. The balance as of June 30, 2021, including accrued interest of$773,369, is $3,405,369. The loan receivable is recorded in the City's Low and Moderate Housing Fund. h. On May 3, 2000, Las Cases de Bell Gardens, a California limited partnership (the Borrower) and the City of Bell Gardens entered into an owner participation agreement to develop a affordable housing project consisting of 10 units. Pursuant to the agreement, the City has provided financial assistance in the amount of $85,000 for the partial acquisition, construction, operation and maintenance of the units. The promissory note shall bear simple interest at a rate of 3% per annum which is recorded as unavailable revenue. Payments shall be made annually in arrears on May 1. The entire unpaid principal balance, together with all accrued and unpaid interest, shall be due on the date which is 654 years from the date a certificate of occupancy is issued for the last residential unit in the project. The balance as of June 30, 2021, including accrued interest of$47,986, is $132,986. The loan receivable is recorded in the City's Low and Moderate Housing Fund.
i. On April 1, 2005, Bell Gardens Housing Partners, L.P., a California limited partnership entered in a promissory note to pay the Bell Gardens former RDA $3,812,202 for the payment of public and private debts. The Low and Moderate Housing has provided certain financial assistance in construction of a 72-unit senior affordable housing project by providing a Commission Loan (which is represented by this Promissory Note) in the amount of $3,812,202 for the acquisition and clearing of the site and to help defray Developer's costs. The promissory note amount shall bear simple interest at the rate of 3% per annum, and 10% per annum and shall accrue upon the amount of each payment required upon the date each such payment is due. The Promissory Note shall be paid from "Residual Receipts", defined as an amount equal to sixty-five percent (65%) of the net profits produced from the project(on a prorated basis), until the note amount has been repaid in full. Any remaining principal, interest and other amounts due and owing under this promissory note shall be paid in full on or before the fifty-fifth (55') anniversary of the date of promissory note.
40 Exhibit 1 172

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(3) Notes and Loans Receivable (continued)
The balance of the promissory note and the related interest has also been recorded as unavailable revenue. The outstanding balance at June 30, 2021, is as follows:

Principal Interest
Amount Amount Total
CDBG Special Revenue $ 964,100 450,623 1,414,723 Former Community Development
Commission 1,514,959 708,097 2,223,056 Low and Moderate Housing 1,333,143 623,116 1,956,259 Subtotal 3,812,202 1,781,836 5,594,038 Less amount reported in
the Successor Agency 1,514,959 7 88,097 2, 223,056 Total 2297243 1.073,739 3, 770,982
Total notes and loans receivable as of June 30, 2021 is $8,972,432. (4) Inter-fund Receivables, Payables and Transfers a. Due To/From Other Funds:

The following summarizes the total due to and from other funds as of June 30, 2021:

Due To Other Funds:

Nonmajor Enterprise
Governmental Water
Funds Fund Total
Due From Other Funds:

General Fund 167 701 4108,086 4.275.787 Inter-fund receivables and payables as of June 30, 2021 are the result of the elimination of deficit cash balances in individual funds.
b. Transfers To/From Other Funds:

The following summarizes the total transfers in and transfers out to other funds as of June 30, 2021:

Transfers In:

Low-Mod Nonmajor
General Housing Governmental
Transfers Out: Fund Fund Funds Total
General Fund $ - 204,860 948,564 1,153,424 Nonmajor
Governmental Funds - - 124,186 124,186 Water Enterprise Fund 145,534 - - 145,534 Total 145 534 204 860 1,072,750
1 423 144
41 Exhibit 1 173

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(4) Inter-fund Receivables, Payables and Transfers (continued) The General Fund transferred funds to Nonmaj or Governmental Funds to fund capital projects and to pay for operating costs.

The transfer to the General Fund from Non-Major Governmental Funds was to fund administrative costs. The Water Fund transferred funds to the General Fund for reimbursement of prior years subsidies from the General Fund. (5) Capital Assets
A summary of the changes in capital asset activity for the year ended June 30, 2021, is as follows:

Governmental Activities:

Beginning Ending
Description Balance Additions Deletions Balance Non-depreciable:

Land $ 67,249,714 - - 67,249,714
Construction in process 2,021,588 3,985,877 (240,436) 5,767,029 Total non-depreciable 69,271,302 3,985,877 (240,436) 73,016,743 Depreciable:

Buildings and structures 17,818,216 266,324 - 18,084,540 Equipment 11,109,391 316,506 - 11,425,897 Infrastructure 48,003,260 - - 48,003,260 Total depreciable
capital assets 76,930,867 582,830 - 77,513,697 Less accumulated depreciation for:

Buildings and structures 9,025,101 572,880 - 9,597,981 Equipment 9,151,063 719,157 - 9,870,220 Infrastructure 28,177,364 1,064,473 - 29,241,837 Total accumulated
depreciation 46,353,528 2,356,510 - 48,710,038 Total depreciable
capital assets, net 30,577,339 (1,773,680) - 28,803,659 Total capital assets, net 99.848.641 2.212,197 (240,436) 101,820,102 Depreciation expense was charged in the following functions in the Statement of Activities:

Governmental Activities:

General Government $1,292,037
Public Works 1,064,473
Total $2,356,510
42 Exhibit 1 174

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(5) Capital Assets (continued)
Business-type Activities:

Beginning Ending
Description Balance Additions Deletions Balance Non-depreciable:

Land $1,011,000 - - 1,011,000
Total non-depreciable 1,011,000 - - 1,011,000 Depreciable:

Water rights 1,914,000 - - 1,914,000 Equipment 6,973,549 - - 6,973,549
Total depreciable
capital assets 8,887,549 - - 8,887,549
Less accumulated depreciation for:

Water rights 574,200 19,140 - 593,340
Equipment 2,728,531 149,043 - 2,877,574 Total accumulated
depreciation 3,302,731 168,183 - 3,470,914 Total depreciable
capital assets, net 5,584,818 (168,183) - 5,416,635 Total capital assets, net $6,595,818 (168,183) - 6.427.635 Depreciation expense was charged in the following functions in the Statement of Activities:

Business-Type Activities
Water $168,183
Total $168,183
43 Exhibit 1 175

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(6) Long-term Liabilities
(a) Governmental Activities
Long-term liability activity for the year ended June 30, 2021 was as follows:

Amounts
Beginning Ending Due within
Balance Additions Deletions Balance One Year Governmental Activities:
2015 Lease revenue
refunding bonds $5,020,000 - 185,000 4,835,000 190,000 Unamortized bond premium 509,537 - 24,127 485,410 24,127 Notes payable:

So Cal Edison Bill Financing 4,102 - 3,602 500 500 Capital Lease payable - 2,239,435 - 2,239,435 120,298 Compensated absences 3,222,332 1,699,535 1,311,737 3,610,130 1,805,065 CJPIA Retrospective Deposit
Liability(Asset) (37,472) 37,472 9,212 (9,212) - Total governmental activities 8 718 499 3.976.442 1 53 11.161263 2 13 2015 Lease Revenue Refunding Bonds:

On April 14, 2015, the Authority issued $5,830,000 of Lease Revenue Refunding Bonds.

The proceeds were used to refund 2006 Certificates of Participation, to fund various capital projects within the City, to fund a reserve account and to finance the costs of the transaction. The bond refunded $3,260,000 in principal with a $32,600 premium for a total cost to refund the 2006 Certificates of Participation of $3,292,600. This refunding resulted in a net present value savings for the City of approximately $335,270. Interest rates range from 3.0% to 5.0% and is payable semiannually on each June 1 and December 1, commencing on June 1, 2016. Principal payments range from $135,000 to $370,000. As of June 30, 2021, the unamortized premium outstanding was $485,410 and the total principal balance outstanding was $4,835,000. In the event of default, the Authority may only recover rent and other monetary charges as they become due.

Fiscal Year Principal Interest Total
2022 $ 190,000 223,413 413,413
2023 200,000 215,813 415,813
2024 205,000 207,813 412,813
2025 220,000 199,613 419,613
2026 230,000 190,813 420,813
2027-2031 1,305,000 772,563 2,077,563
2032-2036 1,670,000 411,813 2,081,813
2037-2040 815,000 77,625 892,625
Total 4,835,000 2,299,466 7, 334,466
44 Exhibit 1 176

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(6) Long-term Liabilities (continued)
Southern California Edison On Bill Financing:

Starting on March 16, 2011 until March 5, 2012, the City engaged in a total of 7 loans totaling $240,626 from Southern California Edison for various lighting upgrades installed throughout the City. The loan is non-interest bearing, and principal payments are made monthly as part of the City's regular utility bill. At June 30, 2021, the total principal balance outstanding was $500.

At June 30, 2021, the annual requirements to repay the outstanding indebtedness were as follows:

Fiscal Year Principal Interest Total
2022 $ 500 - 500
Total 500 - 500
Capital Lease Payable:

On April 30, 2021, the City entered into a master equipment lease purchase for improvements to facilities lighting, HVAC, and water conservation. The term of the lease is 15 years and principal and interest payments commence in October 2021. Semi annual payments of$93,182.18 are due October 31 and April 30 at an interest rate of 2.99%.At June 30, 2021, the total principal balance outstanding was $2,239,435.

At June 30, 2021, the annual requirements to repay the outstanding indebtedness were as follows:

Fiscal Year Principal Interest Total
2022 $ 120,298 66,067 186,365
2023 123,922 62,443 186,365
2024 127,655 58,710 186,365
2025 131,500 54,865 186,365
2026 135,461 50,904 186,365
2027-2031 741,029 190,791 931,820
2032-2036 859,570 72,250 931,820
Total 2239.435 556. 330 2.795.465
Accrued Leave Payable (Compensated Absences)
For governmental funds, accrued leave payable amounted to $3,610,130 as of June 30, 2021. The balance is broken down as follows: $1,085,031 in vacation leave, $2,021,834 in sick leave, $105,239 in compensatory time, $311,159 in holiday, 47,069 in floating holiday, and $39,798 in administrative leave.
45 Exhibit 1 177

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(6) Long-term Liabilities (continued)
CHIA Retrospective Deposit Liability
Retrospective deposits are cost allocation adjustments to prior coverage periods. Some claims take many years to resolve and over time their estimated value changes. The retrospective adjustments are calculated annually and take into consideration all the changes in claim values that occurred during the most recent year. The formula is designed to adequately cover the cost of claims brought against members and to ensure the overall financial strength and security of the Authority. The formula was developed to be as equitable as possible by taking into consideration both risk exposure and claims experience of individual members. CJPIA has temporarily deferred the payment on retrospective deposits owed to the Authority by members. The payment deferral period extends until July 1, 2013 for the Liability program and July 1, 2015 for the Workers' Compensation program. Retrospective deposit payments are scheduled to resume on these dates. The October 2021 annual retrospective adjustment is included in these balances. As of June 30, 2021, the City has a retrospective deposit(asset) of$9,212.

Optional Payment Plans:

When retrospective deposit payments resume as indicated above, members will have the opportunity to select from a variety of optional payment plans. Discounts under the incentive plan are available to members choosing to voluntarily accelerate payment during the deferral period. The City has chosen not to voluntarily accelerate payment at this time.

After the deferral period, members choosing from among the optional payment plans will be subject to a moderate annual fee. The fee is intended to provide a means for the Authority to recover otherwise foregone investment earnings and to serve as a minor disincentive for the selection of longer financing terms.

Retrospective Balances will Change Annually:

Retrospective balances will change with each annual computation during the payment deferral period. Member balances may increase or decrease as a result of the most recent year's claim development. Accordingly, some members who chose to pay off their balance in full may be required to pay additional retrospective deposits in the future based on the outcome of actual claim development reflected in subsequent retrospective deposit computations.

Conversely, if claim development is favorable then subsequent retrospective adjustments could potentially result in refunds to the member.

More information on the CJPIA retrospective balances can be found on the CJPIA website at: http://www.cpi� .
46 Exhibit 1 178

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(6) Long-term Liabilities (continued)
(b) Business-Type Activities:

Amounts
Beginning Ending Due within
Balance Additions Deletions Balance One Year Business-type Activities:
2004 Revenue bonds $1,730,000 - 315,000 1,415,000 330,000 Unamortized bond premium 1,763 - 387 1,376 387 Total business-type activities 1731763 - 315 387 1 416 376 330 387 2004 Water Refunding Revenue Bonds
During fiscal year 2004-2005, the Bell Gardens Financing Authority issued $5,240,000 of refunding revenue bonds to refund the 1994 Water Revenue Bonds and pay the cost of issuing the bonds (insurance, underwriter discount, and other costs). The maturity date of the bonds is October 1, 2024. The interest rate ranges from 1.75% to 4.875%. As of June 30, 2021, the unamortized premium on the 2004 Water Refunding Revenue Bonds was $1,376 and the outstanding balance was $1,415,000.

The debt service requirements to maturity for the revenue bonds outstanding as of June 30, 2021, are as follows:

Fiscal Year Principal Interest Total
2022 $ 330,000 67,608 397,608
2023 345,000 52,098 397,098
2024 360,000 35,710 395,710
2025 380,000 18,430 398,430
Total L415.000 173, 446 L588,846
47 Exhibit 1 179

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(7) Defined Benefit Pension Plans
Plan Description: All qualified permanent and probationary employees are eligible to participate in the City of Bell Garden's Safety and Miscellaneous Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees' Retirement System (CalPERS). Benefit provisions under the Plans are established by State statute and City of Bell Garden resolution. Ca1PERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the Ca1PERS website.

Benefits Provided: Ca1PERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.

The Public Employees' Pension Reform Act of 2013 (PEPRA) requires new benefits and member contributions for new members as defined by PEPRA, that are hired after January 1, 2013. These PEPRA members in pooled plans are reflected in the new Miscellaneous and Safety risk pools created by the Ca1PERS Board in response to the passage of PEPRA, beginning with the June 30, 2013, risk-pool valuations.

The Plans' provisions and benefits in effect at June 30, 2019, are summarized as follows:

Miscellaneous
Prior to On or after
Hire Date January 1,2013 January 1,2013
Benefit formula 2.7%A 55 2.0%A 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life Retirement age 50-55 52—67
Monthly benefits,as a%of eligible compensation 2.0%to 2.7% 1.0%to 2.5% Required employee contribution rates 8.00% 6.25% Required employer contribution rates 17.37% 6.25% Safety
Prior to On or after
Hire Date January 1,2013 January 1,2013
Benefit formula 3.0%A 50 2.7%A 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life Retirement age 50-55 52-67
Monthly benefits,as a%of eligible compensation 3.00% 2.0%to 2.7% Required employee contribution rates 9.00% 12.25% Required employer contribution rates 50.82% 12.25% 48 Exhibit 1 180

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(7) Defined Benefit Pension Plans (continued)
Contributions: Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City of Bell Gardens is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Contributions to the pension plans were $548,215 and $1,293,044 for the Miscellaneous and Safety plans, respectively, for the year ended June 30, 2021.

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - As of June 30, 2019, the City of Bell Gardens reported net pension liabilities for its proportionate shares of the net pension liability as follows:

Proportionate Share
of Net Pension Liability
Miscellaneous $15,663,818
Safety 27,73 5,721
Total Net Pension Liability $43,399,539
The City of Bell Gardens' net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2019, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2018 rolled forward to June 30, 2019 using standard update procedures. The City of Bell Gardens' proportion of the net pension liability was based on a projection of the City of Bell Gardens' long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City of Bell Gardens' proportionate share of the net pension liability for each Plan as of June 30, 2019 and 2020 was as follows:

Miscellaneous Safety
Proportion—June 30, 2019 0.36254% 0.42342%
Proportion—June 30, 2020 0.37135% 0.41631%
Change—Increase (Decrease) 0.00881% (0.00712%) 49 Exhibit 1 181

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(7) Defined Benefit Pension Plans (continued)
For the year ended June 30, 2021, the City of Bell Gardens recognized pension expense of $2,779,831 and $5,144,697 for the Miscellaneous and Safety plans, respectively. At June 30, 2021, the City of Bell Gardens reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $ 1,728,516 - Change in proportion 330,954 Net difference in actual contributions vs. proportionate share of contributions - (410,440) Net difference between expected and actual experience 807,203 Net differences between projected and actual earnings on plan investments 435,319 - Change in assumptions - (111,721)
Total $ 3,301,992 (522,161)
Safety
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $ 2,751,377 - Change in proportion - (745,801)
Net difference in actual contributions vs.
proportionate share of contributions 477,931 Net difference between expected and actual experience 2,150,764 Net differences between projected and actual earnings on plan investments 602,814 - Change in assumptions - (92,388)
Total $ 5,982,886 (838,189)
$1,728,516 and $2,751,377 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022 for the Miscellaneous and Safety plans, respectively. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
June 30 Miscellaneous Safety
2022 $ 98,700 $ 520,624
2023 420,155 922,961
2024 339,280 647,692
2025 223,180 302,043
1 081 315 2 393 320
50 Exhibit 1 182

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(7) Defined Benefit Pension Plans (continued)
Actuarial Assumptions — The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Safety
Valuation Date June 30, 2019 June 30, 2019
Measurement Date June 30, 20120 June 30, 2020 Actuarial Cost Method Entry-Age Normal Cost Entry-Age Normal Method Cost Method
Actuarial Assumptions:

Discount Rate 7.15% 7.15%
Inflation 2.5% 2.5%
Payroll Growth 3.0% 3.0%
Projected Salary Increase Varies by Entry Age Varies by Entry Age Investment Rate of Return 7.5%(1) 7.5%(2)
Mortality Varies (2) Varies (2)
(1) Net of pension plan investment expenses,including inflation. (2) The mortality table used was developed based on CalPERS' specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB.

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2016 valuation were based on the results of a actuarial experience study for the period 1997 to 2011. Further details of the Experience Study can be found on the Ca1PERS website.

Change of Assumptions — In Fiscal Year 2020-21, demographic assumptions and the inflation rate were changed in accordance with the Ca1PERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. Deferred outflows of resources and deferred inflows of resources for changes of assumptions represent the unamortized portion of the changes of assumptions related to prior measurement periods.

Discount Rate — The discount rate used to measure the total pension liability was 7.15% for each plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at statutorily required rates, actuarially determined. Based on those assumptions, the plans' fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
51 Exhibit 1 183

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(7) Defined Benefit Pension Plans (continued)
In determining the long-term expected rate of return, Ca1PERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund.

The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The expected real rates of return by asset class are as follows:

New Strategic
Asset Class (a) Allocation
Public Equity 49.0%
Global Fixed Income 22.0%
Real Assets 12.0%
Private Equity 8.0%
Inflation Sensitive Assets 6.0%
Liquidity 3.0%
Total 100%
(a) In the Ca1PERS CAFR, fixed income is included in global debt securities; liquidity is included in short-term investments; inflation assets are included in both global equity securities and global debt securities.
(b) An expected inflation of 2.0%used for this period.
(c) An expected inflation of 2.92%used for this period.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate — The following presents the Bell Gardens' proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the Bell Garden's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Miscellaneous Safety
1%Decrease 6.15% 6.15%
Net Pension Liability $23,432,388 $41,065,672 Current Discount Rate 7.15% 7.15%
Net Pension Liability $15,663,818 $27,735,721 1%Increase 8.15% 8.15%
Net Pension Liability $ 9,244,893 $16,797,234 52 Exhibit 1 184

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(8) Other Post Employment Benefits (OPEB)
Plan Description - In addition to the pension benefits described above, the City provides retiree health insurance benefits through a single employer defined benefit plan. In accordance with the plan, which was approved by the City Council, these benefits are available to all employees who are eligible for normal PERS retirement and who retire after January 1, 1990. The City pays for monthly medical, dental and vision premium.

The portion paid is based on years of service at retirement. The plans vary based on date of hire and bargaining unit.

Employee Covered— As of June 30, 2021 actuarial valuation, the following current and former employees were covered by the benefit terms under the plan:

Active employees 136
Inactive employees or beneficiaries currently
receiving benefits 55
Inactive employees entitled to, but not yet
receiving benefits -
Total 191
Contributions - Currently, the City funds retiree healthcare benefits on a pay-as-you-go basis. The City recognizes expenditure for its share of the annual premiums as these benefits become due. For fiscal year 2020-2021, the City paid $1,016,204 for benefits of 55 retired employees.

Net OPEB Liability - The City of Bell Gardens net OPEB liability was measured as of June 30, 2021 and the total OPEB liability used to calculate the net OEPB liability was determined by an actuarial valuation date June 30, 2019 that was rolled forward to determine the June 30, 2021 total OPEB liability, based on the following actuarial methods and assumptions:

Actuarial Assumptions:

Discount Rate 2.16%
Projected Salary Increase Salary Scale
General Inflation 2.75%
Mortality Varies (1)
(1) The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2017 valuation were based on the results of a actuarial experience study for the period 1997 to 2011.Further details of the Experience Study can be found on the CalPERS website.

Discount Rate — The discount rate used to measure the OPEB liability was 2.16 percent, using the average of 3-20 year municipal bond rate indices: S&P Municipal Bond 20 Year High Grade Rate Index, Bond Buyer 20-Bond GO Index, Fidelity GO AA 20 Year Bond Index.
53 Exhibit 1 185

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(8) Other Post Employment Benefits (OPEB) (continued) The Changes in the net OPEB liability for the plan are as follows:

Increase (Decrease)
Total Plan Net OPEB
OPEB Fiduciary Liability/
Liability Net Position (Asset)
(a) (b) (c)=(a)-(b)
Balance at Fiscal Year Ending 6/30/20
Measurement Date 6130119 $74,652,340 $ 250,890 $74,401,450 Changes During the Period:

Service Cost 3,178,212 - 3,178,212
Interest Cost 1,665,893 - 1,665,893 Expected Investment Income - - -
Employer Contributions - 1,038,109 (1,038,109) Changes of Benefit Terms - - - Benefit Payments (1,038,109) (1,038,109) - Assumption Changes 618,446 - 618,446 Plan Experience - - -
Investment Experience - 60,345 (60,345)
Recognized Deferred Resources - - - Administrative Expenses - (1,635) 1,635
Net Changes in Fiscal Year 2020-21 4,424,442 58,710 4,365,732 Balance at Fiscal Year Ending 6/30/21
Measurement Date 6130120 $79,076,782 $ 309,600 $78,767,182 As of June 30, 2021, $1,165,830 of the net OPEB liability has been allocated to the Successor Agency of the Former Community Development Commission.

Sensitivity of the Proportionate Share of the OPEB Liability to Changes in the Discount Rate— The following presents the City of Bell Gardens' OPEB liability, calculated using the discount rate, as well as what the City's OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
1%Decrease 1.16%
Net OPEB Liability $96,030,539
Current Discount Rate 2.16%
Net OPEB Liability $78,767,182
1%Increase 3.16%
Net OPEB Liability $65,422,390
54 Exhibit 1 186

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(8) Other Post Employment Benefits (OPEB) (continued) Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trends — The following presents the net OPEB liability of the City of Bell Gardens' if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for the measurement period June 30, 2020:
1%Decrease 5.5%HMO/6.0%PPO Decreasing to

4.00/oHMO/4.0%PPO
Net OPEB Liability $63,339,668
Current Healthcare Cost 6.50/oHMO/7.0%PPO Decreasing to Trend Rates 5.00/oHMO/5.0%PPO
Net OPEB Liability $78,767,182
1%Increase 7.50/oHMO/8.0%PPO Decreasing to

6.00/oHMO/6.0%PPO
Net OPEB Liability $99,452,555
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB — For the fiscal year ended June 30, 2021, the City of Bell Gardens recognized OPEB expense of $5,845,652. As of the fiscal year ended June 30, 2021, the City of Bell Gardens reported deferred outflows and inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual experience $ 3,199,901 -
Differences between projected and
actual return on assets - (46,401)
Change in assumptions 1,049,625 -
Total $ 4,249,526 (46,401)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Recognized Net Deferred
Year Ended Outflows and Inflows of
June 30 Resources
2022 $ 999,911
2023 1,000,093
2024 1,197,657
2025 452,525
2026 464,593
Thereafter 88,346
4 203 125
55 Exhibit 1 187

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(9) California Joint Powers Insurance Authority Insurance Program a. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Bell Gardens is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority). The Authority is composed of 123 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee. b. Primary Self-Insurance Program of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012- 13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.

Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.

The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses also have a $50 million per occurrence limit.

The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority's website: hu, ,I/ pia.,,o g&?yg s1uadng, lra d sl-
56 Exhibit 1 188

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(9) California Joint Powers Insurance Authority Insurance Program (continued) Primary Workers' Compensation Program
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2020-21 the Authority's pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers' Compensation Law.

Employer's Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer's Liability losses from $5 million to $10 million are pooled among members. c. Purchased Insurance
Pollution Legal Liability Insurance
The City of Bell Gardens participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Bell Gardens.

Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of$20 million.

Property Insurance
The City of Bell Gardens participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies.

City of Bell Gardens property is currently insured according to a schedule of covered property submitted by the City of Bell Gardens to the Authority. City of Bell Gardens property currently has all-risk property insurance protection in the amount of $40,251,342. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

Crime Insurance
The City of Bell Gardens purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority.
57 Exhibit 1 189

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(9) California Joint Powers Insurance Authority Insurance Program (continued) d. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2020-21. (10) Contingent Liabilities
a. Lawsuits in the Normal Course of Business
The City is presently involved in certain matters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize.
b. Federal and State Grant Programs
The City participates in several federal and state grant programs. These programs have been audited by the City's independent auditors in accordance with the provisions of the federal Single Audit Act, as amended and applicable state requirements. No cost disallowances were proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time.

C. Ongoing Operations
The City's operations may be affected by the recent and ongoing outbreak of COVID-19, which was declared a pandemic by the World Health Organization in March 2020. The ultimate disruption which may be caused by the outbreak is uncertain; however, possible effects may include, but are not limited to, a reduction in certain tax revenues and a decline in the value of investments, which could have an impact on the City's financial position and operating results. There is significant uncertainty as to the severity and longevity of the outbreak and City management is in the process of evaluating the impact on the City and its financial statements.
58 Exhibit 1 190

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(11) Operating Lease Agreements
a. On November 9, 1987, the Bell Gardens former RDA approved a Lease Agreement with the Bicycle Club. The Bicycle Club agreed to lease property from the former RDA for use as a parking lot. The lease term is 15 years at an annual minimum rent of $559,200 per year, adjusted every five years by the greater of the Consumer Price Index or 120%.

During 1989-90 the parking lot was transferred to the City of Bell Gardens as a repayment of City loans. The lease agreement was assigned to the City along with the transfer. On July 1, 2005, the Bell Gardens former RDA approved an amendment to the original lease in the amount of$633,535 and $239,179 for Parcel D and C, respectively.

Rent paid to the City under this agreement was $2,648,223 for the year ended June 30, 2021.
b. On November 11, 1987, the Bell Gardens former RDA approved a Lease Agreement with the Bell Gardens Hotel Partnership. The Hotel Partnership agreed to lease property with all buildings, structures, improvements and fixtures thereon for the use as a hotel and restaurant. The lease term is 99 years at a revised rate of$81,510 per year, adjusted every five years by the Consumer Price Index, plus the excess, if any, of the sum of the following over the annual rate: 6.25% of gross room revenues, 3% of gross food and beverage revenues, and 10% of all other revenues. During 1991-92, the property was transferred to the City of Bell Gardens as a repayment of City loans. The lease agreement was assigned to the City along with the transfer. Rent paid to the City under this agreement was $151,885 for the year ended June 30, 2021.

C. On February 22, 1988, the Bell Gardens former RDA approved a Lease Agreement with the Bell Gardens Associates. The agreement is to lease property with all buildings, structures, improvements and fixtures thereon for use as a shopping center. The lease term is 55 years at a revised rate of$736,830, adjusted every five years by 4% from the prior increase, plus one percent of gross revenues for the preceding year. During 1991-92, the property was transferred to the City of Bell Gardens as a repayment of City loans.

Rent paid to the City under this agreement was $1,510,685 for the year ended June 30, 2021.

Future minimum lease payments due to the City are as follows:

Fiscal Year Parking Lot Hotel Shopping Center 2022 $ 2,648,223 151,885 1,525,799
2023 2,648,223 151,885 1,571,112
2024 2,648,223 151,885 1,571,112
2025 2,648,223 151,885 1,571,112
2026 2,648,223 151,885 1,571,112
Thereafter 89,377,334 11,087,379 -
Total $102,618,449 11,847,004 7.810,247
59 Exhibit 1 191

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(12) Classification of Fund Balances
The City has adopted the provisions of GASB Statement No. 54, "Fund Balance and Governmental Fund Type Definitions". GASB 54 establishes fund balance classifications based largely upon the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The governmental fund statements conform to this classification and are summarized as follows as of June 30, 2021:

Low and Capital
Moderate Improvement Non-major
Housing Special Projects Capital Governmental
General Fund Revenue Fund Project Fund Funds Totals Nonspendable
Prepaid expenses $ 196,633 - - - 196,633
Notes and loans 105,324 - - - 105,324
Due from Water Fund 4,108,086 4,108,086
Total Nonspendable 4,410,043 - - - 4,410,043 Restricted
Housing - 1,067,422 - - 1,067,422
Recreation and community
services - - - 85,972 85,972
Public safety - - - 914,720 914,720
Transportation - - - 3,701,140 3,701,140 Environmental 146,018 146,018
Total Restricted 1,067,422 4,847,850 5,915,272 Assigned
Contingencies 3,500,000 - - - 3,500,000 Post employment benefits 10,790,197 - - 146,326 10,936,523 Compensated absences 3,610,130 - - - 3,610,130 Interfund loans receivable 167,701 167,701 Total Assigned 18,068,028 - - 146,325 18,214,354 Unassigned - - (335,831) (4,004) (339,835) Totals 22.478.071 1 067 422 (335.831) 4 990 172 28 199 834 60 Exhibit 1 192

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(13) Successor Agency Trust For Assets of Former Community Development Commission On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 ("the Bill") that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Bell Gardens that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill.

Management believes, in consultation with legal counsel, that the obligations of the former community development commission due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City's position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City.

In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. a. Cash and investments
Cash and investments reported in the accompanying financial statements consisted of the following:

Cash and investments $3,206,906
Cash and investments with fiscal agent 2,758,710 Total cash and investments 5.965.616
61 Exhibit 1 193

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(13) Successor Agency Trust For Assets of Former Community Development Commission (continued)
b. Notes and Loans Receivable
Notes and loans receivable as of June 30, 2021, consist of the following:

In October 11, 2004, Primestor El Portal, LLP, a California limited liability company (the Borrower) and the former Bell Gardens Community Development Commission (the Commission) have entered into a disposition and development agreement and a ground lease for the Borrower to lease from the former Commission certain real property.

Pursuant to the agreement, the former Commission has agreed to provide a $3,000,000 loan to be used in connection with the construction and development of the property. The promissory note shall be for the term of the ground lease and accrue interest at six percent (6%) simple interest which are recorded as deferred revenue. Borrower's obligation to repay shall be limited to fifteen percent (15%) of any and all net proceeds of any refinancing events and to fifty percent(50%) of any net profit resulting from the first sale event. The balance as of June 30, 2021, including accrued interest of $2,992,500, is $5,992,500.

On April 1, 2005, Bell Gardens Housing Partners, L.P., a California limited partnership entered into a promissory note to pay the former Bell Gardens Community Development Commission $3,812,203 for the payment of public and private debts. The former Commission has provided certain financial assistance in construction of a 72-unit senior affordable housing project by providing a Commission Loan (which is represented by this Promissory Note) in the amount of$3,812,203 for the acquisition and clearing of the site and to help defray Developer's costs. The promissory note amount shall bear simple interest at the rate of 3%per annum, and 10%per annum shall accrue upon the amount of each payment required upon the date each such payment is due. The Promissory Note shall be paid from "Residual Receipts", defined as an amount equal to sixty-five percent (65%) of the net profits produced from the project (on a prorate basis), until the note amount has been repaid in full. Any remaining principal, interest and other amounts due and owing under this promissory note shall be paid in full on or before the fifty-fifth (55th) anniversary of the date of the promissory note. The Successor Agency's outstanding balance as of June 30, 2021, including interest of$708,097, is $2,223,056.

Total notes and loans receivable at June 30, 2021, were $8,215,556. 62 Exhibit 1 194

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(13) Successor Agency Trust For Assets of Former Community Development Commission (continued)
c. Capital Assets
An analysis of capital assets as of June 30, 2021, follows:

Beginning Ending
Description Balance Additions Deletions Balance Non-depreciable:

Land $ 1,773,001 - - 1,773,001
Total non-depreciable L773,001 - - L773,001 d. Long-Term Debt
The following debt was transferred from the Community Development Commission to the Successor Agency as of February 1, 2012 as a result of the dissolution. A description of long-term debt outstanding of the Successor Agency as of June 30, 2021, follows:

Beginning Ending Due within
Balance Additions Deletions Balance One Year Advances from City $39,440,825 364,374 1,024,299 38,780,900 - Tax Allocation Bonds Payable:
2014 Refunding Series A 1,490,000 - 475,000 1,015,000 495,000 2014 Refunding Series B 4,950,000 - 415,000 4,535,000 430,000 2014 Refunding Series C 8,995,000 - 470,000 8,525,000 485,000 Unamortized Bond Premium 322,547 - 79,746 242,801 79,748 Unamortized Bond Discount (15,892) - (1,445) (14,447) (1,445) Revenue Bonds Payable:
2005 Series A Project Area No. 1 500,000 - 155,000 345,000 165,000 2005 Series A Central City
Project Area 1,965,000 - 135,000 1,830,000 150,000 Unamortized Bond Premium 61,800 - 6,870 54,930 6,868 Subtotal 57.709280 364.374 2 76 55309.184 1 81 The advances from the City consist of $38,780,900 loans including accrued interest of $15,741,366. Accrued interest is calculated in accordance with HSC Section 34191.416 which states that interest shall be calculated from the origin of the loan at a simple interest rate of three percent.
63 Exhibit 1 195

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(13) Successor Agency Trust For Assets of Former Community Development Commission (continued)
d. Long-Term Debt, (Continued)
2005 Revenue Bonds, Series A
On June 22, 2005, the Commission issued $4,775,000 of revenue bonds with an interest rate of 7.75%. The proceeds were used to finance redevelopment activities to benefit Project No. 1 Redevelopment Area and Central City Redevelopment Area, to fund a reserve fund, and to pay for the costs of issuing the bonds (insurance, underwriter discount, and other costs). Interest is paid semi-annually on April 1 and October 1 with a final maturity date of October 1, 2029. As of June 30, 2021, the unamortized premium outstanding was $54,930 and the total principal outstanding was $2,175,000.

At June 30, 2021, the annual requirements to repay the outstanding indebtedness were as follows:

Fiscal Year Principal Interest Total
2022 $ 315,000 168,563 483,563
2023 340,000 144,150 484,150
2024 170,000 117,800 287,800
2025 185,000 104,625 289,625
2026 200,000 90,288 290,288
2027-2030 965,000 194,138 1,159,138
Total 2175.000 819, 664 2.994,564
64 Exhibit 1 196

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(13) Successor Agency Trust For Assets of Former Community Development Commission (continued)
d. Long-Term Debt, (Continued)
2014 Tax Allocation Revenue Refunding Bonds, Series A, B & C On June 18, 2014, the Successor Agency issued a total of $21,455,000 of revenue refunding bonds, Series A, B, and C.

The 2014 Series A and B revenue refunding bonds were issued for $10,330,000 with an average interest rate of 4.41% and were used to advance refund the $12.5 million of outstanding 2003 Series A and B revenue bonds with an average interest rate of 5.32%.

This refunding resulted in a net present value savings for the Successor Agency of approximately $1.5 million.

The 2014 Series C, Second Subordinate Tax Allocation Revenue Refunding Bonds were issued for a total of $11,125,000 with an average interest rate of 4.8%. The bond proceeds were used to pay off the Bear Sterns note in the amount of $8.3 million which had been in default and to pay the related other cost of issuance. The estimated remaining $1.1 million was put into a reserve account with the trustee per the bond indenture agreement.

At June 30, 2021, the total principal outstanding for the 2014 Series A, B, and C were $14,075,000.

As of June 30, 2021, the annual requirements to repay the outstanding indebtedness for the 2014 Series A bonds are as follows:

Fiscal Year Principal Interest Total
2022 $ 495,000 38,375 533,375
2023 520,000 13,000 533,000
Total LO15.000 51,375 L066,375
65 Exhibit 1 197

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(13) Successor Agency Trust For Assets of Former Community Development Commission (continued)
d. Long-Term Debt, (Continued)
2014 Tax Allocation Revenue Refunding Bonds, Series A, B & C, (Continued) As of June 30, 2021, the annual requirements to repay the outstanding indebtedness for the 2014 Series B bonds are as follows:

Fiscal Year Principal Interest Total
2022 $ 430,000 172,350 602,350
2023 445,000 159,225 604,225
2024 460,000 145,650 605,650
2025 475,000 126,875 601,875
2026 500,000 102,500 602,500
2027-2030 2,225,000 174,188 2,399,188
Total 4.535.000 880, 888 5.415,788
As of June 30, 2021, the annual requirements to repay the outstanding indebtedness for the 2014 Series C bonds are as follows:

Fiscal Year Principal Interest Total
2022 $ 485,000 408,710 893,710
2023 500,000 389,304 889,304
2024 520,000 367,941 887,941
2025 540,000 345,079 885,079
2026 565,000 318,737 883,737
2027-2031 4,200,000 1,091,088 5,291,088
2032 1,715,000 44,101 1,759,101
Total 8.525.000 2.964,960 11, 889,960
66 Exhibit 1 198

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(13) Successor Agency Trust For Assets of Former Community Development Commission (continued)
d. Long-Term Debt, (Continued)
Pledged Revenue
The City pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low and Moderate Income Housing set-aside and pass through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish Low and Moderate Income Housing projects and to defease previously issued bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. Total principal and interest remaining on the debt is $27,885,672 with annual debt service requirements as indicated above. For the current year, the total property tax revenue recognized by the City and Successor Agency for the payment of indebtedness incurred by the dissolved redevelopment agency was $4,172,111 and the debt service obligation on the bonds was $2,523,446. The Successor Agency was able to cover the debt service obligations for the year ended June 30, 2021.
e. Successor Agency Unfunded Liabilities
When redevelopment agencies dissolved, there was a certain level of unfunded accrued liabilities related to other post-employment benefits (retiree healthcare) and pension benefits that the employees of the former redevelopment agency had accrued. In order to keep these liabilities with the Successor Agency, the liabilities need to be placed on a recognized obligation payment schedule (ROPS) and obtain approval from the Successor Agency Board, the Oversight Board and the State Department of Finance in order to become an enforceable obligation.

During the ROPS 15-16B process, the unfunded accrued liability was calculated, placed on the ROPS and approved by all three entities including the State Department of Finance. The total approved liability is $2,053,403, is made up of $1,366,885 for the OPEB; $660,681 for the Ca1PERS pension; and $25,837 for the Ca1PERS side fund and is being amortized over a 20 year; 22 year; and 12 year period, respectively. As of June 30, 2021 the unfunded accrued liability is $1,852,348. However, subsequent to the ROPS 15-16B approval, the liability was rejected by the DOF. The City met and conferred over the issue witch the DOF reasserted their conclusion. The City is currently weighing their options.
f. Insurance
The Successor Agency is covered under the City of Bell Garden's insurance policies.

Therefore, the limitation and self-insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be found in Note 9.
67 Exhibit 1 199

CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(14) Other Required Disclosures
Deficit Fund Balances
The following funds had deficit fund balances as of June 30, 2021:

Capital Improvement Projects $ 335,831 (a)
Nonmajor Special Revenue Funds:

Community Development Block Grant 28,097 (a)
Air Quality Improvement 27,139 (a)
ABC Grants 2,051 (a)
JAG Grants 1,519 (a)
Office of Traffic Safety Grant 17,971 (a)
(a) The deficit fund balance will be eliminated over time as revenues exceed expenditures. (15) Subsequent Events
Management has evaluated subsequent events through December 22, 2021 which is the date the financial statements were available to be issued, and has determined that there are no transactions that will have a significant impact on the City. 68 Exhibit 1 200

REQUIRED SUPPLEMENTARY INFORMATION
69 Exhibit 1 201

CITY OF BELL GARDENS
General Fund
Schedule of Revenue,Expenditures and Changes in Fund Balance- Budget and Actual For the Year Ended June 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Taxes and assessments $ 14,331,379 12,029,793 13,422,846 1,393,053 Licenses and permits 613,500 363,500 461,485 97,985 Intergovernmental 5,514,726 15,182,058 12,292,191 (2,889,867) Charges for services 247,795 164,115 116,094 (48,021) Use of money and property 4,712,698 4,643,226 4,563,898 (79,328) Fines and forfeitures 495,500 440,500 500,420 59,920 Contributions - - 250,000 250,000 Other revenue 1,810,439 1,222,439 1,477,231 254,792 Total revenues 27,726,037 34,045,631 33,084,165 (961,466) Expenditures:

Current:

General government 6,060,735 6,132,863 5,753,427 379,436 Public works 4,136,752 4,110,639 3,943,078 167,561 Public safety 15,342,530 15,310,532 14,594,110 716,422 Community development 1,244,571 1,402,525 1,120,694 281,831 Parks and recreation 2,146,033 3,018,237 2,595,714 422,523 Capital outlay 405,937 2,932,688 793,148 2,139,540 Debt service:

Interest and fiscal charges 234,813 234,813 249,556 (14,743) Principal retirement 189,492 188,602 188,602 - Total expenditures 29,760,863 33,330,899 29,238,329 4,092,570 Excess (deficiency) of revenues
over(under) expenditures (2,034,826) 714,732 3,845,836 3,131,104 Other financing sources (uses):

Transfers in 145,534 145,534 145,534 - Transfers out 1,444,000 1,444,000 (1,153,424) (2,597,424) Proceeds from capital lease - - 2,239,435 2,239,435 Total other financing sources (uses) 1,589,534 1,589,534 1,231,545 (357,989) Net change in fund balances (445,292) 2,304,266 5,077,381 2,773,115 Fund balance,beginning of year 17,400,690 17,400,690 17,400,690 - Fund balance, end of year $ 16,955,398 19,704,956 22,478,071 2,773,115 Exhibit 1 202

CITY OF BELL GARDENS
Low and Moderate Housing Special Revenue Fund
Schedule of Revenue,Expenditures and Changes in Fund Balance- Budget and Actual For the Year Ended June 30,2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Use of money and property $ 247,860 247,860 89,711 (158,149) Total revenues 247,860 247,860 89,711 (158,149) Expenditures:

Current:

Community development - - - -
Total expenditures - - - -
Excess (deficiency) of revenues
over(under) expenditures 247,860 247,860 89,711 (158,149) Other financing sources (uses):

Transfers in - - 204,860 204,860
Total other financing sources (uses) - - 204,860 204,860 Net change in fund balances 247,860 247,860 294,571 46,711 Fund balance, beginning of year 772,851 772,851 772,851 - Fund balance, end of year $ 1,020,711 1,020,711 1,067,422 46,711 Exhibit 1 A3

CITY OF BELL GARDENS

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2021
Stewardship, Compliance and Accountability
General Budget Policies
The City's budget is prepared under the direction of the City Manager. Revenues are budgeted based on source. Expenditures are budgeted by functions, with sub classification by department and object of expenditures.

The City Council approves each year's budget submitted by the City Manager prior to the beginning of the new fiscal year. It includes proposed expenditures and estimated revenues and is legally adopted on a basis consistent with generally accepted accounting principles. Presentations are provided to the Council prior to the adoption of the budget.

The City Manager is authorized to transfer budgeted amounts between departments and object categories, and also between programs. Council approval is required only for transfers of budgeted amounts between funds, or for an increase in total appropriations.

Supplemental appropriations, where required during the period are also approved by the Council. Budgeted expenditures are controlled at the fund level. During the year, several supplemental appropriations were necessary. At fiscal year-end, all operating budget appropriations lapse. Capital related appropriations may be carried forward to subsequent years.
72 Exhibit 1 204

CITY OF BELL GARDENS
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios i June 30, 2021
Cost Sharing Defined Benefit Pension Plan -Miscellaneous Last 10 Fiscal Years *
June 30,2020 1 June 30,2019 1 June 30,2018 1 June 30,2017 1 June 30,2016 1 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2020-21 2019-20 2018-19 2017-18 2016-17
Proportion of the net pension liability(asset) 0.14396% 0.14168% 0.13867% 0.13756% 0.13644% Proportionate share of the net pension
liability(asset) $ 15,663,818 $ 14,517,728 $ 13,362,387 $ 13,642,621 $ 11,806,379 Covered payroll 2 $ 6,147,303 $ 6,070,128 $ 6,415,166 $ 6,527,431 $ 5,988,354 Proportionate Share of the net pension liability
(asset)as percentage of covered payroll 254.81% 239.17% 208.29% 209.00% 197.16% Proportionate Share of the Fiduciary Net Position
as a percentage of the Total Pension Liability 73.17% 73.99% 74.75% 72.58% 73.42% Proportionate Share of Aggregate Employer
Contributions $ 1,908,415 $ 1,710,852 $ 1,506,791 $ 1,366,134 $ 1,214,243 June 30,2015 1 June 30,2014 i
Fiscal Year Fiscal Year
2015-16 2014-15
Proportion of the net pension liability(asset) 0.13592% 0.11614% Proportionate share of the net pension
liability(asset) $ 9,329,086 $ 7,226,815
Covered payroll 2 $ 5,673,946 $ 5,534,792
Proportionate Share of the net pension liability
(asset)as percentage of covered payroll 164.42% 130.57% Proportionate Share of the Fiduciary Net Position
as a percentage of the Total Pension Liability 77.67% 82.23% Proportionate Share of Aggregate Employer
Contributions $ 1,122,673 $ 904,303
' Historical information is required only for measurement periods for which GASB 68 is applicable. 2 Covered Payroll represented above is based on pensionable earnings provided by the employer.However, GASB 68 defines covered-employee payroll as the total of employees that are provided pensions through the pension plan. Accordingly,if pensionable earnings are different than total earnings for covered-employees,total earnings for covered-employees,the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

Notes to Schedule:

Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30,2015. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit(a.k.a. Golden Handshakes)
Changes in assumptions: The discount rate was changed from 7.65 percent(net of administrative expense)to 7.15 percent to correct for an adjustment to exclude administrative expense for June 30,2018. * -Fiscal year 2015 was the 1 st year of implementation,therefore only seven years are shown.

Exhibit 1 265

CITY OF BELL GARDENS
Schedule of Plan Contributions - Defined Benefit Pension Plan 1 June 30,2021
Cost Sharing Defined Benefit Pension Plan -Miscellaneous Last 10 Fiscal Years *
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2020-21 1 2019-20 1 2018-19 1 2017-18 1 2016-17 1 Actuarially determined contribution 2 $ 1,593,412 $ 1,423,751 $ 1,305,689 $ 1,172,671 $ 1,037,345 Contributions in relation to the
actuarially determined contributions 2 $ (1,593,412) $ (1,423,751) $ (1,305,689) $ (1,172,671) $ (1,037,345) Contribution deficiency(excess) $ - $ - $ - $ - $ - Covered payroll $ 6,147,303 $ 6,231,576 $ 6,415,166 $ 6,527,431 $ 5,988,354 Contributions as a percentage of
covered payroll 3 25.92% 22.85% 20.35% 17.97% 17.32% Fiscal Year Fiscal Year
2015-16 1 2014-15 1
Actuarially determined contribution 2 $ 860,858 $ 828,117 Contributions in relation to the
actuarially determined contributions 2 $ (860,858) $ (828,117) Contribution deficiency(excess) $ - $ -
Covered payroll 3 $ 5,673,946 $ 5,534,792
Contributions as a percentage of
covered payroll 3 15.17% 14.96%
1 Historical information is required only for measurement periods for which GASB 68 is applicable. 2 Employee are assumed to make contributions equal to the actuarially determined contributions.However,some employers may choose to make additional contributions towards their unfunded liability.Employer contributions for such plans exceed the actuarially determined contributions. CalPERS has determined that employer obligations referred to as"side funds" do not conform to the circumstances described in paragraph 120 of GASB 68,therefore are not considered separately financed specific liabilities. 3 Covered Payroll represented above is based on pensionable earnings provided by the employer.However,GASB 68 defines covered-employee payroll as the total of employees that are provided pensions through the pension Plan.Accordingly,if pensionable earnings are different than total earnings for covered-employees,total earnings for covered-employees,the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal 2015-16 were from the June 30,2013 public agency valuations.

Actuarial cost method Entry-age
Amortization method/period For detail,see June 30,2013 Funding Valuation Report Asset valuation method Actuarial Value of Assets.For details see June 30,2012 Funding Valuation Report Inflation 2.75%
Salary increases Varies by Entry Age and Service
Payroll growth 3.00%
Investment rate of return 7.5%Net of Pension Plan Investment and Administrative expenses,including inflation Retirement age The probabilities of Retirement are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007.

Mortality The probabilities of mortality are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007.Pre-retirement and Post-Retirement mortality reats included 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries. * -Fiscal year 2015 was the 1 st year of implementation,therefore only seven years are shown.

Exhibit 1 266

CITY OF BELL GARDENS
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios i June 30, 2021
Cost Sharing Defined Benefit Pension Plan - Safety
Last 10 Fiscal Years *
June 30,2020 1 June 30,2019 1 June 30,2018 1 June 30,2017 1 June 30,2016 1 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2020-21 2019-20 2018-19 2017-18 2016-17
Proportion of the net pension liability(asset) 0.25491% 0.25795% 0.26512% 0.26462% 0.27618% Proportionate share of the net pension
liability(asset) $ 27,735,721 $ 26,432,318 $ 25,547,563 $ 26,242,972 $ 23,898,271 Covered payroll 2 $ 5,527,368 $ 5,734,040 $ 6,080,034 $ 5,685,550 $ 5,339,083 Proportionate Share of the net pension liability
(asset)as percentage of covered payroll 501.79% 460.97% 420.19% 461.57% 447.61% Proportionate Share of the Fiduciary Net Position
as a percentage of the Total Pension Liability 71.74% 71.89% 71.24% 68.85% 68.48% Proportionate Share of Aggregate Employer
Contributions $ 3,645,018 $ 2,963,859
June 30,2015 1 June 30,2014 i
Fiscal Year Fiscal Year
2015-16 2014-15
Proportion of the net pension liability(asset) 0.29656% 0.30157% Proportionate share of the net pension
liability(asset) $ 20,355,288 $ 18,765,190
Covered payroll 2 $ 5,076,167 $ 4,756,423 Proportionate Share of the net pension liability
(asset)as percentage of covered payroll 401.00% 394.52% Proportionate Share of the Fiduciary Net Position
as a percentage of the Total Pension Liability 71.66% 73.81% Proportionate Share of Aggregate Employer
Contributions $ 1,751,135 $ 1,496,855
' Historical information is required only for measurement periods for which GASB 68 is applicable. 2 Covered Payroll represented above is based on pensionable earnings provided by the employer.However, GASB 68 defines covered-employee payroll as the total of employees that are provided pensions through the pension plan. Accordingly,if pensionable earnings are different than total earnings for covered-employees,total earnings for covered-employees,the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

Notes to Schedule:

Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30,2015.This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit(a.k.a. Golden Handshakes)
Changes in assumptions: The discount rate was changed from 7.65 percent(net of administrative expense)to 7.15 percent to correct for an adjustment to exclude administrative expense for June 30,2018. * -Fiscal year 2015 was the 1st year of implementation,therefore only seven years are shown.

Exhibit 1 267

CITY OF BELL GARDENS
Schedule of Plan Contributions- Defined Benefit Pension Plan 1 June 30,2021
Cost Sharing Defined Benefit Pension Plan - Safety
Last 10 Fiscal Years *
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2020-21 1 2019-20 1 2018-19 1 2017-18 1 2016-17 1
Actuarially determined contribution 2 $ 3,781,851 $ 3,479,779 $ 3,299,926 $ 2,972,647 $ 2,712,086 Contributions in relation to the
actuarially determined contributions 2 $(3,781,851) $(3,479,779) $ (3,299,926) $ (2,972,647) $(2,712,086) Contribution deficiency(excess) $ - $ - $ - $ - $ - Covered payroll 3 $ 5,527,368 $ 5,688,142 $ 6,080,034 $ 5,685,550 $ 5,339,083 Contributions as a percentage of
covered payroll 3 68.42% 61.18% 54.27% 52.28% 50.80% Fiscal Year Fiscal Year
2015-161 2014-151
Actuarially determined contribution 2 $ 2,451,516 $ 2,189,458 Contributions in relation to the
actuarially determined contributions 2 $(2,451,516) $(2,189,458) Contribution deficiency(excess) $ - $ -
Covered payroll 3 $ 5,076,167 $ 4,756,423
Contributions as a percentage of
covered payroll 3 48.29% 46.03%
1 Historical information is required only for measurement periods for which GASB 68 is applicable. 2 Employee are assumed to make contributions equal to the actuarially determined contributions.However,some employers may choose to make additional contributions towards their unfunded liability.Employer contributions for such plans exceed the actuarially determined contributions. CalPERS has determined that employer obligations referred to as"side funds" do not conform to the circumstances described in paragraph 120 of GASB 68,therefore are not considered separately financed specific liabilities. 3 Covered Payroll represented above is based on pensionable earnings provided by the employer.However,GASB 68 defines covered-employee payroll as the total of employees that are provided pensions through the pension Plan.Accordingly,if pensionable earnings are different than total earnings for covered-employees,total earnings for covered-employees,the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal 2015-16 were from the June 30,2013 public agency valuations.

Actuarial cost method Entry-age
Amortization method/period For detail,see June 30,2013 Funding Valuation Report Asset valuation method Actuarial Value of Assets.For details see June 30,2012 Funding Valuation Report Inflation 2.75%
Salary increases Varies by Entry Age and Service Payroll growth 3.00%
Investment rate of return 7.5%Net of Pension Plan Investment and Administrative expenses,including inflation Retirement age The probabilities of Retirement are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007.

Exhibit 1 268

CITY OF BELL GARDENS
Schedule of Changes in the Net OPEB Liability and Related Ratios Last 10 Fiscal Years *
Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2020-21 2019-20 2018-19 2017-18
Total OPEB Liability
Service cost $ 3,178,212 $ 2,397,228 $ 2,333,069 $ 2,325,434 Interest on the total OPEB Liability 1,665,893 2,178,333 2,179,874 2,038,237 Actual and expected experience difference - 4,479,863 - - Changes in assumptions 618,446 (1,846,156) 4,445,153 (1,183,098) Benefit payments ** (1,038,109) (1,023,490) (881,139) (827,361) Net change in total OPEB liability 4,424,442 6,185,778 8,076,957 2,353,212 Total OPEB liability -beginning 74,652,340 68,466,562 60,389,605 58,036,393 Total OPEB liability -ending (a) $79,076,782 $74,652,340 $68,466,562 $60,389,605 Plan Fiduciary Net Position
Contribution-employer $ 1,038,109 $ 1,023,490 $ 881,139 $ 827,361 Net investment income 60,345 9,798 15,543 13,744 Benefit payments ** (1,038,109) (1,023,490) (881,139) (827,361) Administrative expense (1,635) (1,304) (575) (559) Net change in plan fiduciary net position 58,710 8,494 14,968 13,185 Plan fiduciary net position-beginning 250,890 242,396 227,428 214,243 Plan fiduciary net position-ending (b) $ 309,600 $ 250,890 $ 242,396 $ 227,428 Net OPEB liability-ending (a)-(b) $78,767,182 $74,401,450 $68,224,166 $60,162,177 Employee payroll $ 11,231,170 $ 11,586,109 $12,414,529 $ 12,895,877 Net OPEB liability as a percentage of
employee payroll 701.33% 642.16% 549.55% 466.52% Notes to Schedule
Historical information is required only for measurement periods for which GASB 75 is applicable. Future years' information will be displayed up to 10 years as information becomes available.
* -Fiscal year 2017-18 was the 1st year of implementation,therefore only four years are shown. **-Benefit payments include refunds and the implied subsidy benefit payments.

Exhibit 1 259

CITY OF BELL GARDENS
Schedule of Plan Contributions - OPEB Plan
Last 10 Fiscal Years *
Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2020-21 2019-20 2018-19 2017-18
Actuarially determine contribution $ 1,038,109 $ 1,023,490 $ 881,139 $ 823,361 Contribution in relation to the
actuarially determined contributions (1,038,109) (1,023,490) (881,139) (823,361) Contribution excess $ - $ - $ - $ -
Employee payroll $ 11,231,170 $11,586,109 $ 12,414,529 $12,895,877 Contributions as a percentage
of employee payroll 9.24% 8.83% 7.10% 6.38% Notes to Schedule
Actuarial cost method Entry-age
Amortization method/ Level percent of pay
period
Asset valuation method Fair value of assets
Inflation 2.75%
Payroll growth 2.75%per year
Investment rate of return 6%Net of Pensin Plan Investment and Administrative expenses, includes inflation
Healthcare Cost-Trend Assumed increases occur once each year with premium increases Rates of 7.0%on 1/l/19 with increases of 0.5%less each January 1 thereafter through 2024. Assumed 5%increases for year 2024 and later.

Mortality The probabilties of mortality are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007.Pre-retirement and Post-Retirement mortality rates incuded 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries.
* -Fiscal year 2017-18 was the 1st year of implementation,therefore only four years are shown. ** -Benefit payments include refunds and the implied subsidy benefit payments.

Exhibit 1 $$0

SUPPLEMENTARY INFORMATION
79 Exhibit 1 211

CITY OF BELL GARDENS
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2021
Special Revenue Funds
Public COPS State
Safety State Gas Asset
Augmentation (SLESF) Tax Forfeiture
ASSETS
Cash and investments $ 214,717 260,530 171,117 394,511 Receivables:

Accounts - - - -
Notes and loans - - - -
Interest 26 - - 91
Due from other governments 24,377 61,384 - - Total assets $ 239,120 321,914 171,117 394,602

LIABILITIES
Accounts payable $ 1,124 - 46,170 -
Deposits payable - - - 57,147
Due to other funds - - - - Total liabilities 1,124 - 46,170 57,147

DEFERRED IN FLOWS OF RESOURCES
Unavailable revenue - 61,285 - -
Total deferred in flows
(outflows) of resources - 61,285 - -

FUND BALANCES
Restricted 237,996 260,629 124,947 337,455 Assigned - - - -
Unassigned - - - -
Total fund balances (deficits) 237,996 260,629 124,947 337,455 Total liabilities, deferred inflows
and fund balances $ 239,120 321,914 171,117 394,602 Exhibit 1 N2

Special Revenue Funds
Community
Development
Waste Block Proposition Proposition Air Quality Recycling Academic Management Grant A C Improvement Grants Pursuit - - 329,810 1,348,981 85,083 152,653 - - 1,776,341 - - - - 362,884
- - 78 331 22 40 -
124,878 120,674 - - 12,330 - - 124,878 1,897,015 329,888 1,349,312 97,435 152,693 362,884 34,564 116,893 77,126 116,266 124,574 6,675 - 17,541 21,115 - - - - -
52,105 138,008 77,126 116,266 124,574 6,675 - - 1,787,104 - - - - 362,884
- 1,787,104 - - - - 362,884
- - 252,762 1,233,046 - 146,018 -
72,773 (28,097) - - (27,139) - - 72,773 (28,097) 252,762 1,233,046 (27,139) 146,018 - 124,878 1,897,015 329,888 1,349,312 97,435 152,693 362,884 Exhibit 1 M3

CITY OF BELL GARDENS
Nonmajor Governmental Funds, Continued
Combining Balance Sheet
June 30, 2021
Special Revenue Funds
Post Anson
Employment Measure ABC JAG COPS Ford Benefits R Grants Grants Grant Park ASSETS
Cash and investments $ 146,326 1,424,977 - - 78,620 99,568 Receivables:

Accounts - - - - - -
Notes and loans - - - - - - Interest - 347 - - 20 -
Due from other governments - - - - - - Total assets $ 146,326 1,425,324 - - 78,640 99,568

LIABILITIES
Accounts payable $ - - - - - 13,596 Deposits payable - - - - - - Due to other funds - - 2,051 1,519 - - Total liabilities - - 2,051 1,519 - 13,596

DEFERRED IN FLOWS OF RESOURCES
Unavailable revenue - - - - - - Total deferred in flows (outflows)
of resources - - - - - -

FUND BALANCES
Restricted - 1,425,324 - - 78,640 85,972 Assigned 146,326 - - - - -
Unassigned - - 2,051 1,519 - - Total fund balances (deficits) 146,326 1,425,324 (2,051) (1,519) 78,640 85,972 Total liabilities, deferred inflows
and fund balances $ 146,326 1,425,324 - - 78,640 99,568 Exhibit 1 §34

Capital
Projects
Special Revenue Funds Fund
Office of Total
SB 1 Traffic Transportation Nonmajor
Road Measure Safety Development Governmental
Maintenance M Grant Act Funds
- 678,564 - - 5,385,457
- - - 24,633 24,633
- - - - 2,139,225
134 156 - - 1,245
83,337 - 83,763 - 510,743
83,471 678,720 83,763 24,633 8,061,303
- 13,659 600 - 551,247
- - - - 57,147
83,471 - 17,371 24,633 167,701
83,471 13,659 17,971 24,633 776,095
- - 83,763 - 2,295,036
- - 83,763 - 2,295,036
- 665,061 - - 4,847,850
- - - - 146,326
- - (17,971) - (4,004)
- 665,061 (17,971) - 4,990,172
83,471 678,720 83,763 24,633 8,061,303
Exhibit 1 N5

CITY OF BELL GARDENS
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2021
Special Revenue Funds
Public COPS State
Safety State Gas Asset
Augmentation (SLESF) Tax Forfeiture
Revenues:

Taxes and assessments $ - - - - Intergovernmental 159,597 156,727 1,711,084 163,651 Charges for services - - - - Use of money and property 417 1,077 1,032 1,504 Fines and forfeitures - - - - Other revenue 204 - - -
Total revenues 160,218 157,804 1,712,116 165,155 Expenditures:

Current:

General government - - - - Public works - - 1,542,743 -
Public safety 210,993 - - 121,987
Community development - - - - Parks and recreation - - - - Capital outlay - - 82,831 136,725 Total expenditures 210,993 - 1,625,574 258,712 Excess (deficiency) of
revenues over
(under) expenditures (50,775) 157,804 86,542 (93,557) Other financing sources (uses):

Transfers in 124,186 - - - Transfers out - 124,186 - -
Total other financing
sources (uses) 124,186 124,186 -Net change in fund balances 73,411 33,618 86,542 (93,557) Fund balances (deficit),beginning of year 164,585 227,011 38,405 431,012 Fund balances (deficit), end of year $ 237,996 260,629 124,947 337,455 Exhibit 1 216

Special Revenue Funds
Community
Development
Waste Block Proposition Proposition Air Quality Recycling Academic Management Grant A C Improvement Grants Pursuit 3,338,180 - 864,601 717,156 - - -
- 490,164 194,633 - 52,901 3,582 -
- - - 21,512 - - -
- - 1,326 4,088 209 564 -
15,000 - 4,174 - - - -
3,353,180 490,164 1,064,734 742,756 53,110 4,146 - 3,199,891 - 1,100,456 70,702 1,683 23,022 - - 312,639 - - - - -
- 205,622 - 540,879 124,434 - - 3,199,891 518,261 1,100,456 611,581 126,117 23,022 - 153,289 (28,097) (35,722) 131,175 (73,007) (18,876) - 153,289 (28,097) (35,722) 131,175 (73,007) (18,876) - (80,516) - 288,484 1,101,871 45,868 164,894 - 72,773 (28,097) 252,762 1,233,046 (27,139) 146,018 - Exhibit 1 217

CITY OF BELL GARDENS
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances, Continued For the Year ended June 30, 2021
Special Revenue Funds
Post Anson
Employment Measure ABC JAG COPS Ford Benefits R Grants Grants Grant Park
Revenues:

Taxes and assessments $ - - - - - - Intergovernmental - 538,612 - - - - Charges for services 67,640 - - - - 8,816 Use of money and property - 4,506 1 - 272 - Fines and forfeitures - - - - - - Other revenue - - - - - - Total revenues 67,640 543,118 1 - 272 8,816 Expenditures:

Current:

General government 1,016,204 - - - - - Public works - 36,786 - - - -
Public safety - - - - - - Community development - - - - - - Parks and recreation - - - - - 124,919 Capital outlay - 309,129 - - - -
Total expenditures 1,016,204 345,915 - - - 124,919 Excess (deficiency) of
revenues over
(under) expenditures (948,564) 197,203 1 - 272 (116,103) Other financing sources (uses):

Transfers in 948,564 - - - - - Transfers out - - - - - - Total other financing
sources (uses) 948,564 - - - -Net change in fund balances - 197,203 1 - 272 (116,103) Fund balances (deficit),beginning of year 146,326 1,228,121 2,052 1,519 78,368 202,075 Fund balances (deficit), end of year $ 146,326 1,425,324 (2,051) (1,519) 78,640 85,972 Exhibit 1 218

Capital
Projects
Special Revenue Funds Fund
Office of Total
SB 1 Traffic Transportation Nonmajor
Road Measure Safety Development Governmental
Maintenance M Grant Act Funds
- - - - 4,919,937
- 610,268 58,135 24,633 4,163,987
- - - - 97,968
- 1,336 - - 16,332
- - - - 19,378
- 611,604 58,135 24,633 9,217,602
- - - - 1,016,204
- - - - 5,975,283
- - - - 332,980
- - - - 312,639
- - - - 124,919
- 164,756 62,547 24,633 1,651,556
- 164,756 62,547 24,633 9,413,581
- 446,848 (4,412) - (195,979)
- - - - 1,072,750
- - - - (124,186)
- - - - 948,564
- 446,848 (4,412) - 752,585
- 218,213 (13,559) - 4,237,587
- 665,061 (17,971) - 4,990,172
Exhibit 1 219

CITY OF BELL GARDENS
Public Safety Augmentation Special Revenue Fund
Schedule of Revenue,Expenditures and Changes in Fund Balance- Budget and Actual For the Year Ended June 30,2021
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 124,004 159,597 35,593 Use of money and property 1,500 417 (1,083) Other revenue 1,500 204 (1,296)
Total revenues 127,004 160,218 33,214
Expenditures:

Current:

Public safety 251,190 210,993 40,197
Total expenditures 251,190 210,993 40,197 Excess (deficiency) of revenues
over(under) expenditures (124,186) (50,775) 73,411 Other financing sources (uses):

Transfers in 124,186 124,186 -
Total other financing sources (uses) 124,186 124,186 - Net change in fund balances - 73,411 73,411 Fund balance, beginning of year 164,585 164,585 - Fund balance, end of year $ 164,585 237,996 73,411 88 Exhibit 1 220

CITY OF BELL GARDENS
COPS State (SLESF) Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2021
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 100,000 156,727 56,727 Use of money and property 1,500 1,077 (423) Total revenues 101,500 157,804 56,304
Expenditures:

Current:

Public safety - - -
Total expenditures - - -
Excess (deficiency) of revenues
over(under) expenditures 101,500 157,804 56,304 Other financing sources (uses):

Transfers out (124,186) (124,186) -
Total other financing sources (uses) (124,186) (124,186) - Net change in fund balances (22,686) 33,618 56,304 Fund balance, beginning of year 227,011 227,011 - Fund balance, end of year $ 204,325 260,629 56,304 89 Exhibit 1 221

CITY OF BELL GARDENS
State Gas Tax Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2021
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 1,009,651 1,711,084 701,433 Use of money and property - 1,032 1,032
Total revenues 1,009,651 1,712,116 702,465 Expenditures:

Current:

Public works 1,745,014 1,542,743 202,271
Capital outlay 200,206 82,831 117,375 Total expenditures 1,945,220 1,625,574 319,646 Excess (deficiency) of revenues
over(under) expenditures (935,569) 86,542 1,022,111 Other financing sources (uses):

Transfers in 738,545 - (738,545)
Total other financing sources (uses) 738,545 - (738,545) Net change in fund balances (197,024) 86,542 283,566 Fund balance, beginning of year 38,405 38,405 - Fund balance, end of year $ (158,619) 124,947 283,566 90 Exhibit 1 222

CITY OF BELL GARDENS
Asset Forfeiture Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance- Budget and Actual For the Year Ended June 30, 2021
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 164,373 163,651 (722) Use of money and property 4,000 1,504 (2,496) Fines and forfeitures 50,000 - (50,000)
Total revenues 218,373 165,155 (53,218) Expenditures:

Current:

Public safety 140,000 121,987 18,013
Capital outlay 400,373 136,725 263,648
Total expenditures 540,373 258,712 281,661
Excess (deficiency) of revenues
over(under) expenditures (322,000) (93,557) 228,443 Other financing sources (uses):

Transfers out (54,000) - (54,000)
Total other financing sources (uses) (54,000) - (54,000) Net change in fund balances (376,000) (93,557) 174,443 Fund balance, beginning of year 431,012 431,012 - Fund balance, end of year $ 55,012 337,455 174,443 91 Exhibit 1 223

CITY OF BELL GARDENS
Waste Management Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance- Budget and Actual For the Year Ended June 30, 2021
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Taxes and assessments $ 3,504,412 3,338,180 (166,232) Other revenue - 15,000 15,000
Total revenues 3,504,412 3,353,180 (151,232)
Expenditures:

Current:

Public works 3,345,904 3,199,891 146,013 Total expenditures 3,345,904 3,199,891 146,013 Net change in fund balances 158,508 153,289 (5,219) Fund balance (deficit), beginning of year (80,516) (80,516) - Fund balance, end of year $ 77,992 72,773 (5,219) 92 Exhibit 1 224

CITY OF BELL GARDENS
Community Development Block Grant Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2021
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 1,039,600 490,164 (549,436) Total revenues 1,039,600 490,164 (549,436) Expenditures:

Current:

Community development 1,031,000 312,639 718,361 Capital outlay 1,142,073 205,622 936,451 Total expenditures 2,173,073 518,261 1,654,812 Net change in fund balances (1,133,473) (28,097) 1,105,376 Fund balance, beginning of year - - - Fund balance (deficit), end of year $ (1,133,473) (28,097) 1,105,376 93 Exhibit 1 225

CITY OF BELL GARDENS
Proposition "A" Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance- Budget and Actual For the Year Ended June 30, 2021
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Taxes and assessments $ 769,889 864,601 94,712 Intergovernmental 49,600 194,633 145,033 Use of money and property - 1,326 1,326
Other revenue - 4,174 4,174
Total revenues 819,489 1,064,734 245,245 Expenditures:

Current:

Public works 1,394,503 1,100,456 294,047
Total expenditures 1,394,503 1,100,456 294,047 Excess (deficiency) of revenues
over(under) expenditures (575,014) (35,722) 539,292 Other financing sources (uses):

Transfers in 479,147 - (479,147)
Total other financing sources (uses) 479,147 - (479,147) Net change in fund balances (95,867) (35,722) 60,145 Fund balance, beginning of year 288,484 288,484 - Fund balance, end of year $ 192,617 252,762 60,145 94 Exhibit 1 226

CITY OF BELL GARDENS
Proposition "C" Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2021
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Taxes and assessments $ 601,038 717,156 116,118 Charges for services 30,000 21,512 (8,488) Use of money and property - 4,088 4,088 Total revenues 631,038 742,756 111,718
Expenditures:

Current:

Public works 91,825 70,702 21,123 Capital outlay 918,378 540,879 377,499 Total expenditures 1,010,203 611,581 398,622 Excess (deficiency) of revenues
over(under) expenditures (379,165) 131,175 510,340 Other financing sources (uses):

Transfers out (479,147) - (479,147)
Total other financing sources (uses) (479,147) - (479,147) Net change in fund balances (858,312) 131,175 31,193 Fund balance, beginning of year 1,101,871 1,101,871 - Fund balance, end of year $ 243,559 1,233,046 31,193 95 Exhibit 1 227

CITY OF BELL GARDENS
Air Quality Improvement Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance- Budget and Actual For the Year Ended June 30, 2021
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 54,000 52,901 (1,099) Use of money and property - 209 209
Total revenues 54,000 53,110 (890)
Expenditures:

Current:

Public works 38,900 1,683 37,217
Capital outlay 80,000 124,434 (44,434) Total expenditures 118,900 126,117 (7,217) Net change in fund balances (64,900) (73,007) (8,107) Fund balance, beginning of year 45,868 45,868 - Fund balance (deficit), end of year $ (19,032) (27,139) (8,107) 96 Exhibit 1 228

CITY OF BELL GARDENS
Recycling Grants Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance- Budget and Actual For the Year Ended June 30, 2021
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 24,530 3,582 (20,948) Use of money and property - 564 564
Total revenues 24,530 4,146 (20,384)
Expenditures:

Current:

Public works 33,562 23,022 10,540 Total expenditures 33,562 23,022 10,540 Net change in fund balances (9,032) (18,876) (9,844) Fund balance, beginning of year 164,894 164,894 - Fund balance, end of year $ 155,862 146,018 (9,844) 97 Exhibit 1 229

CITY OF BELL GARDENS
Post Employment Benefits Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2021
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Charges for services $ 73,900 67,640 (6,260) Total revenues 73,900 67,640 (6,260) Expenditures:

Current:

General government 885,700 1,016,204 (130,504) Total expenditures 885,700 1,016,204 (130,504) Excess (deficiency) of revenues
over(under) expenditures (811,800) (948,564) (136,764) Other financing sources (uses):

Transfers in 811,801 948,564 136,763 Total other financing sources (uses) 811,801 948,564 136,763 Net change in fund balances 1 - (1)
Fund balance, beginning of year 146,326 146,326 - Fund balance, end of year $ 146,327 146,326 (1) 98 Exhibit 1 230

CITY OF BELL GARDENS
Measure R Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2021
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 450,825 538,612 87,787 Use of money and property - 4,506 4,506 Total revenues 450,825 543,118 92,293 Expenditures:

Current:

Public works 63,575 36,786 26,789
Capital outlay 1,353,409 309,129 1,044,280
Total expenditures 1,416,984 345,915 1,071,069 Net change in fund balances (966,159) 197,203 1,163,362 Fund balance, beginning of year 1,228,121 1,228,121 - Fund balance, end of year $ 261,962 1,425,324 1,163,362 99 Exhibit 1 231

CITY OF BELL GARDENS
ABC Grants Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance- Budget and Actual For the Year Ended June 30, 2021
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 28,000 - (28,000)
Use of money and property - 1 1
Total revenues 28,000 1 (27,999) Expenditures:

Current:

Public safety 28,000 - 28,000
Total expenditures 28,000 - 28,000
Net change in fund balances - 1 1
Fund balance (deficit), beginning of year (2,052) (2,052) - Fund balance (deficit), end of year $ (2,052) (2,051) 1 100
Exhibit 1 232

CITY OF BELL GARDENS
COPS Grant Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance- Budget and Actual For the Year Ended June 30, 2021
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Use of money and property $ 2,310 272 (2,038) Total revenues 2,310 272 (2,038)
Expenditures:

Current:

Public safety - - -
Total expenditures - - -
Net change in fund balances 2,310 272 (2,038) Fund balance, beginning of year 78,368 78,368 - Fund balance, end of year $ 80,678 78,640 (2,038) 101
Exhibit 1 233

CITY OF BELL GARDENS
Anson Ford Park Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance- Budget and Actual For the Year Ended June 30, 2021
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Charges for services $ 14,800 8,816 (5,984) Use of money and property 33,500 - (33,500) Total revenues 48,300 8,816 (39,484) Expenditures:

Current:

Parks and recreation 140,000 124,919 15,081 Total expenditures 140,000 124,919 15,081 Excess (deficiency) of revenues
over(under) expenditures (91,700) (116,103) (24,403) Other financing sources (uses):

Transfers in 92,200 - (92,200)
Total other financing sources (uses) 92,200 - (92,200) Net change in fund balances 500 (116,103) (116,603) Fund balance, beginning of year 202,075 202,075 - Fund balance, end of year $ 202,575 85,972 (116,603) 102
Exhibit 1 234

CITY OF BELL GARDENS
Measure M Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2021
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 510,882 610,268 99,386 Use of money and property - 1,336 1,336
Total revenues 510,882 611,604 100,722
Expenditures:

Capital outlay 710,031 164,756 545,275 Total expenditures 710,031 164,756 545,275 Net change in fund balances (199,149) 446,848 645,997 Fund balance, beginning of year 218,213 218,213 - Fund balance, end of year $ 19,064 665,061 645,997 103
Exhibit 1 235

CITY OF BELL GARDENS
Office of Traffic Safety Grant Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2021
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 80,000 58,135 (21,865) Total revenues 80,000 58,135 (21,865) Expenditures:

Capital outlay 80,000 62,547 17,453
Total expenditures 80,000 62,547 17,453 Net change in fund balances - (4,412) (4,412) Fund balance (deficit), beginning of year (13,559) (13,559) - Fund balance (deficit), end of year $ (13,559) (17,971) (4,412) 104
Exhibit 1 236

CITY OF BELL GARDENS
Transportation Development Act Capital Projects Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2021
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 22,822 24,633 1,811 Total revenues 22,822 24,633 1,811
Expenditures:

Capital outlay 26,000 24,633 1,367
Total expenditures 26,000 24,633 1,367 Net change in fund balances (3,178) - 3,178
Fund balance, beginning of year - - - Fund balance (deficit), end of year $ (3,178) - 3,178 105
Exhibit 1 237

CITY OF BELL GARDENS
Capital Improvement Projects Capital Projects Fund
Schedule of Revenue,Expenditures and Changes in Fund Balance- Budget and Actual For the Year Ended June 30,2021
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 3,108,818 3,108,818 $Use of money and property - 23 23 Total revenues 3,108,818 3,108,841 23
Expenditures:

Capital outlay 18,030,119 3,554,734 14,475,385 Total expenditures 18,030,119 3,554,734 14,475,385 Net change in fund balances (14,921,301) (445,893) 14,475,408 Fund balance,beginning of year 110,062 110,062 - Fund balance(deficit), end of year $ (14,811,239) 335,831) 14,475,408 Exhibit 1 �A

Statistical Section
This part of the City of Bell Gardens comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health.

Contents
Financial Trends
These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time.

Revenue Capacity
These schedules contain information to help the reader asses the government's most significant local revenue source, the property tax.

Debt Capacity
These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future.

Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment with in which the government's financial activities take place.

Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services that the government provides and the activities it performs.

Sources:Unless otherwise noted,the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.
107
Exhibit 1 239

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City of Bell Gardens
Tax Revenues by Source,Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Property
Year Property Sales&Use Occupancy Franchise Transfer Other Total 2012 4,730,399 2,390,885 238,104 518,889 14,738 14,971,352 22,864,367 2013 4,807,151 2,533,682 258,666 589,683 33,368 15,614,309 23,836,859 2014 4,854,325 2,635,981 314,060 582,545 26,768 16,016,240 24,429,919 2015 5,475,800 2,755,036 362,340 675,274 30,883 16,876,306 26,175,639 2016 5,302,713 2,724,441 534,412 634,387 37,364 18,630,606 27,863,923 2017 5,525,193 2,906,014 742,345 704,476 43,383 24,112,701 34,034,112 2018 5,623,586 2,978,666 737,207 737,113 95,964 20,541,169 30,713,705 2018 5,623,586 2,978,666 737,207 737,113 95,964 20,541,169 30,713,705 2019 5,781,864 3,293,906 751,886 790,764 42,307 21,837,310 32,498,037 2020 6,497,085 2,902,461 595,441 855,197 40,797 18,560,708 29,451,689 2021 12,327,451 3,923,189 410,282 849,511 51,247 17,889,742 35,451,422 Change
2011-2020 160.6% 64.1% 72.3% 63.7% 247.7% 19.5% 55.1% Exhibit 1 Ph?

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City of Bell Gardens
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per$1,000 of assessed value)
City Direct Rates
General Montebello
Obligation Redevelopment Total Los Unified Fiscal Basic Debt Debt Direct Angeles School Year Rate Service Service Rate County District 2012 1.00 - - 1.00 0.2923 0.1000
2013 1.00 - - 1.00 0.3251 0.0963
2014 1.00 - - 1.00 0.2855 0.0946
2015 1.00 - - 1.00 0.3041 0.0875
2016 1.00 - - 1.00 0.3315 0.0875
2017 1.00 - - 1.00 0.3323 0.1470
2018 1.00 - - 1.00 0.3208 0.1351
2019 1.00 - - 1.00 0.3185 0.1392
2020 1.00 - - 1.00 0.2978 0.0931
2021 1.00 - - 1.00 0.3148 0.0971
Source: HDL
Notes: The city's basic property tax rate may be increased only by a majority vote of the city's residents.

Rates for debt service are set based on each year's requirements.

Exhibit 1 bhp

City of Bell Gardens
Principal Property Tax Payers
Current Year and Ten Years Ago
2021 2012
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpaver Value Rank Value Value Rank Value Bicycle Casino LP $ 114,635,354 1 5.56% $ 61,576,461 1 4.26% Prime CRDF Bell Gardens Ilc 71,059,331 2 3.44% Prime CRDF Los Jardines Ilc 29,685,727 3 1.44% Prime Store El Portal 22,680,720 4 1.10% Western B West California LLC 21,648,641 5 1.05% Villa Del Rio Inc 16,295,548 6 0.79%
Wei Chuan International Inc. 14,739,341 7 0.71% 16,142,778 4 1.12% IIT Bell Gardens Portfulio LLP 15,550,000 5 1.07% Gifaffe Properties LLC 8,544,615 6 0.59% Jamesn P. and Judy A. Berg 6,991,613 9 0.48% Prime Frit Los Jardines LLC 9,792,000 8 0.47% Garfield Avenue LLC 9,259,560 9 0.45%
Bell Gardens Hospitality LLC 8,841,556 10 0.43% $7,543,183 7 0.52% Primestor Bell Gardens LLC 34,865,502 3 2.41% Suva Montalane Invesfinent LLC 6,991,973 8 0.48% Florence Eastern Marketplace LLC 36,000,000 2 2.49% Caster Garfield Storage LP 6,465,101 10 0.45% Total $ 318,637,778 15.44% $ 200,671,226 13.87% Source: HdL Coren &Cone, Los Angeles County Assessor 2011/12 and 2020/21 Combined Tax Rolls Bell Gardens Bicycle Club
Exhibit 1

City of Bell Gardens
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Collected within the
Year Taxes Levied Fiscal Year of the Levy Collection in Collection to date Ended for the Percentage Subsequent Pecent June 30, Fiscal Year Amount of Levy Years Amount of Levy 2012 1,331,273 995,598 74.79% 20,531 1,016,129 76.33% 2013 1,334,508 1,185,167 88.81% 1,191 1,186,358 88.90% 2014 1,372,471 1,077,254 78.49% 975 1,078,229 78.56% 2015 1,401,157 1,127,438 80.46% 1,029 1,128,467 80.54% 2016 1,458,844 1,313,441 90.03% - 1,313,441 90.03% 2017 1,523,617 1,360,576 89.30% 1,360,576 89.30% 2018 1,585,780 1,338,925 84.43% 1,338,925 84.43% 2019 1,662,373 1,235,171 74.30% 1,235,171 74.30% 2020 1,773,585 1,521,691 85.80% 1,521,691 85.80% 2021 1,899,332 1,554,677 81.85% 1,554,677 81.85% Sources: Finance Department records and Los Angeles County Assessors Office * NOTE:

The City receives limited information from Los Angeles County in connection to tax levies and collections. At the current time the City does not have the resources to retrive the Collection in Subsequent years data for the periods 2005-2011 and does not currently have the Taxes Levied information for the fiscal year ended June 30,2014.

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City of Bell Gardens
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
City Los State
Fiscal Direct Angeles of
Year Rate County California
2012 1.00 1.50 7.25
2013 1.00 1.50 6.50
2014 1.00 1.50 6.50
2015 1.00 1.50 6.50
2016 1.00 1.50 6.50
2017 1.00 1.50 7.00
2018 1.00 1.50 7.00
2019 1.00 1.50 7.00
2020 1.00 1.50 7.00
2021 1.00 1.50 7.00
Sources: Los Angeles County
Note: The city sales tax rate may be changed only with the approval of the state legislature.

Exhibit 1 Bb

City of Bell Gardens
Principal Sales Tax Remitters
Current Year and Ten Years Ago
2021 2012
Tax Remitter Business Category Tax Remitter Business Category 76 Service Stations 76 Service Stations Alfredo Mexican Foof Quick-Service Restaurants Andrea Shoes Shoe stores Applebees Casual Dining Applebees Casual Dining Arco AM PM Service Stations Arco AM PM Service Stations Auto Zone Automotive Supply Stores Auto Zone Automotive Supply Stores Big 5 Sporting Goods Sporting Goods/Bike Stores Bicycle Club Casino Leisure/Entertainment Bob's Discount furniture Home Furnishsings Big 5 Sporting Goods Sporting Goods/Bike Stores Casa Leaders Home Furnishings Casa Leaders Home Furnishings Chevron Service Stations
Chevron Pronto Lube&Tune Service Stations Chevron Pronto Lube&Tune Service Stations El Pescador Casual Dining El Pollo Loco Quick service Restaurants El Pollo Loco Quick-Service Restaurants Eurocraft Architectural Heavy Industrial Food 4 Less Grocery Stores Factory 2U Family Apparel Jack in the Box Quick-Service Restaurants Food 4 Less Grocery Stores Marshalls Family Apparel
Mc Donalds Quick-Service Restaurants IHOP Casual Dining Mosier Building Materials Jack in the Box Quick service Restaurants O'Reilly Auto Parts Automotive Supply Stores Marahalls Family Apparel Parkhouse Tire Service Trailers/Auto Parts Mc Donalds Quick-Service Restaurants Petco Specialty Stores Mosier Building Material Prime Metal Supply Heavy Industrial Parkhouse Tire Service Trailers/Auto Parts Rite Aid Drug Stores Rite Aid Drug Stores Ross Family Apparel Ross Family Apparel
Sol Y Mar Mariscos Casual Dining
Super A Foods Grocery Stores Super A Foods Grocery Stores Thrifty Oil Service Stations
Toys R Us Specialty Stores
Valero Service Stations
Percent of FY Total Paid by Top 25 Accounts 64.10% 66.67% Source: Hinderliter,de Llamas&Associates,State Board of Equalization Exhibit 1 b�Q4

City of Bell Gardens
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business-
Governmental Activities type Activities
Tax Capital Certificates Water Total Percentage Fiscal Allocation Revenue Notes Lease of Revenue Primary of Personal Per Year Bonds Bonds Payable Payable Participation Bonds Government Income Capita 2012 3,360,000 3,430,000 3,795,000 6,790,000 1.84% 240 2013 3,144,151 3,306,355 3,574,474 6,450,506 2.10% 238 2014 2,673,580 3,260,000 3,340,000 5,933,580 1.83% 220 2015 6,460,172 2,175,009 - 3,103,700 8,635,181 2.18% 252 2016 6,301,045 1,662,056 2,853,313 7,963,101 1.90% 257 2017 6,111,918 1,137,179 2,592,926 7,249,097 1.71% 229 2018 5,927,791 587,278 2,317,537 8,832,606 1.47% 207 2019 5,733,664 9,146 2,032,150 7,774,960 1.24% 181 2020 5,529,539 4,102 1,731,763 7,265,404 1.11% 173 2021 4,883,540 500 2,239,435 1,416,376 8,539,851 1.60% 213 Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.

Exhibit 1 M

City of Bell Gardens
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
General Bonded Debt Outstanding
Percentage of
General Actual Taxable
Fiscal Obligation Redevelopment Value of Per Year Bonds Bonds Total Property Capita
2011 - 13,865,000 13,865,000 95.50% 314.73 2012 - - - - -
2013 - - - - -
2014 - - - - -
2015 - - - - -
2016 - - - - -
2017 - - - - -
2018 - - - - -
2019 - - - - -
2020 - - - - -
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.

Exhibit 1 OA

CITY OF BELL GARDENS
DIRECT&OVERLAPPING DEBT AS OF JUNE 30,2021
Outstanding debt City
Direct Debt 6/30/2021 Percentage Net bonded Debt 119.01 2015 LEASE REV REF BONDS 4,835,000 100.000 4,835,000 119.01 Unamortized bond premium 485,410 100.000 485,410 Notes payable 500 100.000 500
capital Lease payable 2,239,435 100.000 2,239,435 119.01 2004 Revenue Bonds 1,415,000 100.000 1,415,000 119.01 2004 Revenue Bonds-Unamortized bond premium 1,376 100.000 1,376 Total Direct Debt 8,976,721
Overlapping Debt
*315.05 METROPOLITAN WATER DISTRICT 13,101,783 0.130 16,974 790.54 CERRITOS CCD IDS 2004 SERIES 2012D 31,855,943 0.072 22,892 790.55 CERRITOS CCD IDS 2012 SERIES 2014A 73,900,000 0.072 53,106 790.56 CERRITOS CCD IDS 2014 REF BONDS SERIES A 74,671,000 0.072 53,659 790.57 CERRITOS CCD IDS 2014 REF BONDS SERIES B 7,620,000 0.072 5,476 790.58 CERRITOS CCD IDS 2012 SERIES 2018B 53,415,000 0.072 38,385 790.59 CERRITOS CCD IDS 2012 SERIES 2019C 99,125,000 0.072 71,233 790.60 CERRITOS CCD IDS 2020 REF BIDS 51,830,000 0.072 37,246 805.55 LA CCD IDS 2003 TAXABLE SERIES 2004B 2,115,000 0.210 4,446 805.56 LA CCD IDS 2001 TAXABLE SERIES 2004A 31,555,000 0.210 66,334 805.65 LA CCD IDS 2008,2009 TAXABLE SER B 75,000,000 0.210 157,664 805.66 LA CCD IDS 2008,2010 TAX SERIES D 125,000,000 0.210 262,773 805.67 LA CCD IDS 2008,2010 TAX SER E(BABS) 900,000,000 0.210 1,891,963 805.69 LA CCD IDS 2008 2012 SERIES F 19,000,000 0.210 39,941 805.70 LA CCD IDS 2013 REF BONDS 12,270,000 0.210 25,794 805.71 LA CCD IDS 2008 SERIES G 33,670,000 0.210 70,780 805.73 LA CCD IDS 2015 REF SERIES A 203,235,000 0.210 427,237 805.74 LA CCD IDS 2015 REF SERIES B 205,540,000 0.210 432,082 805.75 LA CCD IDS 2015 REF SERIES C 190,920,000 0.210 401,349 805.76 LA CCD IDS 2008 SERIES 1 173,700,000 0.210 365,149 805.78 LA CCD IDS 2016 REF BONDS 239,880,000 0.210 504,271 805.82 LA CCD IDS 2016 SER B 1 2,193,365,000 0.210 4,610,852 853.53 DOWNEY USD IDS REFUNDING 1999 SERIES A 2,335,256 0.267 6,240 853.60 DOWNEY USD IDS 2007 REF BIDS 11,325,000 0.267 30,262 853.61 DOWNEY USD IDS 2011 REFUNDING BONDS 1,275,000 0.267 3,407 853.62 DOWNEY USD IDS 2012 REF BONDS 950,000 0.267 2,539 853.63 DOWNEY USD IDS 2014 SERIES A 34,935,000 0.267 93,351 853.64 DOWNEY USD IDS 2015 REF BONDS 2,945,000 0.267 7,869 853.65 DOWNEY USD IDS 2016 REF BONDS 5,095,000 0.267 13,615 853.66 DOWNEY USD IDS 2014 SERIES B 200,372,984 0.267 535,423 887.86 LOS ANGELES UNIF IDS 2002 SERIES E 200,000,000 0.008 16,062 887.89 LOS ANGELES UNIF IDS 2005 SERIES H-QSCBS 249,040,000 0.008 20,001 887.92 LOS ANGELES UNIF MEASURE R SERIES KRY BABS 363,005,000 0.008 29,154 887.93 LOS ANGELES UNIF MEASURE Y 2009 SERIES KRY BABS 806,795,000 0.008 64,796 887.98 LOS ANGELES UNIF MEASURE R 2010 SERIES RY BABS 477,630,000 0.008 38,360 887.99 LOS ANGELES UNIF MEASURE Y 2010 SERIES RY BABS 772,955,000 0.008 62,078 *This fund is a portion of a larger agency,and is responsible for debt in areas outside the city.

This report reflects debt which is being repaid through voter-approved property tax indebtedness.It excludes mortgage revenue, tax allocation bonds,interim financing obligations,non-bonded capital lease obligations,and certificates of participation,unless provided by the city.

Overlapping governments are those that coincide,at least in part,with the geographic boundaries of the city.The percentage of overlapping debt applicable is estimated by using taxable assessed values.Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value.

Data Source:HdL Coren 8 Cone,Los Angeles County Assessor and Auditor Combined 2019120 Lien Date Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL,Coren&Cone
Exhibit 1 257

CITY OF BELL GARDENS
DIRECT&OVERLAPPING DEBT AS OF JUNE 30,2021
Gross Bonded Debt City
Overlapping Debt Balance Percentage Net bonded Debt 888.55 LOS ANGELES UNIF IDS 2005 2010 SERIES J-1 QSCBS 134,415,000 0.008 10,795 888.56 LOS ANGELES UNIF IDS 2005 2010 SERIES J-2 QSCBS 70,670,000 0.008 5,676 888.57 LOS ANGELES UNIF IDS 2011 REFUNDING BOND SERIES A 1 52,305,000 0.008 4,201 888.58 LOS ANGELES UNIF IDS 2011 REFUNDING BOND SERIES A 2 131,825,000 0.008 10,587 888.59 LOS ANGELES UNIF IDS 2012 REFUNDING BOND SERIES A 79,965,000 0.008 6,422 888.60 LOS ANGELES UNIF IDS 2014 REF BOND SERIES A 39,990,000 0.008 3,212 888.61 LOS ANGELES UNIF IDS 2014 REF BOND SERIES B 126,165,000 0.008 10,133 888.62 LOS ANGELES UNIF IDS 2014 REF BOND SERIES C 767,245,000 0.008 61,619 888.63 LOS ANGELES UNIF IDS 2014 REF BOND SERIES D 115,040,000 0.008 9,239 888.68 LOS ANGELES UNIF IDS 2015 REF BONDS SERIES A 218,260,000 0.008 17,529 888.69 LOS ANGELES UNIF IDS 2008 SERIES A 2016 377,985,000 0.008 30,357 888.70 LOS ANGELES UNIF IDS 2016 REF BONDS SERIES A 267,465,000 0.008 21,481 888.71 LOS ANGELES UNIF IDS 2016 REF BONDS SERIES B 498,240,000 0.008 40,015 888.72 LOS ANGELES UNIF IDS 2017 REF BONDS SER A PROP BB 113,455,000 0.008 9,112 888.73 LOS ANGELES UNIF IDS 2017 REF BONDS SER A MEAS K 921,240,000 0.008 73,987 888.74 LOS ANGELES UNIF IDS 2005 SERIES M 1 2018 111,265,000 0.008 8,936 888.76 LOS ANGELES UNIF IDS 2008 SERIES B 1 2018 1,034,935,000 0.008 83,118 888.78 LOS ANGELES UNIF IDS 2019 REF 2002 SER D MEAS K 142,765,000 0.008 11,466 888.79 LOS ANGELES UNIF IDS 2019 REF 2004 SER I MEAS R 316,820,000 0.008 25,445 888.80 LOS ANGELES UNIF IDS 2019 REF 2005 SER F MEAS Y 85,710,000 0.008 6,884 888.82 LA USD MEAS R 2020 SER RYQ 829,000,000 0.008 66,579 888.83 LA USD MEAS Y 2020 SER RYQ 302,000,000 0.008 24,254 888.84 LA USD MEAS Q 2020 SER RYQ 907,190,000 0.008 72,859 888.85 LA USD IDS SER RYQ 2020 B 196,310,000 0.008 15,766 899.50 MONTEBELLO USD IDS 1998 SERIES 1998 2,059,841 10.406 214,352 899.51 MONTEBELLO USD IDS 1998 SERIES 1999 2,244,866 10.406 233,606 899.52 MONTEBELLO USD IDS 1998 SERIES 2001 2,632,827 10.406 273,979 899.53 MONTEBELLO USD IDS 1998 SERIES 2004 5,023,902 10.406 522,800 899.54 MONTEBELLO USD IDS 1998 SERIES 2002 4,257,964 10.406 443,094 899.58 MONTEBELLO USD IDS 2004 SERIES 2009A-2 BABS 12,640,000 10.406 1,315,350 899.60 MONTEBELLO USD IDS REF 2004 SERIES 2013A 15,010,000 10.406 1,561,978 899.61 MONTEBELLO USD IDS REF BOND SERIES 2015 26,185,000 10.406 2,724,877 899.62 MONTEBELLO USD IDS REF BONDS 2016 SERIES A 13,425,000 10.406 1,397,039 899.63 MONTEBELLO USD IDS 2016 SERIES A 79,345,000 10.406 8,256,840 Total Overlapping debt 28,056,350
Total Direct and Overlapping debt 37,033,071 2020/21 Assessed Valuation:$1,492,704,219 After Deducting$570,654,305 Incremental Value Debt To Assessed Valuation Ratios:

Direct Debt 24.24%
Overlapping Debt 75.76%
Total Debt 100.00%
*This fund is a portion of a larger agency,and is responsible for debt in areas outside the city.

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City of Bell Gardens
Pledged-Revenue Coverage
Last Ten Fiscal Years
Water Revenue Bonds
Utility Less: Net
Fiscal Service Operating Available Debt Service Year Charges Expenses Revenue Principal Interest Coverage 2012 1,150,100 1,372,324 (222,224) 215,000 176,518 (0.57) 2013 1,260,620 1,408,572 (147,952) 225,000 168,705 (0.38) 2014 1,543,070 1,365,071 177,999 230,000 160,343 0.46 2015 1,038,752 962,962 75,790 240,000 151,230 0.19 2016 1,545,560 1,318,431 227,129 250,000 140,805 0.58 2017 1,103,221 147,407 955,814 260,000 135,180 2.42 2018 1,167,877 975,029 192,848 285,000 110,418 0.49 2019 1,216,817 1,255,718 (38,901) 300,000 96,880 (0.10) 2020 1,198,473 1,759,566 (561,093) 315,000 82,255 (1.41) 2021 1,061,040 1,479,979 (418,939) 330,000 67,608 (1.05) Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include bond interest, depreciation, or amortization expenses.

Exhibit 1 �

City of Bell Gardens
Demographic and Economic Statistics
Last Ten Calendar Years
Personal Per
Income Capita
Calendar (thousands Personal Unemployment Year Population of dollars) Income Rate 2012 42,437 508,607 11,985 14.9% 2013 42,667 497,497 11,660 12.4% 2014 42,685 493,908 11,571 9.5%
2015 42,952 489,495 11,396 7.8%
2016 42,824 499,815 11,671 6.1%
2017 43,051 494,144 11,478 5.6%
2018 42,972 520,032 12,101 4.7%
2019 42,449 537,963 12,673 4.4%
2020 42,641 543,500 12,673 4.4%
2021 42,233 560,614 13,274 13.2% Source: HDL
Exhibit 1 261

City of Bell Gardens
Full-time-Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Function/Program
General government
Mayor and City Council 1 1 1 1 1 1 1 1 1 1
City Manager's Office 4 4 4 4 4 4 4 4 3 3
City Clerk's Office 2 2 2 2 2 2 3 3 3 3
Finance 8 10 10 10 10 10 9 9 9 9 Community Development 12 10 10 10 10 9 9 9 10 10 Police
Sworn 51 51 51 51 51 51 51 51 48 48 Non-sworn 22 21 21 21 22 22 23 23 23 23 Public works 29 27 27 27 27 27 28 28 28 28 Recreation&Community Services 11 11 11 11 11 12 12 12 11 11 Total 140 137 137 137 138 138 140 140 136 136 Source: City Budget
Notes:A full-time employee is scheduled to work 2,080 hours per year(including vacation and sick leave). Full- time-equivalent employment is calculated by dividing total labor hours by 2,080.

Exhibit 1 ��

City of Bell Gardens
Principal Employers
Current Year and Nine Years Ago
2021 2012
Percent of Percent of
Number of Total Number of Total
Employers Employees Employment Employees Employment Bicycle Casino 1,113 9.98%
Briarcrest Nursing Center 250 2.24%
First Class Vending, Inc. 150 1.34%
Metal Surfaces Inc. 121 1.08%
Wei-Chuan U.S.A. Inc. 100 0.90%
Laundry Los Angeles 100 0.90%
Food 4 Less#307 90 0.81%
Dx-Chol Enterprises Inc 66 0.59%
Ross Dress for Less#981 65 0.58%
Marshalls#308 64 0.57%
Total 2,119 19.00%
Source:

City Bell Gardens Community Development Department
California Employment Development Labor Market Information http:// labor arketinfor.edd.ca.gov/cgi/dataanalysis/AreaSelection.asp?table a e=Labforce "Note
2008-2012 Employer data is not readily available and thus the City has chosen not to present it at this time.

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Bell Gardens City CouncilMay 9, 2022

Bell Gardens City Council
May 9, 2022