Agenda packet — Big Bear Lake City Council, January 3, 2022 (part 1 of 2)

CITY COUNCIL, FIRE PROTECTION DISTRICT

SUCCESSOR AGENCY

REGULAR MEETING AGENDA
JANUARY 3, 2022
Meeting Time - 6:00 p.m.

Meeting Location - Hofert Hall, 39707 Big Bear Boulevard, Big Bear Lake, CA 92315 __________________________________________________________________________________________

COUNCILMEMBERS

MAYOR RICK HERRICK

MAYOR PRO TEM BYNETTE MOTE

COUNCILMEMBER ALAN LEE

COUNCILMEMBER PERRI MELNICK

COUNCILMEMBER RANDALL PUTZ

CITY STAFF
CITY MANAGER FRANK A. RUSH, JR.

CITY ATTORNEY STEPHEN DEITSCH

CITY CLERK ERICA STEPHENSON
Please Note:

Agenda items may be moved at the discretion of the City Council.

Target times for each item are indicated in RED, and are provided as an approximate time only. The actual time of consideration will deviate depending on the pace of the meeting, and at the discretion of the Presiding Officer.

OPEN SESSION 6:00 pm

CALL TO ORDER

PLEDGE OF ALLEGIANCE

INVOCATION
Invocation will be led by Father Paul Smith CR, St. Joseph’s Catholic Church.

ROLL CALL
PRESENTATIONS 6:05 pm
• Introduction of new City employee - Ryan Orr, Public Information Officer. • Presentation of a Proclamation to Max Sannes to Recognize his CIF Division 4 State Championship – Individual Cross-Country Title

CITY COUNCIL AGENDA
January 3, 2022 - Page 2
PUBLIC COMMUNICATIONS 6:15 pm
Public comment is permitted at this time only on consent calendar items and other matters not listed on the posted agenda that are within the subject matter jurisdiction of the City. Please note that State law prohibits the City Council from taking any action on items not listed on the agenda. There is a three-minute maximum time limit when addressing Council during this time period. The time limit is subject to adjustment at the discretion of the Presiding Officer.

Speakers are limited to their individual maximum time limit and other members of the public cannot cede their speaking time to another person. Public comment on items listed on the posted agenda (public hearing & discussion/ action items) will be taken at the time each item is called for discussion.

1. CONSENT CALENDAR 6:30 pm

CITY COUNCIL

1.1 APPROVAL OF DEMANDS – CHECK ISSUE DATE 11/25/2021 THROUGH 12/14/2021 IN THE AMOUNT OF $2,226,968 AND THE NOVEMBER 2021 TREASURER’S REPORT

1.2 APPROVAL OF MEETING MINUTES FROM THE DECEMBER 6, 2021 REGULAR MEETING

OF CITY COUNCIL

1.3 RESOLUTION AUTHORIZING BID SOLICITATION FOR THE ANNUAL STREET STRIPING

PROJECT
City Council will consider a formal resolution authorizing the solicitation of bids for the annual street striping project. This project is an annual effort to restripe roadway markings throughout the City in order to ensure proper function and a fresh appearance after the wear and tear of the winter season. Following bid solicitation, City Council is expected to consider a formal contract award in March, with work commencing as soon as weather permits this spring. A total of $50,000 is included in the FY 2021-22 General Fund budget for this work.

1.4 RESOLUTION AUTHORIZING A REIMBURSEMENT AGREEMENT WITH DWP FOR

WATER LINE IMPROVEMENTS ASSOCIATED WITH THE MOONRIDGE CORRIDOR

IMPROVEMENTS PROJECT
City Council will consider a formal resolution authorizing the reimbursement of $256,328 to the Department of Water and Power (DWP) for water line improvements associated with the Moonridge Corridor Improvements Project. As construction of the Moonridge project got underway last summer, the engineering team identified concerns and opportunities with portions of the water line improvements specified within the project, and identified a more cost-effective approach to complete these improvements and create additional value for the City and DWP. As a result, the City reduced the scope of work in the Granite Construction contract for the Moonridge project, and authorized DWP to complete the necessary water line improvements via its contractor. Overall, this approach resulted in significant cost savings for the City and DWP. Sufficient funds are available in the project budget for the Moonridge Corridor Improvement Project for this reimbursement.

1.5 RESOLUTION AUTHORIZING MOUNTAIN TRANSIT TO UTILIZE CITY LAND IN THE

KNICKERBOCKER PARKING LOT FOR A BUS STOP
City Council will consider a formal resolution authorizing Mountain Transit to utilize City land in the Knickerbocker Parking Lot for a new bus stop. The City recently cordoned off several parking spaces in

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January 3, 2022 - Page 3
the northwest corner of the parking lot to serve as the main bus stop in The Village as part of the new free trolley service. Mountain Transit is working to construct a new, permanent bus stop shelter at this location in the future, and the proposed resolution would authorize the use of this portion of the parking lot for this purpose. The new bus stop features would be funded by Mountain Transit.

1.6 RESOLUTION HONORING REQUEST TO WITHDRAW LAND USE APPLICATION AND

RESCINDING CITY APPROVAL OF THE DEVELOPMENT OF A COMMERCIAL GROCERY

STORE BUILDING WITH ASSOCIATED PARKING LOT AND SITE IMPROVEMENTS LOCATED AT 42175 BIG BEAR BOULEVARD
City Council will consider a formal resolution honoring a request from Tectonics Design Group / Main & Main Capital Group LLC to withdraw its land use application for construction of a proposed new Grocery Outlet store, and rescinding City approval of the proposed project. Tectonics Design Group / Main & Main Capital Group LLC recently reached a settlement agreement with petitioners challenging the project, and the settlement agreement includes the termination of project development. The Planning Commission approved the proposed project at its meeting on April 21, 2021, and the City Council denied appeals of the Planning Commission’s approval at its meeting on August 2, 2021. The attached resolution formally rescinds these previous City approvals.

1.7 RESOLUTION AUTHORIZING GRANT FUNDING APPLICATIONS TO THE LAND AND

WATER CONSERVATION FUND
City Council will consider two formal resolutions authorizing the submission of two grant applications to the Federal Land and Water Conservation Fund (LWCF) for a) future development of the Rathbun Creek bicycle and pedestrian trail, and b) future development of park amenities at the Stanfield Marsh property.

The proposed resolution authorizes a $1.8 million grant application for the Rathbun Creek trail segments located between the Big Bear Alpine Zoo and Sandalwood Drive, and a $1.25 million grant application for the Stanfield Marsh park amenities, including new paved trails, boardwalk improvements, and parking lot improvements. If awarded, the grants would be matched with $3.05 million of City funds derived from transient occupancy taxes.

1.8 RESOLUTION AUTHORIZING EMERGENCY REPAIRS TO STANFIELD BOARDWALK City Council will consider a formal resolution retroactively authorizing a contract with Jilk Heavy Construction, Brea, CA, for emergency repairs to the western segment of the Stanfield Boardwalk in the amount of $53,210. A single-vehicle accident damaged support pilings, decking, and railings on the boardwalk in early December, and the western segment was closed immediately thereafter for public safety reasons. The boardwalk was initially constructed by the predecessor of Jilk Heavy Construction in the 1990s, and the City Manager authorized emergency repairs in mid-December in order to ensure public safety and also to reopen the boardwalk prior to the upcoming holiday season. The City is in the process of completing the acquisition of the boardwalks and other property from the Municipal Water District (MWD), and the City ultimately expects to be reimbursed for the emergency repairs from the driver’s and/or the MWD’s insurance carrier.

1.9 RESOLUTION INCREASING THE DEPARTMENT OF WATER AND POWER BOARD OF

COMMISSIONERS MONTHLY STIPEND
City Council will consider a formal resolution to increase the Department of Water and Power (DWP) Board of Commissioners compensation from $400 per month to $500 per month. The DWP Board’s

CITY COUNCIL AGENDA
January 3, 2022 - Page 4
compensation was last increased by the City Council in June 2005 to $400 per month. The DWP Board’s compensation was recently reviewed as part of a comprehensive compensation study, and that study recommended an increase to $600 per month. Additionally, the application of the consumer price index annually since 2005 would result in an increase to $603 per month. The proposed resolution, however, would establish a $500 per month stipend, and would be consistent with the current monthly stipend provided to members of the City Council.

1.10 RESOLUTION ESTABLISHING INACTIVE VACATION RENTAL LICENSE PROCEDURES

FOR PROPERTIES CONVERTED TO LONG-TERM RENTAL HOUSING
City Council will consider a formal resolution establishing inactive vacation rental license procedures for properties that are converted to long-term rental housing. The proposed resolution establishes a new “inactive” classification of vacation rental licenses, and would enable a property owner to maintain a valid vacation rental license while the property is offered as a long-term rental for at least 12 months. The license would simply be placed in “inactive” status until such time that the owner seeks to return to “active” status, at which time the licensee would again be required to meet all applicable vacation rental program requirements. The proposed resolution is intended to promote participation in the Big Bear Workforce Housing Initiative by eliminating uncertainty for current vacation rental property owners who may wish to participate in the program.

FIRE PROTECTION DISTRICT

1.11 APPROVAL OF MEETING MINUTES FROM THE DECEMBER 6, 2021 REGULAR MEETING

OF THE FIRE PROTECTION DISTRICT

SUCCESSOR AGENCY

1.12 APPROVAL OF MEETING MINUTES FROM THE DECEMBER 6, 2021 REGULAR MEETING

OF THE SUCCESSOR AGENCY

ITEMS REMOVED FROM THE CONSENT CALENDAR

2. DISCUSSION/ACTION ITEMS

2.1 URGENCY ORDINANCE AMENDING CHAPTER 16.07 SUBDIVISIONS - ADDING SECTION

16.07.060 URBAN LOT SPLITS - AND CHAPTER 17.25 RESIDENTIAL ZONES - AMENDING SECTION 17.25.130 SECOND UNITS AND TWO-UNIT PROJECTS - TO IMPLEMENT SB 9 – HOUSING DEVELOPMENT APPROVALS 6:45 pm
City Council will formally consider an urgency ordinance to implement SB 9 – Housing Development Approvals – that was approved by the California legislature and signed into law by Governor Newsom in September. Effective January 1, SB 9 mandates that local governments approve the split of urban lots zoned for single-family residential use into multiple lots or allow additional units on an original, unsplit lot - potentially allowing up to 4 residential units on a lot initially zoned for only one single-family residence.

The proposed urgency ordinance was drafted by the City Attorney and City staff, is consistent with SB 9, and includes various requirements that are intended to promote and preserve neighborhood character. The proposed urgency ordinance includes requirements regarding lot size, unit size, owner occupancy of at least one unit for three years, a prohibition on the use of lot splits and additional units for vacation rental purposes,

CITY COUNCIL AGENDA
January 3, 2022 - Page 5
consistent design standards, fire hazard mitigation requirements, deed restrictions, parking requirements, height limits, and more. Concurrently, the Planning Commission will proceed with review and recommendation of a permanent ordinance to implement SB 9, and a proposed permanent ordinance will be presented for City Council review in the coming months.

2.2 PROPOSED SOLID WASTE SERVICE DESIGN 7:15 PM
City staff will present a recommended solid waste service design for City Council review. The recommended solid waste service design was developed based on input from City staff, the current solid waste franchisee, the citizen Solid Waste Advisory Group, other stakeholders, and the City Council. The recommended service design includes continued reliance on both curbside collections and the provision of at least two Clean Bear sites, with several service enhancements, including: the implementation of standardized curbside collection containers, automated or semi-automated collection, compliance with SB 1383, planned shielding or enclosures of Clean Bear sites, dedicated staffing at both Clean Bear sites, limiting the use of Clean Bear sites to City residents, property owners, and visitors only, the rerouting of traffic entering the Clean Bear sites, the potential relocation of the western Clean Bear site, the greater use of temporary “pop-up” Clean Bear sites during peak periods, and continued commercial collection.

If Council approves the recommended solid waste service design, or some variation thereof, City staff will either seek competitive proposals for a new 10-year service agreement or negotiate exclusively with the current service provider (Big Bear Disposal), as directed by City Council. Depending on the selection process for a new solid waste service provider, the new solid waste service design would be implemented on July 1, 2022, or sometime in late 2022 or early 2023.

2.3 MOONRIDGE CORRIDOR IMPROVEMENTS PROJECT AMENITIES 7:45 pm City Council will review options and make selections for lighting fixtures, street furniture, trash cans, bicycle racks, water fountains, signage, and other project amenities to be incorporated into the Moonridge Corridor Improvement Project. Selected amenities must be ordered in the coming weeks to ensure delivery in time for installation later this year. Construction of planned roundabouts, street improvements, and other streetscape features will resume in April 2022, and the project is expected to be complete by October 2022.

The established project budget for the Moonridge Corridor Improvement Project includes a set-aside of $300,000 for these amenities, with the cost of lighting fixtures already included in the previously awarded construction contract. Public art for the center of the planned roundabouts is not included in this discussion, as City staff envision a broader public decision-making process for any desired public art in the future.

2.4 JUNE 30, 2021 ANNUAL COMPREHENSIVE FINANCIAL REPORT 8:30 pm City staff will present the City’s Fiscal Year 2020-21 Annual Comprehensive Financial Report for review by the City Council. The audited financial statements accurately present the City’s financial position as of June 30, 2021. The City continues to maintain a solid financial position, a structurally sound annual budget, with no concerning long-term liabilities. The total fund balance across all Governmental funds is in excess of $23.5 million as of June 30. After considering the intentional appropriation of excess transient occupancy tax revenues for the Moonridge project and other adjustments, the City’s total fund balance across all Governmental funds is approximately $18.5 million.

3. COMMENTS, ANNOUNCEMENTS & ADDITIONAL CITY BUSINESS 8:45 pm

3.1 CITY CLERK, CITY ATTORNEY, CITY MANAGER COMMENTS

CITY COUNCIL AGENDA
January 3, 2022 - Page 6

3.2 COUNCILMEMBER BOARD/COMMITTEE REPORTS & COMMENTS

ADJOURNMENT
I hereby certify under penalty of perjury, under the laws of the State of California, that the foregoing agenda was posted in accordance with the applicable legal requirements. Dated this 27 th day of December 2021.

Erica Stephenson, City Clerk

The City of Big Bear Lake wishes to make all of its public meetings accessible to the public. If you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (909) 866-5831. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

Check# Vendor/Employee Date Amount
82883 San Bernardino County Solid Waste Mgmt Division 12/02/2021 21.41 82884 San Bernardino County Transportation Authority 12/02/2021 6,447.00 82885 Artistic Holiday Designs 12/02/2021 3,817.50
82886 Big Bear Disposal Inc 12/02/2021 181,773.22
82888 Clifford Fowler 12/02/2021 14,491.33
82889 Butchers Blocks & Building Materials 12/02/2021 362.28 82890 Charter Communications Holdings, LLC 12/02/2021 114.98 82891 Cintas Corporation 12/02/2021 621.12
82892 Docu-Trust 12/02/2021 50.00
82894 Frontier Communications 12/02/2021 59.60
82895 Grainger Inc. 12/02/2021 58.36
82896 The Grizzly 12/02/2021 1,878.25
82897 Imperial Sprinkler Supply 12/02/2021 431.88
82898 KOA Corporation 12/02/2021 1,862.50
82899 Mission Linen Supply Inc. 12/02/2021 1,135.42
82900 Michael Marcotte 12/02/2021 444.00
82901 Retail Strategies, LLC 12/02/2021 1,250.00
82902 Tom Dodson & Associates 12/02/2021 300.00
82903 Transtech Engineers, Inc. 12/02/2021 54,056.00
82904 Twin Bear Equipment Rental, Inc. 12/02/2021 435.11 82905 Underground Service Alert Inc. 12/02/2021 234.10
82906 United Rentals (North America), Inc 12/02/2021 14,429.97 82907 USA Bluebook 12/02/2021 233.82
82908 US Bank Corporate Payment Systems 12/02/2021 18,566.03 82909 Waxie Sanitary Supply Inc. 12/02/2021 185.11
82910 Willdan Engineering Inc 12/02/2021 1,134.00
82913 U.S. Postal Service 12/09/2021 1,500.00
82914 San Bernardino County Sheriff's Dept 12/09/2021 407,680.00 82915 City of Big Bear Lake Dept of Water & Power 12/09/2021 1,845.20 82916 Bear Valley Community Healthcare District 12/09/2021 1,152.00 82917 BBARWA 12/09/2021 1,415,641.80
82918 A Performance Towing Inc 12/09/2021 7,500.00
82919 Best Best & Krieger LLP 12/09/2021 30,575.32
82920 Big Bear Paint Center 12/09/2021 129.53
82922 Butchers Blocks & Building Materials 12/09/2021 728.38 82923 Bear Valley Electric 12/09/2021 13,662.62
82925 Charter Communications Holdings, LLC 12/09/2021 229.96 82926 Conklin Paint & Supplies, Inc. 12/09/2021 93.99
82927 Frontier Communications 12/09/2021 2,498.91
82928 Goldstar Asphalt Products 12/09/2021 566.98
82929 Grainger Inc. 12/09/2021 814.49
82930 HdL Coren & Cone Inc. 12/09/2021 1,287.16
82931 Inland Contractors, Inc. 12/09/2021 7,153.00
82933 Intelesys One, Inc. 12/09/2021 10,622.44
82935 Mission Linen Supply Inc. 12/09/2021 587.81
82936 Genuine Auto Parts 12/09/2021 337.37
82938 Quill Corporation 12/09/2021 373.92
82939 Nestle Waters North America 12/09/2021 820.13
City of Big Bear Lake
Checks Issued 11/25/2021 through 12/14/2021
Check# Vendor/Employee Date Amount
City of Big Bear Lake
Checks Issued 11/25/2021 through 12/14/2021
82940 Retail Strategies, LLC 12/09/2021 1,250.00
82941 ROW Traffic Safety, Inc. 12/09/2021 4,100.00
82943 Gabriel and Maria Rojas 12/09/2021 1,766.92
82944 Staples Business Credit 12/09/2021 153.94
82945 United Rentals (North America), Inc 12/09/2021 66.89 82946 Waxie Sanitary Supply Inc. 12/09/2021 2,084.07
82947 Willdan Engineering Inc 12/09/2021 7,352.50
2,226,968.32
Check# Vendor/Employee Transaction Amount
City Council 4110
82908 US Bank Corporate Payment Systems Conference Expenses 12/02/2021 2,283.20 City Council Total 2,283.20
City Manager 4120
82908 US Bank Corporate Payment Systems Office Supplies, Digital Subscription, Meeting Expense 12/02/2021 184.00 City Manager Total 184.00
City Clerk / Public Information 4130
82896 The Grizzly Legal Notices 12/02/2021 1,171.50
82908 US Bank Corporate Payment Systems Office Supplies, Software Subscription 12/02/2021 945.62 82933 Intelesys One, Inc. Records Request Support 12/09/2021 394.24 City Clerk / Public Information Total 2,511.36
Finance 4140
82930 HdL Coren & Cone Inc. Property Tax Consulting Services 12/09/2021 1,287.16 82938 Quill Corporation Office Supplies 12/09/2021 360.95 Finance Total 1,648.11
Human Resources 4150
82908 US Bank Corporate Payment Systems Recruitment Expenses, Employee Appreciation, Meeting Supplies 12/02/2021 2,452.00 82943 Gabriel and Maria Rojas Employee Appreciation Luncheon 12/09/2021 1,766.92 Human Resources Total 4,218.92
City Attorney 4170
82919 Best Best & Krieger LLP Professional Legal Services 12/09/2021 30,575.32 City Attorney Total 30,575.32
Law Enforcement 4250
82908 US Bank Corporate Payment Systems COPS Grant Equipment Purchase 12/02/2021 887.97 82914 San Bernardino County Sheriff's Dept Monthly Sheriff Contract 12/09/2021 407,680.00 Law Enforcement Total 408,567.97
Engineering 4310
82903 Transtech Engineers, Inc. Professional Services 12/02/2021 3,601.00 82908 US Bank Corporate Payment Systems Meeting Supplies 12/02/2021 7.99 82910 Willdan Engineering Inc Professional Services 12/02/2021 1,134.00 Engineering Total 4,742.99
Street Maintenance 4320
82888 Clifford Fowler Tire Chains 12/02/2021 14,491.33
82889 Butchers Blocks & Building Materials Materials/Supplies 12/02/2021 208.16 82891 Cintas Corporation First Aid Supplies 12/02/2021 134.39 82895 Grainger Inc. Materials/Supplies 12/02/2021 58.36 82899 Mission Linen Supply Inc. Laundry Service 12/02/2021 454.16 82906 United Rentals (North America), Inc Snow Removal Operations Equipment Rental 12/02/2021 14,429.97 82907 USA Bluebook Materials/Supplies 12/02/2021 233.82 City of Big Bear Lake
Expenditure By Department
Checks Issued 11/25/2021 through 12/14/2021
Check# Vendor/Employee Transaction Amount
City of Big Bear Lake
Expenditure By Department
Checks Issued 11/25/2021 through 12/14/2021
82908 US Bank Corporate Payment Systems Business Cards, Meeting Supplies 12/02/2021 250.84 82909 Waxie Sanitary Supply Inc. Janitorial Supplies 12/02/2021 46.28 82918 A Performance Towing Inc Snow Operations Tow Truck Standby 12/09/2021 7,500.00 82922 Butchers Blocks & Building Materials Materials/Supplies 12/09/2021 22.51 82928 Goldstar Asphalt Products Materials/Supplies 12/09/2021 566.98 82935 Mission Linen Supply Inc. Laundry Service 12/09/2021 235.12 82939 Nestle Waters North America Drinking Water 12/09/2021 410.06 82941 ROW Traffic Safety, Inc. Snow Removal Operations Equipment Rental 12/09/2021 4,100.00 82945 United Rentals (North America), Inc Equipment Rental 12/09/2021 66.89 82946 Waxie Sanitary Supply Inc. Janitorial Supplies 12/09/2021 521.02 Street Maintenance Total 43,729.89
Vehicle Maintenance 4325
82899 Mission Linen Supply Inc. Laundry Service 12/02/2021 56.79 82915 City of Big Bear Lake Dept of Water & Power Water Usage 12/09/2021 127.35 82935 Mission Linen Supply Inc. Laundry Service 12/09/2021 29.40 Vehicle Maintenance Total 213.54
Street Lighting 4330
82923 Bear Valley Electric Electricity Usage 12/09/2021 8,798.98 Street Lighting Total 8,798.98
City Parking Lots / Chamber Building 4335
82890 Charter Communications Holdings, LLC Security Camera Internet Service 12/02/2021 114.98 82908 US Bank Corporate Payment Systems Materials/Supplies 12/02/2021 54.57 82909 Waxie Sanitary Supply Inc. Janitorial Supplies 12/02/2021 46.28 82915 City of Big Bear Lake Dept of Water & Power Water Usage 12/09/2021 384.30 82922 Butchers Blocks & Building Materials Materials/Supplies 12/09/2021 81.87 82923 Bear Valley Electric Electricity Usage 12/09/2021 1,687.91 82925 Charter Communications Holdings, LLC Security Camera Internet Service 12/09/2021 114.98 82946 Waxie Sanitary Supply Inc. Janitorial Supplies 12/09/2021 521.02 City Parking Lots / Chamber Building Total 3,005.91
Planning 4410
82901 Retail Strategies, LLC Professional Services 12/02/2021 1,250.00 82908 US Bank Corporate Payment Systems Office Supplies 12/02/2021 210.40 82938 Quill Corporation Office Supplies 12/09/2021 12.97 82940 Retail Strategies, LLC Professional Services 12/09/2021 1,250.00 Planning Total 2,723.37
Planning Commission 4411
82896 The Grizzly Legal Notices 12/02/2021 706.75
82908 US Bank Corporate Payment Systems Office Supplies 12/02/2021 44.17 Planning Commission Total 750.92
Check# Vendor/Employee Transaction Amount
City of Big Bear Lake
Expenditure By Department
Checks Issued 11/25/2021 through 12/14/2021
Tourism Registration / Administration 4414
82908 US Bank Corporate Payment Systems Halloween in the Village 12/02/2021 2,660.96 Tourism Registration / Administration Total 2,660.96
Tourism & Municipal Code Compliance 4415
82908 US Bank Corporate Payment Systems Office Supplies, Safety Uniforms, Vacation Rental Data 12/02/2021 2,895.27 Tourism & Municipal Code Compliance Total 2,895.27
Building & Safety 4430
82903 Transtech Engineers, Inc. Professional Services 12/02/2021 42,705.00 82947 Willdan Engineering Inc Professional Services 12/09/2021 7,352.50 Building & Safety Total 50,057.50
City Parks & Trails 4625
82904 Twin Bear Equipment Rental, Inc. Equipment 12/02/2021 435.11 82908 US Bank Corporate Payment Systems Materials/Supplies 12/02/2021 54.57 82909 Waxie Sanitary Supply Inc. Janitorial Supplies 12/02/2021 46.28 82915 City of Big Bear Lake Dept of Water & Power Water Usage 12/09/2021 666.45 82922 Butchers Blocks & Building Materials Materials/Supplies 12/09/2021 174.48 82923 Bear Valley Electric Electricity Usage 12/09/2021 595.79 82925 Charter Communications Holdings, LLC Security Camera Internet Service 12/09/2021 114.98 82946 Waxie Sanitary Supply Inc. Janitorial Supplies 12/09/2021 521.02 City Parks & Trails Total 2,608.68
General Government 4800
82884 San Bernardino County Transportation Authority Membership Dues FY22 12/02/2021 6,447.00 82892 Docu-Trust Document Storage 12/02/2021 50.00
82894 Frontier Communications Telephone Service 12/02/2021 59.60 82908 US Bank Corporate Payment Systems Office Supplies 12/02/2021 314.43 82913 U.S. Postal Service Annual PO Box Fee 12/09/2021 1,500.00 82916 Bear Valley Community Healthcare District Covid-19 Testing Fees 12/09/2021 1,152.00 82927 Frontier Communications Telephone Service 12/09/2021 1,769.08 82944 Staples Business Credit Office Supplies 12/09/2021 153.94 General Government Total 11,446.05
Information Technology 4810
82908 US Bank Corporate Payment Systems Office Supplies 12/02/2021 554.05 82933 Intelesys One, Inc. IT Services/License Fees 12/09/2021 10,228.20 Information Technology Total 10,782.25
Civic Center 4820
82889 Butchers Blocks & Building Materials Materials/Supplies 12/02/2021 62.10 82891 Cintas Corporation First Aid Supplies/AED Lease 12/02/2021 352.34 82899 Mission Linen Supply Inc. Laundry Services 12/02/2021 79.48 82900 Michael Marcotte HVAC Service 12/02/2021 444.00
82908 US Bank Corporate Payment Systems Materials/Supplies 12/02/2021 54.56 82909 Waxie Sanitary Supply Inc. Janitorial Supplies 12/02/2021 46.27 Check# Vendor/Employee Transaction Amount
City of Big Bear Lake
Expenditure By Department
Checks Issued 11/25/2021 through 12/14/2021
82915 City of Big Bear Lake Dept of Water & Power Water Usage 12/09/2021 373.10 82920 Big Bear Paint Center Materials/Supplies 12/09/2021 129.53 82922 Butchers Blocks & Building Materials Materials/Supplies 12/09/2021 426.30 82923 Bear Valley Electric Electricity Usage 12/09/2021 37.79 82926 Conklin Paint & Supplies, Inc. Materials/Supplies 12/09/2021 93.99 82935 Mission Linen Supply Inc. Uniform Laundry Service 12/09/2021 41.15 82946 Waxie Sanitary Supply Inc. Janitorial Supplies 12/09/2021 521.01 Civic Center Total 2,661.62
PAC Operations & Maintenance 4821
82922 Butchers Blocks & Building Materials Materials/Supplies 12/09/2021 12.48 PAC Operations & Maintenance Total 12.48

12.48 Sanitation 250
82891 Cintas Corporation First Aid Supplies/AED Lease 12/02/2021 134.39 82899 Mission Linen Supply Inc. Laundry Services 12/02/2021 454.16 82903 Transtech Engineers, Inc. Professional Services 12/02/2021 1,155.00 82905 Underground Service Alert Inc. Underground Dig Alert Service 12/02/2021 234.10 82908 US Bank Corporate Payment Systems Office Supplies 12/02/2021 246.27 82915 City of Big Bear Lake Dept of Water & Power Water Usage 12/09/2021 47.80 82917 BBARWA Bi-Annual Connection Fees 12/09/2021 1,415,641.80 82923 Bear Valley Electric Electricity Usage 12/09/2021 1,707.81 82927 Frontier Communications Telephone Service 12/09/2021 729.83 82929 Grainger Inc. Equipment 12/09/2021 814.49
82935 Mission Linen Supply Inc. Laundry Service 12/09/2021 235.12 82936 Genuine Auto Parts Materials/Supplies 12/09/2021 337.37 82939 Nestle Waters North America Drinking Water 12/09/2021 410.07 Sanitation Total 1,422,148.21
Village Streetscape Maintenance 291
82885 Artistic Holiday Designs LLC Village Holiday Decorations 12/02/2021 3,817.50 82886 Big Bear Disposal Inc Village Litter Containers 12/02/2021 1,574.80 82889 Butchers Blocks & Building Materials Materials/Supplies 12/02/2021 92.02 82897 Imperial Sprinkler Supply Materials/Supplies 12/02/2021 431.88 82908 US Bank Corporate Payment Systems Village Holiday Decorations 12/02/2021 4,465.16 82915 City of Big Bear Lake Dept of Water & Power Water Usage 12/09/2021 246.20 82922 Butchers Blocks & Building Materials Materials/Supplies 12/09/2021 10.74 82923 Bear Valley Electric Electricity Usage 12/09/2021 834.34 Village Streetscape Maintenance Total 11,472.64
Capital Projects 321
82902 Tom Dodson & Associates Professional Services - Castle Rock Trailhead 12/02/2021 300.00 82931 Inland Contractors, Inc. Professional Services - 794 Iris 12/09/2021 7,153.00 Capital Projects Total 7,453.00
Check# Vendor/Employee Transaction Amount
City of Big Bear Lake
Expenditure By Department
Checks Issued 11/25/2021 through 12/14/2021
Street Improvement Projects 350
82898 KOA Corporation Moonridge Corridor Project 12/02/2021 1,862.50 82903 Transtech Engineers, Inc. Moonridge Corridor Project 12/02/2021 5,440.00 Street Improvement Projects Total 7,302.50
Refuse 550
82883 San Bernardino County Solid Waste Mgmt Division Soild Waste Collection 12/02/2021 21.41 82886 Big Bear Disposal Inc Residential Curb/Bin Service 12/02/2021 180,198.42 82899 Mission Linen Supply Inc. Laundry Service 12/02/2021 90.83 82903 Transtech Engineers, Inc. Professional Services 12/02/2021 1,155.00 82935 Mission Linen Supply Inc. Laundry Service 12/09/2021 47.02 Refuse Total 181,512.68
Grand Total 2,226,968.32
DISTRIBUTION OF TREASURY CASH Rate Amount % of Total
Demand Account - Union Bank $ 3,255,677 14.09%
Imprest Cash - Union Bank Payroll $ 11,153 0.05%
Imprest Cash $ 1,525 0.01%
Dental Self Insured Checking $ 142,909 0.62%
Local Agency Investment Fund (LAIF) 0.203% $ 19,695,010 85.24% Total Cash In Treasury: $ 23,106,274 100.00%
INVESTMENT ACTIVITY Days Deposits Withdrawals
LAIF Average Life (Days) of Portfolio 321
LAIF Transactions $3,000,000 $0
Interest Received for Fiscal Year 2021-22 $12,171
DISTRIBUTION OF CASH BY FUND November 2021 October 2021 Change General $ 15,338,499 $ 14,450,690 $ 887,809
Sanitation $ 5,732,727 $ 4,681,210 $ 1,051,517
Capital Improvement $ (172,429) $ (334,431) $ 162,002
Refuse $ 590,960 $ 102,315 $ 488,645
Trust $ 1,087,857 $ 689,973 $ 397,884
Successor Agency $ 147,708 $ 147,708 $ -
AB 3229 Supp Law Enforce $ 380,952 $ 354,783 $ 26,169
Total Cash in Treasury: $ 23,106,274 $ 20,092,248 $ 3,014,026 CASH WITH FISCAL AGENT - RESERVE FUNDS Cost Basis Market Value Current Yield 2005 Revenue Refunding Bonds
Big Bear Lake Reserve Fund $ 578,596 $ 578,596 0.01%
Moonridge Reserve Fund $ 79,281 $ 79,281 0.01%
1999 IA Tax Allocation Bonds $ 289,289 $ 289,289 0.01%
- The aforementioned investments conform to the City's investment policy. (Res. 2021-61) - Cash is sufficient to meet needs of the next 6 months. - Interest earned on invested cash is accrued on a quarterly basis.

Pursuant to California Government Code 53647 all local government agencies are required to report the current market value of investments under management by an outside party. The reserve funds for the aforementioned bond issues are held and managed by the City's Trustee, Union Bank.

CITY OF BIG BEAR LAKE

TREASURER'S REPORT
November 30, 2021
Regular Meeting Minutes – December 6, 2021
-
A Regular Meeting of the City Council of the City of Big Bear Lake was called to order by Mayor Herrick at 5:00 p.m., Monday, December 6, 2021, at the Civic Center, 39707 Big Bear Boulevard, Big Bear Lake, California.

PUBLIC FORUM FOR CLOSED SESSION: None.

At the hour of 5:00 p.m., Council adjourned to Closed Session.

At the hour of 6:00 p.m., Mayor Herrick called Open Session to order.

OPEN SESSION
Flag Salute: Flag Salute led by Mayor Pro Tem Putz
Invocation: Invocation delivered by Alan Herendich, Lay Eucharistic Minister, St.

Columba’s Episcopal Church.

Councilmembers Present: Mayor Rick Herrick
Mayor Pro Tem Randall Putz
Councilmember Alan Lee
Councilmember Perri Melnick
Councilmembers Participating Remotely: Councilmember Bynette Mote Others Present: Frank A. Rush, Jr., City Manager
Erica Stephenson, City Clerk
Stephen P. Deitsch, City Attorney

RESULTS OF CLOSED SESSION

1. CONFERENCE WITH LEGAL COUNSEL – LITIGATION pursuant to Government Code Section 54956.9(d)(1)
Name of Case: Big Bear Lake Together v. City of Big Bear Lake, et al.

Court & Case No: San Bernardino Superior Court, Case No. CTVSB 2124338 No reportable action.

PRESENTATIONS
• Presentation of a Volunteer Appreciation Plaque to the City on behalf of the Southern California Mountains Foundation and Big Bear Trails.
• Presentation of a 20-year Employee Service Award to Bob Lawyer, Street Maintenance Crew Leader.

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December 6, 2021
• Presentation of a 5-year Employee Service Award to Rachel Bowman, Administrative Analyst. • Introduction of new City employee, Dominic Rodriguez, Facilities / Parks Maintenance Worker in the Public Services Department.

PUBLIC COMMUNICATIONS
Rick Snow, Big Bear resident, approached Council with his concerns regarding the local political group “Big Bear Lake Together/Big Bear United” seemingly trespassing on private property in order to gain signatures for their petition and soliciting political donations.

Mark Dolan, Big Bear Lake resident, expressed his concerns and questioned Councilmember Lee’s reported 2020 campaign financial contributions/donations from outside interests, including donors from Georgia and labor groups such as the Los Angeles County Probation Officers’ Union.

Matt Scriven, Big Bear Lake resident, thanked the City for how great the Village looks; updated Council on the current Village traffic patterns; congratulated the City on achieving their four-season resort status that was included as a goal in the City’s prior 20 year plan and is looking forward to the communities’ future.

Diana Havey, Big Bear resident, read a letter aloud to City Manager Frank Rush thanking him and City staff for their help coordinating the Tree Lighting (2.0) Ceremony on Thanksgiving weekend; said she and the Big Bear Lions Club look forward to working together with the City in the future.

Brian Blaga, Big Bear resident, approached Council on his father’s behalf in regards to zoning requirements for R-3 zones as his father would like to begin operating a Bed and Breakfast on his property.

CITY COUNCIL REORGANIZATION

SELECTION OF THE MAYOR AND MAYOR PRO TEM
Erica Stephenson, City Clerk, opened the nominations for Mayor and Mayor Pro Tem.

Councilmember Melnick nominated Councilmember Herrick to serve as Mayor. Councilmember Herrick was appointed to serve as Mayor for the period of one year by the following vote:

AYES: Herrick, Lee, Melnick, Mote, Putz
NOES: None
ABSTAIN: None
ABSENT: None
Councilmember Putz nominated Councilmember Mote and Councilmember Melnick nominated Councilmember Putz to serve as Mayor Pro Tem. Councilmember Putz respectfully declined Councilmember’s Melnick’s nomination. Councilmember Mote was appointed to serve as Mayor Pro Tem for a period of one year by the following vote:

AYES: Herrick, Lee, Melnick, Mote, Putz
NOES: None
ABSTAIN: None
ABSENT: None

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At the hour of 6:39 p.m., Council adjourned to the Fire Protection District Board.

FIRE PROTECTION DISTRICT REORGANIZATION

SELECTION OF CHAIR AND VICE CHAIR
Fire Protection District proceedings are contained in separate minutes.

At the hour of 6:41 p.m., the Fire Protection District adjourned to the Successor Agency.

SUCCESSOR AGENCY REORGANIZATION

SELECTION OF CHAIR AND VICE CHAIR
Successor Agency proceedings are contained in separate minutes.

At the hour of 6:42, the Successor Agency adjourned back to the City Council.

1. CONSENT CALENDAR
Motion made by Councilmember Putz, seconded by Mayor Pro Tem Mote to approve the Consent Calendar as follows:

1.1 APPROVAL OF DEMANDS – CHECK ISSUE DATE 10/21/2021 THROUGH 11/24/2021 IN THE AMOUNT OF $1,870,327.37 AND THE OCTOBER 2021 TREASURER’S REPORT Approved.

1.2 APPROVAL OF MEETING MINUTES FROM THE NOVEMBER 1, 2021, REGULAR

MEETING OF CITY COUNCIL
Approved.

1.3 APPROVAL OF MEETING MINUTES FROM THE NOVEMBER 15, 2021 REGULAR

MEETING OF CITY COUNCIL
Approved.

1.4 RESOLUTION ESTABLISHING A NO PARKING ZONE ON KNICKERBOCKER ROAD

BETWEEN BIG BEAR BOULEVARD AND VILLAGE DRIVE
City Council will consider a formal resolution establishing a full no parking zone on Knickerbocker Road between Big Bear Boulevard and Village Drive. City staff has conducted a review of the roadway conditions, and has determined that free-flowing two-way traffic is obstructed in this area when parking is permitted on either side of the street. Additionally, as Mountain Transit operates enhanced and more frequent service along this route, it is critical that the roadway remain free and clear. City staff have contacted the adjacent businesses and residences, and received no concerns about this proposal. The proposed resolution would authorize the placement of appropriate signage by City staff.

Approved and adopted the following resolution entitled:

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December 6, 2021
RESOLUTION NO. 2021-136

RESOLUTION ESTABLISHING A NO PARKING ZONE ON

KNICKERBOCKER ROAD BETWEEN BIG BEAR BOULEVARD

AND VILLAGE DRIVE

1.5 RESOLUTION AUTHORIZING A LAND LEASE AGREEMENT WITH MUCHACHOS

RESTAURANT
City Council will consider a formal resolution authorizing a land lease agreement between the City and Muchacho’s Restaurant for approximately 1,000 square feet of City property located between the Bartlett Parking Lot and the restaurant property (APN: 030816629, restaurant fronts Village Drive).

The agreement would allow the restaurant owner to construct and operate a deck for outdoor dining purposes in accordance with all applicable City ordinance requirements. The restaurant owner would be responsible for all site preparation and improvements, ongoing maintenance, and returning the site to its previous condition at the termination of the lease. The proposed term of the land lease agreement is 2 years, with lease payments of $3.00 per square foot per year. The proposed lease area is not currently utilized by the City and is unlikely to be utilized in the future, and would not impede the public’s use of the Bartlett Parking Lot.

This item was pulled by Councilmember Lee for further discussion.

1.6 RESOLUTION AUTHORIZING LAND ACQUISITION FROM SAN BERNARDINO

MOUNTAINS WILDLIFE SOCIETY
City Council will consider a formal resolution authorizing the acquisition of a 1.55-acre parcel of land (APN: 031135101) from the San Bernardino Mountains Wildlife Society. The subject parcel is located between the two existing wooden boardwalks over Stanfield Marsh and is located near other property to be acquired by the City from the Municipal Water District. The acquisition of the San Bernardino Mountains Wildlife Society parcel would result in City ownership of all land along Stanfield Marsh between Stanfield Cutoff and the former Riffenburgh Lumber property, and this area is planned for future City park development. The San Bernardino Mountains Wildlife Society is willing to donate this 1.55-acre parcel of land to the City at no cost, and supports the City’s efforts to preserve this land for recreational use in the future. The proposed resolution would authorize the City Manager and City Attorney to execute necessary documents to complete the land acquisition.

Approved and adopted the following resolution entitled:

RESOLUTION NO. 2021-137

RESOLUTION AUTHORIZING LAND ACQUISITION FROM SAN

BERNARDINO MOUNTAINS WILDLIFE SOCIETY

1.7 RESOLUTION AUTHORIZING EXTENSION OF COMMUNITY DEVELOPMENT AND PUBLIC SERVICES ON-CALL AGREEMENTS THROUGH JUNE 30, 2022 City Council will consider a formal resolution to authorize extension of existing agreements in place for services to support the Community Development Department and Public Services Department.

With the extension, current agreements with Willdan Engineering, Transtech Engineering, Inc., TKE Engineering, Inc., LOR Geotechnical Group, Inc., Geocon West, Inc., and Lynn Merrill and

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December 6, 2021
Associates, Inc. would now expire on June 30, 2022. The proposed extension would allow staff an opportunity to continue current City services without interruption while evaluating alternative service options. It is anticipated that new, comprehensive agreements will be presented for Council consideration in spring 2022 after the solicitation of competitive service proposals.

Approved and adopted the following resolution entitled:

RESOLUTION NO. 2021-138

RESOLUTION AUTHORIZING EXTENSION OF COMMUNITY

DEVELOPMENT AND PUBLIC SERVICES
ON-CALL AGREEMENTS THROUGH JUNE 30, 2022

1.8 RESOLUTION AUTHORIZING A PURCHASE ORDER FOR TWO REPLACEMENT

FLEET VEHICLES
City Council will consider a formal resolution authorizing a purchase order with National Auto Fleet Group, Watsonville, CA, in the amount of $76,692 for two (2) 2022 RAM 1500 Tradesman 4x4 Pickup Trucks. These vehicles would replace two existing vehicles used by code enforcement staff that are both more than 20 years old (a 2001 Ford Pickup Truck and a 1999 Jeep Cherokee). The proposed new RAM trucks are consistent with the other vehicles presently used by the City, and staff has been pleased with the RAM trucks in use across the City fleet. The pricing for these vehicles is available through the City’s membership in Sourcewell, a national purchasing collective used by many government agencies for the purchase of vehicles, equipment, and other goods. The proposed new trucks would be ordered from the manufacturer, and it is anticipated that they would be built and delivered to the City within six months. Sufficient funding is included in the FY 2021-22 City budget for the replacement of these two vehicles.

This item was pulled by Councilmember Lee for further discussion.

The Consent Calendar was approved by the following vote:

AYES: Mote, Putz, Lee, Melnick, Herrick
NOES: None
ABSTAIN: None
ABSENT: None

ITEMS REMOVED FROM THE CONSENT CALENDAR

1.5 RESOLUTION AUTHORIZING A LAND LEASE AGREEMENT WITH MUCHACHOS

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December 6, 2021
currently utilized by the City and is unlikely to be utilized in the future, and would not impede the public’s use of the Bartlett Parking Lot.

This item was pulled by Councilmember Lee for further discussion. Sean Sullivan, Director of Public Services discussed the proposal in further detail and answered Council’s questions.

Following Council discussion, a motion was made by Councilmember Putz, seconded by Mayor Pro Tem Mote, to approve staff’s recommendation and adopt the following resolution entitled:

RESOLUTION NO. 2021-139

RESOLUTION AUTHORIZING A LAND LEASE AGREEMENT WITH

MUCHACHOS RESTAURANT
Said motion was approved by the following vote:

AYES: Melnick, Putz, Mote, Herrick
NOES: Lee
ABSTAIN: None
ABSENT: None

1.8 RESOLUTION AUTHORIZING A PURCHASE ORDER FOR TWO REPLACEMENT

This item was pulled by Councilmember Lee for further discussion. Sean Sullivan, Director of Public Services discussed the proposal in further detail.

A motion was made by Councilmember Melnick, seconded by Mayor Herrick, to approve staff’s recommendation and adopt the following resolution entitled:

RESOLUTION NO. 2021-140

RESOLUTION AUTHORIZING A PURCHASE ORDER FOR TWO

REPLACEMENT FLEET VEHICLES
Said motion was approved by the following vote:

AYES: Putz, Lee, Mote, Melnick, Herrick
NOES: None

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December 6, 2021
ABSTAIN: None
ABSENT: None

2. PUBLIC HEARING
Any person may appear and be heard in support or in opposition to the proposal at the time of the hearing.

If you challenge the action in court or an administrative proceeding, you may be limited to raising only those issues which you or someone else raised at the public hearing described in the notice, or in written correspondence delivered to the City at or before the public hearing.

2.1 RESOLUTION APPROVING THE 2021-2029 HOUSING ELEMENT AND FINDING THE

ACTION EXCEMPT FROM CEQA
City Council will consider a formal resolution to approve General Plan Amendment 2021-019 authorizing the adoption of the 2021-2029 Housing Element and finding the proposed amendment exempt from the California Environmental Quality Act (CEQA), pursuant to section 15061(b)(3) of the CEQA Guidelines. If adopted, the 2021-2029 Housing Element will be submitted to the California State Department of Housing and Community Development (HCD) for certification. The final draft includes various provisions aimed at accelerating housing production in the City of Big Bear Lake, including a review of available land for new housing development, encouragement of accessory dwelling units (ADUs), facilitation of employer-provided group housing, the potential development of City-owned parcels for new housing, and direction to consider future City Development Code amendments and/or the rezoning of certain parcels to specifically promote new multi-family housing development.

Ruth Lorentz, Principal Planner, presented the item and answered Council’s questions.

At the hour of 7:20 p.m., Mayor Herrick opened the public hearing. Seeing no public comment, Mayor Herrick closed the public hearing at 7:20 p.m.

Following Council discussion, a motion was made by Councilmember Putz, seconded by Councilmember Melnick, to approve staff’s recommendation and adopt the following resolution entitled:

RESOLUTION NO. 2021-141
RESOLUTION APPROVING THE 2021-2029 HOUSING ELEMENT AND

FINDING THE ACTION EXEMPT FROM CEQA
Said motion was approved by the following vote:

AYES: Lee, Melnick, Putz, Mote, Herrick
NOES: None
ABSTAIN: None
ABSENT: None

3. DISCUSSION/ACTION ITEMS

3.1 RESOLUTION AUTHORIZING SUBMITTAL OF A CALIFORNIA DEPARTMENT OF

PARKS AND RECREATION PER CAPITA GRANT PROGRAM APPLICATION

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City Council will consider a formal resolution authorizing the submittal of an application to the California State Department of Parks and Recreation for the Per Capita Grant Fund. The City has been allocated $181,290 through this program for the development of recreation amenities, and the proposed resolution authorizes an application for funding to purchase and install a prefabricated public restroom at the Castle Rock Trailhead Parking Lot. Projects funded through this program must be completed by December 2023, and the City intends to construct the new trailhead parking lot and restroom facility in 2022.

Ruth Lorentz, Principal Planner, presented the item and answered Council’s questions.

Following Council discussion, a motion was made by Councilmember Melnick, seconded by Councilmember Putz, to approve staff’s recommendation with the suggested revisions noted in staff’s presentation, and adopt the following resolution entitled:

RESOLUTION NO. 2021-142

RESOLUTION AUTHORIZING SUBMITTAL OF A CALIFORNIA

DEPARTMENT OF PARKS AND RECREATION PER CAPITA

GRANT PROGRAM APPLICATION
Said motion was approved by the following vote:

AYES: Mote, Lee, Putz, Melnick, Herrick
NOES: None
ABSTAIN: None
ABSENT: None

3.2 ALPINE PEDAL PATH RATHBUN CREEK EXTENSION PROJECT
City Council will consider 3 resolutions authorizing a budget amendment, change order and a Notice of Completion for the Alpine Pedal Path Rathbun Creek Extension Project Sean Sullivan, Director of Public Services, presented the item and answered Council’s questions.

3.2A RESOLUTION APPROVING A CHANGE ORDER WITH S. PORTER, INC. FOR

THE ALPINE PEDAL PATH RATHBUN CREEK EXTENSION PROJECT
City Council will consider a formal resolution approving a change order in the amount of $36,100 with S. Porter, Inc. for the completion of the Alpine Pedal Path Rathbun Creek Extension Project. The change order nets out various minor project adjustments, and also enabled the construction of the additional path segment between Big Bear Boulevard and the previously constructed path on Stanfield Cutoff at the rear entrance to Eagle Knoll subdivision.

Following Council discussion, a motion was made by Councilmember Putz, seconded by Councilmember Melnick, to approve staff’s recommendation and adopt the following resolution entitled:

RESOLUTION NO. 2021-143

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RESOLUTION APPROVING A CHANGE ORDER WITH S.

PORTER, INC. FOR THE ALPINE PEDAL PATH RATHBUN

CREEK EXTENSION PROJECT
Said motion was approved by the following vote:

AYES: Melnick, Putz, Lee, Mote, Herrick
NOES: None
ABSTAIN: None
ABSENT: None

3.2B RESOLUTION AUTHORIZING A BUDGET AMENDMENT FOR THE ALPINE

PEDAL PATH RATHBUN CREEK EXTENSION PROJECT
City Council will consider a formal resolution authorizing a budget amendment in the amount of $36,100 for the Alpine Pedal Path Rathbun Creek Extension Project. The proposed resolution appropriates transient occupancy tax revenue in the Measure Y Fund for the additional path improvements.

A motion was made by Councilmember Putz, seconded by Councilmember Melnick, to approve staff’s recommendation and adopt the following resolution entitled:

RESOLUTION NO. 2021-144

RESOLUTION AUTHORIZING A BUDGET AMENDMENT FOR THE

ALPINE PEDAL PATH RATHBUN CREEK EXTENSION PROJECT
Said motion was approved by the following vote:

AYES: Lee, Mote, Putz, Melnick, Herrick
NOES: None
ABSTAIN: None
ABSENT: None

3.2C RESOLUTION AUTHORIZING NOTICE OF COMPLETION FOR THE ALPINE

PEDAL PATH RATHBUN CREEK EXTENSION PROJECT
City Council will consider a formal resolution authorizing the filing of a notice of completion for the Alpine Pedal Path Rathbun Creek Extension Project. The final project expenditure with S. Porter, Inc. for this project was $940,268, and the project was completed on November 19, 2021. The project was primarily funded by State grants in the amount of $946,000, supplemented by $231,528 from transient occupancy tax revenue in the Measure Y Fund.

A motion was made by Councilmember Melnick, seconded by Councilmember Putz, to approve staff’s recommendation and adopt the following resolution entitled:

RESOLUTION NO. 2021-145

RESOLUTION AUTHORIZING NOTICE OF COMPLETION

FOR THE ALPINE PEDAL PATH RATHBUN CREEK

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EXTENSION PROJECT
Said motion was approved by the following vote:

AYES: Putz, Lee, Mote, Melnick, Herrick
NOES: None
ABSTAIN: None
ABSENT: None

3.3 POTENTIAL SOLID WASTE SERVICE ENHANCEMENTS
City staff will present an overview of current solid waste services provided by the City through its franchise agreement with Big Bear Disposal, and will present potential solid waste service enhancements for initial City Council discussion and feedback. City staff will receive Council feedback on December 6 and continue working with the informal Solid Waste Working Group and various stakeholders to devise a new City solid waste program for formal Council review in January or February.

Potential service enhancements presented for Council discussion and feedback include improved communications regarding the City’s existing curbside collection services, the implementation of mandatory curbside collection services for all residents and property owners, the implementation of standardized containers for curbside residential collection, the regular collection of organic vegetative debris from residential properties, the availability of Clean Bear sites to vacation rental managers and specialized collection services for vacation rentals, the implementation of backyard collection services for vacation rentals, the implementation of a new pass system for City resident and property owner use of Clean Bear sites, the implementation of a new fee for use of Clean Bear sites by non-City property owners, a contribution from San Bernardino County and/or the Big Bear City Community Services District for continued use of Clean Bear sites by their residents and property owners, adjustment of Clean Bear site hours with dedicated staffing at both locations, the planned relocation of the western Clean Bear site near City Hall, the re-routing of traffic at the Garstin Drive Clean Bear site to discourage traffic backups, the more frequent use of “pop-up” trash sites following busy weekends, extended Sunday hours at the County transfer station, shifting responsibility for tipping fee payments to the City, and more.

The City’s current franchise agreement with Big Bear Disposal expires on June 30, 2022. Following Council’s decision on a new City solid waste program in the coming weeks, City staff will either negotiate a new, long-term extension with Big Bear Disposal or solicit competitive proposals to implement the new City solid waste program in late winter or early spring. If the City Council directs City staff to solicit competitive proposals, it may be necessary to consider a new, short-term extension with Big Bear Disposal in order to provide ample time to undertake this process.

Sean Sullivan, Director of Public Services, presented the item and answered Council’s questions.

Council engaged in a discussion regarding their desired changes/enhancements to the City’s solid waste services.

No formal action was required, nor taken; however, this item will be brought back for further discussion and possible action at a future meeting.

3.4 RESOLUTION AUTHORIZING AN AMENDMENT TO THE CITY MANAGER’S

EMPLOYMENT AGREEMENT

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City Council will consider a formal resolution authorizing an amendment to the City Manager’s Employment Agreement that would provide a one-time performance bonus in the amount of $20,000.

City Council reviewed the City Manager’s performance in closed session at the August 16 and November 15 regular meetings.

Following Council discussion, a motion was made by Councilmember Putz, seconded by Councilmember Melnick to approve staff’s recommendation, and adopt the following resolution entitled:

RESOLUTION NO. 2021-146

RESOLUTION AUTHORIZING AN AMENDMENT TO THE CITY
MANAGER’S EMPLOYMENT AGREEMENT
A substitute motion was made by Councilmember Lee to split the $20,000 between all City employees for a total of $350/each. The motion was defeated due to a lack of second.

The original motion was approved by the following vote:

AYES: Mote, Melnick, Putz, Herrick
NOES: Lee
ABSTAIN: None
ABSENT: None

4. COMMENTS, ANNOUNCEMENTS & ADDITIONAL CITY BUSINESS

4.1 CITY CLERK, CITY ATTORNEY & CITY MANAGER COMMENTS
Erica Stephenson, City Clerk, reminded the Council and public that the City is currently in the redistricting process and gave them resources for additional information; updated the Council on the recruitment status of the Public Information Officer position.

Frank A. Rush, Jr., informed Council and the public of the upcoming City Hall COVID-19/Flu vaccination clinics that are scheduled for December 14, 21, and 28.

4.2 COUNCILMEMBER BOARD/COMMITTEE REPORTS & COMMENTS
Councilmember Putz congratulated Mayor Herrick and Mayor Pro Tem Mote on their new/repeating roles; said he is pleased the see the influx of Mountain Transit trolleys/buses around the community and the increase in ridership; provided a brief overview of the League of California Cities Desert Mountain Division Organizational Meeting/Larry Chimbole Award Dinner; congratulated Big Bear High School’s Cross Country Team and Max Sannes on his recent win at the CIF Southern Section Cross Country Finals.

Councilmember Melnick thanked Councilmember Putz for his service as Mayor Pro Tem during 2021; apologized that she was not able to attend the Village Tree Lighting Ceremony; reported on the upcoming annual speech competition for high school students sponsored by the American Association of the University of Women – Big Bear Branch; wished everyone a peaceful and safe holiday and New Year.

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Councilmember Lee discussed the Tidal Wave’s (local girls’ soccer team) success and presented information on the how the public could provide donations to assist the players with travel costs associated with their participation in the Commissioners’ Cup tournament; discussed his recent visit at a local boutique, PTL Plus; thanked staff for their efforts on the Village Tree Lighting Ceremony; stated that he will respond to concerns brought forth by residents in regard to his campaign financing in the future at a time of his choosing; shared details regarding an upcoming Community Prayer Event; provided his contact information so local residents can contact him if they need assistance with purchasing their child’s Christmas gifts; acknowledged/named all of the victims of the recent national tragedies that occurred at Oxford High School and a Wisconsin Holiday Parade; also acknowledged the passing of Senator Robert Dole; and wished his colleagues and the City staff a Merry Christmas.

Mayor Pro Tem Mote thanked Council and staff for accommodating her as she participates remotely during this meeting; congratulated Mayor Herrick for his continued service as presiding officer and thanked Council for showing their confidence in her by appointing her to serve as Mayor Pro Tem; thanked the San Bernardino Mountains Wildlife Society for donating land to the City near Stanfield Marsh; shared upcoming community events including the Moonridge School of Dance’s presentation of the Nutcracker, the Grinch, and more, The Grizzly newspapers’ “Stuff the Truck” toy drive, and encouraged everyone to visit Santa and Mrs. Clause in the Village; said she is excited about the construction of the roundabouts in the Moonridge Corridor; wished everyone a happy holiday season and New Year.

Mayor Herrick reported on the recent San Bernardino County Transportation Authority (SBCTA) Board Meeting; discussed recent meetings/local tours with Ray Wolfe, SBCTA Director, and County Supervisor Dawn Rowe; and reminded everyone that the Rotary Club also spreads holiday cheer to local children thru their annual “Santa Visits” program.

ADJOURNMENT
There being no further business to come before the Council at this Open Session, Mayor Herrick adjourned the meeting at 9:39 p.m. in honor of the late Senator Robert Dole. _______________________
Erica Stephenson, City Clerk

MEETING DATE: January 3, 2022
TO: Honorable Mayor Herrick and Members of the City Council FROM: Frank A. Rush, Jr., City Manager

SUBJECT: City Manager Comments – Item 1.3

RESOLUTION AUTHORIZING BID SOLICITATION FOR THE ANNUAL STREET STRIPING PROJECT

ACTION TO BE CONSIDERED
City Council will consider a formal resolution authorizing the solicitation of bids for the annual street striping project. This project is an annual effort to restripe roadway markings throughout the City in order to ensure proper function and a fresh appearance after the wear and tear of the winter season.

Following bid solicitation, City Council is expected to consider a formal contract award in March, with work commencing as soon as weather permits this spring. A total of $50,000 is included in the FY 2021- 22 General Fund budget for this work.

RECOMMENDED MOTION(S)
Motion to adopt the Resolution Authorizing Bid Solicitation for the Annual Street Striping Project.

RESPONSIBLE STAFF Sean Sullivan, Director of Public Services Jared Cheek, Public Works Operations Manager

ADDITIONAL CITY MANAGER COMMENTS
It is a high priority of mine to ensure that all City pavement markings are refreshed each year after the winter season, as I believe this makes a positive difference in overall community aesthetics.

MEETING
DATE: January 3, 2022
TO: Honorable Mayor and Members of the City Council
THROUGH: Frank A. Rush, Jr., City Manager
FROM: Sean Sullivan, Director of Public Services
Jared Cheek, Public Works Operations Manager
SUBJECT: Resolution Authorizing Bid Solicitation for the Annual Street Striping Project

BACKGROUND
The City of Big Bear Lake is responsible for the maintenance and operation of approximately 84 centerline miles of streets within the City. As a part of the City’s efforts to maintain and improve the streets, the annual Capital Replacement / Improvement Plan includes several projects focused on street maintenance, including street rehabilitation, crack sealing, slurry seal, and line striping.

These projects account for an annual budget allocation of $1,550,000.

Included within the annual Capital Replacement / Improvement Plan is an annual allocation of $50,000 for the restriping of various roadway markings throughout the City. Staff is seeking authorization to conduct a bid solicitation for the project for FY 2021-22.

DISCUSSION
A key component of the City’s annual street maintenance efforts is the restriping of various lane lines and roadway markings. This effort is typically undertaken in the late spring to correct the damage done to the roadway striping by the winter weather and related plowing operations. The scope of work for this effort will be the application of striping paint for approximately 100,000 linear feet of long lane lines, in both yellow and white, and various legends and stop sign markings at approximately 200 locations.

The proposed resolution authorizes staff to conduct a bid solicitation consistent with our purchasing policy for this project. The process will be undertaken in early 2022 and staff anticipates bringing a contract for these services to the City Council in March 2022. Work will commence as the weather allows this spring and should be completed by June 30, 2022.

FISCAL IMPACT
A total of $50,000 is included in the FY 2021-22 City budget for this project.

ENVIRONMENTAL CONSIDERATIONS
These activities are categorically exempt from the California Environmental Quality Act (CEQA) under section 15301.c as maintenance of existing highways and streets.

ATTACHMENTS

1. Resolution No. 2022-XX

2. CEQA Notice of Exemption
ATTACHMENT 1
Resolution No.
2022-XX
RESOLUTION NO. 2022-XX

RESOLUTION AUTHORIZING BID SOLICITATION FOR THE

ANNUAL STREET STRIPING PROJECT
WHEREAS, the City of Big Bear Lake is responsible for the maintenance and operation of approximately 84 centerline miles of streets within the City; and WHEREAS, the City’s annual Capital Improvement Program Budget establishes annual projects for street rehabilitation, crack sealing, slurry seal, and line striping in a total amount of $1,550,000 per year; and
WHEREAS, the annual Capital Replacement / Improvement Plan includes the annual line striping project with a budget of $50,000 annually; and
WHEREAS, the nature of this project is to repaint striping throughout the City, including approximately 100,000 linear feet of long lane lines, both in yellow and white, and the painting of various roadway legends and stop sign markings at approximately 200 locations; and WHEREAS, this project should be undertaken each spring to correct the damage done to the roadway makings caused by winter weather and associated snow plowing operations; and WHEREAS, staff desires to conduct a bid solicitation for this project, consistent with the City’s purchasing policy, in early 2022 and award a construction contract in March 2022; and WHEREAS, upon approval of a contract for this project, work would commence as weather allows in spring and be completed by June 30, 2022; and WHEREAS, this project is categorically exempt pursuant to the California Environmental Quality Act as the maintenance of existing highways and streets.

NOW, THEREFORE, BE IT RESOLVED by the City Council that:

1. Staff is authorized to proceed with the bid solicitation for this project.

2. This project is exempt from the California Environmental Quality Act under Title 14 – Natural Resources Code, Division 6, Chapter 3, Article 19 – Categorical Exemptions, section 15301.c as maintenance of existing highways and streets.

PASSED, APPROVED AND ADOPTED this 3rd day of January, 2022 Rick Herrick, Mayor
ATTEST:

Erica Stephenson, City Clerk

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss

CITY OF BIG BEAR LAKE )
I, Erica Stephenson, City Clerk of the City of Big Bear Lake, California, do hereby certify that the whole number of the City Council of the said City is five; that the foregoing resolution, being Resolution No. 2022-XX was duly passed and adopted by the said City Council and attested by the City Clerk of said City, all at a regular meeting of the said City held on the 3 rd day of
January, 2022 and that the same was so passed and adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Erica Stephenson, City Clerk
ATTACHMENT 2
CEQA Notice of
Exemption

CEQA NOTICE OF EXEMPTION
TO: Clerk of the Board of Supervisors FROM: Engineering Division County of San Bernardino City of Big Bear Lake
385 N. Arrowhead Avenue, 2nd Floor P. O. Box 10000
San Bernardino, CA 92415-0130 Big Bear Lake, CA 92315
Project Title:

Annual Citywide Street Striping Project
Project Location - Specific:

On various locally owned and maintained street within the City of Big Bear Lake Description of Project:

This project involves the painting of various roadway lines and markings at various locations on locally owned and maintained streets within the City of Big Bear Lake.

Name of Public Agency Approving Project:

City of Big Bear Lake, City Council
Exempt Status: (check one) (State type and section number) XX Categorical Exemption. Section: 15301.c
Reasons why project is exempt:

These repairs are categorically exempt from the California Environmental Quality Act (CEQA) under section 15301.c as maintenance of existing highways and streets.

Lead Agency or Contact Person: Area Code/Telephone/Extension Sean Sullivan (909) 866-5831 ext. 113
Director of Public Services
Date: January 3, 2022
Signature:
_____________________________
Sean Sullivan, Director of Public Services
MEETING DATE: January 3, 2022
TO: Honorable Mayor Herrick and Members of the City Council FROM: Frank A. Rush, Jr., City Manager
SUBJECT: City Manager Comments – Item 1.4

RESOLUTION AUTHORIZING A REIMBURSEMENT AGREEMENT WITH DWP FOR WATER LINE

IMPROVEMENTS ASSOCIATED WITH THE MOONRIDGE CORRIDOR IMPROVEMENTS PROJECT

ACTION TO BE CONSIDERED
City Council will consider a formal resolution authorizing the reimbursement of $256,328 to the Department of Water and Power (DWP) for water line improvements associated with the Moonridge Corridor Improvements Project. As construction of the Moonridge project got underway last summer, the engineering team identified concerns and opportunities with portions of the water line improvements specified within the project, and identified a more cost-effective approach to complete these improvements and create additional value for the City and DWP. As a result, the City reduced the scope of work in the Granite Construction contract for the Moonridge project, and authorized DWP to complete the necessary water line improvements via its contractor. Overall, this approach resulted in significant cost savings for the City and DWP. Sufficient funds are available in the project budget for the Moonridge Corridor Improvement Project for this reimbursement.

RECOMMENDED MOTION(S)
Motion to adopt the Resolution Authorizing a Reimbursement Agreement with DWP for Water Line Improvements Associated with the Moonridge Corridor Improvements Project.

RESPONSIBLE STAFF Sean Sullivan, Director of Public Services Israel Gomez-Rosales, Associate Engineer

ADDITIONAL CITY MANAGER COMMENTS
I appreciate the cooperation exhibited by Public Services and DWP staff to identify and implement a more cost-effective strategy for water line improvements associated with the Moonridge project.

MEETING
DATE: January 3, 2022
TO: Honorable Mayor and Members of the City Council
THROUGH: Frank A. Rush, Jr., City Manager
FROM: Sean Sullivan, Director of Public Services
Israel Gomez-Rosales, Associate Engineer
SUBJECT: Resolution Authorizing a Reimbursement Agreement with DWP for Water Line Improvements Associated with the Moonridge Corridor Improvements Project

BACKGROUND
On June 21, 2021, the City Council approved a construction contract with Granite Construction Co. for the Moonridge Corridor Improvements Project. The project is aimed at transforming Moonridge Road between Elm Street and Clubview Drive and includes the construction of widened sidewalks, a bicycle path, medians and parkways that will support comprehensive landscape improvements, and two traffic calming roundabouts. Construction broke ground this summer and is scheduled for completion in October 2022.

The project also includes significant underground drainage improvements, including additional storm drains to convey runoff to Rathbun Creek. The installation of the drainage improvements required the relocation of a portion of a DWP water main and water line belonging to Big Bear Mountain Resorts for snow making purposes. The construction contract with Granite Construction Co. included the costs associated with relocating a 100’ section of the DWP line and a 60’ section of the BBMR Line.

As construction was set to get underway this summer, the engineering team, in close coordination with DWP and BBMR, developed concerns associated with the proposed partial relocations of the existing utilities. The existing lines convey large volumes of critical water throughout the City, and the proposal of relocating only a portion of the utilities, rather than the entire lines, created concern for all parties, especially DWP. The engineering team was able to generate a revised plan that resulted in both cost savings for the project and additional value for DWP.

The revised plan included the complete relocation and reconstruction of the DWP water line, rather than the proposed partial relocation. Additionally, the plan eliminated the need to relocate the BBMR water line while ensuring that all necessary drainage standards are met for this project.

DISCUSSION
There are considerable underground utility improvements within the Moonridge Corridor Improvements Project primarily driven by the need to manage drainage along the corridor given the pending changes to the roadway surface. The project plans called for the installation of more than 1,500 feet of new drain lines, ranging in size from 18” to 48”. Given the size of the proposed drain lines and the presence of existing utilities within the corridor, the plans called for relocating portions of water lines owned by DWP and BBMR. Given the potential impact that could be created by these utility relocations, staff from DWP and BBMR worked in close coordination with the project engineering team.

A revised plan was developed for these efforts that eliminated some of the utility relocations, provided additional value to DWP, and ultimately reduced costs for certain project elements. The revised plan included a complete relocation and reconstruction of the DWP water line, rather than a partial relocation, as well as some adjustments to the drainage plan that would ultimately eliminate the need to relocate the BBMR line, leaving it in place and untouched.

The construction contract with Granite Construction Co. included a total cost of $298,000 for the partial relocation of the DWP line. Granite was asked for a change order proposal for the revised scope of work associated with the complete relocation and reconstruction of the water line and their proposed price was $655,876. Staff was concerned with the proposed price and consulted with staff at DWP. As DWP was working on extensive pipeline projects this past summer, DWP had one of their contractors provide a proposal for the scope of work to compare to the other.

Borden Excavating, Inc. proposed to the DWP to complete the water line replacement and relocation for $239,100.

Given the advantageous pricing obtained by DWP, City staff advised them to proceed with the work. City staff indicated that the City would reimburse DWP for this effort as the cost and budget were already available within the Moonridge project budget. Work commenced within days and was completed in the middle of September 2021. There was one change order on the project, associated with backfilling and stabilizing the trench, bringing the total cost of the work to $256,328. As this work was coordinated through DWP and its contractor, this work has been removed from the current construction contract with Granite Construction.

This coordination between the City and DWP created an opportunity to generate budgetary savings and an improved result. The final cost for the fully replaced 12” water line was $256,328, a savings of $41,672 from the proposed price of $298,000 for the partial water line relocation. Additionally, staff at DWP is pleased with having a replaced, consistent pipeline rather than the initially planned partial relocation. The methods and infrastructure that would have been required for the partial relocation would have added additional maintenance and operational concerns for DWP.

The water pipeline work was completed by Borden Excavating on September 17, 2021. Granite Construction Co. was working concurrently on drainage improvements for the project and broke for the winter season on October 15. Work will resume as the weather allows around April 2022.

Staff appreciates the cooperative spirit of both the Department of Water and Power and Big Bear Mountain Resorts. Staff is recommending that the City Council adopt the proposed resolution, authorizing a reimbursement agreement with the DWP in the amount of $256,328.

FISCAL IMPACT
The Moonridge Corridor Improvements Project has a budget of $9,000,000 that is available from a variety of sources. The payment to DWP for this part of the project will be funded through the available project budget.

ENVIRONMENTAL CONSIDERATIONS
On April 5, 2021, the City Council found this project to be exempt from the California Environmental Quality Act.

ATTACHMENTS

1. Resolution No. 2022-XX

2. Change Order Proposal from Granite Construction Co.

3. Invoice from Big Bear Lake Department of Water and Power ATTACHMENT 1
Resolution No.
2022-XX
RESOLUTION NO. 2022-XX

RESOLUTION AUTHORIZING A REIMBURSEMENT

AGREEMENT WITH DWP FOR WATER LINE IMPROVEMENTS

ASSOCIATED WITH THE MOONRIDGE CORRIDOR

IMPROVEMENTS PROJECT
WHEREAS, the Moonridge Corridor Improvements Project was awarded to Granite Construction Co. on June 21, 2021 in an amount of $8,379,649; and
WHEREAS, the contract included the entire scope of the Moonridge Corridor Improvements Project, including underground utility construction requiring the relocation of existing Department of Water and Power and Big Bear Mountain Resort water lines; and WHEREAS, a redesign of the drainage plans would eliminate the need to adjust the Big Bear Mountain Resort water line but would contemplate a full relocation of the DWP water line, rather than the planned partial relocation; and
WHEREAS, Granite Construction Co. proposed a price of $655,876 for the relocation of the full 12” waterline and, in an effort to review their pricing, DWP staff solicited a proposal from Borden Excavating, Inc. for the same scope of work as they were working on other pipeline projects for the DWP; and
WHEREAS, Borden Excavating, Inc. provided a price to the DWP of $239,100 for relocation of the 12” DWP water line; and
WHEREAS, given the considerable cost savings, staff authorized DWP staff to coordinate the water line relocation with Borden Excavating, Inc.; and WHEREAS, Borden Excavating, Inc. completed the work on September 17, 2021; and WHEREAS, there was one change order for this work related to the backfilling and stabilizing of the utility trench, bringing the total cost of their work to $256,328; and WHEREAS, the relocation and reconstruction of the entire water line generated a savings for the project of $41,672 from the costs associated with the partial waterline relocation.

NOW, THEREFORE, BE IT RESOLVED by the City Council that a one-time payment to the Department of Water and Power is authorized in the amount of $256,328 for the water line replacement related to the Moonridge Corridor Improvements Project.

PASSED, APPROVED AND ADOPTED this 3rd, day of January 2022.

Rick Herrick, Mayor
ATTEST:

Erica Stephenson, City Clerk

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss

CITY OF BIG BEAR LAKE )
I, Erica Stephenson, City Clerk of the City of Big Bear Lake, California, do hereby certify that the whole number of the City Council of the said City is five; that the foregoing resolution, being Resolution No. 2022-XX was duly passed and adopted by the said City Council and attested by the City Clerk of said City, all at a regular meeting of the said City held on the 3rd day of January, 2022 and that the same was so passed and adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Erica Stephenson, City Clerk
ATTACHMENT 2
Change Order
Proposal from
Granite
Construction Co.

Letter #1
8/20/2021
City of Big Bear
Attn: Israel Gomez
1130436 Big Bear Moonridge Roundabouts
Change order for Added RCP and 12" Water Line Relocation and various bid item deletions Description Bid Quantity Unit Bid Price Bid Total
Deductions
30" RCP 48 LF $ (205.00) $ (9,840.00)
48" RCP 231 LF $ (315.00) $ (72,765.00)
Water
22" Water Main Relocation 60 LF $ (3,450.00) $ (207,000.00) 12" Water Main Relocation 100 LF $ (2,350.00) $ (235,000.00) 4" Water Main Relocation 30 LF $ (2,100.00) $ (63,000.00) Catch Basin
5' X 5' Storm Drain Cleanout 2 EA $ (15,500.00) $ (31,000.00) 4' X 4' Storm Drain Cleanout 1 EA $ (13,500.00) $ (13,500.00) Deduction Total $ (632,105.00)
Addition
24" RCP At Birch St. 96 LF $ 185.00 $ 17,760.00
36" RCP At Elm St. 454 LF $ 230.00 $ 104,420.00
4' X 8' Catch Basin at Birch St. 1 EA $ 22,000.00 $ 22,000.00 5' X 10' Catch Basin at Elm St. 3 EA $ 25,000.00 $ 75,000.00 12" Water Main Relocation 1 LS 655,876.00 $ 655,876.00 $ Note: Dewatering, Rock and Boulders over 2FT excluded in our price Total $ 875,056.00
Grand Total Change Order Price $ 242,951.00
ALT
ALT: 12" Siphon Addition at ELM St. (ADD if 12" Water Main Relocation Not Approved) 50 LF $ 2,350.00 $ 117,500.00 ATL: Surry Backfill 24" & 36" RCP 1 LS $ 77,603.00 $ 77,603.00 ALT: 35 Recepticals Addition Moonridge 1 LS $ 246,814.00 $ 246,814.00 Submitted by:

Erik M. Wardell
Project Manager

PROPOSAL
ATTACHMENT 3
Invoice from
DWP

MEETING DATE: January 3, 2022
TO: Honorable Mayor Herrick and Members of the City Council FROM: Frank A. Rush, Jr., City Manager
SUBJECT: City Manager Comments – Item 1.5

RESOLUTION AUTHORIZING MOUNTAIN TRANSIT

TO UTILIZE CITY LAND IN THE KNICKERBOCKER PARKING LOT FOR A BUS STOP

ACTION TO BE CONSIDERED
City Council will consider a formal resolution authorizing Mountain Transit to utilize City land in the Knickerbocker Parking Lot for a new bus stop. The City recently cordoned off several parking spaces in the northwest corner of the parking lot to serve as the main bus stop in The Village as part of the new free trolley service. Mountain Transit is working to construct a new, permanent bus stop shelter at this location in the future, and the proposed resolution would authorize the use of this portion of the parking lot for this purpose. The new bus stop features would be funded by Mountain Transit.

RECOMMENDED MOTION(S)
Motion to adopt the Resolution Authorizing Mountain Transit to Utilize City Land in the Knickerbocker Parking Lot for a Bus Stop.

RESPONSIBLE STAFF Sean Sullivan, Director of Public Services

ADDITIONAL CITY MANAGER COMMENTS
None.

MEETING
DATE: January 3, 2022
TO: Honorable Mayor and Members of the City Council
THROUGH: Frank A. Rush, Jr., City Manager

FROM: Sean Sullivan, Director of Public Services
SUBJECT: Resolution Authorizing Mountain Transit to Utilize City Land in the Knickerbocker Parking Lot for a Bus Stop

BACKGROUND
Beginning in October 2021, Mountain Transit expanded their service offerings to launch a free trolley service with expanded hours, routes, and connections throughout the Big Bear Valley. This effort is the result of a partnership between Mountain Transit and several community stakeholders including the Big Bear Airport, Big Bear Mountain Resorts, San Bernardino County, and the City of Big Bear Lake. On September 20, 2021, the City Council expressed the City’s support of this expanded transit effort and committed to a $100,000 contribution for each of the next two years.

A key stop and service area for the new free trolley service is the Village. Each of the three (3) trolley routes service the Village with the identified stop being on Knickerbocker Road at the intersection of Village Drive. The City has assisted Mountain Transit by cordoning off several parking spots in this area for a temporary bus stop and the location appears to be working well.

Mountain Transit is proposing to construct a new, permanent bus shelter in this location and as such is seeking City approval to utilize this property for this purpose.

DISCUSSION
As a part of the enhanced and expanded transit service that Mountain Transit is providing throughout the Big Bear Valley, they are seeking to construct permanent bus shelters in key areas along the route. Staff from Mountain Transit and the City have identified an area along Knickerbocker Road, just north of Village Drive, as an ideal location for a bus stop to serve the Village. The area is presently designated as public parking but provides adequate space for the busses to stop out of traffic, pick up or drop off passengers to the Village, and maneuver out of the location in either direction their route may take them. Since the service was launched at the end of October, staff has allowed the location to be cordoned off for this purpose with the temporary placement of cones.

Mountain Transit is requesting the authorization to construct a permanent bus stop at this location, at their expense, to further enhance the transit service. The location in question currently provides approximately ten (10) public parking spaces and is on the outer edge the Knickerbocker Parking Lot with direct street access. The Knickerbocker Parking Lot, as well as the Pennsylvania Parking Lot which is located directly across Village Drive, offer a combined 259 parking spaces and they are rarely full. Staff believes the loss of the ten (10) public parking spaces should have a negligible impact to the area especially as the intent of the transit service is to bring more people to the Village area with less cars.

Given the City’s existing support for this service, staff is recommending that Mountain Transit be authorized to utilize this space for establishment and construction of a permanent bus stop.

Mountain Transit has bus stops located throughout the Valley, all of which are on land and right of way that is not owned by Mountain Transit. Mountain Transit has several agreements with Caltrans, San Bernardino County, and other groups or property owners for the establishment of bus stops and this authorization would be consistent with those agreements. The City is not requesting any compensation but all future improvements would be made at the expense of Mountain Transit.

The proposed resolution will express support for the proposed usage by Mountain Transit to utilize this area for the purposes of establishing a bus stop. The resolution will authorize the City Manager to execute any necessary documents required to authorize this use.

FISCAL IMPACT
This action has no fiscal impact.

ENVIRONMENTAL CONSIDERATIONS
This action is not subject to environmental review under the California Environmental Quality Act (CEQA). Any proposed improvements may be subject to environmental review and will be analyzed accordingly.

ATTACHMENTS

1. Resolution No. 2022-XX

2. Aerial Map and Location Photos
ATTACHMENT 1
Resolution No.
2022-XX

RESOLUTION NO. 2022-XX

RESOLUTION AUTHORIZING MOUNTAIN TRANSIT TO

UTILIZE CITY LAND IN THE KNICKERBOCKER PARKING

LOT FOR A BUS STOP
WHEREAS, Mountain Transit launched a free trolley service in October 2021 to expand service, operating hours, and routes throughout the Big Bear Valley; and WHEREAS, on September 20, 201, the City Council expressed their support of this program and committed to a $100,000 contribution for this service over each of the next two (2) years; and WHEREAS, a key stop for this service is to serve the Village from the intersection of Knickerbocker Road at Village Drive where the City has assisted with cordoning off approximately ten (10) parking spots for this use; and
WHEREAS, Mountain Transit is requesting approval from the City to utilize this area to construct a permanent bus stop at their expense; and
WHEREAS, staff believes that this is an appropriate location from which to serve the Village efficiently and given the volume of available public parking in the area does not believes that the loss of ten (10) parking spaces will have an impact on the area; and WHEREAS, Mountain Transit maintains a number of other bus stops located on land owned by other agencies including Caltrans and San Bernardino County, amongst others; and WHEREAS, any usage of this area would be consistent with the terms of other arrangements for the provision of public bus stops.

NOW, THEREFORE, BE IT RESOLVED by the City Council that:

1. Mountain Transit is authorized to utilize a portion of the public parking area at the Knickerbocker Parking Lot for the establishment of a permanent bus stop.

2. The City Manager is authorized to execute any necessary documents associated with this use.

PASSED, APPROVED AND ADOPTED this 3rd day of January, 2022 Rick Herrick, Mayor
ATTEST:

Erica Stephenson, City Clerk

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss

CITY OF BIG BEAR LAKE )
I, Erica Stephenson, City Clerk of the City of Big Bear Lake, California, do hereby certify that the whole number of the City Council of the said City is five; that the foregoing resolution, being Resolution No. 2022-XX was duly passed and adopted by the said City Council and attested by the City Clerk of said City, all at a regular meeting of the said City held on the 3rd day of January, 2022 and that the same was so passed and adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Erica Stephenson, City Clerk
ATTACHMENT 2
Aerial Map and
Location Photos
Proposed Mountain Transit Stop
Knickerbocker Road at Village Drive
Aerial Map
Location Looking North
Location Looking South

MEETING DATE: January 3, 2022
TO: Honorable Mayor Herrick and Members of the City Council FROM: Frank A. Rush, Jr., City Manager
SUBJECT: City Manager Comments – Item 1.6

RESOLUTION HONORING REQUEST TO WITHDRAW LAND USE APPLICATION AND RESCINDING CITY

APPROVAL OF THE DEVELOPMENT OF A COMMERCIAL GROCERY STORE BUILDING WITH ASSOCIATED PARKING LOT AND SITE IMPROVEMENTS LOCATED AT 42175 BIG BEAR BOULEVARD

ACTION TO BE CONSIDERED
City Council will consider a formal resolution honoring a request from Tectonics Design Group / Main & Main Capital Group LLC to withdraw its land use application for construction of a proposed new Grocery Outlet store, and rescinding City approval of the proposed project. Tectonics Design Group / Main & Main Capital Group LLC recently reached a settlement agreement with petitioners challenging the project, and the settlement agreement includes the termination of project development. The Planning Commission approved the proposed project at its meeting on April 21, 2021, and the City Council denied appeals of the Planning Commission’s approval at its meeting on August 2, 2021. The attached resolution formally rescinds these previous City approvals.

RECOMMENDED MOTION(S)
Motion to approve the Resolution Honoring Request to Withdraw Land Use Application and Rescinding City Approval of the Development of a Commercial Grocery Store Building with Associated Parking Lot and Site Improvements Located at 42175 Big Bear Boulevard.

RESPONSIBLE STAFF Stephen P. Deitsch, City Attorney

ADDITIONAL CITY MANAGER COMMENTS
None.

MEETING
DATE: January 3, 2022
TO: Honorable Mayor and Members of the City Council
THROUGH: Frank A. Rush, Jr., City Manager

FROM: Stephen P. Deitsch, City Attorney
SUBJECT: Resolution Honoring Request to Withdraw Land Use Application and Rescinding City Approval of the Development of a Commercial Grocery Store Building with Associated Parking Lot and Site Improvements Located at 42175 Big Bear Boulevard

BACKGROUND

On February 10, 2020, Tectonics Design Group and Main & Main Capital Group, LLC (collectively the “Applicant”) filed a Pre-Development application with the City proposing a grocery store and related site improvements (the “Project”). On September 10, 2020, the Applicant filed a formal development review application requesting approval of Plot Plan Review 2020-078 for the Project (the “Application”). The Project would have been located on three merged parcels of about 2.9 acres at 42175 Big Bear Boulevard (the “Site”). The Site is zoned Commercial General (C-2) under which the Project is a permitted use.

On April 21, 2021, the Planning Commission conducted a public hearing, and then by a 4-1 vote approved the Application and the Project by adopting Planning Commission Resolution 2021-

04. The City then timely received two appeals from the Planning Commission’s approval – one from Big Bear Lake Together and one from Patrice Duncan.

On June 7, 2021, the City Council conducted a public hearing to consider the two appeals. Following the close of the public hearing, the City Council continued its deliberations at its meetings on July 19 and August 2. At its meeting on August 2, 2021, the City Council, by a 3- 2 vote, adopted Resolution No. 2021-96 approving the Application and the Project.

On September 9, 2021, Big Bear Lake Together and Pat Prodrouzek (the “Petitioners”) filed a Verified Petition for Writ of Mandate in the Superior Court of San Bernardino County against Respondents City of Big Bear Lake (the “City”) and Tectonics Design Group/Main & Main Capital Group, LLC (the “Real Parties in Interest”). The Petition for Writ challenged the City’s approval of the Application and the Project under the California Environmental Protection Act, among other claims (the “Litigation”).

DISCUSSION

Following the filing of the Litigation, the Applicant/Real Parties in Interest determined that Grocery Outlet, for whom they would develop the Project, was no longer interested in proceeding with the Project. As a result, the Applicant/Real Parties in Interest, on their own, commenced settlement discussions with the Petitioners in order to dismiss the Litigation, notwithstanding the opinion of the City Attorney that the City and the Real Parties in Interest would likely prevail in the Litigation.

The Applicant/Real Parties in Interest ultimately negotiated the terms of a Settlement Agreement, to which the City would be a party since the City by necessity was named a defendant in the Litigation. The Petitioners and the Applicant/Real Parties in Interest accepted certain revisions to the Settlement Agreement suggested by the City, and the Settlement Agreement was finalized. In closed session at its meeting on December 6, 2021, the City Council, by unanimous vote with all Council Members present, approved the Settlement Agreement on condition that the Applicant/Real Parties in Interest first reimburse the City for the City’s Litigation-related fees and costs. The Applicant/Real Parties in Interest subsequently met this condition and reimbursed the City slightly more than $15,000 covering such fees and costs.

The Settlement Agreement was thereafter fully executed by the parties. Among other matters, it provides that all the parties agree not to file any claims or actions against the other parties related to the Project, and that the Petitioners and the Applicant/Real Parties in Interest will each bear their own respective legal fees and costs of the Litigation. The Settlement Agreement also provides that the Applicant/Real Parties in Interest will withdraw their Application for Project approval filed with the City, and that as a result, the City will formally rescind Resolution No. 2021-96 by which the City approved the Project.

On December 15, 2021, following satisfaction of the condition of City Council approval of the Settlement Agreement, the City issued a press release announcing the full execution of the Settlement Agreement.

As a result of the Settlement Agreement and the City’s obligation thereunder, the City Council now has before it the attached Resolution which honors the Applicant’s withdrawal of its Application, and rescinds approval of the Project by the City.

FISCAL IMPACT
The City has been reimbursed a total of $15,097 by the Applicant for the City’s fees and costs resulting from the Litigation. There are no other financial impacts to the City resulting from the proposed Resolution.

ENVIRONMENTAL IMPACT
The adoption of the Resolution, which rescinds approval of the Project, will not cause any impacts on the environment and, thus, is not a project subject to the California Environmental Protection Act.

ATTACHMENTS

1. Resolution No. 2022-XX

2. Settlement Agreement

3. Press Release dated December 15, 2021
ATTACHMENT 1
Resolution No.
2022-XX
RESOLUTION NO. 2022 – XX

RESOLUTION HONORING REQUEST TO WITHDRAW LAND USE APPLICATION

AND RESCINDING CITY APPROVAL OF THE DEVELOPMENT OF A

COMMERCIAL GROCERY STORE BUILDING WITH ASSOCIATED PARKING LOT AND SITE IMPROVEMENTS LOCATED AT 42175 BIG BEAR BOULEVARD WHEREAS, on February 10, 2020, Tectonics Design Group and Main & Main Capital Group, LLC (collectively, “Applicant”) filed a Pre-Development application proposing grocery store and related site improvements (“Project”) on lots to be merged comprising a three parcel site of about 2.9 acres with an address of 42175 Big Bear Boulevard (“Site”); and WHEREAS, on September 10, 2020, the Applicant filed a formal development review application requesting approval of Plot Plan Review 2020-078 for the Project (“Application”); and
WHEREAS, the Site is zoned Commercial General (C-2) under which the Project is a permissible land use; and
WHEREAS, on April 21, 2021, the Planning Commission conducted a duly noticed public hearing, at which time and place the Planning Commission received and considered all written evidence and oral testimony related to the Application and the Project; and WHEREAS, following the public hearing at its meeting on April 21, 2021, the Planning Commission approved the Application and the Project in Planning Commission Resolution 2021-04 by a 4-1 vote, in accordance with General Plan goals and policies and the City’s Development Code; and
WHEREAS, on April 28 and April 30, respectively, Big Bear Lake Together and Patrice Duncan each appealed the Planning Commission’s approval of the Application and the Project to the City Council (“Appeals”); and
WHEREAS, on June 7, 2021, the City Council conducted a duly noticed public hearing to consider the Appeals, after which the City Council continued its consideration and discussion of the Appeals to its meetings on July 19 and August 2, 2021; and WHEREAS, at its meeting on August 2, 2021, the City Council by a 3-2 vote adopted Resolution No. 2021-96 approving the Application and the Project, with conditions; and WHEREAS, on September 9, 2021, Big Bear Lake Together and Pat Prodrouzek (“Petitioners”) filed a Verified Petition for Writ of Mandate in the Superior Court of the State of California, County of San Bernardino, against Respondents City of Big Bear Lake (“City”) and Tectonics Design Group / Main & Main Capital Group, LLC (“Real Parties of Interest”), challenging the City’s approval of the Application and the Project under the California Environmental Protection Act among other claims (“Litigation”); and
WHEREAS, notwithstanding the opinion of the City Attorney that the City likely would prevail in the Litigation, the Applicant for the Project, as the Real Parties in Interest in the Litigation, subsequently determined and indicated to the City that Grocery Outlet, the entity for whom the Applicant would build the Project, was no longer interested in proceeding with the Project; and WHEREAS, in light of the lack of interest of Grocery Outlet to proceed further, the Applicant entered into settlement discussions with the Petitioners in the Litigation, pursuant to which the Petitioners and the Applicant finalized a certain Settlement Agreement resolving the Litigation; and
WHEREAS, pursuant to the Settlement Agreement, to which the City became a party, the Petitioners would dismiss the Litigation with prejudice in exchange for the Applicant withdrawing its Application for the Project; and
WHEREAS, in light of the Applicant’s decision to withdraw its Application for the Project pursuant to the Settlement Agreement, the City agreed to rescind its approval of Resolution No. 2021-96 approving the Application and the Project, in accordance with the Settlement Agreement; and
WHEREAS, the City believes that all requirements of the Settlement Agreement have been or will soon be met, including separate and apart from requirements of the Settlement Agreement reimbursement by the Applicant to the City of the City’s legal fees and costs incurred in addressing the Litigation, as well as a continuing covenant among the parties to the Settlement Agreement not to file further claims or actions against one another concerning this matter; and WHEREAS, pursuant to the Settlement Agreement, the City Council has determined that it is reasonable and appropriate to adhere to its terms by rescinding Resolution No. 2021-96;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BIG BEAR LAKE DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City Council hereby rescinds City Council Resolution No. 2021-96.

SECTION 2. The City Council’s rescission of City Council Resolution No. 2021-96 also invalidates Planning Commission Resolution 2021-04.

SECTION 3. This Resolution shall take effect upon its adoption.

SECTION 4. The City Clerk shall certify to the adoption of this Resolution.

PASSED, APPROVED AND ADOPTED this 3rd day of January, 2022.

Rick Herrick, Mayor
ATTEST:

Erica Stephenson, City Clerk

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss

CITY OF BIG BEAR LAKE )
I, Erica Stephenson, City Clerk of the City of Big Bear Lake, California, do hereby certify that the whole number of the City Council of the said City is five; that the foregoing resolution, being Resolution No. 2022-XX was duly passed and adopted by the said City Council and attested by the City Clerk of said City, all at a regular meeting of the said City held on the 3rd day of January, 2022 and that the same was so passed and adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Erica Stephenson, City Clerk
ATTACHMENT 2
Settlement
Agreement

ATTACHMENT 3
Press Release
Dated 12.15.2021

MEETING DATE: January 3, 2022
TO: Honorable Mayor Herrick and Members of the City Council FROM: Frank A. Rush, Jr., City Manager
SUBJECT: City Manager Comments – Item 1.7

RESOLUTION AUTHORIZING GRANT FUNDING APPLICATIONS

TO THE LAND AND WATER CONSERVATION FUND

ACTION TO BE CONSIDERED
City Council will consider two formal resolutions authorizing the submission of two grant applications to the Federal Land and Water Conservation Fund (LWCF) for a) future development of the Rathbun Creek bicycle and pedestrian trail, and b) future development of park amenities at the Stanfield Marsh property.

RECOMMENDED MOTION(S)
Motion to adopt the Resolution Authorizing Grant Funding Application to the Land and Water Conservation Fund – Rathbun Creek Trail Project.

Motion to adopt the Resolution Authorizing Grant Funding Application to the Land and Water Conservation Fund – Stanfield Marsh Park Development Project.

RESPONSIBLE STAFF Sean Sullivan, Director of Public Services

ADDITIONAL CITY MANAGER COMMENTS
None.

MEETING
DATE: January 3, 2022
TO: Honorable Mayor and Members of the City Council
THROUGH: Frank A. Rush, Jr., City Manager

FROM: Sean Sullivan, Director of Public Services
Katya Meyer, Administrative Analyst
SUBJECT: Resolutions Authorizing Grant Funding Applications to the Land and Water Conservation Fund

BACKGROUND
The Land and Water Conservation Fund (LWCF) is an annual allocation of nearly $900 Million to support a nationwide legacy of high-quality recreation and conservation areas and uses. Within California, the grant funding and applications area administered, on a competitive basis, through the California Department of Parks and Recreation. The purpose of these funds is to support either the acquisition of land and facilities to further support outdoor recreation opportunities or to develop recreation features within existing park and open spaces with the overall goal of these programs being the support of health and wellness of Californians. The types of projects eligible for funding under these programs include parks, trails, or open spaces that support either active or passive recreation opportunities. A key requirement of the grant is that the agency will certify and maintain that any area in which these funds are expended remains a publicly accessible recreational use in perpetuity.

Staff has reviewed the grant criteria and requirements against our existing project efforts and has identified two viable projects that staff would like to submit for LWCF funding. Within the existing Capital Replacement / Improvement Plan, projects include the further development and expansion of the Rathbun Creek Trail and the further improvement and expansion of park amenities located on the City property adjacent to Stanfield Marsh.

These grant applications are due on February 1, 2022, and the applications require adopted resolutions authorizing the submittal of the applications. Two resolutions are presented for the City Council’s consideration, authorizing staff to submit grant applications to the Land and Water Conservation Fund for the Rathbun Creek Trail and Stanfield Marsh Park Development projects.

DISCUSSION
The Land and Water Conservation Fund (LWCF) makes available an annual allocation of $900 million for recreation and conservation opportunities nationwide. Within California, the funds are administered through the California Department of Parks and Recreation and there is a competitive application process for projects, which are due on February 1, 2022. California’s annual allocation for competitive project funding is approximately $40 Million. The grants require a local match of at least 50% and a deed restriction related to future uses of the property.

Staff has selected two (2) existing projects within the City’s Capital Replacement / Improvement Plan that are believed to be good candidates for this funding and staff desires to submit the appropriate applications. The identified projects are the Rathbun Creek Trail Project and the Stanfield Marsh Park Development Project. These projects both provide for active and passive recreational opportunities within the City through the development and expansion of trails throughout the community.

The Rathbun Creek Trail was identified as a high-priority project within the Big Bear Valley Pedestrian Bicycle Equestrian Master Plan (2013) with a vision of a continuous trail from the shores of Big Bear Lake to the National Forest Boundary. The project was broken into phases and, at this time, portions of the trail are complete including the Alpine Pedal Path Extension and the portion from Big Bear Boulevard to Elm Street. Existing capital plans plans include two remaining phases of the trail, from Sandalwood Drive to Big Bear Boulevard and from Elm Street to the Zoo.

There have also been ongoing discussions related to the development of an appropriate crossing for the trail at Big Bear Boulevard. The existing cost estimates for the trail expansions are approximately $2.8 million. Additionally, staff believes that a surface crossing of the trail at Big Bear Boulevard will cost approximately $750,000 - $800,000, which brings the total budget for this effort to approximately $3.6 million. Staff anticipates submitting this entire scope of work in an application with a requested grant award of $1.8 million.

An extensive scope of work has been developed for improvements to the area known as Stanfield Marsh that staff desires to submit an additional funding application for. Current capital plans call for the improvement and expansion of the pedestrian trails, improvements to the parking lot, and performing maintenance on the boardwalks. Plans call for the eventual expansion of the paved pedestrian trails to Division Drive in the future years. Certain project elements are included within the existing 5-year capital plan, and in September 2021, the City Council authorized the City’s acquisition of these assets from the Municipal Water District further enabling the City to improve and expand in this area. Staff is proposing the submission of a grant for improvements to this area to include improvement to the existing boardwalks, the extension of paved trails, and improvements to the existing parking lot area with a total budget of approximately $2.5 Million.

Given the match requirements, staff anticipates a funding request of $1.25 for this application.

FISCAL IMPACT
The total grant request for these projects is $3.05 Million. Should these grants be awarded, the matching City funds will be provided from transient occupancy taxes derived from overnight visitors to Big Bear Lake.

ENVIRONMENTAL CONSIDERATIONS
The submission of these applications is not subject to environmental review pursuant to the California Environmental Quality Act (CEQA).

ATTACHMENTS

1. Resolution No. 2022-XX

2. Resolution No. 2022-XX
ATTACHMENT 1
Resolution No.
2022-XX
Authorizing Grant
Funding
Application to the
Land and Water
Conservation
Fund - Rathbun
Creek Trail
Project

RESOLUTION NO. 2022-XX

RESOLUTION AUTHORIZING GRANT FUNDING APPLICATION TO

THE LAND AND WATER CONSERVATION FUND -

RATHBUN CREEK TRAIL PROJECT
WHEREAS, the Congress under Public Law 88-578 has authorized the establishment of a federal Land And Water Conservation Fund Grant-In-Aid program, providing Matching funds to the State of California and its political subdivisions for acquiring lands and developing facilities for public outdoor recreation purposes; and
WHEREAS, the California Department of Parks and Recreation is responsible for administration of the program in the State, setting up necessary rules and procedures governing application by local agencies under the program; and,
WHEREAS, the applicant certifies by resolution the approval of the application and the availability of eligible matching funds prior to submission of the application to the State.

NOW, THEREFORE, BE IT RESOLVED that the City Council hereby:

1. Approves the filing of an application for Land and Water Conservation Fund assistance for the proposed Rathbun Creek Trail Project.

2. Agrees to abide by Section 6(f)(3) of Public Law 88-578 which states “No property acquired or developed with assistance under this section shall, without the approval of the National Secretary of the Interior, be converted to other than public outdoor recreation uses. The secretary shall approve such conversion only if he finds it to be in accord with the then existing comprehensive statewide outdoor recreation plan and only upon such conditions as he deems necessary to assure the substitution of other recreation properties of at least equal fair market value and of reasonably equivalent usefulness and location.”

3. Certifies that said agency has matching funds from eligible sources and can finance 100 percent of the project, which up to half may be reimbursed.

4. Appoints the City Manager as agent of the applicant to conduct all negotiations and execute and submit all documents, including, but not limited to, applications, contracts, amendments, payment requests, and compliance with all applicable current state and federal laws which may be necessary for the completion of the aforementioned project.

PASSED, APPROVED AND ADOPTED this 3rd day of January, 2022 Rick Herrick, Mayor
ATTEST:

Erica Stephenson, City Clerk

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss

CITY OF BIG BEAR LAKE )
I, Erica Stephenson, City Clerk of the City of Big Bear Lake, California, do hereby certify that the whole number of the City Council of the said City is five; that the foregoing resolution, being Resolution No. 2022-XX was duly passed and adopted by the said City Council and attested by the City Clerk of said City, all at a regular meeting of the said City held on the 3rd day of January, 2022 and that the same was so passed and adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Erica Stephenson, City Clerk
ATTACHMENT 2
Resolution No.
2022-XX
Authorizing Grant
Funding
Application to the
Land and Water
Conservation
Fund - Stanfield
Marsh Park
Development
Project

RESOLUTION NO. 2022-XX

RESOLUTION AUTHORIZING GRANT FUNDING APPLICATION TO

THE LAND AND WATER ONSERVATION FUND -

STANFIELD MARSH PARK DEVELOPMENT PROJECT
WHEREAS, the Congress under Public Law 88-578 has authorized the establishment of a federal Land And Water Conservation Fund Grant-In-Aid program, providing matching funds to the State of California and its political subdivisions for acquiring lands and developing facilities for public outdoor recreation purposes; and
WHEREAS, the California Department of Parks and Recreation is responsible for administration of the program in the State, setting up necessary rules and procedures governing application by local agencies under the program; and,
WHEREAS, the applicant certifies by resolution the approval of the application and the availability of eligible matching funds prior to submission of the application to the State.

NOW, THEREFORE, BE IT RESOLVED that the City Council hereby:

1. Approves the filing of an application for Land and Water Conservation Fund assistance for the proposed Stanfield Marsh park development project.

3. Certifies that said agency has matching funds from eligible sources and can finance 100 percent of the project, which up to half may be reimbursed.

PASSED, APPROVED AND ADOPTED this 3rd day of January, 2022 Rick Herrick, Mayor
ATTEST:

Erica Stephenson, City Clerk

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss

CITY OF BIG BEAR LAKE )
I, Erica Stephenson, City Clerk of the City of Big Bear Lake, California, do hereby certify that the whole number of the City Council of the said City is five; that the foregoing resolution, being Resolution No. 2022-XX was duly passed and adopted by the said City Council and attested by the City Clerk of said City, all at a regular meeting of the said City held on the 3rd day of January, 2022 and that the same was so passed and adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Erica Stephenson, City Clerk

MEETING DATE: January 3, 2022
TO: Honorable Mayor Herrick and Members of the City Council FROM: Frank A. Rush, Jr., City Manager
SUBJECT: City Manager Comments – Item 1.8

RESOLUTION AUTHORIZING EMERGENCY REPAIRS TO STANFIELD BOARDWALK

ACTION TO BE CONSIDERED
City Council will consider a formal resolution retroactively authorizing a contract with Jilk Heavy Construction, Brea, CA, for emergency repairs to the western segment of the Stanfield Boardwalk in the amount of $53,210. A single-vehicle accident damaged support pilings, decking, and railings on the boardwalk in early December, and the western segment was closed immediately thereafter for public safety reasons. The boardwalk was initially constructed by the predecessor of Jilk Heavy Construction in the 1990s, and the City Manager authorized emergency repairs in mid-December in order to ensure public safety and also to reopen the boardwalk prior to the upcoming holiday season. The City is in the process of completing the acquisition of the boardwalks and other property from the Municipal Water District (MWD), and the City ultimately expects to be reimbursed for the emergency repairs from the driver’s and/or the MWD’s insurance carrier.

RECOMMENDED MOTION(S)
Motion to adopt the Resolution Authorizing Emergency Repairs to Stanfield Boardwalk.

RESPONSIBLE STAFF Sean Sullivan, Director of Public Services

ADDITIONAL CITY MANAGER COMMENTS
None.

MEETING
DATE: January 3, 2022
TO: Honorable Mayor and Members of the City Council
THROUGH: Frank A. Rush, Jr., City Manager

FROM: Sean Sullivan, Director of Public Services
SUBJECT: Resolution Authorizing Emergency Repairs to Stanfield Boardwalk

BACKGROUND
On December 1, 2021, a single-vehicle accident caused damage to support pilings, decking, and railings on the western boardwalk adjacent to Stanfield Marsh. Given the extent of the damage, the entire western boardwalk was immediately secured and closed to public access. Staff has been working in close coordination with staff from the Municipal Water District (MWD) to assess the damage and develop a plan for the repairs. MWD staff was able to contact the successor company of the original contractor that constructed these facilities in the 1990s.

Staff and the consulting City Engineer, supported by a structural engineering consultant, conducted a site visit with Jilk Heavy Construction, Inc. (Brea, CA). Jilk Heavy Construction, Inc. (Jilk) purchased the company, John A. Meek Construction, who originally constructed the boardwalks.

Mr. James Jilk was involved in the construction of the boardwalks and is very familiar with this facility as well as other facilities of this nature. Jilk Heavy Construction provided a plan for the repair and securing of the boardwalks which was concurred to by the consulting structural engineer. The City Manager authorized the repair to this facility to commence under the emergency provisions within the purchasing policy. The work has been completed and staff is seeking the City Council’s retroactive approval of the contract and expenditure.

DISCUSSION
In September 2021, the City Council authorized the transfer to the City, by the MWD, of the boardwalks, parking lots, and other assets within the vicinity of Stanfield Marsh. The City’s intent is to maintain and expand the facilities to provide high-quality outdoor recreation opportunities to the community. In the time that has elapsed since the Council’s approval of this effort, staff has been working closely with the MWD staff and legal counsel to develop and execute the documents for the asset transfer. As of this time, the transfer of assets is not yet complete.

On the evening of December 1, 2021, a single-vehicle accident caused extensive damage to these facilities. Due to the resulting safety concerns, the facilities were immediately closed to public access and staff commenced an assessment to determine the next steps. Given the close working relationship between the two agencies, and the City’s access to resources related to engineering and construction, City staff took the lead on assessing the situation and developing a plan for repairs to ensure the repairs are made and the boardwalk is reopened as soon as possible.

MWD staff provided City staff with the contact information for Jilk Heavy Construction, Inc. (Jilk), a general engineering contractor located in Brea, CA who specializes in piers, bridges, marinas. In 2018, Jilk purchased the John S. Meek Company, who was the original contractor of the Stanfield Marsh Boardwalks. Jilk constructs and maintains piers and similar marine facilities throughout California and maintains a number of on-call agreements for emergency repair situations. Jilk staff were actively involved in the construction of this project and maintain a thorough, technical understanding of the design and engineering of the facilities.

City staff, representatives of Jilk, and the Consulting City Engineer reviewed the situation and conducted a site visit. Based upon their observations, Jilk indicated that they could repair the damaged piling and boardwalk by raising the boardwalk on jacks, resetting, and securing the damaged pier, and reattaching the boardwalk to the support structures. The Consulting City Engineer and a licensed structural engineer reviewed the proposed methodology and concurred with the approach. Jilk then provided the City with a scope of work and a cost proposal of $53,210 to complete the work. Jilk further indicated that the work could commence within days and be completed prior to the peak visitation experienced during the holiday season.

The damaged condition of the boardwalk created a distinct threat to public safety as there is the risk of injury for anyone who may enter them. The City’s Purchasing Policy allows for certain exceptions to the standard purchasing procedures when emergency conditions exist and there is a need for services in which delays may affect public safety. As such, the City Manager authorized the repairs to take place immediately under the proposal from Jilk Heavy Construction, Inc. Staff believes that the costs provided are appropriate for the work to be undertaken and that their familiarity with this specialized field of construction, and these facilities specifically, provide further assurance that the scope of work is appropriate and the contractor is dually qualified to complete this work. Other qualified contractors may have been identified, however, it would have been cause for additional delay in remedying these conditions.

At the time of filing this report, work was underway on the repairs and they are anticipated to be complete prior to December 24, 2021. Upon completion of the work, the site will be reviewed by the appropriate inspectors and engineers to ensure its safety prior to reopening it to the public.

Staff will be coordinating with the MWD to ensure that a claim for these losses is filed against the automobile insurance of the responsible party. Additionally, the MWD will be reporting this to their insurance carrier for coverage of any losses beyond what the responsible party’s insurance carrier will cover. The City anticipates reimbursement of the repair costs from the associated insurance carriers.

FISCAL IMPACT
There is no net fiscal impact associated with this effort. It is anticipated that insurance proceeds will offset the repair expenses.

ENVIRONMENTAL CONSIDERATIONS
These repairs are categorically exempt from the California Environmental Quality Act (CEQA) under section 15301.c as repairs and maintenance of existing facilities.

ATTACHMENTS

1. Resolution No. 2022-XX

2. Aerial Map and Location Photos

3. Proposal of Jilk Heavy Construction, Inc.

4. CEQA Notice of Exemption
ATTACHMENT 1
Resolution No.
2021-XX
RESOLUTION NO. 2022-XX

RESOLUTION AUTHORIZING EMERGENCY REPAIRS

TO STANFIELD BOARDWALK
WHEREAS, in September 2021, the City Council authorized staff to coordinate with the Municipal Water District (MWD) to transfer the boardwalks and other assets adjacent to Stanfield Marsh to the City; and
WHEREAS, since that time, staff has been coordinating a due diligence period and working with the City Attorney to execute the transfer but, at this time, the transfer is not yet complete; and WHEREAS, on December 1, 2021, a single-vehicle accident caused significant damage to a portion of one of the boardwalks that resulted in the immediate closure of the boardwalk to ensure public safety; and
WHEREAS, staff from the City and MWD, as well as the consulting City Engineer and a consulting structural engineer, arranged for a site inspection with representatives from Jilk Heavy Construction, Inc. to assess the damage and devise a plan for repair; and WHEREAS, Jilk Heavy Construction, Inc. is experienced in the construction, maintenance, and repair of piers, boardwalks, and other marine facilities and is intimately familiar with these facilities having purchased the company that originally constructed them and maintaining key staff that participated in the construction of these facilities; and WHEREAS, Jilk Heavy Construction, Inc. provided a plan for the needed repairs that was reviewed and concurred to by staff and the consulting City Engineer and structural engineer and submitted a proposal to complete the repairs; and
WHEREAS, Jilk Heavy Construction, Inc. provided a proposed cost of $53,210 to complete the repairs and an ability to start the work immediately and complete it prior to the peak holiday visitation period; and
WHEREAS, the City’s Purchasing Policy allows for the immediate purchase of contractual services to prevent delays which may affect the life, health, or safety of citizens; and WHEREAS, the damage to the boardwalk rendered it unsafe to enter and access creating a safety concern should someone access them; and
WHEREAS, the City Manager authorized this work to be completed by Jilk Heavy Construction, Inc. at a cost of $53,210 pursuant to the emergency provisions within the City’s Purchasing Policy.

WHEREAS, work on the repairs is underway and is expected to be complete prior to December 24, 2021.

NOW, THEREFORE, BE IT RESOLVED by the City Council that:

1. The contracting for services from Jilk Heavy Construction, Inc. in the amount of $53,210 for the identified emergency repairs is hereby approved retroactively.

2. This project is found to be categorically exempt from the California Environmental Quality Act (CEQA) pursuant to section 15301.c as maintenance and repair of existing facilities.

PASSED, APPROVED AND ADOPTED this 3rd day of January, 2022 Rick Herrick, Mayor
ATTEST:

Erica Stephenson, City Clerk

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss

CITY OF BIG BEAR LAKE )
I, Erica Stephenson, City Clerk of the City of Big Bear Lake, California, do hereby certify that the whole number of the City Council of the said City is five; that the foregoing resolution, being Resolution No. 2022-XX was duly passed and adopted by the said City Council and attested by the City Clerk of said City, all at a regular meeting of the said City held on the 3rd day of January, 2022 and that the same was so passed and adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Erica Stephenson, City Clerk
ATTACHMENT 2
Aerial Map &
Location Photos
Stanfield Marsh Boardwalk Repairs
Aerial Map
Photos of Damage

ATTACHMENT 3
Proposal from Jilk
Construction, Inc.

ATTACHMENT 4
CEQA Notice of
Exemption

Emergency Repairs Stanfield Marsh Boardwalk
Project Location - Specific:

Boardwalk within the Stanfield Marsh, approximately 100’ North of State Route 18 and 1,000’ East of Stanfield Cutoff in the City of Big Bear Lake.

Description of Project:

This project involves the repair of a damaged pier piling and replacement of damaged boardwalk, resulting from a motor vehicle accident.

Name of Public Agency Approving Project:

City of Big Bear Lake, City Council
Exempt Status: (check one) (State type and section number) XX Categorical Exemption. Section: 15301.c
Reasons why project is exempt:

These repairs are categorically exempt from the California Environmental Quality Act (CEQA) under section 15301.c repair and maintenance of an existing facility.

MEETING DATE: January 3, 2022
TO: Honorable Mayor Herrick and Members of the City Council FROM: Frank A. Rush, Jr., City Manager
SUBJECT: City Manager Comments – Item 1.9

RESOLUTION INCREASING THE DEPARTMENT OF WATER AND POWER

BOARD OF COMMISSIONERS MONTHLY STIPEND

ACTION TO BE CONSIDERED
City Council will consider a formal resolution to increase the Department of Water and Power (DWP) Board of Commissioners compensation from $400 per month to $500 per month. The DWP Board’s compensation was last increased by the City Council in June 2005 to $400 per month. The DWP Board’s compensation was recently reviewed as part of a comprehensive compensation study, and that study recommended an increase to $600 per month. Additionally, the application of the consumer price index annually since 2005 would result in an increase to $603 per month. The proposed resolution, however, would establish a $500 per month stipend, and would be consistent with the current monthly stipend provided to members of the City Council.

RECOMMENDED MOTION(S)
Motion to approve the Resolution Increasing the Department of Water and Power Board of Commissioners Monthly Stipend.

RESPONSIBLE STAFF Frank A. Rush, Jr., City Manager
Reginald Lamson, DWP General Manager

ADDITIONAL CITY MANAGER COMMENTS
None.

MEETING
DATE: January 3, 2022
TO: Honorable Mayor and Members of the City Council
FROM: Frank A. Rush, Jr., City Manager

SUBJECT: Resolution Increasing the Department of Water and Power Board of Commissioners Monthly Stipend

BACKGROUND
The City of Big Bear Lake’s Charter Section 804 briefly states that, “the members of commissions and agencies shall receive such compensation as may be specified by the Council…”. The City’s Municipal Code provides more detailed compensation guidance related specifically to the Department of Water and Power (DWP) Board of Commissioners’ compensation. Pursuant to the City’s Municipal Code section 13.24.080 titled, “Board of water and power commissioners— Compensation.", the City Council has the authority to adjust the DWP Board of Commissioners’ compensation by resolution upon receiving a recommendation from the DWP Board.

DISCUSSION
On June 13, 2005, the City Council approved Resolution No. 2005-13, setting the DWP Board’s compensation at $400 a month. Prior to the adoption of that resolution the DWP Board’s compensation was $300 a month which was a rate established by the City Council in 1991. It has now been more than 16 years since the last time the DWP Board’s monthly stipend has been increased.

In 2019, the DWP awarded an agreement to Koff & Associates to conduct a formal Classification and Total Compensation Study for the DWP’s staff. This study also included a review of six Bear Valley agencies in an effort to compare those agencies’ board members’ compensation package to the DWP Board’s total compensation. As a result of this Koff & Associates study, the DWP Board approved Resolution No. DWP 2021-07 in February 2021 requesting that the City Council review and consider increasing the Board’s compensation to $600 per month.

City Council previously discussed this issue in June 2021, but did not take action on the DWP Board’srequest at that time. The DWP Board recently reiterated itsrequest to increase the monthly stipend from $400 per month to $600 per month, citing the Koff & Associates study and also the calculation of an annual CPI adjustment applied to the monthly stipend. If an annual CPI adjustment had been applied since the last adjustment, the monthly stipend would be approximately $603 per month on July 1, 2022.

The City Council’s regular monthly stipend is $500 per month, and in recognition of this amount, the Koff & Associates study, and the hypothetical CPI adjustment, the Council is asked to consider approving the attached resolution that would increase the DWP Board monthly stipend to $500 per month. It is important to note that City Council members also receive a monthly benefit package that has an average monthly value of approximately $1,580 per month, and that DWP Board members receive a monthly benefit package that has an average monthly value of approximately $20 per month.

City Council may also revise the recommended $500 per month stipend to any alternative amount as desired, and the resolution can be adjusted accordingly.

FISCAL IMPACT
There is no fiscal impact to the City of Big Bear Lake’s budget related to the approval of this item.

Sufficient funds for this increase are included in DWP’s FY 2021-22 budget.

ENVIRONMENTAL CONSIDERATIONS
None requiring review under California Environmental Quality Act (CEQA).

ATTACHMENTS

1. Resolution No. 2022-XX

2. DWP Agenda Report

3. Resolution No. 2005-13

4. Market Compensation Data Summary

5. DWP Resolution No. 2021-07

6. Excerpt from Koff & Associates Compensation Study

7. CPI Data
ATTACHMENT 1
Resolution No.
2022-XX

RESOLUTION NO. 2022-XX

RESOLUTION INCREASING THE DEPARTMENT OF WATER &

POWER BOARD OF COMMISSIONERS MONTHLY STIPEND
WHEREAS, the City of Big Bear Lake’s Charter Section 804 and Municipal Code Section

13.24.080 establishes the City Council’s authority to set and periodically adjust the Department of Water and Power (DWP) Board of Commissioners’ Compensation; and WHEREAS, on June 13, 2005, the City Council approved Resolution No. 2005-13 setting the DWP Board’s compensation at $400 a month; and
WHEREAS, the DWP Board adopted Resolution No. DWP 2021-07 requesting the City Council to review and consider increasing the Board’s compensation to $600 per month in February 2021, and recently reiterated this request; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Big Bear Lake as follows:

Section 1. This adoption of this resolution will rescind Resolution No. 2005-13 pertaining to DWP Board of Commissioners compensation.

Section 2. The DWP Board of Commissioners shall receive the sum of $500 per month for their participation in regular, adjourned, or special meetings of the Board.

Section 3. This resolution shall take effect on February 1, 2022.

PASSED, APPROVED AND ADOPTED this 3rd day of January, 2022.

Rick Herrick, Mayor
ATTEST:

Erica Stephenson, City Clerk

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss

CITY OF BIG BEAR LAKE )
I, Erica Stephenson, City Clerk of the City of Big Bear Lake, California, do hereby certify that the whole number of the City Council of the said City is five; that the foregoing resolution, being Resolution No. 2022-XX was duly passed and adopted by the said City Council and attested by the City Clerk of said City, all at a regular meeting of the said City held on the 3rd day of January, 2022 and that the same was so passed and adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Erica Stephenson, City Clerk
ATTACHMENT 2
DWP Agenda
Report

DWP Board of Commissioners Compensation
January 3, 2022

Page 2 of 2 ends

Recommendation:

The DWP Human Resources Committee respectfully requests the City Council review and consider increasing the DWP Board of Commissioner’s compensation to $600 per month.

ATTACHMENT 3
Resolution No.
2005-13

ATTACHMENT 4
Market
Compensation
Data Summary
City of Big Bear Lake, Department of Water and Power - Market Compensation Data (sorted by Total Compensation) December 2019
Rank Comparator Agency Classification
Title Top Step Benefits Package
Total
Monthly
Comp
Salary
Effective
Date
Next Salary
Increase
Next
Percentage
Increase
1 City of Big Bear Lake Council Member $ 500 $ 2,261 $ 2,761 12/12/2016 unknown unknown 2 Big Bear Municipal Water District Board Member $ 633 $ 1,512 $ 2,145 unknown unknown unknown 3 Big Bear Area Regional Wastewater Agency Board Member $ 900 $ 0 $ 900 10/23/2013 unknown unknown 4 Big Bear City Community Services District Board Member $ 900 $ 0 $ 900 unknown unknown unknown 5 City of Big Bear Lake, Department of Water and Power Board Member $ 400 $ 21 $ 421 6/22/2019 unknown unknown 6 Big Bear Airport Board Member $ 400 $ 0 $ 400 5/9/2018 unknown unknown Top Monthly Total
Monthly
Insuff. Data Insuff. Data
Insuff. Data Insuff. Data
Insuff. Data Insuff. Data
Insuff. Data Insuff. Data
5 5
Median of Comparators
% City of Big Bear Lake, Department of Water and Power Above/Below Number of Matches
N/C - Non Comparator
Board Member
Summary Results
Average of Comparators
% City of Big Bear Lake, Department of Water and Power Above/Below ATTACHMENT 5
DWP Resolution
No. 2021-07

ATTACHMENT 6
Excerpt from Koff
& Associates
Compensation
Study

ATTACHMENT 7
CPI Data
CPI-Urban Wage Earners and Clerical Workers (Current Series) Series Id
Series Title
Area
Item
Base Period
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 2002 171 500 172.800 173.800 174 800 175.400 174.700 175 000 175.600 176.300 176 500 177.000 176.700 175 000 173 800 176 200 2003 177 800 179.600 181.600 180 900 179.900 179.600 179 600 180.500 181.900 181 200 180.500 180.200 180 300 179 900 180.700 2004 181.700 183.400 184.900 185 200 186.800 187.400 186 800 186.500 187.800 189 800 190.300 188.500 186 600 184 900 188 300 2005 188 500 190.300 192.100 194 200 194.600 193.700 194 600 196.400 199.000 200 000 198.400 196.500 194 900 192 200 197 500 2006 198 300 199.900 200.800 202 900 205.000 204.200 204 500 205.000 205.300 203 500 203.300 202.900 203 000 201 900 204.100 2007 204.498 206.632 208.929 210.195 211.145 209.614 209.444 209.240 209.849 211 259 212.844 212.282 209 661 208 502 210 820 2008 213 825 214.231 216.493 217 914 219.702 222.435 223 245 221.230 220.285 218.726 214.083 211.007 217.765 217.433 218 096 2009 212.454 213.234 213.013 213.405 214.446 216.145 216.128 216.628 217.302 217.474 216.618 216.233 215 257 213.783 216.730 2010 217 290 217.090 218.157 218.475 218.787 218.222 218 367 218.752 218.427 219 339 218.694 219.619 218.435 218 004 218 866 2011 221 540 222.814 225.770 227 051 226.842 225.461 224 277 224.665 226.096 226.116 225.786 224.444 225 072 224 913 225 231 2012 226 245 227.585 230.281 230 023 230.180 228.917 228.446 230.229 231.085 233.431 230.426 228.940 229 649 228 872 230.426 2013 230 651 232.983 233.200 232 030 232.387 232.378 232.190 232.245 232.817 232.735 231.598 231.594 232 234 232 271 232.197 2014 232 578 233.886 235.500 235.717 236.647 236.880 236 963 236.504 236.451 235 921 233.896 232.330 235 273 235 201 235 344 2015 231 063 232.975 235.991 235 697 238.816 237.792 239 889 238.755 237.324 237.472 237.190 236.787 236 646 235 389 237 903 2016 238 609 238.262 239.146 239 536 240.320 240.522 240 580 240.267 240.851 241 932 240.809 240.846 240.140 239 399 240 881 2017 242.735 244.254 244.932 245.417 246.153 245.900 246 681 247.260 248.550 249 234 249.680 249.854 246.721 244 899 248 543 2018 251.789 253.243 254.451 255 379 256.652 256.208 256 632 257.318 258.246 259 899 259.064 258.101 246.415 254 620 258 210 2019 259.182 259.734 261.278 264.469 265.283 264.640 265 012 264.687 266.517 269 314 268.041 266.274 264 536 262.431 266 641 2020 268.127 268.938 266.964 265 930 267.007 268.118 270 012 270.563 270.257 270 864 270.695 270.167 268 970 267 514 270.426 2021 271.129 272.816 274.097 277.126 279.139 280.687 282 271 282.691 283.191 285 973 287.94 Board COLA Calculations
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May AVE. $ 400.00 FY06 1.03362 1.04176 1.05308 1.05964 1.05374 1.04256 1.04244 1.05199 1.05045 1.04529 1.0448 1.05344 1.04773 $ 419.09 FY07 1.05421 1.05087 1.04379 1.03166 1.0175 1.0247 1.03257 1.03126 1.03368 1.04048 1.03595 1.02998 1.03555 $ 433.99 FY08 1.02651 1.02418 1.02068 1.02216 1.03813 1.04695 1.04624 1.04561 1.03678 1.0362 1.03672 1.04053 1.03506 $ 449.21 FY09 1.06116 1.06589 1.0573 1.04973 1.03535 1.00582 0.99399 0.99359 0.99535 0.98393 0.97931 0.97608 1.01646 $ 456.60 FY10 0.97172 0.96812 0.9792 0.98646 0.99428 1.01184 1.02477 1.02276 1.01808 1.02415 1.02376 1.02024 1.00378 $ 458.33 FY11 1.00961 1.01036 1.0098 1.00518 1.00858 1.00958 1.01566 1.01956 1.02637 1.0349 1.03925 1.03682 1.01881 $ 466.95 FY12 1.03317 1.02706 1.02703 1.03511 1.0309 1.03243 1.02197 1.02124 1.02141 1.01998 1.01309 1.01472 1.02484 $ 478.55 FY13 1.01533 1.01859 1.02477 1.02207 1.03235 1.02055 1.02003 1.01947 1.02372 1.01268 1.00873 1.00959 1.01899 $ 487.63 FY14 1.01512 1.01639 1.00876 1.0075 0.99702 1.00509 1.01159 1.00835 1.00388 1.00986 1.01589 1.01833 1.00981 $ 492.42 FY15 1.01937 1.02056 1.01834 1.01561 1.01369 1.00992 1.00318 0.99349 0.9961 1.00208 0.99992 1.00917 1.00845 $ 496.58 FY16 1.00385 1.01235 1.00952 1.00369 1.00657 1.01408 1.01918 1.03266 1.02269 1.01337 1.01629 1.0063 1.01338 $ 503.23 FY17 1.01148 1.00288 1.00633 1.01486 1.01878 1.01526 1.01714 1.01729 1.02515 1.02419 1.02455 1.02427 1.01685 $ 511.70 FY18 1.02236 1.02536 1.02911 1.03197 1.03018 1.03684 1.0374 1.0373 1.0368 1.03886 1.04059 1.04265 1.03412 $ 529.16 FY19 1.04192 1.04034 1.04068 1.03901 1.04279 1.03758 1.03301 1.02936 1.02563 1.02683 1.03559 1.03363 1.03553 $ 547.97 FY20 1.03291 1.03265 1.02864 1.03203 1.03623 1.03465 1.03167 1.03451 1.03544 1.02176 1.00552 1.0065 1.02771 $ 563.15 FY21 1.01314 1.01887 1.0222 1.01403 1.00576 1.0099 1.01462 1.0112 1.01442 1.02672 1.0421 1.04544 1.01987 $ 574.34 FY22 1.04688 1.0454 1.04483 1.04786 1.05578 1.06371 1.05074 (6-Months) $ 603.48 The COLA adjustment has averaged 5.074% for the last six months. Assuming that trend continues through May of 2022, the adjusted compensation will be as follows: $574.34 X 1.05074 = $603.48.

All items
1982-84=100
Los Angeles - Long Beach - Anaheim, CA
Original Data Value
CWURA421SA0
Not Seasonally Adjusted
All items in Los Angeles-Long Beach, Anaheim CA, urban wage earners and clerical workers, not seasonally adjusted

MEETING DATE: January 3, 2022
TO: Honorable Mayor Herrick and Members of the City Council FROM: Frank A. Rush, Jr., City Manager
SUBJECT: City Manager Comments – Item 1.10

RESOLUTION ESTABLISHING INACTIVE VACATION RENTAL LICENSE

PROCEDURES FOR PROPERTIES CONVERTED TO LONG-TERM RENTAL HOUSING

ACTION TO BE CONSIDERED
City Council will consider a formal resolution establishing inactive vacation rental license procedures for properties that are converted to long-term rental housing. The proposed resolution establishes a new “inactive” classification of vacation rental licenses, and would enable a property owner to maintain a valid vacation rental license while the property is offered as a long-term rental for at least 12 months. The license would simply be placed in “inactive” status until such time that the owner seeks to return to “active” status, at which time the licensee would again be required to meet all applicable vacation rental program requirements. The proposed resolution is intended to promote participation in the Big Bear Workforce Housing Initiative by eliminating uncertainty for current vacation rental property owners who may wish to participate in the program.

RECOMMENDED MOTION(S)
Motion to adopt the Resolution Establishing Inactive Vacation Rental License Procedures for Properties Converted to Long-Term Rental Housing.

RESPONSIBLE STAFF Larry Vaupel, Director of Tourism Management

ADDITIONAL CITY MANAGER COMMENTS
None.

MEETING
DATE: January 3, 2022
TO: Honorable Mayor and Members of the City Council
THROUGH: Frank A. Rush, Jr., City Manager

FROM: Larry Vaupel, Director of Tourism Management
SUBJECT: Resolution Establishing Inactive Vacation Rental License Procedures for Properties Converted to Long-Term Rental Housing

BACKGROUND
On August 16, 2021, the City Council approved Ordinance No. 2021-495 amending the provisions of Chapter 4.01 of the Municipal Code regulating vacation rentals. These regulations establish criteria relating to noise and occupancy levels at vacation rental properties. Significant fines and penalties for violating the established standards are also prescribed. The City Council established Vacation Rental License Fees early this year with the adoption of Resolution No. 2021-71. The current license fee is $550 per year. This fee was established based upon a policy to recover 100% of the cost of the Vacation Rental Program via licensing fees.

DISCUSSION
City staff is proposing a change to the administration of the vacation rental license program to provide greater flexibility for owners considering a long-term lease with a tenant. Currently, there is no provision in the program that allows licensees to pause their licensing period or be provided a refund once a vacation rental license is issued. Therefore, if a licensee were to decide to enter a long-term lease with a tenant, they would forfeit their license and receive little value for their $550 licensing fee.

Facilitating the creation of additional long-term housing options is an important goal of the City Council. Staff believe that a simple change in the way we administer vacation rental licenses could provide an incentive to licensees to consider renting to a full-time tenant. One of the key concerns voiced by licensees relative to the switch to long-term leases is the fear of losing their vacation rental license.

The proposed change, as described in the attached resolution, would allow licensees to place a current license into an “inactive” status so they can stop the clock on their existing licensing period while they rent to a tenant for at least 12 months. Once they decide to return to the vacation rental program, they can request their license become “active”. The licensee would be allowed to operate until their license has been in “active” status for one year. They would then renew their license as required at the time of expiration. The licensee would have to provide a fully executed lease of at least 12-months duration when requesting to have their license status changed to “inactive”. There will be no license change fee assessed for this request.

Staff recommends the City Council approve the attached resolution allowing licensees to switch their license to an “inactive” status for the purpose of offering long-term housing.

FISCAL IMPACT
No significant fiscal impact is anticipated.

ENVIRONMENTAL CONSIDERATIONS
The adoption of the attached resolution is a ministerial act and not considered a project as defined by the California Environmental Quality Act (CEQA).

ATTACHMENT

1. Resolution No. 2022-XX
ATTACHMENT 1
Resolution No.
2022-XX
RESOLUTION NO. 2022-XX

RESOLUTION ESTABLISHING INACTIVE VACATION

RENTAL LICENSE PROCEDURES FOR PROPERTIES

CONVERTED TO LONG-TERM RENTAL HOUSING
WHEREAS, the City of Big Bear Lake, California (the “City”) is a municipal corporation and Charter City, duly organized under the constitution and laws of the State of California; and WHEREAS, the City adopted Ordinance No. 2021-495 regulating vacation rentals; and WHEREAS, the City established Vacation Rental License Fees in Resolution No. 2021-71; and WHEREAS, the City seeks to incentivize vacation rental licensees to offer their property for the purpose of providing long-term leases to tenants; and
WHEREAS, the City has identified increasing the supply of long-term housing options available to residents as an important priority; and
WHEREAS, the City believes that vacation rental licensees should not have to forfeit their vacation rental license while offering their property for long-term rental; and WHEREAS, the creation of an “inactive” license status is a ministerial act and not considered a project as defined by the California Environmental Quality Act (CEQA).

NOW, THEREFORE, BE IT RESOLVED by the City Council that owners be allowed to change the status of their vacation rental license to an “inactive” status as follows:

Section 1. The recitals above are each incorporated by reference and adopted as findings by the City Council.

Section 2. A licensee with an active vacation rental license may request to change the status of the license to “inactive” to provide a long-term lease without losing the license at expiration date or having to surrender the license prior to expiration.

Section 3. The licensee shall provide a copy of a fully executed residential lease for a period of at least 12 months along with the request to change the status of their license to “inactive”.

Section 4. As a further incentive for property owners to switch to long-term rental agreements, there will not be a license change fee charged to request the license be placed into “inactive” status or to be changed back to “active” status.

Section 5. When a license is placed into “inactive” status, all vacation rental advertising and operations must cease, and the exterior sign must be removed. Vacation rental rules and operation conditions as described in Chapter 4.01 shall no longer apply to the property.

Section 6. An “inactive” license shall not expire unless there is a change in ownership. All vacation rental licenses are non-transferable.

Section 7. A licensee is allowed to request the status of the license be changed back to “active” at their sole discretion. Upon request to change the status of the vacation rental license back to “active”, a new expiration date will be issued. This date will be calculated using the remaining days that were on the license prior to becoming “inactive”.

PASSED, APPROVED AND ADOPTED this 3rd day of January, 2022.

Rick Herrick, Mayor
ATTEST:

Erica Stephenson, City Clerk

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss

AYES:

NOES:

ABSTAIN:

ABSENT:

Erica Stephenson, City Clerk

BIG BEAR LAKE FIRE PROTECTION DISTRICT

MINUTES FOR THE MEETING OF
DECEMBER 6, 2021
A Meeting of the Big Bear Lake Fire Protection District was called to order at 6:39 p.m., Monday, December 6, 2021, at the Civic Center, 39707 Big Bear Boulevard, Big Bear Lake, California.

Board Members Present: Chair Bynette Mote
Vice Chair Alan Lee
Board Member Rick Herrick
Board Member Perri Melnick
Board Member Randall Putz
Board Members Absent: None

FIRE PROTECTION DISTRICT REORGANIZATION
Selection of the Chair and Vice Chair
Board nominations for Chair and Vice Chair who will serve for a period of one year.

Erica Stephenson, City Clerk opened nominations for Chair of the Fire Protection District.

Board Member Putz nominated Board Member Melnick to serve as Chair for a period of one year. Seeing no further nominations, the City Clerk took a roll call vote.

Board Member Melnick was appointed to serve as Board Chair for a period of one year by the following vote:

AYES: Herrick, Lee, Melnick, Mote, Putz
NOES: None
ABSTAIN: None
ABSENT: None
Erica Stephenson, City Clerk opened nominations for Vice Chair of the Fire Protection District.

Page 2 ends

Fire Protection District Minutes
December 6, 2021
Board Member Herrick nominated Board Member Lee to serve as Vice Chair for a period of one year. Board Member Lee respectfully declined Board Member Herrick’s nomination. Then Board Member Mote nominated Board Member Putz to serve as Vice Chair for a period of one year. Seeing no further nominations, the City Clerk took a roll call vote.

Board Member Putz was elected to serve as Board Vice Chair for a period of one year by the following vote:

AYES: Herrick, Lee, Melnick, Mote, Putz
NOES: None
ABSTAIN: None
ABSENT: None

ADJOURNMENT
There being no further business to come before the Fire Protection District Board at this session, the meeting was adjourned at 6:41 p.m.
_____________________________________________________
Erica Stephenson
City Clerk on behalf of the Fire Protection District Board Secretary

SUCCESSOR AGENCY

TO THE BIG BEAR LAKE IMPROVEMENT AGENCY

MINUTES FOR THE MEETING OF
DECEMBER 6, 2021
A Meeting of the Successor Agency to the Big Bear Lake Improvement Agency was called to order at 6:41 p.m., Monday, December 6, 2021, at the Civic Center, 39707 Big Bear Boulevard, Big Bear Lake, California.

Agency Members Present: Chair Alan Lee
Vice Chair Bynette Mote
Agency Member Rick Herrick
Agency Member Perri Melnick
Agency Member Randall Putz
Agency Members Absent: None

SUCCESSOR AGENCY REORGANIZATION
Selection of the Chair and Vice Chair
Agency nominations for Chair and Vice Chair who will serve for a period of one year.

Agency Member Herrick opened the nominations for Chair.

Agency Member Melnick nominated Agency Member Lee to serve as Chair for a period of one year. Agency Member Lee respectfully declined Agency Member Melnick’s nomination. Then Agency Member Herrick nominated Agency Member Melnick to serve as Chair for a period of one year. Seeing no further nominations, the Successor Agency Secretary took a roll call vote.

Agency Member Melnick was appointed as Chair for a period of one year by the following vote:

AYES: Herrick, Lee, Melnick, Mote, Putz
NOES: None
ABSENT: None
ABSTAIN: None
Agency Member Herrick opened the nominations for Vice Chair.

Page 2 ends

Successor Agency Minutes
December 6, 2021
Agency Member Putz nominated Agency Member Mote to serve as Vice Chair for a period of one year. Seeing no further nominations, the Successor Agency Secretary took a roll call vote.

Agency Member Mote was appointed to serve as Vice Chair for a period of one year by the following vote:

AYES: Herrick, Lee, Melnick, Mote, Putz
NOES: None
ABSENT: None
ABSTAIN: None

ADJOURNMENT
There being no further business to come before the Agency at this session, the meeting was adjourned at 6:42 p.m.

Erica Stephenson, Successor Agency Secretary

MEETING DATE: January 3, 2022
TO: Honorable Mayor Herrick and Members of the City Council FROM: Frank A. Rush, Jr., City Manager
SUBJECT: City Manager Comments – Item 2.1
URGENCY ORDINANCE AMENDING CHAPTER 16.07 SUBDIVISIONS - ADDING SECTION 16.07.060 URBAN LOT SPLITS - AND CHAPTER 17.25 RESIDENTIAL ZONES - AMENDING SECTION 17.25.130 SECOND UNITS AND TWO-UNIT PROJECTS - TO IMPLEMENT SB 9 – HOUSING DEVELOPMENT APPROVALS

ACTION TO BE CONSIDERED
City Council will formally consider an urgency ordinance to implement SB 9 – Housing Development Approvals – that was approved by the California legislature and signed into law by Governor Newsom in September. Effective January 1, SB 9 mandates that local governments approve the split of urban lots zoned for single-family residential use into multiple lots or allow additional units on an original, unsplit lot - potentially allowing up to 4 residential units on a lot initially zoned for only one single-family residence.

The proposed urgency ordinance includes requirements regarding lot size, unit size, owner occupancy of at least one unit for three years, a prohibition on the use of lot splits and additional units for vacation rental purposes, consistent design standards, fire hazard mitigation requirements, deed restrictions, parking requirements, height limits, and more. Concurrently, the Planning Commission will proceed with review and recommendation of a permanent ordinance to implement SB 9, and a proposed permanent ordinance will be presented for City Council review in the coming months.

RECOMMENDED MOTION(S)
Motion to approve the Urgency Ordinance Amending Chapter 16.07 Subdivisions - Adding Section

16.07.060 Urban Lot Splits - and Chapter 17.25 Residential Zones - Amending Section 17.25.130 Second Units and Two-Unit Projects - to Implement SB 9 – Housing Development Approvals.

A 4/5 affirmative vote of the City Council is required to approve the proposed urgency ordinance.

RESPONSIBLE STAFF Sue O’Strander, Director of Community Development Janice Etter, Sr. Principal Planner

ADDITIONAL CITY MANAGER COMMENTS
None.

MEETING
DATE: January 3, 2022
TO: Honorable Mayor and Members of the City Council
THROUGH: Frank A. Rush, Jr., City Manager

FROM: Sue O’Strander, AICP, Director of Community Development Janice Etter, AICP, Sr. Principal Planner

SUBJECT: Urgency Ordinance Amending Chapter 16.07 Subdivisions – Adding Section

16.07.060 Urban Lot Splits – and Chapter 17.25 Residential Zones – Amending Section 17.25.130 Second Units and Two-Unit Projects – To Implement SB 9- Housing Development Approvals

BACKGROUND
On September 16, 2021, Governor Newsom signed Senate Bill 9 (SB 9) into law. This law became effective on January 1, 2022, and makes changes to the California Subdivision Map Act in Government Code Section 66411.7 and California zoning law in Government Code Section 65852.21, further usurping local government land use control.

SB 9 requires cities to allow second units to be constructed on any lot that is zoned single family residential. It further requires cities to allow residential lots to be split roughly in half, called “urban lot splits,” and for two new units to be built on each newly created lots. The new law supersedes several city regulations regarding subdivisions and development standards, however, SB 9 preserves some authority for the City to impose objective zoning standards, objective subdivision standards, and objective design review standards and these will be discussed later in this report.

It is the City’s intent to adopt an Urgency Ordinance in accordance with Government Code Section 36937(b) for the immediate preservation of the public peace, health or safety, and welfare. A fourfifths affirmative vote of the Council is required to pass the urgency ordinance. Furthermore, it is the intent of the City staff to expeditiously follow up with non-urgency ordinance through the normal Planning Commission and City Council public hearing processes.

DISCUSSION
Applicability
SB 9 applies to Single Family Residential zones. In the City of Big Bear Lake, these are the Residential –Low (R-L) and the Single Family Residential (R-1) zones. These zones are identified in pale and canary yellow colors on the attached zoning map.

Certain hazardous and protected land is excluded from the SB 9 regulations including wetlands, hazardous waste sites; and land containing protected species, in a habitat conservation plan, and land covered by a conservation easement.

Land within very high fire hazard severity zones is excluded unless the project complies with all fire-hazard mitigation measures required by the building code.1 Likewise, land within a delineated earthquake fault zone is excluded unless the project complies with applicable seismic protection building code standards.2
Land within a 100-year flood hazard area is excluded unless a Letter of Map Revision (LOMR) is prepared or the construction meets the minimum flood plain management criteria of FEMA’s National Flood Insurance Program.3 In the City of Big Bear Lake, building standards have been adopted for new construction in the very high fire hazard severity zones and earthquake fault zones. Additionally, the City has adopted a Floodplain Management ordinance for new construction in the flood hazard area. Therefore, the City cannot deny a development that is proposed under SB 9 which meets the adopted building code and floodplain management regulations in the very high fire hazard severity zones, earthquake fault zones, and/or flood hazard areas.

Subdivisions – “Urban Lot Splits”
SB 9 makes changes to the state Subdivision Map, resulting in the need for the City to make changes to our subdivision regulations that are found in Municipal Code Chapter 16.07. New Section 16.07.060 is proposed to be added to allow and regulate “Urban Lot Splits” in accordance with the new law.

The new law states that City must allow an urban lot split, which is defined as the subdivision of an existing lot into two parcels. An urban lot split is a ministerial action without a public hearing or discretionary review. The resulting parcels are allowed to be sold separately. The urban lot split must result in approximately two equal halves, but no less than a 60/40 split as shown in Figure 1. Once a lot is split, the property may not be split again under the urban lot split provisions.

The minimum new lot size established under the SB 9 process is 1,200 square feet.

Figure 1 - Urban Lot Split
SB 9 does not require that the urban lot split be in conjunction with a building project. The resulting parcels may be vacant. However, the state law requires that the applicant of an urban lot 1 All Residential construction in the city must comply with California Residential Code Section R337 Materials and Construction Methods for Exterior Wildfire Exposure. 2 All Residential construction in the city must comply with California Residential R301.2.2 Seismic Provisions. 3 In order for the City to participate in the National Flood Insurance Program, the City adopted a Floodplain Management ordinance. All construction in the identified floodplain must comply with the Floodplain Management ordinance, codified in Municipal Code Chapter 15.64.
split must sign an affidavit stating that the applicant intends to occupy one of the dwelling units on one of the resulting lots as the applicant’s principal residence for a minimum of three (3) years after the urban lot split is approved. This owner occupancy requirement will be enforced on an existing structure, or in cases involving undeveloped lots, on the first structure built on the property.

Second Units or Two-Unit Developments
SB 9 also requires that the City make changes to the allowable land uses and development standards in the Single Family Residential zones. In our city these regulations are contained in Development Code Chapter 17.25. Development Code Section 17.25.130, currently titled Temporary Dependent Housing Units, comprises outdated legislation. As such, this section will be repealed and replaced with the new language pertaining to Second Units or Two-Unit Developments to allow and regulate second units and two-unit developments in accordance with California zoning law. As used in this report, “second units” means a second dwelling unit added to a parcel that contains an existing primary dwelling unit. “Two-unit” projects means the construction of two new units on a vacant lot.

The new law requires that the City must approve the construction of two units on any lot in a single-family residential zone by ministerial action. This ministerial approval must be without discretionary review or hearing. The dwelling units may be attached or detached, as shown in Figure 2.

Figure 2 - Second Units
The dwelling units must be fully independent living units, meaning that they each must have a kitchen, living, sleeping, and sanitation facilities, which our City has determined to include a bathroom and laundry hook-ups.

A second unit or two-unit development must allow the
construction of up to two dwelling units on each parcel.

Each dwelling unit must be limited to 800 sf in floor area or less. If the lot is vacant, two new units may be constructed.

If a lot is split through the Urban Lot Split process, each resulting parcel may be developed with two dwelling units as shown in Figure 3.

The City can require only one off-street parking space per unit. However, no on-site parking can be required where the property is located within one-half mile of either a “high-quality transit corridor4
” or a “major transit stop5;” or
one block of a car share vehicle location. At the current time, no such transit facilities exist in the City of Big Bear Lake.

The second unit or two-unit project must comply with all applicable building codes and each unit is considered a separate independent dwelling unit for the purposes of
installation of fire sprinklers, solar energy requirements, electric vehicle charging requirements, utilities,
metering, and the payment of Development Impact Fees.

Maximum Number of Units Allowed
The attached urgency ordinance, which is consistent with SB 9, would allow up to 4 units on the original lot - either through an urban lot split that allows 2 units per new lot, or through the allowance of a second unit and also ADUs and/or JADUs on the original (unsplit) lot.

The table below summarizes the maximum number of units allowed:

Status of Original Lot Detached. Primary unit is
detached from second unit
Attached. Primary unit is
attached to second unit
Lot Created by Urban Lot Split Primary residence + second unit, which could be an ADU or JADU.

Total of 2 units per new lot.

Duplex. Total of 2 units per new
lot.

Lot Not Created by Urban Lot
Split (original, unsplit lot)
2 units (primary residence +
second unit) plus one JADU +
one ADU for the primary
residence (applying SFR ADU
provisions) Total of 4 units on
original, unsplit lot.

Duplex plus one JADU + one ADU
for the primary residence. Total
of 4 units on original, unsplit lot.
4 Defined by Pub. Resources Code Sect. 21155(b) as a corridor with fixed route bus service with service intervals no longer than 15 minutes during peak commute hours.
5 Defined by Pub Resources Code Section 21064.3 as a site designated in a regional transportation plan and containing (a) an existing rails or bus rapid transit station; or, (b) a ferry terminal served by either a bus or rail transit service, or (c) the intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute period. Pursuant to the SCAG Regional RTP, Transit Appendix, there are no major transit stops in Big Bear Lake.

Figure 3 - Urban Lot Splits and Two Unit Developments
Effect on Vacation Rentals
The provisions of SB 9 are specific with respect to prohibiting short-term rentals. Section 65852.21(e) and Section 66411.7(h) state that the City “shall require that a rental of any unit created under SB 9 shall be for a term longer than 30 days.” Therefore, any dwelling unit created under the provisions of SB 9 may not be a utilized as a vacation rental.

Objective Subdivision, Zoning, and Design Standards
Urban Lot Splits
Under the SB 9 Urban Lot Split regulations codified in California Government Code 66411.7, the City may adopt objective subdivision design standards. The City is proposing to adopt the following objective standards when a property is subdivided under the urban lot split provisions:
• The Urban Lot Split subdivides the original lot into two new parcels of equal (50/50) or approximately equal (up to 60/40) halves.
• Pursuant to state law, both newly created parcels shall be no smaller than 1,200 sf in area. • Each new parcel shall have direct street access to the public right-of-way or private street. The use of private easements as the only access to urban lot split lots is not allowed. However, this provision shall not preclude adjacent property owners from granting reciprocal access rights to each to share a common driveway. In order to minimize the number of driveways along a street, shared driveways between adjacent properties and urban lot splits is encouraged. • A “flag” lot is allowed, with the flag pole portion of the lot being a minimum of 12 feet in width at the public right-of-way.
• All utilities (sewer, water, electricity, natural gas, telephone/cable) shall be provided to serve each of the two new parcels created by the urban lot split.

The City is prohibited from applying minimum lot width, lot depth, and lot area requirements contained in General Development Standards Table 17.25.050.A. of the Development Code to urban lot splits. The City is further prohibited from applying the provisions of the Tree Conservation and Defensible Space ordinance pertaining new subdivisions of land (Section

17.10.080) that regulate residential density by land area, establish a 100 foot setback from the San Bernardino National Forest boundary and require a 30-foot separation between structures. The City is prohibited from requiring street dedication or off-site improvements of an urban lot split.

Second Units and Two-Unit Projects
Under the SB 9 regulations codified in California Government Code 65852.21, the City may adopt objective zoning and design standards for second units and two-unit developments. The City proposes to adopt the current multiple family residential zoning and design standards that are contained in Chapter 17.25 of the Development Code, except where the state law prohibits us to do so. The proposed objective development and design standards are:
• Minimum front setback (and street-side setback in the case of more than one street frontage) of 15 feet, if the street is 40-foot wide or greater. Minimum front setback (and street-side setback in the case of more than one street frontage) of 20 feet if the street is less than 40-feet of rightof-way width. • Minimum interior side and rear setbacks of 4 feet.
• The maximum building height shall be an average of 22 feet as measured in the manner established in Development Code Section 17.02.030.
• Minimum roof pitch of 2:12.
• All residential structures shall have eave and gable overhangs of not less than 12 inches measured from the vertical side of the residential structure.
• Minimum of one (1) on-site parking space shall be provided for each unit constructed under the SB 9 provisions. The minimum dimension of an uncovered parking space is 9 feet wide by 19 feet in depth. The minimum interior dimension of a covered or enclosed (garage) parking space is 10 feet wide by 20 feet in depth.
• Each dwelling unit constructed under the SB 9 provisions shall be limited to 800 square feet or less in area, regardless of lot size.
• Utility hook-ups and an area to accommodate the installation of a clothes washer and dryer shall be provided in each unit.
• Each dwelling unit shall have a private patio, balcony, or yard area of not less than 200 square feet in area or 25 percent of the dwelling unit size, whichever is less. • Each dwelling unit shall be provided with a minimum of 150 cubic feet of private, enclosed storage space within the unit, or within a garage or carport.
• Each dwelling unit shall be provided with a pedestrian access to the public right-of-way in the driveway, stairs, or concrete walkway.
• Driveways servicing the primary unit, second unit or two-unit project shall not exceed a grade of 14 percent.
• The architectural style and materials of a primary unit, second unit, and two-unit project shall be matching and meet specific design criteria..

Denial of an SB 9 Project
The City has limited authority to deny a project that is being requested under SB 9, whether that be an urban lot split or second unit or two-unit project. Under the provisions of SB 9, the city may deny an urban lot split where the building official makes a written finding based on the preponderance of evidence, that the project would have a “specific, adverse impact” on either public health and safety or on the physical environmental for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. An example of a specific, adverse impact substantiating denial of a project is the lack of infrastructure, such as access, water lines, sewer lines, and utilities. An application for a second unit or two-unit project may be denied by the Community Development Director for failure to meet the application requirements and minimum requirements of the ordinance.

Frequently Asked Questions:

We have received questions from the general public and local stakeholders, including real estate agents, about the implementation of SB 9. Therefore, we have provided responses to these commonly asked questions:

1. Does the California Environmental Quality Act (CEQA) apply to urban lot splits or second units and two-unit projects? No. SB 9 requires ministerial actions. CEQA only applies to discretionary actions.

2. Does SB 9 affect Homeowners Associations (HOA’s)? No. SB 9 only applies to local governments. Nothing in SB 9 applies to private CC&R’s or private restrictive covenants.

3. Does SB 9 apply to the Village Specific Plan, multi-family, commercial, or mixed-use zones? No. SB 9 applies only to Single Family Residential zones.

4. Does SB 9 require that the second unit or two-unit projects be affordable housing? No. Market rate rents may be charged. The theory behind SB 9 is to remove government regulation and expedite the construction of housing units.

5. Can the SB 9 units be turned into a condominium project for sale to individual owners? No.

The provisions of the urgency ordinance do not allow the division (or further division of the property in the case of an urban lot split) of the property into condominiums or common-interest developments. The units on the property must be retained in individual ownership.

6. Will the properties containing SB 9 units be deed-restricted? Yes. The urgency ordinance contains a provision to require the property owner to record a deed restriction to ensure that the property is used in compliance with the provisions of state law including; prohibiting vacation rentals, non-residential uses, separate sale of the units, and future subdivision of the property.

ENVIRONMENTAL DETERMINATION
Under California Government Code sections 65852.21, subd. (j), and 66411.7, subd. (n), the adoption of an ordinance by a city implementing the provisions of Government Code sections 66411.7 and 65852.21 and regulating urban lot splits and two-unit projects is statutorily exempt from the requirements of the California Environmental Quality Act (“CEQA”). Therefore, the proposed ordinance is statutorily exempt from CEQA in that the proposed ordinance implements these new laws enacted by SB 9.

FISCAL IMPACT
There are no fiscal impacts associated with the adoption of the recommended urgency ordinance.

NEXT STEPS
Should the City Council adopt the proposed urgency ordinance, the amendments would become effective immediately and remain in effect until replaced by a non-urgency ordinance.

ATTACHMENTS

1. Draft Urgency Ordinance No. 2022-xxx

2. Senate Bill 9

3. CEQA Notice of Exemption

4. Zoning Map
ATTACHMENT 1
Urgency
Ordinance No.
2022-xxx
URGENCY ORDINANCE NO. 2022-xxx
URGENCY ORDINANCE AMENDING CHAPTER 16.07 SUBDIVISIONS - ADDING SECTION 16.07.060 URBAN LOT SPLITS - AND CHAPTER 17.25 RESIDENTIAL ZONES -AMENDING SECTION 17.25.130 SECOND UNITS AND TWO-UNIT PROJECTS -TO IMPLEMENT SB 9 – HOUSING

DEVELOPMENT APPROVALS
WHEREAS, the City of Big Bear Lake, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, in 2021, the California Legislature approved, and the Governor signed into law Senate Bill 9 (“SB 9”), which among other things, adds Government Code Sections 65852.21 and 66411.7 to impose new limits on local authority to regulate urban lot splits and two-unit projects; and
WHEREAS, SB 9 allows local agencies to adopt objective design, development, and subdivision standards for urban lot splits and two-unit projects; and WHEREAS, SB 9 took effect January 1, 2022, and preempts any conflicting city ordinance; and WHEREAS, the City desires to amend its local regulatory scheme to comply with Government Code sections 66411.7 and 65852.21 and to appropriately regulate projects under SB 9; and WHEREAS, there is a current and immediate threat to the public health, safety, or welfare based on the passage of the new SB 9 Law because if the City does not adopt appropriate objective standards for urban lot splits and two-unit projects under SB 9 as of January 1, 2022, the City would thereafter be limited to applying the few objective standards already in its code, which did not anticipate and were not enacted with urban lot splits and ministerial two-unit projects in mind; and
WHEREAS, the approval of urban lot splits and two-unit projects based solely on the City’s default standards, without appropriate regulations governing lot configuration, unit size, height, setback, landscape, architectural review, among other things, would threaten the character of existing neighborhoods, and negatively impact property values, personal privacy, and fire safety.

These threats to public safety, health, and welfare justify adoption of this ordinance as an urgency ordinance to be effective immediately upon adoption by a four-fifths vote of the City Council; and WHEREAS, to protect the public safety, health, and welfare, the City Council may adopt this ordinance as an urgency measure in accordance with Government Code section 36937, subdivision (b).

NOW, THEREFORE, the City Council of the City of Big Bear Lake does ordain as follows:

Section 1. The recitals above are each incorporated by reference and adopted as findings by the City Council.

Section 2. Under California Government Code sections 65852.21, subd. (j), and 66411.7, subd. (n), the adoption of an ordinance by a city or county implementing the provisions of Government Code sections 66411.7 and 65852.21 and regulating urban lot splits and two-unit projects is statutorily exempt from the requirements of the California Environmental Quality Act (“CEQA”).

Therefore, the proposed ordinance is statutorily exempt from CEQA in that the proposed ordinance implements these new laws enacted by SB 9.

Section 3. The Urgency Ordinance amends Municipal Code Chapter 16.07 “Subdivisions” by adding Section 16.07.060 “Urban Lot Splits and Second Units, and Chapter 17.25 “Residential Zones” by amending Section 17.25.130 “Second Units and Two-Unit Projects”, as provided in Exhibit “A”, attached hereto and incorporated herein by reference.

Section 4. This ordinance takes effect immediately upon its adoption.

Section 5. The City Clerk shall have a summary of this ordinance published in a newspaper of general circulation within 15 days after its adoption.

Section 6. If any provision of this ordinance or its application to any person or circumstance is held to be invalid, such invalidity has no effect on the other provisions or applications of the ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this resolution are severable. The City Council declares that it would have adopted this resolution irrespective of the invalidity of any portion thereof.

Section 7. The City Council hereby directs staff to prepare, execute, and file with the Clerk of the Board of San Bernardino County a notice of exemption within five (5) working days of the adoption of this Ordinance.

Section 8. The Custodian of Records for this Ordinance is the City of Big Bear Lake City Clerk and the records compromising the administrative record for this Ordinance are located at City Hall, 39707 Big Bear Boulevard, Big Bear Lake, CA, 92315.

PASSED, APPROVED AND ADOPTED this 3rd day of January, 2022.

Rick Herrick, Mayor
ATTEST:

Erica Stephenson, City Clerk

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF BIG BEAR LAKE )
I, Erica Stephenson, City Clerk of the City of Big Bear Lake, California, do hereby certify that the whole number of the City Council of the said City is five; that the foregoing Urgency Ordinance No. 2022-xxx is a full, true and correct original of Urgency Ordinance No. 2022-xxx of the City of Big Bear Lake entitled:

URGENCY ORDINANCE AMENDING CHAPTER 16.07 SUBDIVISIONS - ADDING SECTION 16.07.060 URBAN LOT SPLITS - AND CHAPTER 17.25 RESIDENTIAL ZONES -AMENDING SECTION 17.25.130 SECOND UNITS AND TWO-UNIT PROJECTS -TO IMPLEMENT SB 9 – HOUSING

DEVELOPMENT APPROVALS
was duly passed and adopted by the said City Council, approved and signed by the Mayor of said City, and attested by the Clerk of Said City, all at a regular meeting of the said Council on the 3rd day of January, 2022, and that the same was so passed and adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

URGENCY ORDINANCE NO. 2022-XXX
EXHIBIT “A”

THE FOLLOWING CHAPTERS AND SECTIONS OF THE BIG BEAR LAKE MUNICIPAL CODE SHALL BE MODIFIED AS FOLLOWS:

MUNICIPAL CODE CHAPTER 16.07 SUBDIVISIONS
Section 16.07.060 Urban Lot Splits
(a) Purpose. The purpose of this section is to allow and appropriately regulate urban lot splits in accordance with Government Code Section 66411.7.
(b) Definition. An “urban lot split” means a subdivision of an existing, legally subdivided lot into two lots in accordance with the requirements of this section. (c) Application.
(1) Only individual property owners may apply for an urban lot split. “Individual property owner” means a natural person holding fee title individually or jointly in the person’s own name or a beneficiary of a trust that holds fee title. “Individual property owner” does not include any corporation or corporate person of any kind (partnership, LP, LLC, C corp, S corp, etc.) except for a community land trust (as defined by Rev. & Tax Code §402.1(a)(11)(C)(ii)) or a qualified nonprofit corporation (as defined by §214.15).
(2) An application for an urban lot split must be submitted on the city’s approved form.

Only a complete application will be considered. The city will inform the applicant in writing of any incompleteness within 30 days after the application is submitted. (3) The city may establish a fee to recover its costs for adopting, implementing, and enforcing this section of the code, in accordance with applicable law. The city council may establish and change the fee by resolution. The fee must be paid with the application.
(d) Approval.
(1) An application for a parcel map for an urban lot split is approved or denied ministerially, by the Community Development Director or his/her designee director, without discretionary review.
(2) A tentative parcel map for an urban lot split is approved ministerially if it complies with all the requirements of this section. The tentative parcel map may not be recorded. A final parcel map is approved ministerially as well, but not until the owner demonstrates that the required documents have been recorded, such as the deed restriction and easements. The tentative parcel map expires three months after approval.
(3) The approval must require the owner and applicant to hold the city harmless from all claims and damages related to the approval and its subject matter. (4) The approval must require the owner and applicant to reimburse the city for all costs of enforcement, including attorneys’ fees and costs associated with enforcing the requirements of this code.
(e) Requirements. An urban lot split must satisfy each of the following requirements:
(1) Map Act Compliance.
(A) The urban lot split must conform to all applicable objective requirements of the Subdivision Map Act (Gov. Code §66410 et. seq., “SMA”), including implementing requirements in this code, except as otherwise expressly provided in this section.
(B) If an urban lot split violates any part of the SMA, the city’s subdivision regulations, including this section, or any other legal requirement:
(i) The buyer or grantee of a lot that is created by the urban lot split has all the remedies available under the SMA, including but not limited to an action for damages or to void the deed, sale, or contract. (ii) The city has all the remedies available to it under the SMA, including but not limited to the following:
(I) An action to enjoin any attempt to sell, lease, or finance the property.
(II) An action for other legal, equitable, or summary remedy, such as declaratory and injunctive relief.
(III) Criminal prosecution, punishable by imprisonment in county jail or state prison for up to one year, by a fine of up to $10,000, or both; or a misdemeanor.
(IV) Record a notice of violation.
(V) Withhold any or all future permits and approvals.
(C) Notwithstanding section 66411.1 of the SMA, no dedication of rights-ofway or construction of offsite improvements is required for an urban lot split.
(2) Zone. The lot to be split through an urban lot split is located in a single-family residential zone. For purposes of this section, a single-family residential zone is a zone where the only residential use that is allowed as a primary use is one (1) singlefamily residential dwelling unit on a lot, specifically the R-L and R-1 zones. Urban lot splits are prohibited in the Multiple Family Residential (R-3), all Commercial, and Village Specific Plan (VSP) zones.
(3) Lot Location.
(A) The lot to be split is not located on a site that is any of the following:
(i) Prime farmland, farmland of statewide importance, or land that is zoned or designated for agricultural protection or preservation by the voters.
(ii) A wetland.
(iii) Within a very high fire hazard severity zone, unless the site complies with all fire-hazard mitigation measures required by existing building standards.
(iv) A hazardous waste site that has not been cleared for residential use. (v) Within a delineated earthquake fault zone, unless all development on the site complies with applicable seismic protection building code standards.
(vi) Within a 100-year flood hazard area, unless the site has either:
(I) been subject to a Letter of Map Revision prepared by the Federal Emergency Management Agency and issued to the
local jurisdiction, or
(II) meets Federal Emergency Management Agency
requirements necessary to meet minimum flood plain
management criteria of the National Flood Insurance
Program.
(vii) Within a regulatory floodway, unless all development on the site has received a no-rise certification.
(viii) Land identified for conservation in an adopted natural community conservation plan, habitat conservation plan, or other adopted natural resource protection plan.
(ix) Habitat for protected species.
(x) Land under conservation easement.
(B) The purpose of subpart (e)(3)(A) above is merely to summarize the requirements of Government Code section 65913.4(a)(6)(B)–(K). (See Gov. Code § 66411.7(a)(3)(C).)
(4) Not Historic. The lot to be split must not be a historic property or within a historic district that is included on the State Historic Resources Inventory. Nor may the lot be or be within a site that is designated by ordinance as a city or county landmark or as a historic property or district.
(5) No Prior Urban Lot Split.
(A) The lot to be split was not established through a prior urban lot split. (B) The lot to be split is not adjacent to any lot that was established through a prior urban lot split by the owner of the lot to be split or by any person acting in concert with the owner.
(6) No Impact on Protected Housing. The urban lot split must not require or include the demolition or alteration of any of the following types of housing:
(A) Housing that is income-restricted for households of moderate, low, or very low income.
(B) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its policy power.
(C) Housing, or a lot that used to have housing, that has been withdrawn from rental or lease under the Ellis Act (Gov. Code §§7060–7060.7) at any time in the 15 years prior to submission of the urban lot split application. (D) Housing that has been occupied by a tenant in the last three years. The applicant and the owner of a property for which an urban lot split is sought must provide a sworn statement as to this fact with the application for the parcel map. The city may conduct its own inquiries and investigation to ascertain the veracity of the sworn statement, including but not limited to, surveying owners of nearby properties; and the city may require additional evidence of the applicant and owner as necessary to determine compliance with this requirement.
(7) Lot Size.
(A) The lot to be split must be at least 2,400 square feet in area. (B) Each lot resulting from an urban lot split be at least 1,200 square feet in area.
(C) Each of the resulting lots must be approximately equal halves (50 percent of the original lot area) but no less than 60 percent and 40 percent of the original lot area.
(8) Easements.
(A) The owner must enter into an easement agreement with each public-service provider to establish easements that are sufficient for the provision of public services and facilities to each of the resulting lots, if such easements are required by the utility companies.
(B) Each easement must be shown on the tentative parcel map. (C) Copies of the unrecorded easement agreements must be submitted with the application. The easement agreements must be recorded against the property before the final map may be approved, in accordance with subpart (d)(2) above.
(9) Lot Access.
(A) As required by Development Code Section 17.25.080.B., each new parcel shall have direct street access to the public right-of-way or private street.

The use of private easements as the only access to urban lot split lots is not allowed. However, this provision shall not preclude adjacent property owners from granting reciprocal access rights to each other to share a common driveway. In order to minimize the number of driveways along a street, shared driveways between adjacent properties and urban lot split parcels is encouraged.
(B) Each resulting lot must have frontage on the public right of way of at least twelve (12) feet. A “flag lot” is allowed provided that the flag “pole” portion of the lot shall be a minimum of 12 feet in width as measured at the public right-of-way.
(10) Unit Standards.
(A) Quantity. No more than two dwelling units of any kind may be built on a lot that results from an urban lot split. For purposes of this paragraph, “unit” means any dwelling unit, including, but not limited to, a primary dwelling unit, a second unit or two-unit project created under this code, an ADU, or a JADU.
(B) Unit Size. The floor area of each primary dwelling unit that is developed on a lot resulting from an urban lot split shall be limited to 800 square feet or less.
(C) Building Height. The maximum building height of a primary dwelling unit shall be 22 feet, measured in the manner established in Development Code Section 17.02.030 “Building Height.”
(D) Lot Coverage. As established in Development Code Table 17.25.050.A., the maximum lot coverage allowed in the Residential-Low (R-L) zone is thirty (30) percent. The maximum lot coverage allowed in the Single Family Residential (R-1) zone is forty (40) percent. This lot coverage standard is only enforced to the extent that it does not prevent two primary dwelling units on the lot at 800 square feet each.
(E) Open Space. The open space requirements shall be those established in Development Code Table 17.25.050.A. for the Residential-Low (R-L) and Single Family Residential (R-1) zones. This standard is only enforced to the extent that it does not prevent two primary dwelling units on the lot at 800 square feet each.
(F) Setbacks.
(i) Generally. All setbacks must conform to those objective setbacks that are imposed through the underlying zone as stated in Development Code Section 17.25.050.
(ii) Exceptions. Notwithstanding subpart (e)(10)(F) above:
(I) Existing Structures. No setback is required for an existing legally established structure or for a new structure that is constructed in the same location and to the same dimensions as an existing legally established structure.
(II) Side Yard and Rear Yard Setbacks. The setbacks
imposed by the underlying zone must yield to the degree necessary to avoid physically precluding the construction of up to two units on the lot or either of the two units from being at least 800 square feet in floor area; but in no event may any structure be less than four feet from a side or rear property line.
(iii) Front and Streetside Setbacks. Where the property is adjacent to a public or private street having a right-of-way width of less than 40 feet, the minimum front setback (and streetside setback where the property contains more than one street frontage) shall be 20 feet. Where the property is adjacent to a public or private street having a right-of-way width of 40 feet or greater, the minimum front setback (and streetside setback where the property contains more than one street frontage) shall be 15 feet. (G) Parking. Each new primary dwelling unit that is built on a lot created by an urban lot split must have at least one off-street parking space per unit unless one of the following applies:
(i) The lot is located within one-half mile walking distance of either (I) a corridor with fixed route bus service with service intervals no longer than 15 minutes during peak commute hours or
(II) a site that contains
(ia) an existing rail or bus rapid transit station,
(ib) a ferry terminal served by either a bus or rail transit service, or
(ic) the intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less
during the morning and afternoon peak commute
periods.
(III.) The site is located within one block of a car-share vehicle location.
(H) Architecture.
(i) If there is a legal primary dwelling on the lot that was established before the urban lot split, any new primary dwelling unit shall match the existing primary dwelling unit in exterior materials, color, and dominant roof pitch. The dominant roof slope is the slope shared by the largest portion of the roof.
(ii) If there is no legal primary dwelling on the lot before the urban lot split, and if two primary dwellings are developed on the lot, the dwellings shall match each other in exterior materials, color, and dominant roof pitch. The dominant roof slope is the slope shared by the largest portion of the roof.
(iii) Exterior siding materials of the dwelling units shall consist of at least two (2) of the following materials; wood or wood-appearing material in a horizontal application, wood or wood-appearing material in a vertical application, natural or cultured stone, decorative masonry, metal, and stucco. Stucco shall not be applied to an area greater than sixty percent (60%) of any wall surface.

Metal siding shall only be used as an accent material and may not be applied to an area greater than twenty-five percent (25%) of any wall surface.
(iv) All exterior lighting shall comply with Development Code Section

17.25.080. E. Lighting.
(I) Landscaping. All landscaping shall comply with Development Code Section 17.25.080.C. Open Space and Landscaping and the provisions of the California Model Water Efficient Landscape Ordinance (MWELO), as adopted by the City of Big Bear Lake and revised from time to time. (J) Nonconforming Conditions. An urban lot split may be approved without requiring a legal nonconforming zoning condition to be corrected. (K) Utilities.
(i) Each primary dwelling unit on the resulting lots must have its own direct utility connection to the utility service provider. (ii) Each primary dwelling unit on the resulting lots that is or that is proposed to be connected to an onsite wastewater treatment system must first have a percolation test completed within the last five years or, if the percolation test has been recertified, within the last 10 years.
(L) Building & Safety. All structures built on the lot must comply with all current local building standards. An urban lot split is a change of use. (11) Fire-Hazard Mitigation Measures.
(A) In order to be eligible to be subdivided under the urban lot split provisions, a lot in a very high fire hazard severity zone shall comply with each of the following fire-hazard mitigation measures:
(i) The lot must have direct access to a paved public or private street having a right-of-way width of at least 40 feet.
(ii) The public or private street must have at least two independent points of access for fire and life safety to access and for residents to evacuate.
(iii) All dwellings on the site must comply with current fire code requirements for dwellings in a very high fire hazard severity zone. (iv) All structures on the site must have fire sprinklers as required by the building code.
(v) All sides of all dwellings on the site must be within a 150-foot hosepull distance from either the public right of way or of an onsite fire hydrant or standpipe.
(B) Prior to submitting an application for an urban lot split, the applicant must obtain a certificate of compliance with all applicable fire-hazard mitigation measures in accordance with this subpart (e)(11). The city or its authorized agent must inspect the site, including all structures on the site, and certify as to its compliance. The certificate must be included with the application.

The applicant must pay the city’s costs for inspection. Failure to pay is grounds for denying the application.
(12) Separate Conveyance.
(A) Within a resulting lot.
(i) Primary dwelling units on a lot that is created by an urban lot split may not be owned or conveyed separately from each other. (ii) Condominium airspace divisions and common interest developments are not permitted on a lot that is created by an urban lot split.
(iii) All fee interest in a lot and all dwellings on the lot must be held equally and undivided by all individual property owners. (13) Regulation of Uses.
(A) Residential-only. No non-residential use is permitted on any lot created by urban lot split.
(B) No Vacant Rentals. No dwelling unit on a lot that is created by an urban lot split may be rented for a period of less than 30 days. (C) Owner Occupancy. The property owner requesting an urban lot split must sign an affidavit stating that the property owner intends to occupy one of the dwelling units on one of the resulting lots as the property owner’s principal residence for a minimum of three years after the urban lot split is approved. The owner occupancy requirement shall be enforced at the time of approval of the parcel map in the case of an urban lot split; or in cases involving undeveloped lots, the owner occupancy requirement shall be enforced at the time of a Final Inspection of a building permit on the first structure built on the property.
(14) Deed Restriction. The owner must record a deed restriction, acceptable to the city, that does each of the following:
(A) Expressly prohibits any rental of any dwelling on the property for a period of less than 30 days.
(B) Expressly prohibits any non-residential use of the lots created by the urban lot split.
(C) Expressly prohibits any separate conveyance of a primary dwelling on the property, any separate fee interest, and any common interest development within the lot.
(D) States that the property is formed by an urban lot split and is therefore subject to the city’s urban lot split regulations, including all applicable limits on dwelling size and development.
(f) Specific Adverse Impacts.
(1) Notwithstanding anything else in this section, the city may deny an application for an urban lot split if the building official makes a written finding, based on a preponderance of the evidence, that the project would have a “specific, adverse impact” on either public health and safety or on the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact.
(2) “Specific adverse impact” has the same meaning as in Gov. Code §65589.5(d)(2):
“a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete” and does not include (1) inconsistency with the zoning ordinance or general plan land use designation or (2) the eligibility to claim a welfare exemption under Revenue and Taxation Code section 214(g).
(3) The building official may consult with and be assisted by planning staff and others as necessary in making a finding of specific, adverse impact.

MUNICIPAL CODE/DEVELOPMENT CODE CHAPTER 17.25 RESIDENTIAL ZONES Section 17.25.130 Second Units and Two-Unit Projects
(a) Purpose. The purpose of this section is to allow and appropriately regulate two-unit projects in accordance with Government Code section 65852.21. (b) Definition. A “second unit” means the development of a second primary dwelling unit on a legally subdivided lot that is already developed with one primary dwelling unit. A “twounit project” means the development of two primary dwelling units on a lot that was previously undeveloped.
(c) Application.
(1) Only individual property owners may apply for a two-unit project. “Individual property owner” means a natural person holding fee title individually or jointly in the person’s own name or a beneficiary of a trust that holds fee title. “Individual property owner” does not include any corporation or corporate person of any kind (partnership, LP, LLC, C corp, S corp, etc.) except for a community land trust (as defined by Rev. & Tax Code §402.1(a)(11)(C)(ii)) or a qualified nonprofit corporation (as defined by §214.15).
(2) A Building Permit application for a second unit or two-unit project must be submitted on the city’s approved form.
(3) The city may establish a fee to recover its costs for adopting, implementing, and enforcing this section of the code, in accordance with applicable law. The city council may establish and change the fee by resolution. The fee must be paid with the application.
(d) Approval.
(1) An application for a second unit or two-unit project shall be acted upon by the Community Development Director or his/her designee, without discretionary review.
(2) The Final Inspection of a building permit for a second unit or two-unit project shall not be granted until confirmation is provided to the City that the required documents have been recorded, such as the deed restriction and any required easements. (3) The approval must require the owner and applicant to hold the city harmless from all claims and damages related to the approval and its subject matter. (4) The approval must require the owner and applicant to reimburse the city for all costs of enforcement, including attorneys’ fees and costs associated with enforcing the requirements of this code.
(e) Requirements. A second unit or two-unit project must satisfy each of the following requirements:
(1) Map Act Compliance. The lot must have been legally subdivided. (2) Zone. The property for which a building permit for a second unit or two-unit project is proposed is located in a single-family residential zone. For purposes of this section, a single-family residential zone is a zone where the only residential use that is allowed as a primary use is one (1) single-family residential dwelling unit on a lot, specifically the R-L and R-1 zones. Second units and two-unit projects under this section are prohibited in the Multiple Family Residential (R-3), all Commercial, and Village Specific Plan (VSP) zones.
(3) Lot Location.
(A) The lot is not located on a site that is any of the following:
(i) Prime farmland, farmland of statewide importance, or land that is zoned or designated for agricultural protection or preservation by the voters.
(ii) A wetland.
(iii) Within a very high fire hazard severity zone, unless the site complies with all fire-hazard mitigation measures required by existing building standards.
(iv) A hazardous waste site that has not been cleared for residential use. (v) Within a delineated earthquake fault zone, unless all development on the site complies with applicable seismic protection building code standards.
(vi) Within a 100-year flood hazard area, unless the site has either:
(I) been subject to a Letter of Map Revision prepared by the Federal Emergency Management Agency and issued to the
local jurisdiction, or
(II) meets Federal Emergency Management Agency
requirements necessary to meet minimum flood plain
management criteria of the National Flood Insurance
Program.
(vii) Within a regulatory floodway, unless all development on the site has received a no-rise certification.
(viii) Land identified for conservation in an adopted natural community conservation plan, habitat conservation plan, or other adopted natural resource protection plan.
(ix) Habitat for protected species.
(x) Land under conservation easement.
(B) The purpose of subpart (e)(3)(A) above is merely to summarize the requirements of Government Code section 65913.4(a)(6)(B)–(K). (See Gov. Code §66411.7(a)(3)(C).)
(4) Not Historic. The lot must not be a historic property or within a historic district that is included on the State Historic Resources Inventory. Nor may the lot be or be within a site that is designated by ordinance as a city or county landmark or as a historic property or district.
(5) No Impact on Protected Housing. The second unit or two-unit project must not require or include the demolition or alteration of any of the following types of housing:
(A) Housing that is income-restricted for households of moderate, low, or very low income.
(B) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its policy power.
(C) Housing, or a lot that used to have housing, that has been withdrawn from rental or lease under the Ellis Act (Gov. Code §§7060–7060.7) at any time in the 15 years prior to submission of the urban lot split application. (D) Housing that has been occupied by a tenant in the last three years. The applicant and the owner of a property for which a second unit or two-unit project is sought must provide a sworn statement as to this fact with the application for the parcel map. The city may conduct its own inquiries and investigation to ascertain the veracity of the sworn statement, including but not limited to, surveying owners of nearby properties; and the city may require additional evidence of the applicant and owner as necessary to determine compliance with this requirement.
(6) Unit Standards. Where a standard is not listed, the standard provided in Development Code Chapter 17.25 shall apply:
(A) Quantity.
(i) No more than two dwelling units of any kind may be built on a lot that results from an urban lot split. For purposes of this paragraph, “unit” means any dwelling unit, including, but not limited to, a primary dwelling unit, a unit created under this section of this code, an ADU, or a JADU.
(ii) A lot that is not created by an urban lot split may have a second unit or two-unit project under this section, plus any ADU or JADU that must be allowed under state law and the city’s ADU ordinance. (B) Unit Size. The floor area of each primary dwelling unit that is built under the provisions of this section shall be limited to 800 square feet or less. (C) Height Restrictions. The maximum building height of a primary dwelling unit shall be 22 feet, measured in a manner established in Development Code Section 17.02.030 “Building Height.”
(D) Demolition Cap. The second unit or two-unit project shall not involve the demolition of more than 25 percent of the existing exterior walls of an existing dwelling unit unless the site has not been occupied by a tenant in the last three years.
(E) Lot Coverage. The maximum lot coverage allowed in the Residential-Low (R-L) zone is thirty (30) percent. The maximum lot coverage allowed in the Single Family Residential (R-1) zone is forty (40) percent. This lot coverage standard is only enforced to the extent that it does not prevent two primary dwelling units on the lot at 800 square feet each. (F) Open Space. The open space requirements shall be those established in Development Code Table 17.25.050.A. for the Residential-Low (R-L) and Single Family Residential (R-1) zones. This open space standard is only enforced to the extent that it does not prevent two primary dwelling units on the lot at 800 square feet each.
(G) Setbacks.
(i) Generally. All setbacks must conform to those objective setbacks that are imposed through the underlying zone as stated in Development Code Section 17.25.050.
(ii) Exceptions. Notwithstanding subpart (e)(6)(G) above:
(I) Existing Structures. No setback is required for an existing legally established structure or for a new structure that is constructed in the same location and to the same dimensions as an existing legally established structure.
(II) Side and Rear Setbacks. The side and rear setbacks imposed by the underlying zone shall be provided, however, these setback regulations must yield to the degree necessary to avoid physically precluding the construction of up to two units on the lot or either of the two units from being at least 800 square feet in floor area; but in no event may any
structure be less than four feet from a side or rear property line.
(iii) Front and Streetside Setbacks. Where the property is adjacent to a public or private street having a right-of-way width of less than 40 feet, the minimum front setback (and streetside setback where the property contains more than one street frontage) shall be 20 feet.

Where the property is adjacent to a public or private street having a right-of-way width of 40 feet or greater, the minimum front setback (and streetside setback where the property contains more than one street frontage) shall be 15 feet.
(H) Parking. Each new primary dwelling unit must have at least one off-street parking space per unit unless one of the following applies:
(i) The lot is located within one-half mile walking distance of either (I) a corridor with fixed route bus service with service intervals no longer than 15 minutes during peak commute hours or
(II) a site that contains
(ia) an existing rail or bus rapid transit station,
(ib) a ferry terminal served by either a bus or rail transit service, or
(ic) the intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less
during the morning and afternoon peak commute
periods.
(ii) The site is located within one block of a car-share vehicle location. (I) Architecture.
(i) If there is an existing, legal primary dwelling on the lot that was established before the two-unit project, any new second unit shall match the existing primary dwelling unit in architectural style, exterior materials, color, and dominant roof pitch. The dominant roof slope is the slope shared by the largest portion of the roof. (ii) If there is no legal primary dwelling on the lot before the two-unit project, and if two primary dwellings are proposed for development on the lot, then the two dwellings shall match each other in architectural style, exterior materials, color, and dominant roof pitch. The dominant roof slope is the slope shared by the largest portion of the roof.
(iii) Exterior siding materials of the dwelling units shall consist of at least two (2) of the following materials; wood (or wood-appearing material) in a horizontal application, wood (or wood-appearing material) in a vertical application, natural or cultured stone, decorative masonry, metal, and stucco. Stucco may not be applied to an area greater than sixty percent (60%) of any wall surface.

Metal siding shall only be used as an accent material and may not be applied to an area greater than 25% of any wall surface. (iv) All exterior lighting shall comply with Development Code Section

17.25.080. E. Lighting.
(J) Landscaping. All landscaping shall comply with Development Code Section 17.25.080.C. Open Space and Landscaping and the provisions of the California Model Water Efficient Landscape Ordinance (MWELO) as adopted by the City and revised from time to time.
(K) Nonconforming Conditions. Where a lot is not created by an urban lot split, a second unit or a two-unit project is proposed, the building permit shall only be approved if all nonconforming zoning conditions are corrected.
(L) Utilities.
(i) Each primary dwelling unit on the lot must have its own direct utility connection to the utility service provider.
(ii) Each primary dwelling unit on the lot that is or that is proposed to be connected to an onsite wastewater treatment system must first have a percolation test completed within the last five years or, if the percolation test has been recertified, within the last 10 years. (M) Building & Safety. All structures built on the lot must comply with all current local building standards. A project under this section is a change of use and subjects the whole of the lot, and all structures, to the city’s current code.
(7) Fire-Hazard Mitigation Measures. In order to be eligible for a second unit or twounit project under the provisions of this section, a lot in a very high fire hazard severity zone must comply with each of the following fire-hazard mitigation measures:
(A) The lot must have direct access to a paved public or private street having a right-of-way width of at least 40 feet.
(B) The public or private street of way must have at least two independent points of access for fire and life safety to access and for residents to evacuate. (C) All dwellings on the site must comply with current fire code requirements for dwellings in a very high fire hazard severity zone. (D) All enclosed structures on the site must have fire sprinklers. (E) All sides of all dwellings on the site must be within a 150-foot hose-pull distance from either the public right of way or of an onsite fire hydrant or standpipe.
(8) Separate Conveyance.
(A) Primary dwelling units on the lot may not be owned or conveyed separately from each other.
(B) Condominium airspace divisions and common interest developments are not permitted within the lot.
(C) All fee interest in the lot and all the dwellings must be held equally and undivided by all individual property owners.
(9) Regulation of Uses.
(A) Residential-only. No non-residential use is permitted on the lot. (B) No Vacation Rentals. No dwelling unit on the lot may be rented for a period of less than 30 days.
(C) Owner Occupancy. On a lot that was not created by an urban lot split, the property owner requesting a second unit or n urban lot split must sign an affidavit stating that the property owner intends to occupy one of the dwelling units as the property owner’s principal residence for a minimum of three years after the urban lot split is approved. The owner occupancy requirement shall be enforced at the time of a Final Inspection of a building permit on the first structure built on the property.
(10) Deed Restriction. The owner must record a deed restriction, acceptable to the city, that does each of the following:
(A) Expressly prohibits any rental of any dwelling on the property for a period of less than 30 days.
(B) Expressly prohibits any non-residential use of the lot. (C) Expressly prohibits any separate conveyance of a primary dwelling on the property, any separate fee interest, and any common interest development within the lot.
(D) If the lot is not created by an urban lot split, the deed restriction expressly requires the property owner to live in one of the dwelling units on the lot as the owners’ primary residence and legal domicile.
(E) States that the property is formed by an urban lot split and is therefore subject to the city’s urban lot split regulations, including all applicable limits on dwelling size and development.
(f) Specific Adverse Impacts.
(1) Notwithstanding anything else in this section, the city may deny an application for a two-unit project if the building official makes a written finding, based on a preponderance of the evidence, that the project would have a “specific, adverse impact” on either public health and safety or on the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact.
(2) “Specific adverse impact” has the same meaning as in Gov. Code §65589.5(d)(2):
“a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete” and does not include (1) inconsistency with the zoning ordinance or general plan land use designation or (2) the eligibility to claim a welfare exemption under Revenue and Taxation Code section 214(g).
(3) The building official may consult with and be assisted by planning staff and others as necessary in making a finding of specific, adverse impact. (g) Remedies.

If a second unit or two-unit project violates any part of this code or any other legal requirement:
(1) The buyer, grantee, or lessee of any part of the property has an action for damages or to void the deed, sale, or contract.
(2) The city may:
(A) Bring an action to enjoin any attempt to sell, lease, or finance the property. (B) Bring an action for other legal, equitable, or summary remedy, such as declaratory and injunctive relief.
(C) Pursue criminal prosecution, punishable by imprisonment in county jail or state prison for up to one year, by a fine of up to $10,000, or both; or a misdemeanor.
(D) Record a notice of violation.
(E) Withhold any or all future permits and approvals.
(F) Pursue all other administrative, legal, or equitable remedies that are allowed by law or the city’s code.

ATTACHMENT 2
Senate Bill 9
Senate Bill No. 9
CHAPTER 162
An act to amend Section 66452.6 of, and to add Sections 65852.21 and 66411.7 to, the Government Code, relating to land use.
[Approved by Governor September 16, 2021. Filed with
Secretary of State September 16, 2021.]
legislative counsel’s digest
SB 9, Atkins. Housing development: approvals.

The Planning and Zoning Law provides for the creation of accessory dwelling units by local ordinance, or, if a local agency has not adopted an ordinance, by ministerial approval, in accordance with specified standards and conditions.

This bill, among other things, would require a proposed housing development containing no more than 2 residential units within a single-family residential zone to be considered ministerially, without discretionary review or hearing, if the proposed housing development meets certain requirements, including, but not limited to, that the proposed housing development would not require demolition or alteration of housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income, that the proposed housing development does not allow for the demolition of more than 25% of the existing exterior structural walls, except as provided, and that the development is not located within a historic district, is not included on the State Historic Resources Inventory, or is not within a site that is legally designated or listed as a city or county landmark or historic property or district.

The bill would set forth what a local agency can and cannot require in approving the construction of 2 residential units, including, but not limited to, authorizing a local agency to impose objective zoning standards, objective subdivision standards, and objective design standards, as defined, unless those standards would have the effect of physically precluding the construction of up to 2 units or physically precluding either of the 2 units from being at least 800 square feet in floor area, prohibiting the imposition of setback requirements under certain circumstances, and setting maximum setback requirements under all other circumstances.

The Subdivision Map Act vests the authority to regulate and control the design and improvement of subdivisions in the legislative body of a local agency and sets forth procedures governing the local agency’s processing, approval, conditional approval or disapproval, and filing of tentative, final, and parcel maps, and the modification of those maps. Under the Subdivision Map Act, an approved or conditionally approved tentative map expires 24 months after its approval or conditional approval or after any additional period of time as prescribed by local ordinance, not to exceed an additional 12 months, except as provided.

This bill, among other things, would require a local agency to ministerially approve a parcel map for an urban lot split that meets certain requirements, including, but not limited to, that the urban lot split would not require the demolition or alteration of housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income, that the parcel is located within a single-family residential zone, and that the parcel is not located within a historic district, is not included on the State Historic Resources Inventory, or is not within a site that is legally designated or listed as a city or county landmark or historic property or district.

The bill would set forth what a local agency can and cannot require in approving an urban lot split, including, but not limited to, authorizing a local agency to impose objective zoning standards, objective subdivision standards, and objective design standards, as defined, unless those standards would have the effect of physically precluding the construction of 2 units, as defined, on either of the resulting parcels or physically precluding either of the 2 units from being at least 800 square feet in floor area, prohibiting the imposition of setback requirements under certain circumstances, and setting maximum setback requirements under all other circumstances. The bill would require an applicant to sign an affidavit stating that they intend to occupy one of the housing units as their principal residence for a minimum of 3 years from the date of the approval of the urban lot split, unless the applicant is a community land trust or a qualified nonprofit corporation, as specified. The bill would prohibit a local agency from imposing any additional owner occupancy standards on applicants. By requiring applicants to sign affidavits, thereby expanding the crime of perjury, the bill would impose a state-mandated local program.

The bill would also extend the limit on the additional period that may be provided by ordinance, as described above, from 12 months to 24 months and would make other conforming or nonsubstantive changes.

The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment. CEQA does not apply to the approval of ministerial projects.

This bill, by establishing the ministerial review processes described above, would thereby exempt the approval of projects subject to those processes from CEQA.

The California Coastal Act of 1976 provides for the planning and regulation of development, under a coastal development permit process, within the coastal zone, as defined, that shall be based on various coastal resources planning and management policies set forth in the act.

Ch. 162 — 2 —
This bill would exempt a local agency from being required to hold public hearings for coastal development permit applications for housing developments and urban lot splits pursuant to the above provisions.

By increasing the duties of local agencies with respect to land use regulations, the bill would impose a state-mandated local program.

The bill would include findings that 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.

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 specified reasons.

The people of the State of California do enact as follows:

SECTION 1. Section 65852.21 is added to the Government Code, to read:
65852.21. (a)  A proposed housing development containing no more than two residential units within a single-family residential zone shall be considered ministerially, without discretionary review or a hearing, if the proposed housing development meets all of the following requirements:
(1) The parcel subject to the proposed housing development is located within a city, the boundaries of which include some portion of either an urbanized area or urban cluster, as designated by the United States Census Bureau, or, for unincorporated areas, a legal parcel wholly within the boundaries of an urbanized area or urban cluster, as designated by the United States Census Bureau.
(2) The parcel satisfies the requirements specified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4. (3) Notwithstanding any provision of this section or any local law, the proposed housing development would not require demolition or alteration of any of the following types of housing:
(A) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income.
(B) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power.
(C) Housing that has been occupied by a tenant in the last three years. (4) The parcel subject to the proposed housing development is not a parcel on which an owner of residential real property has exercised the owner’s rights under Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application.
— 3 — Ch. 162
(5) The proposed housing development does not allow the demolition of more than 25 percent of the existing exterior structural walls, unless the housing development meets at least one of the following conditions:
(A) If a local ordinance so allows.
(B) The site has not been occupied by a tenant in the last three years. (6) The development is not located within a historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code, or within a site that is designated or listed as a city or county landmark or historic property or district pursuant to a city or county ordinance.
(b) (1)  Notwithstanding any local law and except as provided in paragraph (2), a local agency may impose objective zoning standards, objective subdivision standards, and objective design review standards that do not conflict with this section.
(2) (A)  The local agency shall not impose objective zoning standards, objective subdivision standards, and objective design standards that would have the effect of physically precluding the construction of up to two units or that would physically preclude either of the two units from being at least 800 square feet in floor area.
(B) (i)  Notwithstanding subparagraph (A), no setback shall be required for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure.
(ii) Notwithstanding subparagraph (A), in all other circumstances not described in clause (i), a local agency may require a setback of up to four feet from the side and rear lot lines.
(c) In addition to any conditions established in accordance with subdivision (b), a local agency may require any of the following conditions when considering an application for two residential units as provided for in this section:
(1) Off-street parking of up to one space per unit, except that a local agency shall not impose parking requirements in either of the following instances:
(A) The parcel is located within one-half mile walking distance of either a high-quality transit corridor, as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop, as defined in Section 21064.3 of the Public Resources Code.
(B) There is a car share vehicle located within one block of the parcel. (2) For residential units connected to an onsite wastewater treatment system, a percolation test completed within the last 5 years, or, if the percolation test has been recertified, within the last 10 years. (d) Notwithstanding subdivision (a), a local agency may deny a proposed housing development project if the building official makes a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment and for which there is Ch. 162 — 4 —
no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.
(e) A local agency shall require that a rental of any unit created pursuant to this section be for a term longer than 30 days.
(f) Notwithstanding Section 65852.2 or 65852.22, a local agency shall not be required to permit an accessory dwelling unit or a junior accessory dwelling unit on parcels that use both the authority contained within this section and the authority contained in Section 66411.7. (g) Notwithstanding subparagraph (B) of paragraph (2) of subdivision (b), an application shall not be rejected solely because it proposes adjacent or connected structures provided that the structures meet building code safety standards and are sufficient to allow separate conveyance. (h) Local agencies shall include units constructed pursuant to this section in the annual housing element report as required by subparagraph (I) of paragraph (2) of subdivision (a) of Section 65400.
(i) For purposes of this section, all of the following apply:
(1) A housing development contains two residential units if the development proposes no more than two new units or if it proposes to add one new unit to one existing unit.
(2) The terms “objective zoning standards,” “objective subdivision standards,” and “objective design review standards” mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal. These standards may be embodied in alternative objective land use specifications adopted by a local agency, and may include, but are not limited to, housing overlay zones, specific plans, inclusionary zoning ordinances, and density bonus ordinances. (3) “Local agency” means a city, county, or city and county, whether general law or chartered.
(j) A local agency may adopt an ordinance to implement the provisions of this section. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.
(k) Nothing in this section shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code), except that the local agency shall not be required to hold public hearings for coastal development permit applications for a housing development pursuant to this section.

SEC. 2. Section 66411.7 is added to the Government Code, to read:
66411.7. (a)  Notwithstanding any other provision of this division and any local law, a local agency shall ministerially approve, as set forth in this section, a parcel map for an urban lot split only if the local agency determines that the parcel map for the urban lot split meets all the following requirements:
— 5 — Ch. 162
(1) The parcel map subdivides an existing parcel to create no more than two new parcels of approximately equal lot area provided that one parcel shall not be smaller than 40 percent of the lot area of the original parcel proposed for subdivision.
(2) (A)  Except as provided in subparagraph (B), both newly created parcels are no smaller than 1,200 square feet.
(B) A local agency may by ordinance adopt a smaller minimum lot size subject to ministerial approval under this subdivision. (3) The parcel being subdivided meets all the following requirements:
(A) The parcel is located within a single-family residential zone. (B) The parcel subject to the proposed urban lot split is located within a city, the boundaries of which include some portion of either an urbanized area or urban cluster, as designated by the United States Census Bureau, or, for unincorporated areas, a legal parcel wholly within the boundaries of an urbanized area or urban cluster, as designated by the United States Census Bureau.
(C) The parcel satisfies the requirements specified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4. (D) The proposed urban lot split would not require demolition or alteration of any of the following types of housing:
(i) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income.
(ii) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power.
(iii) A parcel or parcels on which an owner of residential real property has exercised the owner’s rights under Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application.
(iv) Housing that has been occupied by a tenant in the last three years. (E) The parcel is not located within a historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code, or within a site that is designated or listed as a city or county landmark or historic property or district pursuant to a city or county ordinance.
(F) The parcel has not been established through prior exercise of an urban lot split as provided for in this section.
(G) Neither the owner of the parcel being subdivided nor any person acting in concert with the owner has previously subdivided an adjacent parcel using an urban lot split as provided for in this section. (b) An application for a parcel map for an urban lot split shall be approved in accordance with the following requirements:
(1) A local agency shall approve or deny an application for a parcel map for an urban lot split ministerially without discretionary review. (2) A local agency shall approve an urban lot split only if it conforms to all applicable objective requirements of the Subdivision Map Act (Division Ch. 162 — 6 —
2 (commencing with Section 66410)), except as otherwise expressly provided in this section.
(3) Notwithstanding Section 66411.1, a local agency shall not impose regulations that require dedications of rights-of-way or the construction of offsite improvements for the parcels being created as a condition of issuing a parcel map for an urban lot split pursuant to this section. (c) (1)  Except as provided in paragraph (2), notwithstanding any local law, a local agency may impose objective zoning standards, objective subdivision standards, and objective design review standards applicable to a parcel created by an urban lot split that do not conflict with this section. (2) A local agency shall not impose objective zoning standards, objective subdivision standards, and objective design review standards that would have the effect of physically precluding the construction of two units on either of the resulting parcels or that would result in a unit size of less than 800 square feet.
(3) (A)  Notwithstanding paragraph (2), no setback shall be required for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure.
(B) Notwithstanding paragraph (2), in all other circumstances not described in subparagraph (A), a local agency may require a setback of up to four feet from the side and rear lot lines.
(d) Notwithstanding subdivision (a), a local agency may deny an urban lot split if the building official makes a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. (e) In addition to any conditions established in accordance with this section, a local agency may require any of the following conditions when considering an application for a parcel map for an urban lot split:
(1) Easements required for the provision of public services and facilities. (2) A requirement that the parcels have access to, provide access to, or adjoin the public right-of-way.
(3) Off-street parking of up to one space per unit, except that a local agency shall not impose parking requirements in either of the following instances:
(A) The parcel is located within one-half mile walking distance of either a high-quality transit corridor as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop as defined in Section 21064.3 of the Public Resources Code.
(B) There is a car share vehicle located within one block of the parcel. (f) A local agency shall require that the uses allowed on a lot created by this section be limited to residential uses.
(g) (1)  A local agency shall require an applicant for an urban lot split to sign an affidavit stating that the applicant intends to occupy one of the — 7 — Ch. 162
housing units as their principal residence for a minimum of three years from the date of the approval of the urban lot split.
(2) This subdivision shall not apply to an applicant that is a “community land trust,” as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code, or is a “qualified nonprofit corporation” as described in Section 214.15 of the Revenue and Taxation Code.
(3) A local agency shall not impose additional owner occupancy standards, other than provided for in this subdivision, on an urban lot split pursuant to this section.
(h) A local agency shall require that a rental of any unit created pursuant to this section be for a term longer than 30 days.
(i) A local agency shall not require, as a condition for ministerial approval of a parcel map application for the creation of an urban lot split, the correction of nonconforming zoning conditions.
(j) (1)  Notwithstanding any provision of Section 65852.2, 65852.21, 65852.22, 65915, or this section, a local agency shall not be required to permit more than two units on a parcel created through the exercise of the authority contained within this section.
(2) For the purposes of this section, “unit” means any dwelling unit, including, but not limited to, a unit or units created pursuant to Section 65852.21, a primary dwelling, an accessory dwelling unit as defined in Section 65852.2, or a junior accessory dwelling unit as defined in Section 65852.22.
(k) Notwithstanding paragraph (3) of subdivision (c), an application shall not be rejected solely because it proposes adjacent or connected structures provided that the structures meet building code safety standards and are sufficient to allow separate conveyance.
(l) Local agencies shall include the number of applications for parcel maps for urban lot splits pursuant to this section in the annual housing element report as required by subparagraph (I) of paragraph (2) of subdivision (a) of Section 65400.
(m) For purposes of this section, both of the following shall apply:
(1) “Objective zoning standards,” “objective subdivision standards,” and “objective design review standards” mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal. These standards may be embodied in alternative objective land use specifications adopted by a local agency, and may include, but are not limited to, housing overlay zones, specific plans, inclusionary zoning ordinances, and density bonus ordinances.
(2) “Local agency” means a city, county, or city and county, whether general law or chartered.
(n) A local agency may adopt an ordinance to implement the provisions of this section. An ordinance adopted to implement this section shall not be Ch. 162 — 8 —
considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.
(o) Nothing in this section shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code), except that the local agency shall not be required to hold public hearings for coastal development permit applications for urban lot splits pursuant to this section.

SEC. 3. Section 66452.6 of the Government Code is amended to read:
66452.6. (a) (1) An approved or conditionally approved tentative map shall expire 24 months after its approval or conditional approval, or after any additional period of time as may be prescribed by local ordinance, not to exceed an additional 24 months. However, if the subdivider is required to expend two hundred thirty-six thousand seven hundred ninety dollars ($236,790) or more to construct, improve, or finance the construction or improvement of public improvements outside the property boundaries of the tentative map, excluding improvements of public rights-of-way that abut the boundary of the property to be subdivided and that are reasonably related to the development of that property, each filing of a final map authorized by Section 66456.1 shall extend the expiration of the approved or conditionally approved tentative map by 48 months from the date of its expiration, as provided in this section, or the date of the previously filed final map, whichever is later. The extensions shall not extend the tentative map more than 10 years from its approval or conditional approval. However, a tentative map on property subject to a development agreement authorized by Article 2.5 (commencing with Section 65864) of Chapter 4 of Division 1 may be extended for the period of time provided for in the agreement, but not beyond the duration of the agreement. The number of phased final maps that may be filed shall be determined by the advisory agency at the time of the approval or conditional approval of the tentative map. (2) Commencing January 1, 2012, and each calendar year thereafter, the amount of two hundred thirty-six thousand seven hundred ninety dollars ($236,790) shall be annually increased by operation of law according to the adjustment for inflation set forth in the statewide cost index for class B construction, as determined by the State Allocation Board at its January meeting. The effective date of each annual adjustment shall be March 1.

The adjusted amount shall apply to tentative and vesting tentative maps whose applications were received after the effective date of the adjustment. (3) “Public improvements,” as used in this subdivision, include traffic controls, streets, roads, highways, freeways, bridges, overcrossings, street interchanges, flood control or storm drain facilities, sewer facilities, water facilities, and lighting facilities.
(b) (1) The period of time specified in subdivision (a), including any extension thereof granted pursuant to subdivision (e), shall not include any period of time during which a development moratorium, imposed after approval of the tentative map, is in existence. However, the length of the moratorium shall not exceed five years.
— 9 — Ch. 162
(2) The length of time specified in paragraph (1) shall be extended for up to three years, but in no event beyond January 1, 1992, during the pendency of any lawsuit in which the subdivider asserts, and the local agency that approved or conditionally approved the tentative map denies, the existence or application of a development moratorium to the tentative map. (3) Once a development moratorium is terminated, the map shall be valid for the same period of time as was left to run on the map at the time that the moratorium was imposed. However, if the remaining time is less than 120 days, the map shall be valid for 120 days following the termination of the moratorium.
(c) The period of time specified in subdivision (a), including any extension thereof granted pursuant to subdivision (e), shall not include the period of time during which a lawsuit involving the approval or conditional approval of the tentative map is or was pending in a court of competent jurisdiction, if the stay of the time period is approved by the local agency pursuant to this section. After service of the initial petition or complaint in the lawsuit upon the local agency, the subdivider may apply to the local agency for a stay pursuant to the local agency’s adopted procedures. Within 40 days after receiving the application, the local agency shall either stay the time period for up to five years or deny the requested stay. The local agency may, by ordinance, establish procedures for reviewing the requests, including, but not limited to, notice and hearing requirements, appeal procedures, and other administrative requirements.
(d) The expiration of the approved or conditionally approved tentative map shall terminate all proceedings and no final map or parcel map of all or any portion of the real property included within the tentative map shall be filed with the legislative body without first processing a new tentative map. Once a timely filing is made, subsequent actions of the local agency, including, but not limited to, processing, approving, and recording, may lawfully occur after the date of expiration of the tentative map. Delivery to the county surveyor or city engineer shall be deemed a timely filing for purposes of this section.
(e) Upon application of the subdivider filed before the expiration of the approved or conditionally approved tentative map, the time at which the map expires pursuant to subdivision (a) may be extended by the legislative body or by an advisory agency authorized to approve or conditionally approve tentative maps for a period or periods not exceeding a total of six years. The period of extension specified in this subdivision shall be in addition to the period of time provided by subdivision (a). Before the expiration of an approved or conditionally approved tentative map, upon an application by the subdivider to extend that map, the map shall automatically be extended for 60 days or until the application for the extension is approved, conditionally approved, or denied, whichever occurs first. If the advisory agency denies a subdivider’s application for an extension, the subdivider may appeal to the legislative body within 15 days after the advisory agency has denied the extension.

Ch. 162 — 10 —
(f) For purposes of this section, a development moratorium includes a water or sewer moratorium, or a water and sewer moratorium, as well as other actions of public agencies that regulate land use, development, or the provision of services to the land, including the public agency with the authority to approve or conditionally approve the tentative map, which thereafter prevents, prohibits, or delays the approval of a final or parcel map. A development moratorium shall also be deemed to exist for purposes of this section for any period of time during which a condition imposed by the city or county could not be satisfied because of either of the following:
(1) The condition was one that, by its nature, necessitated action by the city or county, and the city or county either did not take the necessary action or by its own action or inaction was prevented or delayed in taking the necessary action before expiration of the tentative map. (2) The condition necessitates acquisition of real property or any interest in real property from a public agency, other than the city or county that approved or conditionally approved the tentative map, and that other public agency fails or refuses to convey the property interest necessary to satisfy the condition. However, nothing in this subdivision shall be construed to require any public agency to convey any interest in real property owned by it. A development moratorium specified in this paragraph shall be deemed to have been imposed either on the date of approval or conditional approval of the tentative map, if evidence was included in the public record that the public agency that owns or controls the real property or any interest therein may refuse to convey that property or interest, or on the date that the public agency that owns or controls the real property or any interest therein receives an offer by the subdivider to purchase that property or interest for fair market value, whichever is later. A development moratorium specified in this paragraph shall extend the tentative map up to the maximum period as set forth in subdivision (b), but not later than January 1, 1992, so long as the public agency that owns or controls the real property or any interest therein fails or refuses to convey the necessary property interest, regardless of the reason for the failure or refusal, except that the development moratorium shall be deemed to terminate 60 days after the public agency has officially made, and communicated to the subdivider, a written offer or commitment binding on the agency to convey the necessary property interest for a fair market value, paid in a reasonable time and manner.

SEC. 4. The Legislature finds and declares that ensuring access to affordable housing is a matter of statewide concern and not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Sections 1 and 2 of this act adding Sections 65852.21 and 66411.7 to the Government Code and Section 3 of this act amending Section 66452.6 of the Government Code apply to all cities, including charter cities.

SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or — 11 — Ch. 162
because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

Ch. 162 — 12 —
ATTACHMENT 3
CEQA Notice of
Exemption

CEQA NOTICE OF EXEMPTION
TO: Clerk of the Board of Supervisors FROM: Planning Department County of San Bernardino City of Big Bear Lake
385 N. Arrowhead Avenue, 2nd Floor P. O. Box 10000
San Bernardino, CA 92415-0130 Big Bear Lake, CA 92315
Project Title:

Adoption of an Urgency Ordinance to implement Urban Lot Splits and Second Unit and Two-Unit projects in the single family residential zones, as required by SB 9, effective on January 1, 2022.

Project Location - Specific:

City wide
Description of Project: Development Code Amendment 2021-160, an Urgency Ordinance to adopt standards to implement the provisions of Senate Bill 9 (SB 9), which amended California Government Codes 66411.7 pertaining to Urban Lot Splits, and Section 65852.21 pertaining to second units and two-unit projects.

Name of Public Agency Approving Project:

City Council, City of Big Bear Lake
Exempt Status: (check one) (State type and section number) XX Statutorily Exempt, Division 13, Section 21000 of the Public Resources Code Reasons why project is exempt:

Under California Government Code sections 65852.21, subd. (j), and 66411.7, subd. (n), the adoption of an ordinance by a city implementing the provisions of Government Code sections 66411.7 and 65852.21 and regulating urban lot splits and two-unit projects is statutorily exempt from the requirements of the California Environmental Quality Act (“CEQA”).

Lead Agency or Contact Person: Area Code/Telephone/Extension Janice Etter (909) 866-5831
ATTACHMENT 4
Zoning Map

MEETING DATE: January 3, 2022
TO: Honorable Mayor Herrick and Members of the City Council FROM: Frank A. Rush, Jr., City Manager
SUBJECT: City Manager Comments – Item 2.2

PROPOSED SOLID WASTE SERVICE DESIGN

ACTION TO BE CONSIDERED
City staff will present a recommended solid waste service design for City Council review. The recommended solid waste service design was developed based on input from City staff, the current solid waste franchisee, the citizen Solid Waste Advisory Group, other stakeholders, and the City Council. The recommended service design includes continued reliance on both curbside collections and the provision of at least two Clean Bear sites, with several service enhancements, including: the implementation of standardized curbside collection containers, automated or semi-automated collection, compliance with SB 1383, planned shielding or enclosures of Clean Bear sites, dedicated staffing at both Clean Bear sites, limiting the use of Clean Bear sites to City residents, property owners, and visitors only, the rerouting of traffic entering the Clean Bear sites, the potential relocation of the western Clean Bear site, the greater use of temporary “pop-up” Clean Bear sites during peak periods, and continued commercial collection.

RECOMMENDED MOTION(S)
City Council should express concurrence with the proposed solid waste service design and/or direct desired adjustments to the proposed service design.

Motion to direct City staff to proceed with a request for proposals for a new solid waste service agreement OR motion to begin exclusive negotiations with Big Bear Disposal.

RESPONSIBLE STAFF Sean Sullivan, Director of Public Services

ADDITIONAL CITY MANAGER COMMENTS
None.

MEETING
DATE: January 3, 2022
TO: Honorable Mayor and Members of the City Council
THROUGH: Frank A. Rush, Jr., City Manager
FROM: Sean Sullivan, Director of Public Services
SUBJECT: Proposed Solid Waste Service Design

BACKGROUND
The City has maintained a contractual relationship with Big Bear Disposal for the provision of solid waste management services since 1991. The initial agreement was amended several times until a 10-year franchise agreement was adopted in 2009. The 2009 franchise agreement expired in 2019 and the agreement is presently in its third one-year extension period, which is set to expire June 30, 2022.

On December 6, 2021, staff presented the City Council with an overview of current solid waste services and programs and reviewed potential service designs for inclusion in a new, long-term service agreement. The City Council provided feedback and comments on the proposed framework to enable staff to continue its development. Staff coordinated another meeting of the Solid Waste Working Group on December 16, 2021, for further discussion on these items (draft minutes included in the agenda packet). A proposed scope of work, which synthesizes the comments and feedback received from City Council and the many other stakeholders, has been prepared for the City Council’s review at the January 3 Council meeting.

The service design, as proposed, maintains the existing residential and commercial programs with minor enhancements and adjustments aimed at improving the overall service. These adjustments include the provision of residential service with a transition to automation through carts, establishment of “opt-in” provisions for the use of curbside collection, and enhancements to the operation of the existing two (2) Clean Bear Sites. A key change proposed for the Clean Bear Sites is the exclusion of waste generated from properties outside the City of Big Bear Lake.

As the current extension period with Big Bear Disposal expires on June 30, 2022, staff is seeking direction on the development of the next service agreement. Staff can negotiate exclusively with Big Bear Disposal which would likely result in the establishment of a new, long-term agreement by the expiration of the current extension. Should the Council prefer to proceed with a competitive procurement process, this process will take additional time and may not result in the selected provider’s service commencing until sometime in late 2022 or early 2023. This step would require one additional extension with Big Bear Disposal, Inc. to maintain continuity of service while the procurement process is conducted, and would obviously depend on Big Bear Disposal’s willingness to extend for some period at acceptable terms.

DISCUSSION
The current services and programs offered by Big Bear Disposal provide for solid waste removal to all residential and commercial customers within the City of Big Bear Lake. For residential service, all single-family residential properties within the City are eligible for weekly, curbside collection of solid waste, recycling, and vegetative or organic debris. Additionally, Clean Bear Sites are available to all full-time residents and property owners who do not participate in curbside collection to dispose of their solid waste. These service options handle approximately 8,000 tons of residential solid waste annually, with approximately 80% being collected through the Clean Bear Sites. Commercial service, which also includes multi-family housing of four (4) or more units, is handled through direct contract with Big Bear Disposal by the respective business.

Commercial service accounts for approximately 8,000 tons of solid waste annually and the service is generally provided through dumpsters, which offer variable sizes and collection frequencies.

Overall, the City of Big Bear Lake generates approximately 16,000 tons of solid waste, recycling, and vegetative debris annually.

On December 6, 2021, staff received feedback from the City Council on two general options for the service design. Staff took this feedback, met again with the Solid Waste Working Group, contacted additional stakeholders, and had additional discussion with the incumbent provider to developing the proposed solid waste service design described below.

Proposed Scope of Services
The next solid waste service agreement is proposed for a period of ten (10) years and should provide for exclusive collection for residential and commercial solid waste, recycling, and vegetative debris within the City of Big Bear Lake by a qualified solid waste hauler (hauler).

Residential Service
Residential service would continue to be provided through a combination of weekly curbside collection and the operation of Clean Bear Sites for bulk collection of residential waste.

Curbside Collection
• Curbside collection would be offered once per week for residential solid waste, recycling, and vegetative debris. Curbside collection would require an “opt-in” whereby residential customers would have to declare their intent to participate in the curbside collection program.
o There would be no additional charge for the service.
o Curbside collection would be available to all full-time and part-time property owners and vacation rental properties, and the property owner would only need to “opt-in” once.
o The “opt-in” provision would allow the hauler to better refine the collection routing and provide for the distribution of collection carts by identifying the customers utilizing this service option.
o The resident / property owner / vacation rental manager would be responsible for the placement of the carts for collection and return after collection.  The hauler would develop a backyard collection and/or return service that would be available to the property owners at an additional expense. • Curbside collection would transition to uniform carts to be provided by the hauler. Each user would receive three (3) carts, one each for solid waste, recycling, and vegetative debris. The carts would have wheels and would be standardized to 96-gallons. Smaller, 64-gallon carts would be available, by request, for residents with logistical challenges. o The hauler would determine whether the carts are serviced in a fully automated or semi-automated fashion, dependent upon their chosen equipment and personnel resources.
• All properties, including vacation rental units, would be able to coordinate directly with the hauler for multiple containers and increased levels of service to meet their needs. There would be additional charges for these service enhancements that would be payable directly to the hauler by the customer.
• Vegetative debris would continue through a combination of seasonal curbside collection as well as the City furnished curbside chipping program.

Clean Bear Sites
• The service would continue to provide two (2) Clean Bear collection sites. They are presently located on Garstin Road (near the Public Works Corporate Yard) and along Big Bear Boulevard (across from the Civic Center).
o Site #1, Garstin Road property is owned by Big Bear Disposal. o Staff is currently investigating options to possibly relocate the City-owned Site #2 to another convenient location in western Big Bear Lake or the potential expansion of the existing Site #2 with improved “flow” and aesthetics. • The sites would have established operating hours and would be staffed during operation.

Outside of the operating hours, the site would be secured and monitored to prevent illicit dumping.
• Clean Bear Sites would be available to property owners, residents, guests and visitors, vacation rental managers and operators, or City approved rental services that are associated with single family residential properties located within the City of Big Bear Lake. o Proof of eligibility would be required for access, which may be achieved through a card or code system, showing ID, or a tax or utility bill, or a yet to be developed verification system.
o Rental operators would be encouraged, but not required, to consolidate and dispose of waste on behalf of their guests.
• Beginning on July 1, 2022 waste from outside the City of Big Bear Lake would no longer be accepted at the Clean Bear sites.
o It is believed that at least 25% of the volume of waste as these sites is generated outside of the City limits. This information is based upon cell phone data for visits to the Clean Bear Sites and anecdotal information from Big Bear Disposal, and may actually be much higher.
o Staff has explored opportunities to verify eligibility of usage of the site and monetize the waste delivered by non-eligible users. Further review and discussion have indicated that this may not be possible any longer due to the monitoring and reporting requirements associated with solid waste delivery. As is currently established, the existing agreement with Big Bear Disposal and their State operating permit only allow for them to haul and manage solid waste for the City of Big Bear Lake and its customers.
o The current volumes are only estimates and the concern is that if it becomes acceptable for nonresidents to utilize these sites, even with a fee, the volume may swell to a level that cannot be managed or maintained.
o San Bernardino County is currently exploring the establishment of a Clean Bear site in the unincorporated area, and the City will continue to encourage them to take this step and/or contribute financially toward the City’s Clean Bear sites. • The City, in conjunction with the hauler, would pursue the following improvements to the sites for functionality and aesthetics. The City would take the lead on developing the capital improvement projects and budgets to support:
o Enclosing both sites and providing drive-through capabilities, i.e. a shell building, and focus on improving the site perimeters for security and enhanced curb appeal. o Possible rerouting the circulation to Site #1, the Garstin site, capturing use of an existing DWP access road off of Fox Farm Road.
o Possible relocation of Site #2 to another convenient location in western Big Bear Lake.
o Possible expansion of the existing Site #2, with a more efficient traffic flow and improved aesthetics.
• Pop-up sites would also be expanded as a mechanism to support bulk collection and reduce the impact on the Clean Bear sites during periods of heavy visitation. These pop-up sites have been employed as needed over the past year and have yielded favorable results. o It is considered that these sites would be used on up to 20 occurrences per year to coincide with holidays and periods of heavy visitation. o Locations would be determined based upon the need of the community and availability of space.

Commercial Service
Commercial service would continue to include commercial businesses, any institutional / governmental customers, and multi-family residential properties of four (4) or more units. These properties are not assessed for solid waste services on their property tax bills and, instead, contract directly with the hauler for these services.

The requirements of SB 1383 may have a significant impact on commercial solid waste services.

City staff is developing measures that will either eliminate or defer most of the compliance elements of SB 1383. Most notably, the City will qualify for a high elevation waiver, as the entirety of the City is at an elevation above 4,500 feet. The high elevation waiver will exempt all commercial accounts from the separation of food waste required by SB 1383. Additionally, there are other waivers available to most, if not all, commercial businesses within the community that will further exempt them from requirements of SB 1383. Staff is working through the other required programmatic changes of SB 1383; however, there is nothing that will directly affect the framework of commercial solid waste collection.

Overall Service Design
These service sectors, residential and commercial, represent the core service programs for solid waste services within the City of Big Bear Lake. The elements that have been laid out represent the key decision points and foundation on which to build a service program. There are other decisions and programmatic elements that would be determined as the overall program is finalized.

Any remaining decisions would be reviewed against the backdrop of the program as provided herein, through general compliance with regulations and typical best practices.

Service Agreement
Staff anticipates the next agreement for solid waste services would be for a period of ten (10) years.

Solid waste services require specialty equipment and resources that are costly, making longer contract periods advantageous to spread costs over multiple years. Staff believes there are two options to consider for selecting the service provider for the next agreement.

The City Council may direct staff to negotiate exclusively with Big Bear Disposal. This would allow staff and the contractor to negotiate a contract, and associated costs, based upon this scope of work. Staff would return with a new agreement prior to the expiration of the current extension in June 2022 and implementation of the agreement and services would begin on July 1, 2022. As clarified by the City Attorney at the meeting of December 6, solid waste services are not subject to competitive bidding procedures per the Public Contract Code or City policy.

If the City Council directs a competitive proposal process, staff would initiate that process immediately. If the process were to commence in January 2022, it is believed that the preferred hauler could be identified and transitioned into service sometime in late 2022 or early 2023. A tentative timeline for this process is outlined below.
• Prepare RFP Document January 2022- March 2022
• RFP Document Released April 1, 2022
• Proposals Received June 15, 2022
• Proposals Reviewed / Interviews Conducted June 2022 – July 2022 • Preferred Hauled Identified / Negotiations August 2022 • Award of Contract September 2022
• Contract Commence Late 2022 or early 2023,
depending on specific service
provider circumstances
(land, equipment, personnel, etc.)
This timeline represents a best estimate given the complexities of the nature of this service, especially in a remote location such as Big Bear Lake. Certain elements of the timeline, including the period to prepare a response and the potential start up from time of award, are purposely extended. The timeline is designed to ensure that proposing haulers have sufficient time to conduct the analysis required to develop a service program in a new and isolated area. In that same context the proposed start up period allows sufficient time for a hauler, who may not be the incumbent, to establish service within this area.

Council Direction
Staff is requesting that the City Council provide direction on the following items:

Proposed Service Design
Staff is seeking consensus from the City Council on the proposed service design. This service design is intended to be the basis off which the next long-term agreement for solid waste service is to be based, which could be for ten years or more. Has all of the feedback been considered? Does this program meet the needs of the community? Are there other changes or adjustments that need to be considered?
Next Service Agreement
Staff has presented two options for the City Council’s consideration. Is the City Council interested in negotiating exclusively with Big Bear Disposal to develop a long-term agreement? Is the City Council’s preference that staff proceed with a competitive proposal process, as outlined above? Based upon the direction provided on the items above, staff will continue with the process of securing a long-term solid waste services agreement. Should staff negotiate with Big Bear Disposal, an agreement will likely be presented to the City Council in the spring of 2022. Should the Council direct staff to proceed with an RFP, staff will accept that direction as the authorization to conduct that solicitation and proceed accordingly. Staff will also work with Big Bear Disposal to secure a final extension in order to provide ample time for the RFP process.

FISCAL IMPACT
The current fees for residential solid waste services are collected as a pass-through item on the property tax roll for all residential parcels within the City of Big Bear Lake. The current rates for residential solid waste services for FY 2021-22 are as follows:

Month Annual
Big Bear Disposal Pass Through $ 22.92 $ 275.08
City Refuse Assessment $ 10.21 $ 122.60
Total $ 33.13 $ 397.68
The estimated pass-through amount to Big Bear Disposal for FY 2021-22 is approximately $2,348,500. Should new rates for residential solid waste service be established by any future agreement, the adjustment of those rates would be subject to a parcel owner, majority protest vote, pursuant to Proposition 218.

ENVIRONMENTAL CONSIDERATIONS
There is no environmental review associated with discussion of solid waste programs pursuant to the California Environmental Quality Act.

ATTACHMENTS

1. City Council Agenda Item from December 6, 2021

2. DRAFT Minutes of Solid Waste Working Group Meeting – December 16, 2021

3. Big Bear Disposal Collection Routes

4. Options for Rerouting of Garstin Clean Bear Site #1Traffic

5. Refuse Fund Summary of Revenues & Expenditures

6. Summary of Annual Refuse (Solid Waste) Fees
ATTACHMENT 1
City Council
Agenda Item
(12.6.2021)
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ATTACHMENT 2
DRAFT Minutes
of Solid Waste
Working Group
Meeting
(12.16.2021)

ATTACHMENT 3
Big Bear Disposal
Collection Routes

ATTACHMENT 4
Options for
Rerouting Clean
Bear Site #1

ATTACHMENT 5
Refuse Fund
Summary of
Revenues &
Expenditures
Refuse Fund Summary of Revenues & Expenditures
Fiscal Year 2021-22 Projection
City
Services
Big Bear
Disposal
Recycling
Grant
Capital
Outlay Total
Residential Fees (1)
City Refuse Fees [8459 EDUs @ $122.60] $ 1,037,073 $ - $ - $ - $ 1,037,073 Collection of Delinquencies $ 70,000 $ - $ - $ - $ 70,000 Big Bear Disposal Pass Through Fees:

Improved Residential Parcels [$275.08/EDU] $ - $ 2,326,902 $ - $ - $ 2,326,902 Vacant Parcels [1420 Parcels @ $15.21/EDU] $ - $ 21,598 $ - $ - $ 21,598 Waste Disposal Rebate $ 150,000 $ - $ - $ - $ 150,000
Interest on Bank Deposits $ 3,100 $ - $ - $ - $ 3,100
NPDES Site Inspection Fees $ 6,000 $ - $ - $ - $ 6,000
DOC Recycling Grant (Restricted Proceeds) $ - $ - $ 5,000 $ - $ 5,000 One-time use of Fund Balance: (2)
Unassigned Fund Balance - Building Demolition $ (85,000) $ - $ - $ 85,000 $ - Fund balance commitment - Vehicle Acquisition $ - $ - $ - $ 50,000 $ 50,000 Total Resources $ 1,181,173 $ 2,348,500 $ 5,000 $ 135,000 $ 3,669,673 Direct Labor $ (784,200) $ - $ - $ - $ (784,200)
Supplies $ (2,400) $ - $ - $ - $ (2,400)
Big Bear Disposal Pass Through $ - $ (2,348,500) $ - $ - $ (2,348,500) Professional Services
General $ (40,000) $ - $ - $ - $ (40,000)
Hazmat $ (45,000) $ - $ - $ - $ (45,000)
NPDES
Site Inspections $ (35,000) $ - $ - $ - $ (35,000)
County Flood Control $ (25,000) $ - $ - $ - $ (25,000)
Administrative Overhead (3) $ (135,000) $ - $ - $ - $ (135,000) Insurance (e.g. general liability, property, workers' compensation) $ (31,200) $ - $ - $ - $ (31,200) Litter Containers & Portable Toilets (4) $ (8,700) $ - $ - $ - $ (8,700) Other (e.g. printing, postage, property tax collection charges) $ (12,500) $ - $ - $ - $ (12,500) Interfund Transfers Out:

Street Maintenance Impact Fee (3) $ (105,000) $ - $ - $ - $ (105,000) Demolition & Debris Removal $ - $ - $ - $ (85,000) $ (85,000) Vehicle Acquisition - Litter Removal Team $ - $ - $ - $ (50,000) $ (50,000) DOC Recycling Grant Expenditures $ - $ - $ - $ - $ -
Total Uses $ (1,224,000) $ (2,348,500) $ - $ (135,000) $ (3,707,500) Projected Change in Fund Balance (2) $ (42,827) $ - $ 5,000 $ - $ (37,827) Projected Beginning Fund Balance @ 7/1/2021 $ 935,649 $ - $ - $ - $ 935,649 Projected Ending Fund Balance @ 6/30/2022 $ 892,822 $ - $ 5,000 $ - $ 897,822 (1)
Residential Solid Waste Fees: City Services Big Bear Disposal Total Improved Parcels $ 122.60 $ 275.08 $ 397 68
Vacant Parcels $ - $ 15.21 $ 15 21
(2)
(3)
(4)
Each residential parcel is charged a fee per Equivalent Dwelling Unit (EDU). The amount of the fee is dependent upon whether the property is improved or vacant. Fees collected on behalf of the City's waste hauler (Big Bear Disposal) are a direct pass through. City fees are collected only on improved parcels and cover the cost of City Services as shown in the table above.

Non-recurring expenditures are separated out from recurring City Services to aid in analysis of the adequacy of fees collected to cover cost of services. The reduction in fund balance projected for FY 2021-22 is the result of one-time expenditures. Without these expenditures, adopted rates are sufficient to support projected operating costs. Remaining fund balances are available for other future one-time needs and unplanned expenditures (e.g. regulatory changes, health and safety needs such as additional trash removal and portable toilets, etc.).

Franchise fees collected by the General Fund from the City's waste hauler (appx. $240K/year) are used to cover Refuse Fund expenditures for Overhead and Street Maintenance impacts.

The City pays for a total of 37 litter containers in the Village per year, six of which are located within City parking lots and are paid for by the Refuse fund (~ $3,700). The remaining containers (#31) are paid for by the Village Maintenance Assessment District. The City also rents portable toilets for the health and safety of our community which are placed in high visitation areas based on demand (~ $5,000 excluding General Fund expenditures for additional rentals in response to COVID).

ATTACHMENT 6
Summary of
Annual Refuse
Fees
Summary of Annual Refuse (Solid Waste) Fees
2020‐21 2021‐22 Change EDUs Projection
Improved Parcels:City Refuse Fees 114.25$ 122.60$ 8.35$ Includes final 5% rate adjustment (Ord. 2017‐457) deferred in FY 20/21 (Reso. No. 2020‐43) plus 2.2% CPI adjustment (Ord. No. 2019‐474) 8,459 $ 1,037,100 BBD Pass Through Fees * 269.16$ 275.08$ 5.92$ Assumes agreement extended. Includes 2.2% CPI adjustment. 8,459 $ 2,326,900 * BBD Pass Through Fees applies to improved residential properties. Commercial properties contract directly with BBD.

Vacant Parcels:BBD Pass Through Fees 14.88$ 15.21$ 0.33$ Assumes agreement extended. Includes 2.2% CPI adjustment. 1,420 $ 21,600

MEETING DATE: January 3, 2022
TO: Honorable Mayor Herrick and Members of the City Council FROM: Frank A. Rush, Jr., City Manager
SUBJECT: City Manager Comments – Item 2.3

MOONRIDGE CORRIDOR IMPROVEMENTS PROJECT AMENITIES

ACTION TO BE CONSIDERED
City Council will review options and make selections for lighting fixtures, street furniture, trash cans, bicycle racks, water fountains, signage, and other project amenities to be incorporated into the Moonridge Corridor Improvement Project. Selected amenities must be ordered in the coming weeks to ensure delivery in time for installation later this year. Construction of planned roundabouts, street improvements, and other streetscape features will resume in April 2022, and the project is expected to be complete by October 2022. The established project budget for the Moonridge Corridor Improvement Project includes a set-aside of $300,000 for these amenities, with the cost of lighting fixtures already included in the previously awarded construction contract. Public art for the center of the planned roundabouts is not included in this discussion, as City staff envision a broader public decision-making process for any desired public art in the future.

RECOMMENDED MOTION(S)
City Council should indicate desired selections from among the options presented, and direct staff to proceed with appropriate materials orders for installation in late summer or fall 2022.

RESPONSIBLE STAFF Sean Sullivan, Director of Public Services

ADDITIONAL CITY MANAGER COMMENTS
City staff have identified many attractive options for City Council to consider, and ultimately I believe whatever selections the Council makes will be very attractive and functional, and greatly enhance the Moonridge area. Essentially, I don’t believe you can go wrong with any of these options. The various options presented for Council consideration all include a rustic, mountain style and/or match existing fixtures in The Village and other City parks. Some of the options presented were also previously vetted by property owners in the Moonridge area in 2019.

The Council may also wish to consider the installation of amenities that include a custom designed and matching style that is unique to Big Bear Lake and/or the Moonridge area. If the Council would like staff to pursue this approach, I recommend commissioning the services of a creative professional and custom fabricator to design and fabricate amenities that achieve the Council’s vision for the Moonridge corridor.

If Council chooses to take this approach, it will take additional time (and the timing will also depend on the level of public involvement in the selections), and all of the desired amenities may not be installed by the time the main infrastructure components are completed in late summer or fall 2022. City staff would, however, work diligently to complete this process in an expeditious manner with a goal to ensure that everything is installed at the same time that the main infrastructure components are completed.

Although it is not reference in the attached staff report, City staff are also currently engaged in discussions with Soofa Signs ( https://soofadigital.com/soofa-sign ) about the possible installation of multiple digital information signs as part of this project. These signs are very attractive, would convey important information about the Moonridge area and Big Bear Lake, and also may include opportunities to offset City expenditures with advertising revenue in the future.

I am excited to see the Moonridge project finally become a reality, and believe it will significantly enhance this underutilized area of the City. The final product will be as nice or nicer than The Village, and will hopefully promote new development and redevelopment in this area of Big Bear Lake for current and future generations to enjoy.

MEETING
DATE: January 3, 2022
TO: Honorable Mayor and Members of the City Council
THROUGH: Frank A. Rush, Jr., City Manager

FROM: Sean Sullivan, Director of Public Services
SUBJECT: Moonridge Corridor Improvements Project Amenities

BACKGROUND
In June 2021, the City Council authorized a construction contract for the Moonridge Corridor Improvements Project and construction commenced later in the summer. Work is currently paused for the winter season and is anticipated to resume in April 2022 with anticipated project completion in October 2022. The Moonridge Corridor Improvements Project is a key infrastructure project aimed at transforming the portion of Moonridge Road between Elm Street and Clubview Drive by altering the entire appearance and functionality of the streetscape. The improvements include the construction of two (2) traffic calming roundabouts at either end of the corridor, widened sidewalks on either side of the street, a 12’ wide bicycle and pedestrian trail, and widened parkways and raised medians which will host comprehensive landscape improvements. This project’s goal is to transform this area into a vibrant and inviting public space.

A key element of making this location into a vibrant public space is the selection of site amenities and furnishings. The site amenities and furnishings are items that the public will interact with regularly and these selections create the opportunity to establish a distinctive style and theme within the space. As the project was under development, public meetings were held to solicit comments and feedback on the proposed project, focused especially on theme and design elements.

Spurred by this solicitation of feedback, a group of approximately twenty (20) stakeholders comprised of business and property owners along the corridor provided coordinated feedback on concepts and themes for the project design elements.

As the project concepts were presented to the City Council in April 2021, interest was expressed in fostering a more robust and detailed discussion on these items at a future time. To not delay progression of the project, the project was bid for construction with most of the amenities omitted from the plans to allow for further review and discussion. This Council agenda item is intended to foster a discussion among Council regarding the planned amenities, and ultimately result in the selection of specific amenities to be installed later this summer and fall.

DISCUSSION
The Moonridge Corridor Improvements Project will transform approximately 1,600 feet of Moonridge Road by establishing 10’ sidewalks on both sides of the street, a 12’ bicycle trail, and planted medians and parkways. The design will encourage enhanced pedestrian usage of the area and encourage the development of additional businesses and attractions within the improved area.

The general concept or thought process for the area has been described as an effort to compliment but not to detract from or take away from The Village. The ability to select the amenities and fixtures provides an opportunity to define the theme and feel of the area through the selected details and finishes.

Through staff’s review of available documents and contact with participants in the stakeholders group earlier in the process, staff identified the following thoughts and observations from the discussions:
• A preference for a Historical or Mining theme
• Avoid modern designs and styles
• Move toward sustainable materials
• Select materials and items that are maintenance friendly • Looking for something distinguishing or with “pizzazz” to define the area • The area should be different from the Village
A few amenities and fixtures were specified within the preliminary plans but were ultimately not put in the final bid plans to allow for additional discussion. One exception is the street lighting, which was included within the bid plans due to the extensive amount of work and construction that goes into the construction of them. Although a fixture for the streetlights was specified, there is still some time to consider alternative options. The plans for the project contemplate the following quantities of specific amenities.
• Street Lighting – 65 locations
o 43 streetlights
o 22 pedestrian level lights
• Benches – 16 locations
• Trash / Recycling Receptacles – 16 locations
• Electronic Message Signs
Certain amenities, including those outlined below, were discussed but were not contemplated in the project plans. There is sufficient time to include any additional amenities that may be desired.

Should staff receive direction to pursue some of the options below, the design team will be engaged to determine the appropriate placement and quantity of the additional items within the project. • Bicycle racks / parking locations given the placement of a new bicycle trail • Drinking fountains or water bottle filling stations
• Fire pits like those within the Village
• Electric Vehicle Charging Stations
Staff is seeking a decision or additional direction from the City Council on the selection of the amenities. The necessary direction is that of style and general aesthetics. The underlying question for consideration is whether the intent is to create an entirely unique, standalone style or theme for the area or if there is a desire to build consistency with other elements in use throughout the City? Furthermore, do the options provided for consideration achieve the intent for the style or theme of this area?
The installation of the street lighting is included within the construction contract and a fixture has been selected and specified for this use. There is sufficient time should it be desired to select an alternative fixture for this use. The remaining amenities are not included within the contract meaning that upon selection, staff will determine the best course of action to acquire and install the remaining amenities.

Street Lighting
The project contemplates the addition of approximately sixty-five (65) units of street lighting, including both typical street lighting as well as pedestrian lighting. All considerations for the provision and construction of street lighting are included within the construction contract, including all electrical work and the construction of the appropriate footings, as well as a specified pole and fixture assembly. While a particular option was specified within the construction contract, the materials have not yet been ordered to allow for the deliberation and selection of the desired materials. Should an alternative fixture be selected, an additional cost may be incurred dependent upon the difference in any material costs between the options.

Images of the specified fixture (Attachment 1) show that each assembly includes an engineered wood pole and one of two fixtures, a Sternberg Omega for the streetlights and Sternberg Prairie fixtures for the pedestrian level lights. This selection embodies elements of the concepts preferred by the stakeholders’ group but with different qualities. Also included for consideration are the fixtures presently in use within the Village and pending installation in Rotary Park in spring 2022.

Additional references include images of fixtures within other public spaces within mountain resort towns as well as options that reflect the preferred themes of the stakeholders’ group.

Should an alternative fixture be selected, staff will coordinate with the design team on the actual specification of the pole height, lamp style, and brightness to be consistent with the existing, engineered plans in terms of the quantities and placement of the light fixtures. The existing plans have been developed by electrical engineers and include a photometric study to determine the necessary and appropriate levels of lighting within the area.

Benches
The streetscape plans include the placement of approximately sixteen (16) benches in locations along the corridor. The placement is balanced and mirrored between both the east and west sides of the street in a consistent fashion. The stakeholders’ group submitted two concept options for benches, one made entirely of wood and one made of concrete and stone. Prior to the removal of the furnishings from the bid documents, the plans and specifications called for the installation of eight (8) of each of the specified styles. Staff has further determined that the benches were concepts and that they do not have specifications or serial numbers; it is believed that the intent was to have them custom crafted for this installation.

Included for review (Attachment 2) are images of the concepts for the benches that were included within the preliminary plans for the project as well as additional options for consideration. The options include both wood and concrete construction, as well as some that include multiple materials, and these are specific fixtures that are readily available from furnishings suppliers.

Trash Receptacles
The plans contemplate the placement of both trash and recycling receptacles at each of the locations of the benches, totaling sixteen (16) locations across the corridor. Renderings of the proposed receptacles are included for review (Attachment 2). The proposed fixtures are constructed of steel and are powder coated as included within the preliminary plans. The fixtures that were specified for the project do not align with the options preferred by the stakeholders’ group, which included two distinct options of either a mining cart or metal fixture with modern designs. Photos of many designs are included within the attachments, including those specified for the project, those preferred by the stakeholders’ group, and additional options for discussion.

In reviewing public trash receptacles in other, similar areas, staff found that many of them do not conform to an overall aesthetic theme and often are more practical in nature. Practical options included usage of dual trash and recycling compactor units as well as heavy-duty bear-resistant containers. The options presented for your consideration are more aesthetic in nature but staff is happy to consider other alternatives.

Drinking Fountains
The project plans do not currently consider the placement of drinking fountains or bottle filling locations along the corridor. Given the construction of a bicycle trail within this space, a drinking fountain or bottle filler could be an appropriate amenity for those utilizing the area in a more active way. There is available water to facilitate the installation of a drinking fountain and staff can work with the engineering team to develop appropriate placement should these facilities be desired. An image of the typical unit utilized through the City is included for review (Attachment 2). The options and choices for appropriate outdoor drinking fountains is limited but this particular unit does come in a number of color choices.

Bicycle Racks
Like the drinking fountains, the current plans do not include the placement of bicycle racks. Given that the bicycle trail is a key feature of this corridor, it would be appropriate to consider the installation of bicycle racks. The placement of bicycle racks would allow users of the bicycle trail to enjoy the other uses of the corridor by offering a place to securely store bicycles. Additionally, designated bicycle parking may eliminate obstructions and hazards caused by bicycles within the area. Should the addition of bicycle racks be desired, staff will work with the project engineers to identify the appropriate placement of these amenities.

As a part of their feedback, the stakeholders’ group provided consensus on two potential bicycle racks. Images of those preferences as well as other concepts are provided for review (Attachment 2).

Fire Pits
Early project discussion asked the question about the potential installation of fire pits within the area as was done in portions of the Village. As there was no clear direction provided on this topic, no engineering, placement, or amenity selection was completed for the consideration of fire pits.

Staff has had discussion with Southwest Gas, the natural gas provider within the area, and they can provide the necessary infrastructure for fire pits. It is critical that the needed gas infrastructure be installed and delivered prior to the street improvements taking place. This means that even if the fire pits were to be considered in the future, it would be appropriate to install the gas infrastructure now.

While no engineering has been completed, it is likely that if fire pits were desired, the design would need to be different than those within the Village. Any firepits would need to remain within the sidewalk area, leaving approximately 10’ of width to them within. Reference photos are included within the attachment but any design elements will rely upon the engineering to accommodate them within the space.

Electronic Message Signs
The project also has included considerations for the installation of electronic changeable message sings, like the existing one located at City Hall. The signs have already been obtained and will be furnished to the contractor for installation at either end of the corridor according to the project plans. The sign has been constructed with similar finishes to the one at City Hall but elements can be modified, if so desired. The stone or rock veneer on the base is not included with the signs and there is the opportunity for a revised selection of those materials if desired. An image of the sign is included for review.

Electric Vehicle Charging Stations
Staff is working with the design team and representatives from Bear Valley Electric Service, Inc. to identify available power and the appropriate placement of electric vehicle charging stations within the corridor. Engineering related to parking and the corridor features and availability of electricity will determine the feasibility and specifics of this effort. Additionally, staff is looking at opportunities to expand parking around the corridor, beyond Moonridge Road, and as those plans are developed, opportunities for the installation of additional electric vehicle charging stations will be considered to enhance their availability within the area.

FISCAL IMPACT
Funding for these amenities to support the Moonridge Corridor Improvements Project is available within the project budget in the amount of $300,000. The cost for street lighting and pedestrian lighting fixtures is already included in the overall construction contract for the Moonridge project.

ENVIRONMENTAL CONSIDERATIONS
The Moonridge Corridor Improvements Project, including the furnishings and amenities, was found to be categorically exempt from the California Environmental Quality Act (CEQA) as the repair, maintenance, and minor alterations of existing facilities by the City Council on April 5, 2021.

ATTACHMENTS

1. Street Lighting Options

2. Furnishings and Fixtures Options

3. Streetlighting and streetscape plans

4. Stakeholders’ Group Balloting and Options
ATTACHMENT 1
Street Lighting
Options
Moonridge Corridor Improvements Project
Amenities Review - Streetlighting
Option 1
These lighting renderings represent what was specified within the plans for this project.

Streetlights – 30’ Pole Height
Pedestrian Level Lighting – 14’ Pole Height
QTY: 43 Streetlights
12 Pedestrian – Dual Arm (on east side, between bike trail and sidewalk) 10 Pedestrian – Single Arm (on west side, only sidewalk) Moonridge Corridor Improvements Project
Amenities Review - Streetlighting
Specification for Lights as included within the project:

Moonridge Corridor Improvements Project
Amenities Review - Streetlighting
Options 2 - 5
The below options were the stylistic choices favored by the stakeholders’ group. *These options will meet pedestrian lighting need but may be unavailable in streetlight height and lamp configurations to meet traffic standards.

Moonridge Corridor Improvements Project
Amenities Review - Streetlighting
Option 6
Moonridge Corridor Improvements Project
Amenities Review - Streetlighting
Mammoth Lakes, CA – Street and Pedestrian Lights
Moonridge Corridor Improvements Project
Amenities Review - Streetlighting
Park City, UT – Streetlights
Moonridge Corridor Improvements Project
Amenities Review - Streetlighting
Truckee, CA – Pedestrian Lights
Moonridge Corridor Improvements Project
Amenities Review - Streetlighting
Balsams Place – Tweksbury, MA Whiskey Jack, BC, Ontario, Canada Pedestrian Lights
ATTACHMENT 2
Furnishings &
Fixtures Options
Moonridge Corridor Improvements Project
Amenities Review – Furnishings and Fixtures
Benches
These benches were originally specified for the project as recommended by the stakeholders’ group.

Stone Benches
Wooden Benches
• These are the bench concepts recommended by the stakeholders’ group • The benches are specified to be custom built for this project; there is no specification or model number to reference.
o It is likely that any completely wooden or stone bench, similar to these, would require a custom build.
• They are approximately 6’ in length.
• The plans call for the placement of eight (8) of each style throughout the corridor for a total of sixteen (16)
Moonridge Corridor Improvements Project
Amenities Review – Furnishings and Fixtures
Additional Bench Options / Concepts:

Bench #1 - Black Metallic Bench, as used in various locations throughout the City Bench #2 - Wooden Bench with Metal Structure (also available with a back) Moonridge Corridor Improvements Project
Amenities Review – Furnishings and Fixtures
Bench #3 – Wood and Metal Support
Bench #4 – Composite Material and Metal Support
Moonridge Corridor Improvements Project
Amenities Review – Furnishings and Fixtures
Bench #5 – Wood with Concrete Support
Bench # 6 – Composite Material and Concrete Support
Moonridge Corridor Improvements Project
Amenities Review – Furnishings and Fixtures
Bench #7 – Wood Bench with Metal Tubing
Bench #8 - “Maricopa” Concrete Bench
Moonridge Corridor Improvements Project
Amenities Review – Furnishings and Fixtures
Bench #9 - Precast Concrete Bench - Standard Color
Bench #10 - Precast Concrete Bench - Color Concrete
Moonridge Corridor Improvements Project
Amenities Review – Furnishings and Fixtures
Trash Receptacles
These are the waste receptacles as specified within the project plans. • Trash and Recycling receptacles are intended to be placed in pairs adjacent to all benches.
• Approximately 16 locations planned along corridor.

These are the trash receptacles preferred by the stakeholders’ group.

Moonridge Corridor Improvements Project
Amenities Review – Furnishings and Fixtures
Additional Waste Receptacle Concepts and Options
Trash Receptacle #1 - Presently In Use in City Parks
Trash Receptacle #2 – Concrete and Steel
Moonridge Corridor Improvements Project
Amenities Review – Furnishings and Fixtures
Trash Receptacle #4
Trash Receptacle #5
Moonridge Corridor Improvements Project
Amenities Review – Furnishings and Fixtures
Trash Receptacle #6
Trash Receptacle #7
Moonridge Corridor Improvements Project
Amenities Review – Furnishings and Fixtures
Trash Receptacle #7
Trash Receptacle #8
Moonridge Corridor Improvements Project
Amenities Review – Furnishings and Fixtures
Trash Receptacle #9
Trash Receptacle #10 Trash Receptacle #11
Moonridge Corridor Improvements Project
Amenities Review – Furnishings and Fixtures
Drinking Fountain
This is the City’s typical drinking fountain, which includes a bottle filler:

These are available in several colors should a different color better fit the vision of the area.

Moonridge Corridor Improvements Project
Amenities Review – Furnishings and Fixtures
Bicycle Racks
These are the bicycle racks as preferred by the stakeholders’ group.

Staff could work to customize something specific for Big Bear Lake in the spirit of the above options. Additional bicycle rack concepts include:

Moonridge Corridor Improvements Project
Amenities Review – Furnishings and Fixtures
Fire Pits
The placement of fire pits will be dependent upon identifying available space to ensure they are separated from building and other amenities while also allowing for unimpeded pedestrian travel. Should there be a desire to pursue the installation of fire pits, staff will work closely with the design team on feasible concepts.

Existing Village Fire Pit
Concepts Preferred by Stakeholders’ Group

ATTACHMENT 3
Streetlighting &
Streetscape Plans

ATTACHMENT 4
Stakeholder's
Group Balloting &
Options
1 Sean Sullivan
From: David Stone <[email protected]>
Sent: Wednesday, February 27, 2019 12:28 PM
To: John Harris
Subject: Fwd: Re: Moonridge Business Owners Meeting today - Tuesday 2/26 3:00 PM For our discussion
---------- Original Message ----------
From: David Stone <[email protected]>
To: [email protected], [email protected], [email protected], Bill Wyatt <[email protected]>, [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], "[email protected]" <[email protected]>, [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected] Date: February 27, 2019 at 1:12 AM
Subject: Re: Moonridge Business Owners Meeting today - Tuesday 2/26 3:00 PM Neighbors,
Thank you all for a great meeting this afternoon with terrific sharing and discussion. Today's meeting was such a great opportunity to get to know one another as neighbors, and people versus another business down the street. We truly became stronger as One Voice.

Below you will find the vote results with only the top picks for each question. (Not all votes are included so the table does not look cluttered - if you want the full results please email me and I'll send them to you.)
Key Take Aways:
1) Question #1 - Majority vote wants Newly added option "C" - Landscape Concept #1 with the center street divider taken out
2) Question #3 - Other Lighting is 2 way tie
3) Question #11 - Fire pits is a 3 way tie
4) Question #13 - Other Concepts - Overwhelming vote for newly added option "C" now called "Historical"
Follow Questions for Engineering Dept/City:
2 a) Can we take out the middle street divider (medium) b) What are the costs to our business community to maintain the streets/floral/trees c) Can we have an summary as to why the designers believe the round abouts will not slow down traffic and why they "lava lamp" round about will not cause more traffic confusion d) Where will the Welcome Signs be placed
e) What can the designers do with the "Historical" Concept theme versus the "Mining Town" Concept Please use link below to access the slides/pictures in Google Drive. https://docs.google.com/presentation/d/1ieK1KbRltzmm2KOMvXLNOg2hNWyacWkyMdSU4IG4EQ/edit?usp=sharing Streetscape Items Instructions A B C D E F G H I J
#1 Landscape
Concept Pick one = 1
5 /
6C
#2 Street
Lighting
Pick two =
1, 2 8 6
#3 Other
Lighting
Pick two =
1, 2 5 5
#4 Benches Pick two =
1, 2 5 5
#5 Trash
Cans
Pick two =
1, 2 5 6
#6 Bike Racks Pick two =
1, 2 7 6
#7 Bike
Parking
Pick two =
1, 2 9 8
3 #8
Bike
Repair
Station
Pick two =
1, 2 9 7
#9 Fire Pits Pick two =
1, 2 5 5
#10
Bus
Station
Shelter
Pick two =
1, 2 7 9
#11 Welcome
Signs
Pick two =
1, 2 5 5 5
#12
Outdoor
Meeting
Space
Pick one = 1 8
#13 Other
Concepts Pick one = 1
4/
10C

MEETING DATE: January 3, 2022
TO: Honorable Mayor Herrick and Members of the City Council FROM: Frank A. Rush, Jr., City Manager
SUBJECT: City Manager Comments – Item 2.4
JUNE 30, 2021 ANNUAL COMPREHENSIVE FINANCIAL REPORT

ACTION TO BE CONSIDERED
City staff will present the City’s Fiscal Year 2020-21 Annual Comprehensive Financial Report for review by the City Council. The audited financial statements accurately present the City’s financial position as of June 30, 2021. The City continues to maintain a solid financial position, a structurally sound annual budget, with no concerning long-term liabilities. The total fund balance across all Governmental funds is in excess of $23.5 million as of June 30. After considering the intentional appropriation of excess transient occupancy tax revenues for the Moonridge project and other adjustments, the City’s total fund balance across all Governmental funds is approximately $18.5 million.

RECOMMENDED MOTION(S)
Motion to accept the June 30, 2021 Annual Comprehensive Financial Report.

RESPONSIBLE STAFF Kelly Ent, Director of Administrative Services

ADDITIONAL CITY MANAGER COMMENTS
The City is fortunate to enjoy a healthy financial position, with no significant short-term or long-term financial challenges evident at this time.

The City’s Annual Comprehensive Financial Report (ACFR) includes financial reporting on all City activities that are directly under the purview of the City Council and City Manager, and also includes financial reporting for other City agencies that are governed by a separate governing body and manager, including the Department of Water & Power, the Big Bear Lake Fire Protection District, and the Big Bear Tourism Business Improvement District. My comments included in this memorandum are geared primarily toward the City activities that are directly under the purview of the City Council and City Manager, and focus on the most important and practical financial information needed to effectively manage the City in both the short-term and the long-term.

The City’s 4 largest annual funds are the General Fund, the Sanitation Fund, the Refuse Fund, and the Measure Y Fund, and there are several other smaller funds utilized. From a practical perspective as we manage the City moving forward, I would like to highlight the following items below for the City Council.

Overall financial position as of June 30, 2021:
• the City is fortunate to have no General Fund debt,
• total General Fund balance is approximately $10.92 million, with approximately $3.42 million intentionally committed for capital projects (primarily the Moonridge project), which will reduce this amount to approximately $7.50 million,
• total Sanitation Fund (wastewater collection and conveyance) balance is approximately $5.48 million, with approximately $287,000 committed for capital projects, which will reduce this amount to approximately $5.19 million, which may only be used for wastewater initiatives, • total Refuse Fund (solid waste collection and disposal) balance is approximately $957,000, and may only be used for solid waste initiatives,
• total Measure Y Fund (2% transient occupancy tax collections restricted to capital improvements) balance is approximately $4.64 million, with approximately $758,000 intentionally committed for the Moonridge project, which will reduce this amount to approximately $3.88 million, • the Village Streetscape Maintenance Fund has a deficit fund balance of approximately $961,000, and the City has implemented an increase in Village assessments that will slow the growth of this deficit in the future while considering strategies to completely eliminate this deficit, For Fiscal Year 2020-21 that ended on June 30, 2021:
• total General Fund revenues and transfers in were nearly $20.97 million, • total General Fund expenditures and transfers out were approximately $15.73 million, • the City’s General Fund generated a surplus of and fund balance increased by approximately $5.24 million for the fiscal year ended June 30, 2021, with transient occupancy taxes making the most significant contribution,
• total Sanitation Fund revenues and transfers in were approximately $5.84 million, • total Sanitation Fund expenditures and transfers out were approximately $5.19 million, • the City’s Sanitation Fund generated a surplus of and fund balance increased by approximately $645,000,
• total Refuse Fund revenues and transfers in were approximately $3.50 million, • for the fiscal year ended June 30, 2021, total Refuse Fund expenditures and transfers out were approximately $3.31 million,
• the City’s Refuse Fund generated a surplus of and fund balance increased by approximately $188,000,
• total Measure Y Fund revenues were approximately $2.80 million, and these revenues were utilized for capital projects and reserved for future capital project initiatives.

There are many other details included in the CAFR, and we expect to provide additional budget and financial information for City Council to consider as we move into formal planning for the FY 2022-23 budget and 5-Year Capital Replacement / Improvement Program early next year.

MEETING
DATE: January 3, 2022
TO: Honorable Mayor and Members of the City Council
THROUGH: Frank A. Rush, Jr., City Manager

FROM: Kelly Ent, Director of Administrative Services
SUBJECT: June 30, 2021 Annual Comprehensive Financial Report

BACKGROUND
The Annual Comprehensive Financial Report (ACFR) for the fiscal year ending June 30, 2021 has been completed and will be presented for City Council review and acceptance.

DISCUSSION
This report has been prepared in accordance with generally accepted accounting principles and the standards established by the Government Accounting Standards Board. It contains information regarding the activities of the City as a whole as well as additional supplementary information to further enhance the readers understanding. It is our goal to provide information that is both informative and compliant. To ensure our financial reports meet this goal, the City’s financials are prepared and presented to the Government Finance Officers Association of the United States and Canada (GFOA) for review. Since we began this practice, three years ago, the City’s financials have been awarded the Certificate of Achievement for Excellence in Financial Reporting. This prestigious national award recognizes the City for using the highest standards in preparing financial reports, and we will continue our pursuit of excellence by submitting the attached report to the GFOA for review and consideration again this year.

The Administrative Services Department is responsible for internal control environment, compliance matters, as well as the reliability and accuracy of the information presented in the financial report. The report has been audited by the independent accounting firm of Lance, Soll & Lunghard, LLP. I am pleased to announce that the auditors have issued an unmodified opinion indicating that the financial statements present fairly, in all material respects, the respective financial position of the City and is the best opinion an auditor can render.

As demonstrated in the attached report, the City’s fiscal health remains sound. The total fund balance at June 30, 2021 for all governmental funds increased approximately $7.4 million during the year to approximately $23.5 million with solid performance in all three of the City’s core operating funds (General Fund, Sanitation Fund and Refuse Fund) as well as increased transient occupancy taxes generating additional Measure Y funds for future capital improvements. Our consistency in maintaining fiscal strength enables the City to provide essential services, maintain infrastructure and invest in capital improvements without the use of debt financing. As such, the City’s governmental funds have no long-term debt obligations.

ENVIRONMENTAL DETERMINATION
None requiring review under California Environmental Quality Act (CEQA).

FISCAL IMPACT
None. This report is presented as an update on the City’s financial condition.

ATTACHMENT

1. 2021 Annual Comprehensive Financial Report
ATTACHMENT 1
Annual
Comprehensive
Financial Report

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF BIG BEAR LAKE, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2021

TABLE OF CONTENTS
Page
Number

INTRODUCTORY SECTION
Letter of Transmittal ........................................................................................................................... i Principal Officials ............................................................................................................................... vi Organizational Chart of City Departments ....................................................................................... vii Certificate of Achievement for Excellence in Financial Reporting ................................................... viii

FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT ........................................................................................... 1 MANAGEMENT’S DISCUSSION AND ANALYSIS ......................................................................... 5

BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:

Statement of Net Position ................................................................................................... 21 Statement of Activities ........................................................................................................ 22 Fund Financial Statements:

Balance Sheet - Governmental Funds ............................................................................... 24 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ......................................................................................... 27 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ........................................................................................ 28 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities ........................................................................................................ 30 Statement of Net Position - Proprietary Fund ..................................................................... 31 Statement of Revenues, Expenses and Changes in Net
Position - Proprietary Fund ................................................................................................. 33 Statement of Cash Flows - Proprietary Fund ..................................................................... 34 Statement of Net Position - Fiduciary Funds ...................................................................... 36 Statement of Changes in Net Position – Fiduciary Funds .................................................. 37 Notes to Financial Statements ................................................................................................. 39

CITY OF BIG BEAR LAKE, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2021

TABLE OF CONTENTS
Page
Number

REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedules
General Fund .................................................................................................................... 77 Sanitation .......................................................................................................................... 78 Fire District ........................................................................................................................ 79 Schedule of Proportionate Share of the Net Pension Liability ................................................ 80 Schedule of Changes in Net Pension Liability and Related Ratios ......................................... 82 Schedule of Investment Returns ............................................................................................. 83 Schedule of Plan Contributions ............................................................................................... 84 Notes to Required Supplementary Information ....................................................................... 85

COMBINING AND INDIVIDUAL FUND SCHEDULES
Combining Balance Sheet - Nonmajor Governmental Funds ............................................ 88 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds .......................................................... 94 Budgetary Comparison Schedules - Special Revenue Funds:

Traffic Safety .................................................................................................................. 99 Gas Tax ....................................................................................................................... 100 Measure I ..................................................................................................................... 101 Mobile Source Air Pollution Reduction ........................................................................ 102 Local Transportation .................................................................................................... 103 Village Streetscape Maintenance ................................................................................ 104 Refuse .......................................................................................................................... 105 Supplemental Law Enforcement .................................................................................. 106 PEG Access Fund........................................................................................................ 107 Measure Y .................................................................................................................... 108 Developer Impact – General Facilities ......................................................................... 109 Developer Impact – Circulation .................................................................................... 110 Developer Impact – Drainage ...................................................................................... 111 Developer Impact – Fire Suppression ......................................................................... 112 RMRA .......................................................................................................................... 113 Budgetary Comparison Schedules - Capital Projects:

General Capital Projects .............................................................................................. 114 Street Improvements ................................................................................................... 115

CITY OF BIG BEAR LAKE, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2021

TABLE OF CONTENTS
Page
Number

STATISTICAL SECTION
Net Position by Component .................................................................................................... 119 Changes in Net Position .......................................................................................................... 120 Fund Balances - Governmental Funds ................................................................................... 122 Changes in Fund Balances - Governmental Funds ................................................................ 123 Assessed Value and Estimated Actual Value of Taxable Property ........................................ 124 Net Taxable Assessed Value History ...................................................................................... 125 Property Tax Levies and Collections ....................................................................................... 126 Direct and Overlapping Property Tax Rates ........................................................................... 127 Principal Property Taxpayers .................................................................................................. 128 Transient Occupancy Tax by Type ......................................................................................... 129 Top Remitters- Transit Occupancy Tax and Measure Y ......................................................... 130 10 Year Transit Occupancy Tax and Measure Y Trend by Type ............................................ 131 Taxable Sales by Category ..................................................................................................... 132 Top 25 Sales Tax Producers ................................................................................................... 133 Ratios of Outstanding Debt by Type ....................................................................................... 134 Direct and Overlapping Debt ................................................................................................... 135 Bonded Debt Pledged-Revenue Coverage ............................................................................. 136 Demographic and Economic Statistics .................................................................................... 137 Principal Employers ................................................................................................................. 138 Full-time-equivalent City Government Employees by Function .............................................. 139 Operating Indicators by Function/Program ............................................................................. 140 Capital Asset Statistics by Function/Program ......................................................................... 141

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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Big Bear Lake
California
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
viii

To the Honorable Mayor and Members of the City Council
City of Big Bear Lake, California
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users made on the basis of these financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsible to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit 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 City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Other Reporting Responsibilities
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis; the budgetary comparison schedules for the General Fund, Sanitation Fund, and Fire District Fund; the schedule of changes in net pension liability and related ratio, the schedule of plan contributions, the schedule of investment returns, and the schedule of proportionate share of the net pension liability, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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. 2 To the Honorable Mayor and Members of the City Council City of Big Bear Lake, California
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual fund financial statements and schedules (supplementary information) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The 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. In our opinion, the supplementary information is fairly stated, in all material respects in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory section and statistical section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 8, 2021 on our consideration of the City’s 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 solely 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 the effectiveness of the City’s 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’s internal control over financial reporting and compliance.

Brea, California
December 8, 2021
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44 Big Bear Lake
Management’s Discussion and Analysis
As management of the City of Big Bear Lake, we offer readers of the City of Big Bear Lake (City) financial statements this narrative overview and analysis of the financial activities of the City 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.

Financial Highlights
 The City’s governmental-type activities net position increased by $8,782,191 or 11.9%. This increase is the result of higher visitation with overnight visitors generating an increase in tourism related revenues.
 Net position of the business-type activities increased by $1,873,289 or 5% as a result of capital asset investments.
 The City’s Governmental Funds generated excess of revenues over expenditures of $7,371,512 or

16.2% driven by strong performance in major revenues.
 In the City’s Proprietary Fund (water utility), operating revenues exceeded operating expenses by $2,948,128 or 23.7%.
 General Fund revenues, excluding interfund transfers, came in $6,200,634 or 45.0% ahead of budget due to strong performance in the major revenues while expenditures, excluding interfund transfers, came in $546,256 or 3.7% over the final approved budget driven by unanticipated costs due to the coronavirus pandemic response and an increase in snow removal efforts.

Overview of Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s financial statements. The City’s Basic Financial Statements are comprised of Government-Wide Financial Statements and Fund Financial Statements and include footnote disclosures which elaborate on the information presented in the Basic Financial Statements. The Government-Wide Financial Statements provide information about the activities of the City as a whole and present the long-term view of the City’s finances. The Fund Financial Statements provide a more detailed reporting of the City’s operations than what is presented in the Government-Wide Financial Statements. In addition to the Basic Financial Statements, Required Supplementary Information as well as Combining and Individual Fund Schedules are presented immediately following the Notes to the Basic Financial Statements.

Government-Wide Financial Statements
The Government-Wide Financial Statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.

The Statement of Net Position presents information on the City’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases 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 government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, some revenues and expenses reported in this statement will result in cash flow transactions in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave).

Readers of financial statements often ask whether the City is better or worse off from a fiscal standpoint as a result of the current year’s activity. The Statement of Net Position and Statement of Activities 5 provide information in a manner that answers this question. In addition to the financial information reported in these statements, economic factors (non-financial indicators) should also be considered in interpreting the fiscal health of the government (e.g. changes in the economy affecting consumer spending result in changes in the net position and activities of the City).

Both of the Government-Wide Financial Statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental-type activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities).

The basic services of the City are reported under the category of governmental-type activities. They include such services as general administration (city manager, city clerk, finance, etc.), police and fire protection, public works, engineering, tourism management, and community development. These services are supported primarily by property tax, sales tax, transient occupancy tax, user fees, interest income, and franchise fees.

The services to customers that are supported directly through user fees and charges are reported as business-type activities. The City’s water utility is reported in this category.

Fund Financial Statements
Fund Financial Statements provide detailed information about the funds of the City. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other local government, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements (e.g. State law, bond covenants).

In addition, some funds have been established to help control and manage the use of money collected for a particular purpose. All of the funds of the City are included in governmental funds.

Governmental funds are used to account for essentially the same functions reported as governmentaltype activities in the Government-Wide Financial Statements. However, unlike the Government-Wide Financial Statements, Fund Financial Statements focus on near-term uses and the fiscal year ending balance of spendable resources. Such information may be useful in evaluating a government’s shortterm financial requirements.

Because the focus of Fund Financial Statements is narrower than that of the Government-Wide Financial Statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the Government-Wide Financial Statements. By doing so, readers may better understand the long-term impact of the government’s short-term financing decisions. This comparison is provided in the Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position and the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities. These reconciliations are presented as part of the Fund Financial Statements.

Proprietary funds are used to account for essentially the same functions reported as business-type activities in the Government-Wide Financial Statements. The City’s enterprise fund includes the activities of the water utility and is reported in the Fund Financial Statements as a proprietary fund.

Notes to Financial Statements are presented following the Fund Financial Statements to provide additional information essential to understanding of the reported financial data including significant accounting policies, cash and investments, interfund transactions, liabilities, and other disclosures.

Required Supplementary Information
Immediately following the Notes to the Financial Statements is information that is required to accompany the Basic Financial Statements in order to add context to the data presented. In particular, budgetary comparison schedules are provided for all major governmental funds to offer a perspective as to how well the budgetary process and budget amendments relate to the actual activity at the close 66 of the reporting period. Additional pension related disclosures are also included as Required Supplementary Information (“RSI”) showing historical data related to net pension liability, funding levels and plan contributions.

Combining and Individual Fund Schedules
The Combining and Individual Fund Schedules are presented following the Notes to the Required Supplementary Information. These schedules supplement the information presented in the Fund Financial Statements by showing the components which are reported in the aggregate (nonmajor funds) as Other Governmental Funds in the Basic Financial Statements and by disclosing funds for which the City has a responsibility to account for the flow of assets separate from other assets of the City (e.g. special revenue funds restricted for a specific purpose).

The City is trustee, or fiduciary, for certain funds held on behalf of those entities outside of the government. The City has only one Fiduciary Fund which is a Private-Purpose Trust Fund for the City’s Successor Agency to the Former Big Bear Lake Improvement Agency (“Successor Agency”). This entity is responsible for winding up the affairs of the former Big Bear Lake Improvement Agency as required by the various dissolution statutes which resulted in the statewide elimination of redevelopment agencies. The information related to the Successor Agency is reported in the Statement of Net Position and Statement of Changes in Net Position which can be found before the Notes to the Financial Statements.

Analysis of Government-wide Financial Statements
The government-wide financial statements include the Statement of Net Position and the Statement of Activities. The Statement of Net Position reports the net position for governmental and business-type activities as well as the combined total net position which is determined by calculating the difference between total assets and deferred outflows of resources and the total liabilities and deferred inflows of resources. The Statement of Activities shows program revenues and expenses as well as general revenues for both governmental and business-type activities which provides a perspective on the activities resulting in the change in net position for each type and in the aggregate.

The table on the following page summarizes the net position of the governmental and business-type activities in a side-by-side comparison for the last three years. The net position for the business-type activities (water utility) has remained relatively constant over time. This is also true of the governmental activities; however, this community experienced a greater than normal influx of visitors this year which is reflected in the governmental activities net position.

The total combined net position increased over the prior year by $10,655,480 or 9.6%. This is predominantly the result of an increase in cash and investments primarily driven by the growth in tourism and investment in capital assets including water utility improvements. As shown in the following table, the total change in net position is an increase in the net position of both the governmental and the business-type activities of $8,782,191 or 11.9% and $1,873,289 or 5.0%, respectively. 77 2021 2020 2019 2021 2020 2019
Current/ Non-Current Assets $ 26,120,814 $ 17,655,201 $ 15,603,579 $ 12,520,591 $ 15,641,106 $ 15,767,940 Capital Assets 72,929,979 73,288,852 72,905,101 55,372,283 49,408,986 45,510,378 Deferred outflows of resources 7,629,613 5,084,277 7,936,750 4,225,411 2,855,960 3,334,823 Total assets and deferred outflows 106,680,406 96,028,330 96,445,430 72,118,285 67,906,052 64,613,141 Current liabili ies 1,467,140 1,166,045 1,212,387 1,899,161 2,214,121 1,523,665 Current por ion of long-term debt 581,847 651,286 818,904 748,102 3,741,342 3,280,922 Current liabilities 2,048,987 1,817,331 2,031,291 2,647,263 5,955,463 4,804,587 Long-term liabili ies 13,823,466 10,853,937 21,214,163 29,529,803 24,178,070 24,212,467 Total liabilities 15,872,453 12,671,268 23,245,454 32,177,066 30,133,533 29,017,054 Deferred inflows of resources 8,051,226 9,382,526 3,288,788 906,152 610,741 1,012,961 Total liabilities and deferred inflows 23,923,679 22,053,794 26,534,242 33,083,218 30,744,274 30,030,015 Total net position $ 82,756,727 $ 73,974,536 $ 69,911,188 $ 39,035,067 $ 37,161,778 $ 34,583,126 Change in net position $ 8,782,191 $ 1,873,289
Percentage change in net posi ion 11.9% 5.0%
Governmental Business-type
Statement of Net Position
Summary Comparision by Activity Type as of June 30
While this summary level comparison of the components of net position by type provides a valuable perspective on the changes in net position, an analysis of the specific items included in each of these components can provide deeper insight. Table 1, on the following page, provides a two-year comparison of the Statement of Net Position on a government-wide basis.

In the aggregate (governmental and business-type activities combined), total assets increased approximately $10.9 million or 7.0%. This change is the result of investments in capital assets including water utility capital improvements of approximately $6.0 million and approximately $3.9 million in cash and investments primarily driven by the growth in tourism. Total liabilities increased approximately $5.2 million.

Excluding pension related items, the City’s liabilities increased $546,963 or 2.2%. This change represents debt obligations associated with the water utility funding of infrastructure improvements. Unrestricted fund balance includes pension liability and pension related items (deferred outflows and inflows) of approximately $19.3 million. Factoring out these pension related items, the aggregate unrestricted fund balance is approximately $21.0 million.
8 2021 2020
Cash and Investments $ 29,333,318 $ 21,005,562
Cash and Investments with fiscal agent 2,004,017 6,402,454 Receivables 4,344,547 3,766,108
Due from other governments 2,189,332 1,367,306
Inventories 323,041 303,757
Prepaid Costs 431,030 451,030
Net Pension Asset 16,120 -
Subtotal 38,641,405 33,296,217
Capital Assets not being depreciated 14,330,385 15,048,149 Capital Assets, net of depreciation 113,971,877 107,649,689 Subtotal 128,302,262 122,697,838
Total Assets 166,943,667 155,994,055
Deferred pension-related items 11,855,024 7,644,126
Loss on refunding - 296,111
Total Deferred Outflows 11,855,024 7,940,237
Accounts payable and accrued expenses 3,126,444 3,271,549 Due to other Governments 149,726 37,304
Deposits Payable 90,131 71,313
Subtotal 3,366,301 3,380,166
Compensated Absences 814,648 756,985
Debt Service 21,645,387 21,142,222
Net Pension Liability 22,223,183 17,525,428
Total Liabilities 48,049,519 42,804,801
Deferred pension-related inflows 8,957,378 9,993,267
Net investment in capital assets 106,892,829 102,080,760 Restricted for:

Community Development Projects 772,226 601,602
Public Safety 766,696 526,042
Culture and leisure 6,823 6,818
Public, educational, & government access 282,786 254,496 Public Works 6,753,216 4,384,013
Debt Service 2,004,017 6,402,454
Health and Sanitation 2,638,668 1,810,179
Unrestricted
Pension (19,325,537) (19,578,458)
Other 21,000,070 14,648,408
Total Net Position $ 121,791,794 $ 111,136,314
Change in net position $ 10,655,480
Percentage change in net position 9.6%
Total Activities
Table 1
Net Position As of June 30
9 Pension-related items and net pension liability have been included in the government-wide financial statements since fiscal year ending June 30, 2015 with the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions. The net position includes the deferred outflows and inflows of pension related items as well as the net pension liability.

Deferred Outflows and Inflows:

The pension related items include deferred outflows and inflows in the amount of $11,855,024 and $8,957,378, respectively. The portion of deferred outflows related to contributions made by the City subsequent to the measurement date will be recognized as a reduction of the net pension liability next fiscal year. The contributions made subsequent to the measurement date are $2,952,083. The remaining deferred outflows and inflows resulting from changes in proportion and differences between employer contributions and proportionate share contributions, changes in actuarial assumptions, differences in projected and actual pension plan investments, and differences between expected and actual experience in total pension liability will be amortized and recognized as pension expense in the year ended June 30, 2022, and thereafter.

Net Pension Liability:

The aggregate net pension liability/(asset) represents total pension liability (the present value of projected benefit payments to be provided through the plan to current active and inactive employees that is attributed to those employees’ years of service) less the amount of the pension plan’s fiduciary net position. In the aggregate, the City’s net pension liability as of June 30, 2021 is $22,207,063. The City participates in two pension plans: the San Bernardino County Employees’ Retirement Association (SBCERA) pension plan and the Public Agency Retirement System (PARS) retirement enhancement plan. The table below shows the breakdown of net pension liability by plan. All employees of the City eligible for retirement benefits are non-safety (General) members.

SBCERA PARS Aggregate
Governmenatl Activities:

City of Big Bear Lake $ 13,823,466 $ (16,120) $ 13,807,346 Business-Type Activities:

Department of Water 8,399,717 - 8,399,717
Net Pension Liability $ 22,223,183 $ (16,120) $ 22,207,063 Net Pension Liability/(Asset) by Plan and Type
As of June 30, 2021
For additional information regarding the pension plan, please refer to Note 9 to the financial statements and the additional supplementary information following the notes to the financial statements and budgetary comparisons.

Changes in the net position are a function of the activities which generate revenue and expenses as reported in the Statement of Activities. Table 2 provides a two-year comparison of the Statement of Activities. Program revenues increased compared to the prior year by 12.1% or $3,476,498. This is mainly due to higher visitation with overnight visitors generating an increase in Tourism Business Improvement District (TBID) revenues which are passed through to the visitors’ bureau for promoting tourism and addressing visitor impacts. These funds are fiduciary activities (held in trust for specific purpose) and are required to be reported as program revenues since the implementation of GASB 84 which reclassified Agency Funds into governmental activities last year. General revenues (e.g. revenue generated from taxes) increased $4,235,863 or 18.8% largely due to growth in Transient Occupancy Tax and Sales Tax revenues driven by the increase in visitors.
10 Total expenses increased 7.3% or $3,290,456. The increase is mainly due to a surge in visitation to the Big Bear Valley and the costs associated with increased maintenance and enforcement efforts. This increase in expenditures is offset by an increase in Transient Occupancy Tax revenues. 2021 2020
Revenues
Program Revenues:

Charges for Services $ 29,968,234 $ 27,467,299
Operating Contributions and Grants 1,134,974 804,523
Capital Contributions and Grants 1,061,727 416,615
32,164,935 28,688,437
General Revenues:

Taxes:

Property Taxes 10,337,184 10,938,681
Transient Occupancy Taxes 11,164,837 6,703,012
Sales Taxes 3,341,084 2,545,676
Franchise Taxes 852,737 888,274
Other Taxes 982,269 846,067
Use of Money and Property 123,961 666,197
Other 6,724 59,207
Special Item - (74,181)
26,808,796 22,572,933
Total Revenues 58,973,731 51,261,370
Expenses
General Government 4,249,386 4,441,025
Public Safety 10,768,157 11,201,267
Community Development 8,220,531 5,854,949
Culture & Leisure 605,564 720,158
Public Works 5,854,536 5,169,513
Health & Sanitation 7,744,304 7,415,883
Interest on Long-term Debt 3,662 2,895
Water 10,872,111 10,222,105
Total Expenses 48,318,251 45,027,795
Net Position at Beginning of Year 111,136,314 104,902,739 Increase (Decrease) in Net Position 10,655,480 6,233,575 Net Position at End of Year $ 121,791,794 $ 111,136,314 Total Activities
Table 2
Changes in Net Position As of June 30
11 The table below summarizes the City’s net cost of services for each of the government-wide activities.

These activities are supported by program revenues. The $16,153,316 net cost of services represents the portion of funding provided by tax revenues received during the year. The governmental activities are primarily supported by taxes with the exception of the Health & Sanitation program which collects assessments for services provided. The elected officials of the City are sensitive to the rising cost of doing business and living in California and have consciously defrayed the cost to end users of these services. For those programs supported by fees and charges primarily for the use of services provided (Health & Sanitation and Water Utility), there are no program subsidies. These programs are self-supporting. 2021 2020 2019
General Government $ (2,269,121) $ (2,545,081) $ (5,755,593) Public Safety (10,386,927) (10,720,039) (10,187,790)
Community Development (2,254,074) (1,784,058) (2,731,382) Culture & Leisure (605,564) (626,950) (900,880)
Public Works (4,104,427) (4,568,267) (5,860,816)
Health & Sanitation 1,602,261 1,594,885 917,970
Interest on long-term debt (3,662) (2,895) (9,832)
Governmental Activities (18,021,514) (18,652,405) (24,528,323) Water untility
Business-type Activities 1,868,198 2,313,047 2,788,604
Total $ (16,153,316) $ (16,339,358) $ (21,739,719)
Net Cost of Primary Government Activities
Analysis of Fund Financial Statements
The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The focus of the City governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financial requirements.

The Balance Sheet for governmental funds is similar to that of a private enterprise in that Assets less Liabilities equals the funds available for use. In the private sector, this balance is referred to as retained earnings, whereas governmental fund financial statements maintain a Fund Balance. The Fund Balance serves as a measure of a City’s available resources.

The Fund Balance is separated into categories indicating the availability of funds and purpose. These designations are prescribed in GASB 54, Fund Balance Reporting and Governmental Fund Type Definitions and include the following classifications: Nonspendable, Restricted, Committed, Assigned, or Unassigned.

Nonspendable Fund Balances cannot be spent because they are either not in a spendable form (e.g. reserve for inventories) or are legally or contractually required to remain intact. Restricted Fund Balances are limited in use by externally imposed constraints (e.g. debt covenants, constitutional provisions or enabling legislation). Committed, Assigned and Unassigned Fund Balances are the least restrictive and are typically limited by action of the governing body (e.g. replacement reserves). The Unassigned Fund Balance represents the resources available for general purposes. 1212
Governmental Fund Balances
General Fire District Sanitation TBID Other Total
Nonspendable $ 82,379 $ - $ - $ - $ 82,379 - $
Restricted 6,823 - 1,742,055 764,179 7,936,133 10,449,190 Committed 1,426,184 - 3,736,814 - 150,000 5,312,998
Unassigned 9,403,940 - - - (1,748,093) 7,655,847
Ending Balance 10,919,326 - 5,478,869 764,179 6,338,040 23,500,414 Beginning Balance 5,677,580 - 4,833,595 595,703 5,022,024 16,128,902 Change $ 5,241,746 $ - $ 645,274 $ 168,476 $ 1,316,016 $ 7,371,512

45.7%
Special Revenue Funds
The chart above summarizes the fund balances presented in the governmental funds Balance Sheet. The nonmajor funds are presented in the aggregate while the major funds are reported separately. The individual Balance Sheet for the nonmajor funds presented in the aggregate can be found in the section following the Required Supplementary Information. The total fund balance has increased over the prior year by $7.4 million or 45.7%. Approximately $5.9 million is the result of increases in the General Fund and Sanitation fund balances of $5,241,746 and $645,274 respectively signifying that there are no significant concerns with the availability of funds for future use. The growth in the General Fund is the result of high visitation which increased Transient Occupancy Tax revenues which has been earmarked for future capital improvements. Over the course of the next five years, the Sanitation capital improvement plan will invest nearly $2.5 million in system infrastructure improvements. The growth in fund balance is consistent with budget projections and will be instrumental in funding these future projects. The increase in the nonmajor fund balance of $1,316,016 is primarily due to an increase in the Measure Y Transient Occupancy Taxes reserved for capital improvement projects. The total nonmajor fund balance is offset by a negative unassigned fund balance of $1,748,093 which represents $786,752 in the Local Transportation Fund awaiting grant reimbursement for project expenditures and $961,341 in the Village Streetscape Maintenance Fund which represents a General Fund subsidy. The City Council adopted a phased five-year rate adjustment to eliminate the ongoing subsidy and has committed to addressing the negative fund balance in the Village Streetscape Maintenance Fund as part of the upcoming budget discussion.

Following the Balance Sheet is a reconciliation between the fund balances of the governmental funds and net position reported in the government-wide financial statements for governmental-activities. This reconciliation explains the differences in accounting treatment. To further understand these differences, a schedule is also provided reconciling between the net change in fund balances and the change in net position presented in the government-wide financial statements.

The business-type activities reported in the government-wide financial statements represent the City’s water utility. Unlike the governmental-type activities, reporting for the business-type activities of an enterprise fund focuses on the net position and changes in net position as opposed fund balance; therefore, a reconciliation between the government-wide financial statements and the proprietary fund financial statements is not necessary. Proprietary Fund financial statements consist of a Statement of Net Position, Statement of Revenues, Expenses and Changes in Net Position as well as a Statement of Cash Flows.

Within the Statement of Cash Flows is a reconciliation of operating income reported in the Statement of Revenues, Expenses, and Changes in Net Position to cash provided by operating activities reported in the Statement of Cash Flows. Additional information regarding the City’s water utility financial statements can be found at www.bbldwp.com in the Annual Reports public document archive.

The Fiduciary Funds basic financial statements consist of a Statement of Net Position which summarizes the total assets and liabilities reported in the Statement of Changes in Net Position of the Fiduciary Funds.

The City has only one Fiduciary (Private-Purpose Trust) Fund. This fund was established to wind down the affairs of the City’s improvement agency as a result of the statewide elimination of redevelopment agencies. 13 Once the enforceable obligations of the Successor Agency have been dissolved the City’s Private-Purpose Trust fund will be eliminated.

The Redevelopment Agency issued a promissory note in the amount of $5,394,914 for the construction of The Crossings at Big Bear Lake, a 42-unit affordable housing development. The note bears interest at 3% per year and is due and payable on the 55th anniversary of completion. As part of the dissolution process, the note receivable was transferred to the Successor Agency. As of June 30, 2021, the balance due, including unpaid interest is $7,056,222.

As tax increment is generated in the former redevelopment project areas, taxes are deposited into the Redevelopment Property Tax Trust Fund (RPTTF). Successor Agencies are required to annually report to the State the amount of enforceable obligations due each year (e.g. debt service payments) in order to receive an allocation of RPTTF to pay these obligations. Allocations from RPTTF are received by the Successor Agency twice per year to fund obligations due every six months from July 1 to December 31 (Period A) and January 1 to June 30 (Period B). These allocations are reported as additions in the Statement of Changes in Net Position and the outgoing payments are reported as deductions. The Successor Agency has two bond obligations. The final debt service payment is scheduled to be made August 1, 2029.

Major Component Unit Budgetary Comparisons
Required Supplementary Information follows the notes to the basic financial statements. This includes budgetary comparison schedules for the major component units presented in those statements. These schedules report the original adopted budget and final budget for each of these funds as well as a comparison of the final budget to the actual amounts reported in the financial statements.

General Fund Budgetary Highlights
With the uncertainty surrounding the coronavirus pandemic, predicting the degree to which local businesses would be operating was exceedingly difficult; therefore, revenue projections were especially conservative and assumed a very slow start to the fiscal year, improving as we approached our peak season. The expenditure budget focused on ensuring costs were in line with the conservative revenue projections to maintain a sufficient fund balance. Budgeted expenditures preserved our workforce, maintained our existing service levels, and provided for public safety, snow removal, infrastructure maintenance, and tourism management.

During the year, with recommendation from City staff, the City Council may revise the City’s budget.

Adjustments to the adopted budget would be made on an as needed basis to accommodate additional appropriations including carryover appropriations from the previous fiscal year. All amendments that result in an increase or decrease in the total budgeted appropriations are approved by the City Council.

Very few adjustments to the adopted budget were made during Fiscal Year 2020-21 as we remained conservative while operating during the pandemic.

The City’s General Fund revenue budget, excluding interfund transfers, was increased over the original budget by $192,837 or 1.4%. This budget amendment represents the City’s allocated funding from the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Actual revenue, excluding interfund transfers, came in $6,200,634 or 45.0% over the final budget as a result of significant tourism during the pandemic as folks escaped the confines of their homes in pursuit of outdoor recreational activities and opportunities to keep households together while away from home which was made possible through the availability of short-term rental housing.

The City’s General Fund expenditure budget, increased over the original budget by $276,260 or 1.9%.

This increase was made with the approval of the City Council authorizing the carryover of appropriations from the prior fiscal year and CARES Act matching funds. Actual expenditures, excluding interfund transfers, came in over the final budget by $546,256 or 3.7%. These additional expenditures were the 14 result of unanticipated coronavirus public safety efforts (e.g. law enforcement, safety/sanitary supplies, additional trash receptacles and portable public restrooms), legal costs associated with emergency operating guidance, public records requests/responses, and vacation ordinance amendments as well as a final determination from the California Department of Finance that noncash items swept during the 2012 dissolution of redevelopment agencies would remain unrecoverable. All of these excess expenditures were funded with the unanticipated tourism revenues.

Sanitation Fund Budgetary Highlights
The Sanitation Fund is the major operating fund of the City responsible for the collection of wastewater from residential and commercial properties. The wastewater is transported by the sewer system to the Big Bear Area Regional Wastewater Agency (BBARWA) treatment plant. Like the General Fund, changes to the adopted budget are approved by the City Council. During the year, there were no changes to the budgeted resources of approximately $10.7 million. Actual revenue came in $40,016 or

0.4% under adopted budget. Actual expenditures excluding interfund transfer and contributions to reserves came in $80,894 or 1.7% under the final approved budget.

Fire Protection District Budgetary Highlights
There were no changes to the adopted budget for the Fire Protection District during the year. Actual revenues are a direct pass through to the Big Bear Fire Authority (BBFA) for fire and ambulance services. For additional information regarding the activities of the Fire Protection District please refer to the district financial statements at www.bigbearfire.org.

Capital Asset Activity
At the close of the fiscal year, the City had $128,302,262 in capital assets as shown in the table below. This amount represents an increase in capital assets of $5,604,424 or 4.6%. This increase is primarily due to water utility pipeline improvement projects and trail/bike path expansion projects including land acquisitions for these improvements. For additional information regarding capital assets refer to Note 4 of the financial statements.

Governmental
Activities
Business-type
Activities Total
Land 9,370,466 $ 1,333,188 $ 10,703,654 $
Construction-in-progress 1,099,312 2,527,419 3,626,731
Intangibles - 733,778 733,778
Structures & improvements 19,063,316 13,514,428 32,577,744 Machinery & equipment 2,681,309 1,324,834 4,006,143
Infrastructure 40,715,576 35,938,636 76,654,212
Total $ 72,929,979 $ 55,372,283 $ 128,302,262
Capital Assets (net of depreciation)
As of June 30, 2021
Long-term Debt Activity
At the close of the fiscal year, the City had long-term debt obligations of $21,409,433. These obligations represent the financing of water utility pipeline improvement projects and are the only debt obligations of the City. Of this amount, $515,301 is payable within one year. For additional information regarding these debt service obligations refer to Note 7 of the financial statements. 15 Business-type
Activities
Loans and Notes Payable 21,409,433 $
Total Long-Term Debt 21,409,433 $
Long-Term Debt
As of June 30, 2021
Considerations, Plans and Projections for Next Fiscal Year As we look forward to next fiscal year, it is important to look back on the anomalies of the last 18-months caused by the coronavirus pandemic. While many communities experienced the unfortunate, and sometime severe, impact of the nationwide emergency, Big Bear Lake’s economy remained exceedingly strong. As public health officials made recommendations to prevent the spread, individuals heeded their warnings and sought outdoor activities where they could remain distant from others and opportunities to escape the confines of their homes without jeopardizing the safety of their households. Being surrounded by the national forest and having ample vacation rental homes, Big Bear Lake quickly became a sought-after destination. The City’s revenue generated from vacation rentals during this time nearly doubled. This unanticipated revenue has been set aside for capital improvements in Fiscal Year 2021-22 alleviating the potential for debt financing previously expected.

The adopted budget for Fiscal Year 2021-22 focuses on continuity of existing services, utilizes the newly adopted vacation rental license fee and citation revenue to produce a self-funded program with improved enforcement efforts, increases the presence of law enforcement, adds six (6) Public Works positions to preserve the beauty of our community, adds a compliance officer to address commercial blight and non-tourism compliance matters, increases street rehabilitation funding, and invests more than $20.24 million in capital improvement and replacement projects.

Future Outlook
The main operating fund is the General Fund. A variety of resources support the operations. The three major revenue sources are Property Taxes, Transient Occupancy Taxes (TOT), and Sales and Use Taxes.

These revenues are the primary resources funding the City’s police, public works, general administration (e.g. city manager, city clerk, finance, tourism management, etc.), and community development efforts.

These resources have been, and
continue to be, reliable funding
sources for City operations.

The City utilizes conservative
budgeting to ensure fiscal
sustainability and to fund capital
and infrastructure projects. All
three of the major revenues have
experienced steady growth over
the last decade. As economic
forecasts and trends for the area in
which the City is located fluctuate,
revenue projections are adjusted
accordingly. To ensure we
continue to operate within our
means, budgeted expenditures
are carefully planned to ensure
cost control measures remain in
place and to ensure operating
16 costs are funded with recurring revenues. This approach enables the City to maintaining prudent fund balances and invest in capital improvements / replacements.

As we consider the events of the past 18-months, we have conservatively budgeted major revenues in line with pre-pandemic levels. As a result, the adopted budget assumes major revenues at 2.5% over Fiscal Year 2018-19 (the last full fiscal year of activity without the coronavirus impact).

Property Tax Revenue
Budget projections are based on
assessed valuations established by the
San Bernardino County Assessor’s
Office in December each year and an
analysis on economic indicators
affecting local properties. Many of the
properties located within the City are
high-end custom homes and second
homes; as a result, the values tend to
remain stable. In fact, this limited the
City’s exposure to reductions in values
during the economic downturn of the
Great Recession. Since that time,
property values and median sales prices
have steadily risen and are well ahead
of pre-recession values.

In 2020, home sales increased
significantly and were bringing top dollar. Sales prices have begun to level off; however, those properties which changed hands will now be assessed at a higher value which will have a positive impact on the City’s property tax revenues. For Fiscal Year 2021-22, taxes will be levied based on the 2020 assessed values which will be approximately 5.7% higher partly due to the number of properties which changed hands over the last year resetting the base year values for those properties. The budget, however, is expected to remain relatively flat as a result of the January 2021 court ruling in the Chula Vista case regarding redevelopment pass through payments. This ruling resulted in changes to redevelopment residual allocations distributed to taxing entities and will reduce the City’s share of residual revenue from 16.75% to

10.18%. This change became effective immediately and reduced revenue allocations between January and June of 2021 and will offset the anticipated growth in assessed values keeping property tax budget projections flat at $4.5 million for Fiscal Year 2021-22.

Transient Occupancy Tax
As a four seasons resort located in the heart of the San Bernardino National Forest of Southern California, tourism is a primary industry. The City collects an 8% Transient Occupancy Tax (“TOT”) on gross rental receipts paid to lodging facilities, private home rental agencies, and residential rental property owners. 2% of the TOT collected is set aside for capital improvements and visitor serving amenities. For Big Bear Lake, tourism is at its peak during the snow season; however, the popularity of this outdoor recreational destination has been steadily attracting more off-season visitors and generating additional TOT revenue.

This has enabled the City to invest in tourism impact mitigation efforts and to enhance the City’s infrastructure and amenities.

March 2020, our peak season abruptly ended as the Governor announced a statewide order to stay at home in response to the coronavirus emergency. As a destination with ample short-term rental properties and significant outdoor recreational opportunities, Big Bear Lake quickly became a much sought-after location for those escaping the confines of their homes while heeding the cautionary recommendations of public health advisors. As a result, TOT significantly increased during the pandemic, nearly double what had been received in each of the previous two years.
17 Budget projections for Fiscal Year 2021-22 assume tourism begins tapering off and approaching a level more consistent with pre-pandemic times. The adopted TOT budget is $7.0 million, approximately $750,000 or 12% higher than Fiscal Year 2018-19 (the last full fiscal year preceding the pandemic). This budget projection assumes an estimated annual growth of 3 – 4% would have occurred, based on our historical trend, had the coronavirus emergency not taken place.

Sales Tax Revenue
Sales tax revenue is based on spending patterns
and is largely influenced by economic indicators
and environmental factors. The City’s primary
sales tax revenue is generated through local
sales activity (point-of-sale transactions). The
projection for Fiscal Year 2021-22 is $2.8 million,
in line with the prior year anticipated income.

Although visitor volume and consumer spending
habits are expected to move toward a
pre-pandemic level, inflation will likely offset any
changes in consumer spending.

The largest business segment generating local
sales tax, Restaurants and Hotels, is tourism
based. The General Consumer Goods sector,
which is the second largest industry segment,
also experienced growth from the influx of
visitors. It is anticipated that these segments will
return to a pre-pandemic level in the coming year;
however, inflation may moderate the downward
adjustment to General Consumer Goods.

The Food and Drug business segment is a fairly consistent industry. Growth experienced over this past year may have been somewhat driven by consumers seeking to boost their immune system and partially by increased visitors. Looking ahead, those seeking immune system solutions will likely continue that spending pattern while the return to more traditional tourism activity will likely be offset by the increased cost of inventories.
18 As individuals were forced to stay at home, the Building and Construction segment benefited from property owners investing in home improvement projects. With the increase in the price of building materials, this segment is expected to slow down in the coming year.

With the higher volume of visitors, Convenience Stores and Service Stations experienced growth during the last year. As visitation begins to return to a more typical level, it is anticipated that the volume of transactions will decline; however, increased fuel prices will likely offset that change.

The portion of sales tax revenue generated from the State and County pools is typically about 10%. The pooled revenue is allocated to each jurisdiction based on the amount of local sales tax revenue generated each quarter. The pandemic caused a shift in consumers purchasing behavior to online sales; thus, increasing pooled transactions. The duration of the coronavirus emergency has likely created consumer confidence in online shopping. As a result, it is expected that some consumer spending habits may not return to pre-pandemic practices; however, a restructuring of the nation’s largest online retailer will likely shift revenue out of the pools and into point-of-sale transactions for those jurisdictions with online warehouses. Although the City’s share of pooled revenue grew to approximately 20% last year, it is anticipated that those pools will be moderated in Fiscal Year 2021-22.

Summary Outlook
While much of the focus on economic trends and fiscal sustainability locally, throughout the state, and across the nation, has centered upon the impact of the coronavirus pandemic, the City’s financial position remains solid. The unusual growth in tourism over the last 18-months has generated unanticipated local revenues which have been earmarked for planned capital improvement projects. We remain conservative in our approach to budgeting and planning for the future of our community.

The previous adopted budget was extremely conservative with the uncertainty of the pandemic and the budget for the coming year assumes revenue patterns will return to a more typical level. The Fiscal Year 2021-22 adopted budget includes an investment of more than $20 million in capital projects as well as appropriations to enhance law enforcement capabilities, preserve the beauty of our community, and improve upon vacation rental compliance.

In addition, the Sanitation and Refuse funds are fully funded with user fees. The adopted budget for these funds maintains existing service levels and invests in essential infrastructure projects. The Village Maintenance District, located in the City’s downtown shopping area, is a destination for our visitors.

The businesses within the district are assessed a rate per lineal frontage along Pine Knot and Village Drive for landscape, lighting, and maintenance. The assessment of $18 per lineal foot generates approximately $93,000 covering only 20% of the maintenance cost. To begin addressing this issue, the City Council adopted an annual rate adjustment of $5.00 per year for the next five years to eliminate the recurring shortfall. The adopted budget includes an assessment of $23 for Fiscal Year 2021-22.

Beyond Fiscal Year 2021-22, projections indicate sustainable fund balances for continuity of operations and future investment in the capital and replacement projects contained in the adopted 5-Year CIP. As we continue to explore and evaluate additional opportunities for the betterment of our community, it is foreseeable that additional projects will be programmed into the 5-Year CIP during the annual update.

Contacting the City’s Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City’s Administrative Services Department, at the City of Big Bear Lake, P.O. Box 10000, Big Bear Lake, California 92315, (909) 866-5831.
19 THIS PAGE INTENTIONALLY LEFT BLANK
2020

CITY OF BIG BEAR LAKE, CALIFORNIA

STATEMENT OF NET POSITION
Governmental Business-Type
Activities Activities Total
Assets:

Cash and investments $ 8,115,657 21,217,661 $ $ 29,333,318 Restricted cash and investments with fiscal agent - 2,004,017 2,004,017 Accounts receivable 1,606,974 2,713,496 4,320,470
Notes and loans receivable 767 - 767
Accrued interest receivable 16,213 7,097 23,310
Due from other governments 114,387 2,074,945 2,189,332
Prepaid costs 81,612 349,418 431,030
Inventories - 323,041 323,041
Net pension asset 16,120 - 16,120
Capital assets not being depreciated 3,860,607 10,469,778 14,330,385 Capital assets, net of accumulated depreciation 51,511,676 62,460,201 113,971,877 Total Assets 99,050,793 67,892,874 166,943,667
Deferred Outflows of Resources:

Deferred pension-related items 4,225,411 7,629,613 11,855,024 Total Deferred Outflows of Resources 7,629,613 4,225,411 11,855,024 Liabilities:

Accounts payable 1,430,382 694,617 2,124,999
Accrued liabilities 277,113 562,926 840,039
Accrued interest - 161,406 161,406
Due to other governments - 149,726 149,726
Deposits payable 59,871 30,260 90,131
Compensated absences due within one year 232,801 581,847 814,648 Bonds, notes and loans payable due within one year - 515,301 515,301 Noncurrent liabilities, due in more than one year:

Compensated absences - 235,954 235,954
Bonds, notes, and loans payable - 20,894,132 20,894,132 Net pension liability 13, 8,399,717 823,466 22,223,183
Total Liabilities 15,872,453 32,177,066 48,049,519
Deferred Inflows of Resources:

Deferred pension-related items 906,152 8,051,226 8,957,378 Total Deferred Inflows of Resources 8,051,226 906,152 8,957,378 Net Position:

Net investment in capital assets 33,962,850 72,929,979 106,892,829 Restricted:

Community development 772,226 - 772,226
Public safety 766,696 - 766,696
Culture and leisure 6,823 - 6,823
Public works 6,753,216 - 6,753,216
Health and sanitation 2,638,668 - 2,638,668
Public education government access 282,786 - 282,786
Debt service - 2,004,017 2,004,017
Unrestricted 3,068,200 (1,393,667) 1,674,533
Total Net Position $ 82,756,727 $ 39,035,067 $ 121,791,794 JUNE 30, 2021
Primary Government
The notes to financial statements are an integral part of this statement. 21 CITY OF BIG BEAR LAKE, CALIFORNIA

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Functions/Programs
Governmental Activities:

General government $ 4,249,386 $ 1,821,449 $ 158,816 $ - Public safety 10,768,157 224,336 156,894 -
Community development 8,220,531 5,966,457 - -
Culture and leisure 605,564 - - -
Public works 5,854,536 197,991 805,757 746,361
Health and sanitation 7,744,304 9,333,058 13,507 -
Interest on long-term debt 3,662 - - -
Total Governmental Activities 37,446,140 17,543,291 1,134,974 746,361 Business-Type Activities:

Water utility 10,872,111 12, - 424,943 315,366
Total Business-Type Activities 10,872,111 12,424,943 - 315,366 Total Primary Government $ 48,318,251 $ 29,968,234 $ 1,134,974 $ 1,061,727 General Revenues:

Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Other taxes
Use of money and property
Other
Total General Revenues
Change in Net Position
Net Position, Beginning of the Year
Net Position, End of the Year
Program Revenues
The notes to financial statements are an integral part of this statement. 22 Primary Government
Governmental Business-type
Activities Activities Total
$ - (2,269,121) $ $ (2,269,121)
- (10,386,927) (10,386,927)
- (2,254,074) (2,254,074)
- (605,564) (605,564)
- (4,104,427) (4,104,427)
- 1,602,261 1,602,261
(3,662) - (3,662)
(18,021,514) - (18,021,514)
1,868,198 - 1,868,198
1,868,198 - 1,868,198
1, (18,021,514) (16, 868,198 153,316)
- 10,337,184 10,337,184
- 11,164,837 11,164,837
- 3,341,084 3,341,084
- 852,737 852,737
- 982,269 982,269
118,870 5,091 123,961
- 6,724 6,724
26,803,705 5,091 26,808,796
8,782,191 1,873,289 10,655,480
73,974,536 37,161,778 111,136,314
$ 39, 82,756,727 $ 035,067 $ 121,791,794
Net (Expenses) Revenues and
Changes in Net Position
The notes to financial statements are an integral part of this statement. 23 CITY OF BIG BEAR LAKE, CALIFORNIA

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2021
General
Assets:

Cash and investments $ 5,447,514 7,866,247 $ $ -
Accounts receivable 4,180 1,603,392 -
Notes and loans receivable 767 - -
Accrued interest receivable 7,216 3,801 -
Due from other governments 877,953 124,613 -
Due from other funds - 1,763,763 -
Prepaid costs 81,612 - -
Total Assets $ 5,580,108 12,200,950 $ - $
Liabilities, Deferred Inflows of
Resources, and Fund Balances:

Liabilities:

Accounts payable $ 18,528 281,272 $ $ -
Accrued liabilities 474,068 48,783 -
Deposits payable 59,871 - -
Due to other governments 100,498 33,928 -
Due to other funds - - -
Total Liabilities 915,709 101,239 -
Deferred Inflows of Resources:

Unavailable revenues 365,915 - -
Total Deferred Inflows of Resources 365,915 - -
Fund Balances:

Nonspendable:

Prepaid costs 81,612 - -
Notes and loans 767 - -
Restricted:

Community development - - -
Public safety - - -
Culture and leisure 6,823 - -
Public works - - -
Health and sanitation - 1,742,055 -
Public education government access - - -
Committed:

Contingency reserve - disaster 442,609 1,220,000 -
Contingency reserve - snow 200,000 - -
Replacement reserve - vehicles and equipment 783,575 1,107,345 - System replacement reserve - 1,409,469 -
Unassigned - 9,403,940 -
Total Fund Balances 10,919,326 5,478,869 -
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 12,200,950 $ 5,580,108 $ - Sanitation Fire District
Special Revenue Funds
The notes to financial statements are an integral part of this statement. 24 CITY OF BIG BEAR LAKE, CALIFORNIA

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:

Cash and investments
Accounts receivable
Notes and loans receivable
Accrued interest receivable
Due from other governments
Due from other funds
Prepaid costs
Total Assets
Liabilities, Deferred Inflows of
Resources, and Fund Balances:

Liabilities:

Accounts payable
Accrued liabilities
Deposits payable
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Nonspendable:

Prepaid costs
Notes and loans
Restricted:

Community development
Public safety
Culture and leisure
Public works
Health and sanitation
Public education government access
Committed:

Contingency reserve - disaster
Contingency reserve - snow
Replacement reserve - vehicles and equipment
System replacement reserve
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Special
Revenue Fund
Other Total
Governmental Governmental
Funds Funds
$ 156,992 $ 7,746,908 $ 21,217,661
615,339 490,585 2,713,496
- - 767
- 5,196 16,213
- 1,072,379 2,074,945
- - 1,763,763
- - 81,612
$ 772,331 $ 9,315,068 $ 27,868,457
$ 105 $ 394,712 $ 694,617
- 40,075 562,926
- - 59,871
- 15,300 149,726
- 1,763,763 1,763,763
105 2,213,850 3,230,903
8,047 763,178 1,137,140
8,047 763,178 1,137,140
- - 81,612
- - 767
764,179 - 764,179
- 766,696 766,696
- - 6,823
- 5,992,778 5,992,778
- 893,873 2,635,928
- 282,786 282,786
- 150,000 1,812,609
- - 200,000
- - 1,890,920
- - 1,409,469
(1,748,093) - 7,655,847
764,179 6,338,040 23,500,414
$ 772,331 $ 9,315,068 $ 27,868,457
TBID
The notes to financial statements are an integral part of this statement. 25 THIS PAGE INTENTIONALLY LEFT BLANK
2626

CITY OF BIG BEAR LAKE, CALIFORNIA

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
Amounts reported for governmental activities in the statement of net position are different because:

Total fund balances - governmental funds $ 23,500,414
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 72,929,979
Compensated absences are not due and payable in the current period and, therefore, are not reported in the funds. (581,847)
Governmental funds report all pension contributions as expenditures; however, in the statement of net position, the excess of the total pension liability over the plan fiduciary net position is reported as a net pension liability, and the excess of plan fiduciary net position over the total pension liability is reported as a net pension asset.

SBCERA Plan net pension liability (13,823,466)
PARS Plan net pension asset 16,120
Pension-related deferred outflows of resources that have not been included as financial uses in the governmental activity are as follows:

Contributions made after the actuarial measurement date $ 1,792,978 Changes in assumptions 1,641,505
Difference between expected and actual experiences 179,082 Net difference between projected and actual earnings on plan investments 2,916,974 Difference in proportionate share 1,099,074 7,629,613
Pension-related deferred inflows of resources that have not been included as financial resources in the governmental fund activity are as follows:

Changes in assumptions (1,291)
Difference between expected and actual experiences (349,239) Net difference between projected and actual earnings on plan investments (171,853) Difference in proportionate share (7,528,843) (8,051,226) Revenues that are not available to pay for current period expenditures are reported as unavailable revenues in the funds. 1,137,140
Net Position of Governmental Activities $ 82,756,727
The notes to financial statements are an integral part of this statement. 27 CITY OF BIG BEAR LAKE, CALIFORNIA

STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
General
Revenues:

Taxes $ - 17,428,856 $ $ 5,868,067
Assessments - - -
Licenses and permits 13,540 1,115,389 -
Intergovernmental - 265,967 -
Charges for services 5, 942,388 820,059 -
Use of money and property 2,925 111,693 -
Fines and forfeitures 8,650 - -
Developer participation - - -
Miscellaneous 92,358 3,260 -
Total Revenues 19,965,301 5,839,784 5,868,067
Expenditures:

Current:

General government 3,947,633 - -
Public safety - 4,757,329 5,868,067
Community development 2,732,798 - -
Culture and leisure 449,463 - -
Public works - 3,204,408 -
Health and sanitation - 4,690,255 -
Capital outlay 13,100 - -
Debt service:

Principal retirement 102,965 - -
Interest and fiscal charges 3,662 - -
Total Expenditures 15,211,358 4,690,255 5,868,067
Excess (Deficiency) of Revenues
Over (Under) Expenditures 4,753,943 1,149,529 -
Other Financing Sources (Uses):

Transfers in - 1,002,984 -
Transfers out ( (515,181) 504,255) -
Total Other Financing Sources (Uses) 487,803 (504,255) - Net Change in Fund Balances 5,241,746 645,274 -
Fund Balances, Beginning of the Year 4, 5,677,580 833,595 - Fund Balances, End of the Year $ 10,919,326 $ 5,478,869 $ - Sanitation Fire District
Special Revenue Funds
The notes to financial statements are an integral part of this statement. 28 CITY OF BIG BEAR LAKE, CALIFORNIA

STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Revenues:

Taxes
Assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer participation
Miscellaneous
Total Revenues
Expenditures:

Current:

General government
Public safety
Community development
Culture and leisure
Public works
Health and sanitation
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):

Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of the Year
Fund Balances, End of the Year
Special
Revenue Fund
Other Total
Governmental Governmental
Funds Funds
$ 3,381,188 - $ $ 26,678,111
- 5,370,208 5,370,208
- 192,138 1,321,067
- 933,667 1,199,634
3,590,299 - 10,352,746
- 4,252 118,870
- - 8,650
- 306,541 306,541
- - 95,618
5,370,208 8,408,085 45,451,445
- 38,200 3,985,833
- - 10,625,396
5,201,732 341 7,934,871
- - 449,463
- 413,969 3,618,377
3,175,712 - 7,865,967
3,480,299 - 3,493,399
- - 102,965
- - 3,662
5,201,732 7,108,521 38,079,933
168,476 1,299,564 7,371,512
3,618,834 - 4,621,818
(3,602,382) - (4,621,818)
- 16,452 -
168,476 1,316,016 7,371,512
595,703 5,022,024 16,128,902
$ 6, 764,179 $ 23,500,414 338,040 $
TBID
The notes to financial statements are an integral part of this statement. 29 CITY OF BIG BEAR LAKE, CALIFORNIA

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2021
Amounts reported for governmental activities in the statement of activities are different because:

Net change in fund balances - total governmental funds $ 7,371,512 Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation expense in the current period.

Capital outlay $ 3,259,659
Depreciation (2,962,078)
Loss on disposal of capital assets (656,454) (358,873)
The issuance of long-term debt (e.g. bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. The following amounts are the effects of these differences in the treatment of long-term debt and related items.

Principal repayments on capital leases 102,965
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. (33,526)
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 governmental funds. 923,227
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 776,886
Change in Net Position of Governmental Activities $ 8,782,191 The notes to financial statements are an integral part of this statement. 3030

CITY OF BIG BEAR LAKE, CALIFORNIA

STATEMENT OF NET POSITION

PROPRIETARY FUND
JUNE 30, 2021
Assets:

Current:

Cash and investments $ 8,115,657
Accounts receivable 1,606,974
Accrued interest receivable 7,097
Due from other governments 114,387
Prepaid costs 349,418
Inventories 323,041
Restricted cash with fiscal agent 2,004,017
Total Current Assets 12,520,591
Noncurrent:

Capital assets, not being depreciated 3,860,607
Capital assets, net of accumulated depreciation 51,511,676 Total Noncurrent Assets 55,372,283
Total Assets 67,892,874
Deferred Outflows of Resources:

Deferred outflows from pensions 4,225,411
Total Deferred Outflows of Resources 4,225,411
Liabilities:

Current:

Accounts payable 1,430,382
Accrued liabilities 277,113
Accrued interest 161,406
Deposits payable 30,260
Compensated absences, due within one year 232,801
Bonds, notes, and loans payable, due within one year 515,301 Total Current Liabilities 2,647,263
Noncurrent:

Compensated absences, due in more than one year 235,954 Bonds, notes, and loans payable, due in more than one year 20,894,132 Net pension liability 8,399,717
Total Noncurrent Liabilities 29,529,803
Total Liabilities 32,177,066
Deferred Inflows of Resources:

Deferred inflows from pensions 906,152
Total Deferred Inflows of Resources 906,152
Net Position:

Net investment in capital assets 33,962,850
Restricted for debt service 2,004,017
Unrestricted 3,068,200
Total Net Position $ 39,035,067
Business-Type
Activities
Water Utility
The notes to financial statement are an integral part of this statement. 31 THIS PAGE INTENTIONALLY LEFT BLANK
3232

CITY OF BIG BEAR LAKE, CALIFORNIA

STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION

PROPRIETARY FUND
FOR THE YEAR ENDED JUNE 30, 2021
Operating Revenues:

Sales and service charges $ 12,338,623
Miscellaneous 86,320
Total Operating Revenues 12,424,943
Operating Expenses:

Administration and general 2,927,696
Waters systems operations 736,618
Source of supply 1,556,622
Transmission and distribution 1,923,745
Depreciation and amortization expense 2,332,134
Total Operating Expenses 9,476,815
Operating Income 2,948,128
Nonoperating Revenues (Expenses):

Investment earnings 5,091
Interest expense (795,932)
Contributions to other governments (94,268)
Other nonoperating expenses (272,833)
Loss on disposal of capital assets (232,263)
Total Nonoperating Revenues (Expenses) (1,390,205)
Income Before Capital Contributions 1,557,923
Capital Contributions 315,366
Changes in Net Position 1,873,289
Net Position at the Beginning of the Year 37,161,778
Net Position at the End of the Year $ 39,035,067
Business-Type
Activities
Water Utility
The notes to financial statement are an integral part of this statement. 33 CITY OF BIG BEAR LAKE, CALIFORNIA

STATEMENT OF CASH FLOWS

PROPRIETARY FUND
FOR THE YEAR ENDED JUNE 30, 2021
Cash Flows from Operating Activities:

Receipts from customers $ 12,576,497
Payments to suppliers and service providers (4,561,924) Payments to employees for salaries and benefits (2,497,946) Net Cash Provided by Operating Activities 5,516,627
Cash Flows from Non-Capital Financing Activities:

Contributions to other governments (94,268)
Net Cash (Used for) Non-Capital Financing Activities (94,268) Cash Flows from Capital and Related Financing Activities:

Grants subsidy 60,855
Acquisition and construction of capital assets (8,224,386) Proceeds from sales of capital assets 12,058
Principal paid on capital debt (3,532,678)
Interest paid on capital debt (775,885)
Cash paid to defease capital debt (3,392,000)
Proceeds from issuance of capital debt 7,498,672
Net Cash (Used for) Capital and Related Financing Activities (8,353,364) Cash Flows from Investing Activities:

Interest on investments 32,925
Net Cash Provided by Investing Activities 32,925
Net (Decrease) in Cash and Cash Equivalents (2,898,080) Cash and Cash Equivalents, July 1
(Including $6,402,454 reported in restricted accounts) 13,017,75 4 Cash and Cash Equivalents, June 30
(including $2,004,017 reported in restricted accounts) $ 10,119,674 Business-Type
Activities
Water Utility
The notes to financial statement are an integral part of this statement. 34 CITY OF BIG BEAR LAKE, CALIFORNIA

STATEMENT OF CASH FLOWS

PROPRIETARY FUND
FOR THE YEAR ENDED JUNE 30, 2021
Business-Type
Activities
Water Utility
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities:

Operating income $ 2,948,128
Adjustments to reconcile operating income to
net cash provided by operating activities:

Depreciation and amortization 2,332,134
Decrease in accounts receivable 91,716
Decrease in long-term receivables 43,338
Decrease in prepaid expense 17,976
(Increase) in inventory (19,284)
(Decrease) in accounts payable (343,631)
Increase in accrued liabilities 40,617
Increase in deposits payable 16,500
Increase in pension-related items 358,075
Increase in compensated absences 31,058
Total Adjustments 2,568,499
Net Cash Provided by Operating Activities $ 5,516,627
Schedule of Non-Cash Activities:

Loss on disposal of capital assets $ (232,263)
Contributions from developers 315,366
Unrealized loss on investments (49,936)
The notes to financial statement are an integral part of this statement. 35 CITY OF BIG BEAR LAKE, CALIFORNIA

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUND
JUNE 30, 2021
Assets:

Cash and cash equivalents $ 970,923
Restricted investments at fair value:

Money market mutual funds 947,246
Notes receivable 7,056,222
Total Assets 8,974,391
Liabilities:

Accrued interest 96,383
Long-term liabilities:

Bonds payable, due within one year 705,000
Bonds payable, due in more than one year 4,199,449
Total Liabilities 5,000,832
Net Position:

Held in trust for the dissolution of the Former Improvement Agency 3,973,559 Total Net Position $ 3,973,559
PrivatePurpose Trust
Fund
Successor
Agency to the
Former
Improvement
Agency
The notes to financial statements are an integral part of this statement. 36 CITY OF BIG BEAR LAKE, CALIFORNIA

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUND
FOR THE YEAR ENDED JUNE 30, 2021
Additions:

Property tax distribution $ 1,159,139
Interest and change in fair value of investments 407
Total Additions 1,159,546
Deductions:

Administrative expenses 234,115
Interest expense 238,921
Total Deductions 473,036
Changes in Net Position 686,510
Net Position, Beginning of the Year, as Originally Reported (3,7 69,173) Restatement of Net Position 7,056,222
Net Position, Beginning of the Year, as Restated 3,287,049 Net Position, End of the Year $ 3,973,559
PrivatePurpose Trust
Fund
Successor
Agency to the
Former
Improvement
Agency
The notes to financial statements are an integral part of this statement. 37 THIS PAGE INTENTIONALLY LEFT BLANK
3838

CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
I. SIGNIFICANT ACCOUNTING POLICIES
Note 1: Summary of Significant Accounting Policies
a. Description of Entity
The reporting entity is a municipal corporation governed by an elected mayor and a four-member council. As required by accounting principles generally accepted in the United States of America, these financial statements present the City of Big Bear Lake, California (the City) and its component units, entities for which the City is considered financially accountable.

The City of Big Bear Lake was incorporated on November 28, 1980, under the general laws of the State of California. The City became a Charter City on November 8, 1983, and operates under a council/manager form of government.

The reporting entity, the “City of Big Bear Lake" includes the accounts of the City of Big Bear Lake (the City), the Big Bear Lake Fire Protection District (the District), and the Big Bear Lake Public Financing Authority (the Financing Authority).

The criteria used in determining the scope of the reporting entity are based on the provisions of GASB Statement Nos. 14, 39, 61, and 84. The City of Big Bear Lake is the primary governmental unit. Component units are those entities which are financially accountable to the primary governmental unit, either because the City appoints a voting majority of the component unit's Board, or because the component unit will provide financial benefit or impose a financial burden on the City. The City has accounted for the District and the Financing Authority as "blended" component units. Despite being legally separate, these units are so intertwined with the City that they are, in substance, part of the City's operations. Accordingly, the balances and transactions of the District and Financing Authority are included in the City's financial statements in the General Fund, Debt Service Funds, and Special Revenue Funds. The following specific criteria were used in determining that the District and the Financing Authority were component units:

1. The members of the City Council also act as the governing body of the District and the Financing Authority.

2. The Financing Authority is managed by employees of the City.

3. The District manages the City’s share of the structural fire fund of the property taxes levied for fire safety, as such, these revenues should be reported in the City’s financial statements.

Blended Component Units:

The Big Bear Lake Fire Protection District was formed on September 6, 1927, under the laws of the State of California to provide fire protection and prevention in the Big Bear Lake area of San Bernardino County. Separate financial statements for the District are available at City Hall.

The Big Bear Lake Public Financing Authority is a joint powers authority organized pursuant to a Joint Exercise of Powers Agreement dated as of November 28, 1990, (the "Joint Powers Agreement") by and between the City and the then-existing Improvement Agency in accordance with Government Code Section 6500 of the State of California. The Financing Authority is a separate entity constituting a public instrumentality of the State of California and was formed for the public purpose of 39 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued) assisting the City and Agency in financing and refinancing their projects and activities.

The Financing Authority is governed by a board of directors consisting of members of the City Council. Separate financial statements for the Financing Authority are not issued.

Since the City Council serves as the governing board for these component units, all of the City's component units are considered to be blended component units. Blended component units, although legally separate entities, are in substance, part of the City's operations and so data from these units are reported with the primary government.

Other governmental agencies providing service either to the City in its entirety or to a portion thereof are:

State of California
County of San Bernardino (the "County")
Big Bear Municipal Water District
Big Bear Area Regional Waste Water District
Big Bear Airport District
Hospital District
Various School Districts
Big Bear Fire Authority
The City does not exercise oversight responsibility over any of the above entities.

Consequently, financial information for these agencies is not included within the scope of this financial report.
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 the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. 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 are 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, 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 major individual enterprise funds are reported as separate columns in the fund financial statements. 40 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued) c. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of 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. Revenues are recognized as soon as they are both measurable 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 period.

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 and claims and judgments, are recorded only when payment is due.

The City’s fiduciary funds consist of a private purpose trust fund. Private purpose trust fund funds are accounted for 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, franchise taxes, licenses 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. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.

The City reports the following major governmental funds:
 The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
 The Sanitation Fund accounts for sewer service charges, licenses and permits received by the City. These funds may be used for the operation and maintenance of the sewer system.
 The Fire District Fund accounts for revenues from property taxes levied in San Bernardino County. Expenditures can be used for emergency medical aid, rescue, fire suppression, fire prevention, public education and disaster preparedness services. 41 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)  The TBID Fund accounts for revenues collected for the tourism business improvement district. Expenditures are paid to the district to provide funding for destination marketing development to bring more visitors to Big Bear Lake.

The City reports the following major proprietary fund:
 The Water Utility Enterprise Fund accounts for the operation and maintenance of the City's water distribution system.

Additionally, the City reports the following fund types:
 Capital project funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays including the acquisition or construction of capital facilities and other capital assets.  Private-purpose trust funds are used to account for the assets and liabilities of the former redevelopment agency and the allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former redevelopment agency 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 charges between the government's proprietary funds 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 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.

Proprietary funds distinguish operating revenues and expenses from non-operating items.

Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations.

The principal operating revenues of the Enterprise Funds are charges to customers for sales and services. Operating expenses for Enterprise Funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, and then unrestricted resources as they are needed.
d. Assets, Deferred Inflows, Liabilities and Deferred Outflows, Net Position or Equity Cash and Investments
The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. For financial statement presentation purposes, cash and cash equivalents are shown as both restricted and unrestricted cash and investments in the Proprietary Funds.
4242

CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued) Investments for the City, as well as for its component units, are reported at fair value.

The City's policy is generally to hold investments until maturity or until market values equal or exceed cost. The State Treasurer's Investment Pool operates in accordance with appropriate State laws and regulations. The reported value of the pool is the same as the fair value of the pool shares.

Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements 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." All trade and property tax receivables are shown net of an allowance for estimated uncollectible accounts.

Functional Classifications
Expenditures of the Governmental Funds are classified by function. Functional classifications are defined as follows:
 General Government includes legislative activities that have a primary objective of providing legal and policy guidelines for the City. Also included in this classification are those activities that provide management or support services across more than one functional area.
 Public Safety includes those activities that involve the protection of people and property.
 Community Development includes those activities that involve the enhancing of the general quality of life.
 Culture and Leisure includes those activities that involve the performing arts center and parks and recreation activities.
 Public Works includes those activities that involve the maintenance and improvement of City streets, roads and park department development and maintenance.
 Health and Sanitation includes the activities of the Sanitation Fund and Refuse Fund.
43 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued) Inventories and Prepaid Costs
All inventories are valued at cost. The inventory consists of water meters, pipes, and other parts required to provide services to water customers and are recorded in the proprietary fund. The water pipe, meters and long-term items are removed from inventory and capitalized as capital assets and depreciated upon installation. The remaining items are recorded as expenses when used in accordance with the consumption method. Inventories are recorded at the lower of cost or market on a first-in, first-out (FIFO) basis.

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

Restricted Assets
Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. In addition, funds have been restricted for future capital improvements by City resolution.

Capital Assets
Capital assets, which include property, plant, equipment 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. Capital assets are defined by the City as assets with an initial, individual cost of more than $7,500 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value as of the date of acquisition.

In accordance with GASB Statement No. 34, the City has reported general infrastructure assets acquired from 1999 to present. Infrastructure assets acquired prior to 1999 have been retroactively included. The amount reported for infrastructure includes the value of easements.

Major outlays for capital assets and improvements are capitalized as projects are constructed. 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. 44 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued) Property, plant and equipment of the primary government, as well as the component units are depreciated using the straight-line method over the following estimated useful lives:

Assets Years
Land improvements 20
Source of supply 7 - 30
Pumping plant 15 - 30
Water treatment plant 15 - 30
Transmission lines 15 - 50
General plant and equipment 5 - 50
Buildings 50
Improvements other than buildings 7 - 50
Machinery and equipment 5 - 30
Infrastructure 5 - 65
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The government reports deferred outflows of resources for pension contributions made after the actuarial measurement date, for actuarial adjustments due to the proportionate share of the contributions made to the pension liability, for changes in pension assumptions and other inputs, for the net difference between the projected and actual earnings on pension plan investments, and for the difference between expected and actual experience in the total pension liability.

In addition to liabilities, the statement of financial position reports 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. In the government-wide statement of net position, the government reports deferred inflows of resources for pension related items due to changes in pension assumptions and other inputs, for changes in proportion and differences between contributions and proportionate share of contributions, for the net difference between the projected and actual earnings on pension plan investments, and for the difference between expected and actual experience in total pension liability.

The governmental fund balance sheet also reports one item under deferred inflows of resources, which arises only under the modified accrual basis of accounting. The item, unavailable revenue from grant reimbursements is reported only in the governmental funds balance sheet and will be recognized as an inflow of resources in the period when the amounts become available.
45 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued) Compensated Absences
The City has Personnel Rules and Regulations and a memorandum of understanding setting maximum carryovers and vesting levels for vacation, sick, and other time off.

Only the vested portion of sick pay benefits is reflected as a liability.

The general City employees receive 10 to 20 days of vacation each year depending upon length of continuous service. Vacation can be accumulated up to an annual maximum of 40 days depending upon length of continuous service. Employees are eligible to cash-out their accrued leave balances up to the maximum amount of hours accrued by the employee per fiscal year. General City employees also receive 11 days of sick leave each year with no maximum accumulation. Unused sick leave may be cashed in upon termination or retirement at a payment percentage of up to 25% determined by length of continuous service.

The current memorandum for the City’s general bargaining unit is in effect through June 30, 2021. The liability for compensated absences will be funded, when required, from future City operations.

The Department of Water and Power (DWP) employees also receive 10 to 20 days of vacation each year depending on length of continuous service. Vacation may be accumulated up to an annual maximum of 40 days depending on length of continuous service. Upon separation from DWP, employees will receive 100% payout for unused vacation leave. Employees also receive 11 days of sick leave each year with no maximum accumulation. DWP provides 25% payoff of unused sick leave upon separation from DWP after five years of continuous service.

Post-Employment Health Care Benefits
Retiree Benefits: The City has no obligation to provide post-employment health care benefits for retirees.

COBRA Benefits: Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), the City provides health care benefits to eligible former employees and eligible dependents. Certain requirements are outlined by the federal government for this coverage. The premium plus a 2% administration fee is paid in full by the insured on or before the tenth day of the month for the actual month covered. This program is offered for a duration of 18 months after termination date. There is no cost to the City under this program.

Pensions
For purposes of measuring the net pension liability, deferred outflows and inflows of resources, and pension expense, information about the fiduciary net position of the San Bernardino County Employees' Retirement Association (SBCERA) and PARS (PARS) retirement enhancement plan and additions to/deductions from SBCERA and PARS's fiduciary net position have been determined on the same basis as they are reported by SBCERA and PARS. For this purpose, employer and employee contributions are recognized in the period the related salaries are earned and become measurable pursuant to formal commitments, statutory or contractual requirements, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms, and investments are reported at fair value.
46 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued) Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type statement of net position. 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. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenses when incurred.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, 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.

Net Position Flow Assumption
Sometimes the City of Big Bear Lake 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.

Fund Balance Flow Assumptions
Sometimes the City of Big Bear Lake 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.

Fund Equity
In the fund financial statements, government funds report the following fund balance classifications:

Non-spendable include amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. 47 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued) Restricted include amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation.

Committed include amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, the City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a minute action or a resolution.

Assigned include amounts that are constrained by the government’s intent to be used for specific purposes but are neither restricted nor committed. The Director of Administrative Services is authorized to assign amounts to a specific purpose, which was established by the governing body in a resolution.

Unassigned include the residual amounts that have not been restricted, committed, or assigned to specific purposes.

When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers restricted amounts to be used first, then unrestricted. When an expenditure is incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used, they are considered to be spent in the order as follows: committed, assigned and then unassigned.

Property Tax
Property tax revenue is recognized on the modified accrual basis, that is, in the fiscal year for which the taxes have been levied providing they become available. Available means then due, or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. The County of San Bernardino collects property taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in January preceding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property, as it exists on that date. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1st; the second installment is due February 1st. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on March 1st of each year and are delinquent, if unpaid, on August 31st.
48 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Note 2: Stewardship, Compliance and Accountability
Deficit Fund Balances / Net Position
The following funds had deficit fund balances as of June 30, 2021. These governmental funds’ deficits will be eliminated by future years’ revenues and transfers.

Governmental Funds:

Local Transportation $ 786,753
Village Streetscape Maintenance 961,340
Compliance with Budgetary Limitations
The TBID and Pass-through Fees special revenue funds did not adopt budgets for the fiscal year ended June 30, 2021.

Note 2 to Required Supplementary Information, Excess of Expenditures over Appropriations, describes budgetary excesses in the General Fund and Fire District that occurred for the year ended June 30, 2021.

III. DETAILED NOTES ON ALL FUNDS
Note 3: Cash and Investments
As of June 30, 2021, cash and investments were reported in the accompanying financial statements as follows:

Governmental activities $ 21,217,661
Business-type activities 10,119,674
Fiduciary funds 1,918,169
Total cash and investments $ 33,255,504
The City of Big Bear Lake follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under provisions of bond indentures.

Interest income earned on pooled cash and investments is allocated quarterly to the various funds based on monthly cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

Deposits
At June 30, 2021, the carrying amount of the City’s deposits was $1,324,773 and the bank balance was $2,732,444. The $1,407,671 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 a City’s 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 that are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal 49 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 3: Cash and Investments (Continued)
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.

Investments
Under provision of the City’s investment policy, and in accordance with the California Government Code, the following investments are authorized:
 Securities of the U.S. Government, or its agencies
 Certificates of deposit, placed with commercial banks and S&L’s  Commercial paper
 Medium term corporate notes
 Repurchase agreements
 Passbook savings account demand deposits
 Money market mutual funds
 Government sponsored pools and/or mutual funds
As a matter of practice, the City favors the California State Local Agency Investment Fund (LAIF). Common stocks are not authorized for investment.

Investments Authorized by Debt Agreements
The above investments do not address investment of debt proceeds held by a bond trustee. Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions 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 the 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 on 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. LAIF is not registered with the Securities and Exchange Commission and is not rated. Deposits and withdrawals in LAIF are made on the basis of $1 and not fair value. Accordingly, the City’s investment in this pool is measured on uncategorized inputs not defined as Level 1, 2, or 3. 50 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 3: Cash and Investments (Continued)
Concentration of Credit Risk
The City diversifies its investments by security type and institution. With the exception of LAIF, no more than 5% of the City’s total investment portfolio will be invested in a single security type or with a single financial institution. The City has not invested more than 5% of the total investment value with any one issuer.

Credit Risk
Investments in U.S. government securities are not considered to have credit risk and, therefore, their credit quality is not disclosed. As of June 30, 2021, the City's investments in external investment pools are unrated.

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 the 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. As of June 30, 2021, the City had no investments considered to be exposed to custodial credit risk. The City does not have a policy related to custodial credit risk.

Interest Rate Risk
The City's investment policy states that they will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than five years from the date of purchase.

With City Council approval, reserve funds may be invested in securities exceeding five years if the maturities of such investments are made to coincide as nearly as practicable with the expected use of funds. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk.

As of June 30, 2021, the fair value of the City’s investments was $31,930,731, with $29,913,744 in the Local Agency Investment Fund, and the remaining $2,016,987 held in money market mutual funds. All investments held by the City had a maturity of less than one year.

Fair Value Measurements
GASB Statement No. 72, Fair Value Measurement and Application establishes general principles for measuring fair value and standards of accounting and financial reporting for assets and liabilities measured at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.

Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. With the exception of LAIF which is uncategorized, all of the City’s investments are valued using Level 1 inputs.
51 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 4: Capital Assets
Capital asset activity for the year ended June 30, 2021, was as follows:

Balance Increases Decreases Transfers Balance
Governmental Activities:

Capital assets, not being depreciated:

Land 8,759,916 $ $ - 610,550 $ $ 9, - $ 370,466
Construction-in-progress 1,476,199 211,619 - (588,506) 1,099,312 Total Capital Assets,
Not Being Depreciated 10,236,115 822,169 - (588,506) 10,469,778 Capital assets, being depreciated:

Buildings 17,597,987 - - - 17, 597,987
Improvements other than buildings 13,602,795 1,240,006 - 561,219 15,404,020 Machinery and equipment 9,131,375 66,437 199,240 - 8,998,572 Infrastructure 83,150,058 1,131,047 1,437,658 27,287 82,870,734 Total Capital Assets,
Being Depreciated 123,482,215 2,437,490 1,636,898 588,506 124,871,313 Less accumulated depreciation:

Buildings 7,580,834 374,118 - - 7, 954,952
Improvements other than buildings 5,331,366 652,373 - - 5, 983,739 Machinery and equipment 6,157,857 358,646 199,240 - 6,317,263 Infrastructure 41,359,421 1,576,941 781,204 - 42,155,158 Total Accumulated
Depreciation 60,429,478 2,962,078 980,444 - 62,411,112
Total Capital Assets,
Being Depreciated, Net 63,052,737 (524,588) 656,454 588,506 62,460,201 Governmental Activities
Capital Assets, Net $ 73,288,852 $ 297,581 $ 656,454 $ 72, - $ 929,979 52 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 4: Capital Assets (Continued)
Beginning Ending
Balance Increases Decreases Transfers Balance
Business-Type Activities:

Capital assets, not being depreciated:

Land $ 1,333,188 $ - $ - $ 1,333,188 - $
Construction-in-progress 3,478,846 2,440,545 - (3,391,972) 2,527,419 Total Capital Assets,
Not Being Depreciated 4,812,034 2,440,545 - (3,391,972) 3,860,607 Capital assets, being depreciated:

Intangibles 934,728 164,018 189,211 177,996 1,087,531
Land improvements 1,584,796 - 20,553 - 1,564,243
Source of supply 14,995,326 19,247 15,824 13,615 15,012,364 Pumping plant 10,243,922 111,645 78,549 24,200 10,301,218 Water treatment plant 969,577 - - - 969,577
Transmission, meters, and lines 54,069,096 5,633,372 492,663 3,176,161 62,385,966 General plant and equipment 2,787,855 170,925 137,748 - 2,821,032 Total Capital Assets,
Being Depreciated 85,585,300 6,099,207 934,548 3,391,972 94,141,931 Less accumulated depreciation:

Intangibles 410,777 131,474 188,498 - 353,753
Land improvements 1,356,568 23,891 17,173 - 1,363,286
Source of supply 8,233,839 371,085 15,824 - 8,589,100
Pumping plant 3,654,067 368,157 6,758 - 4,015,466
Water treatment plant 336,155 28,967 - - 365,122
Transmission, meters, and lines 25,512,559 1,258,997 324,226 - 26,447,330 General plant and equipment 1,484,383 149,563 137,748 - 1,496,198 Total Accumulated
Depreciation 40,988,348 2,332,134 690,227 - 42,630,255
Total Capital Assets,
Being Depreciated, Net 44,596,952 3,767,073 244,321 3,391,972 51,511,676 Business-Type Activities
Capital Assets, Net $ 49,408,986 $ 6,207,618 $ 244,321 $ 55,372,283 - $ Depreciation expense was charged to functions/programs of the primary government as follows:

Governmental Activities:

General government 433,825 $
Public safety 145,693
Public works 504,877
Health & sanitation 103,104
Culture & leisure 197,638
Public Works Infrastructure 1,576,941
Total Depreciation Expense - Governmental Activities 2,962,078 $ Business-Type Activities:

Water $ 2,332,134
53 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 5: Interfund Receivable, Payable and Transfers
The composition of interfund balances as of June 30, 2021, is as follows:

Interfund Receivables and Payables
The General Fund made short-term loans of $1,763,763 to other governmental funds to cover short-term deficits in the respective funds.

Interfund Transfers
Other
Governmental
Transfers In General Fund Sanitation Funds Total
General Fund - $ $ 150,000 $ 852,984 $ 1,002,984
Other Governmental Funds 515,181 354,255 2,749,398 3,618,834 Total $ 515,181 $ 504,255 $ 3,602,382 $ 4,621,818
Transfers Out
The Sanitation Fund transferred $150,000 and various nonmajor funds transferred $852,984 to the General Fund for various costs including maintenance and operations.

The Nonmajor Funds received $515,181 from the General Fund, $354,255 from the Sanitation Fund, and $2,749,398 from other Nonmajor Funds to provide funding for various capital and street improvement projects.

Note 6: Capital Lease Obligations
A summary of changes in governmental activities’ capital lease obligations for the year ended June 30, 2021, is as follows:

Balance
July 1, 2020 Additions Deletions
Balance
June 30, 2021
Due Within
One Year
John Deere Motor Grader $ 102,965 $ - $ 102,965 $ - $ - Totals $ 102,965 $ - $ 102,965 $ - $ -
A description of governmental activities’ capital lease obligations outstanding as of June 30, 2021, is as follows:

John Deere Motor Grader
On November 16, 2017, the City entered into an agreement with John Deere Financial for the lease of a 772G Motor Grader. The purchase price of the motor grader was $405,035. The term of the lease is for four years with installments of $106,627 due on November 17 of each year and starting on November 17, 2017. Interest is payable annually on September 1 at a rate of 3.56%. The lease obligation was paid in full during fiscal year 2020-21, with no balance remaining.
54 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 7: Long-Term Debt
Changes in long-term obligations for the year ended June 30, 2021, are as follows:

Balance at
July 1, 2020 Increases Decreases Defeased
Balance at
June 30, 2021
Due Within
One Year
Business-Type Activities
Public Offerings:
1996 Water Revenue Refunding Bonds 6,230,000 $ - $ 3,030,000 $ $ (3,200,000) $ - $ - Unamortized Bond Premium 166,785 - - (166,785) - -
Loans from Direct Borrowings:
2010 USDA Loan 3,058,000 - 71,000 - 2,987,000 73,000
2012 USDA Loan 4,382,000 - 87,000 - 4,295,000 90,000
2013 USDA Loan 2,872,000 - 52,000 - 2,820,000 54,000
Ibank CLEEN Loan #17-002 978,615 - 25,091 - 953,524 25,769 CEC Loan 696,014 - 74,287 - 621,727 75,032
2019 USDA Loan 2,426,810 7,498,672 193,300 - 9,732,182 197,500 Total Business-Type Activities $ 20,810,224 $ 7,498,672 $ 3,532,678 $ (3,366,785) $ 21,409,433 $ 515,301 a. Public Offerings
1996 Water Revenue Refunding Bonds
On August 1, 1996, the City of Big Bear Lake Department of Water and Power issued $37,585,000 of Refunding Revenue Bonds to advance refund $37,045,000 of the 1992 Refunding Revenue Bonds. The 1996 bonds consist of serial bonds of $5,930,000 maturing annually through 2008, 6% term bonds of $4,800,000 due on April 1, 2011, 6% term bonds of $7,855,000 due on April 1, 2015, and 6% term bonds of $19,000,000 due on April 1, 2022. The bonds are secured by the net revenues of the Water Enterprise Fund.

On April 1, 2021, the Department of Water and Power defeased the bonds by placing money market mutual funds of $3,392,000 in a trust account with Union Bank, the escrow agent for the defeasance. The mutual funds have been irrevocably pledged to the payment of the outstanding bonds. The escrow agent has not been authorized to substitute assets that are not essentially risk-free in the trust portfolio. The mutual funds have been deemed sufficient to retire the principal and interest on the $3,200,000 outstanding balance Bonds.

Accordingly, the trust account assets and the liability for the defeased bonds are not included in the City’s financial statements. At June 30, 2021, $3,200,000 of bonds remained outstanding and are considered defeased.

Annual estimated cash flows after June 30, 2021, in the escrow account for the defeasance are summarized below:

Investment Trust Account
Debt Payments Trustee Fees Earnings Ending Balance
2022 3,392,000 $ - $ $ - $ -
55 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 7: Long-Term Debt (Continued)
b. Loans from Direct Borrowings
2010 USDA Loan
On September 8, 2010, the City of Big Bear Lake Department of Water and Power (DWP) entered into a loan agreement in the amount of $3,628,000 with the United States Department of Agriculture Rural Utility Services for the proceeds of its 2010 USDA Bonds. The 2010 USDA loan has a term of 40 years and the interest rate is

2.375%. The proceeds from the 2010 USDA Bonds were used for the construction and replacement of wells and pipelines within the DWP’s water systems. The loan is secured by the net revenues of the Water Enterprise Fund. Additionally, a reserve fund in the amount equal to the reserve requirement has been established as security for the payment of any deficiency which may occur.
2012 USDA Loan
On May 16, 2012, the City of Big Bear Lake Department of Water and Power (DWP) entered into a loan agreement in the amount $5,000,000 with the United States Department of Agriculture Rural Utility Services for the proceeds of its 2012 USDA Bonds. The 2012 USDA loan has a term of 40 years and the interest rate is 2.75%. The proceeds from the 2012 USDA Bonds were used for the construction and replacement of wells and pipelines within the DWP’s water systems. The loan is secured by the net revenues of the Water Enterprise Fund. Additionally, a reserve fund in the amount equal to the reserve requirement has been established as security for the payment of any deficiency which may occur.
2013 USDA Loan
On July 25, 2013, the City of Big Bear Lake Department of Water and Power (DWP) entered into a loan agreement in the amount $3,157,000 with the United States Department of Agriculture Rural Utility Services for the proceeds of its 2013 USDA Bonds. The 2013 USDA loan has a term of 40 years and the interest rate is 2.75%. The proceeds from the 2013 USDA Bond were used for the construction and installation of a new ground water well and upgrade water storage capacity by adding another reservoir to the water system.

The loan is secured by the net revenues of the Water Enterprise Fund. Additionally, a reserve fund in the amount equal to the reserve requirement has been established as security for the payment of any deficiency which may occur.

IBank CLEEN Loan #17-002
On September 27, 2016, the California Infrastructure and Economic Development Bank (“IBank”) authorized a $ 1,050,000 loan with a thirty-year maturity and 2.70% interest rate to fund the Department of Water and Power’s 12” Big Bear Blvd. Pipeline Replacement 2016 project. The loan contains a provision that in an event of default, the Department of Water and Power becomes liable for the payment of costs and expenses of IBank, including reasonable compensation to their agents and attorneys, including IBank employees, and for the payment of the whole amount of installment payments then due and unpaid, with an interest on overdue installment payments at the rate of the lesser of twelve percent (12%) per annum or the maximum rate permitted by law. 56 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 7: Long-Term Debt (Continued)
CEC Loan
On February 27, 2018, the City of Big Bear Lake Department of Water and Power (DWP) entered into a loan agreement in the amount of $771,879 with the State of California Energy Commission. The CEC Loan has a term of 10 years and the interest rate is 1.00%. The proceeds from the CEC Loan were used for the installation of a solar system at the City owned existing groundwater wells field. The loan is secured by the savings in energy costs or other legally available funds as DWP chooses.
2019 USDA Loan
On June 11, 2019, the City of Big Bear Lake Department of Water and Power (DWP) entered into a loan agreement in the amount of up to $12,000,000 with the United States Department of Agriculture Rural Utilities Services for the proceeds of its 2019 USDA Bonds. The 2019 USDA loan has a term of 40 years and the interest rate is 2.125% on the portion of the funds drawn by DWP on the proceeds. The proceeds from the 2019 USDA loan are being used for the construction and installation of new pipeline. The loan is secured by the net revenues of the Water Enterprise Fund. Additionally, a reserve fund in the amount equal to the reserve requirement has been established as security for the payment of any deficiency which may occur. DWP has drawn 9,732,182 as of June 30, 2021.

Debt service requirements on long-term debt at June 30, 2021, are as follows:

Year Ending June 30, Principal Interest
2022 $ 515,301 $ 545,216
2023 524,848 533,799
2024 537,611 522,146
2025 548,524 510,179
2026 561,552 497,957
2027-2031 2,834,552 2,297,202
2032-2036 2,921,607 1,961,900
2037-2041 3,293,900 1,588,333
2042-2046 3,711,497 1,166,592
2047-2051 1,749,141 703,630
2052-2056 2,508,700 306,499
2057-2061 1,702,200 73,306
$ 21,409,433 $ 10,706,759
Loans from Direct Borrowings
Business-Type Activities
57 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 8: Compensated Absences
Compensated absences represent the amount of accumulated vacation, which is expected to be liquidated with future resources. The general fund liquidates 100 percent of the compensated absences for governmental activities, and the Water Utility Fund liquidates 100 percent of the compensated absences for business-type activities. There is no fixed payment schedule for unpaid compensated absences; see Note 1 for additional information.

Balance at Balance at Due within
July 1, 2020 Increases Decreases June 30, 2021 One Year Governmental Activities:

Compensated Absences $ 548,321 $ 581,847 $ 548,321 $ 581,847 $ 581,847 Total Governmental Activities $ 548,321 $ 581,847 $ 548,321 $ 581,847 $ 581,847 Business-Type Activities:

Compensated Absences $ 437,697 $ 250,578 $ 219,520 $ 468,755 $ 232,801 Total Business-Type Activities $ 437,697 $ 250,578 $ 219,520 $ 468,755 $ 232,801 Note 9: Pension Plans
a. Aggregate Information on all Pension Plans
The City participates in two pension plans, the San Bernardino County Employees' Retirement Association (SBCERA) pension plan, a cost-sharing, multiple-employer defined benefit pension plan, and the Public Agency Retirement System (PARS) retirement enhancement plan, a single-employer defined benefit pension plan. These two plans are presented in aggregate on the government-wide statement of net position. The schedule below summarizes the components of the information presented on the government-wide statement broken out by each plan and in aggregate:

Retirement
SBCERA Enhancement
Pension Plan Plan Total
Net Pension Liability/(Asset)
City of Big Bear Lake $ 13,823,466 $ (16,120) $ 13,807,346 Department of Water and Power (DWP) 8,399,717 - 8,399,717 $ 22,223,183 $ (16,120) $ 22,207,063
Deferred Outflows of Resources
Related to Pensions
City of Big Bear Lake $ 7,597,901 $ 31,712 $ 7,629,613
Department of Water and Power (DWP) 4,225,411 - 4,225,411 $ 11,823,312 $ 31,712 $ 11,855,024
Deferred Inflows of Resources
Related to Pensions
City of Big Bear Lake $ 7,659,999 $ 391,227 $ 8,051,226 Department of Water and Power (DWP) 906,152 - 906,152
$ 8,566,151 $ 391,227 $ 8,957,378
Pension Expense
City of Big Bear Lake $ 977,885 $ (108,134) $ 869,751
Department of Water and Power (DWP) 1,517,180 - 1,517,180 $ 2,495,065 $ (108,134) $ 2,386,931
58 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 9: Pension Plans (Continued)
b. SBCERA Pension Plan
Plan Description
The San Bernardino County Employees’ Retirement Association (SBCERA) was established by the County of San Bernardino in 1945. SBCERA is governed by the County Employees’ Retirement Law of 1937 (California Government Code Section 31450 et. seq), the California Public Employees’ Pension Reform Act of 2013 (CalPEPRA), and the regulations, procedures, and policies adopted by SBCERA’s Board of Retirement. SBCERA is a cost-sharing multiple employer defined benefit public employee Retirement Association whose main function is to provide service retirement, disability, death and survivor benefits to the General and Safety members employed by the County of San Bernardino. SBCERA also provides retirement benefits to the employee members for 17 other employers which are members of SBCERA.

The Plan operates under the provisions of the California County Employees' Retirement Law of 1937 (CERL), the California Public Employees' Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by SBCERA's Board of Retirement (Board). The Plan's authority to establish and amend the benefit terms are set by the CERL and PEPRA and may be amended by the California state legislature and in some cases require approval by the County of San Bernardino Board of Supervisors and/or the SBCERA Board. SBCERA is a tax qualified plan under Section 401 (a) of the Internal Revenue Code.

The City of Big Bear Lake and the Department of Water and Power (DWP) are two separate employers in SBCERA pension plan. The net pension liability and related pension activities for DWP are recorded in the Water Utility Fund on the City’s Comprehensive Annual Financial Report.

SBCERA is a legally separate entity from the City and DWP, not a component unit, and there is no financial interdependency with the County of San Bernardino. For these reasons, the City’s comprehensive annual financial report excludes the SBCERA pension plan as of June 30, 2020. SBCERA publishes its own comprehensive annual financial report that includes its financial statements and required supplementary information, that can be obtained by writing SBCERA at, 348 W. Hospitality Lane, Third Floor, San Bernardino, California 92415-0014 or visiting the website at:
www.SBCERA.org.
59 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 9: Pension Plans (Continued)
Benefits Provided
SBCERA provides retirement, disability, death and survivor benefits. The CERL and PEPRA establish benefit terms. Retirement benefits are calculated on the basis of age, average final compensation and service credit as follows:

General - Tier 1 General - Tier 2
Final Average Compensation Highest 12 months Highest 36 months Normal Retirement Age Age 55 Age 67
Age 70 any years Age 70 any years
10 years age 50 5 years age 52
30 years any age N/A
Benefit percent per year of service
for normal retirement age
2% per year of final average
compensation for every year of
service credit

2.5% per year of final average three
years compensation for every year
of service credit
Benefit adjustments Reduce before age 55 Reduce before age 67 Final Average Compensation
Limitation
Internal Revenue Code section
401(a)(17) Government Code 7522.10
Early Retirement: Years of service
required and/or age eligible for
An automatic cost of living adjustment is provided to benefit recipients based on changes in the local region Consumer Price Index (CPI) up to a maximum of 2% per year. Any increase greater than 2% is banked and may be used in years where the CPI is less than 2%. There is a one-time 7% increase at retirement for members hired before August 19, 1975. The Plan also provides disability and death benefits to eligible members and their beneficiaries, respectively. For retired members, the death benefit is determined by the retirement benefit option chosen. For all other members, the beneficiary is entitled to benefits based on the members years of service or if the death was caused by employment. General members are also eligible for survivor benefits which are payable upon a member's death.

Contributions
Participating employers and active members are required by statute to contribute a percentage of covered salary to the Plan. This requirement is pursuant to Government Code sections 31453.5 and 31454, for participating employers and Government Code sections 31621.6, 31639.25 and 7522.30 for active members.

The contribution requirements are established and may be amended by the SBCERA Board pursuant to Article 1 of the CERL, which is consistent with the Plan's actuarial funding policy. The contribution rates are adopted yearly, based on an annual actuarial valuation, conducted by an independent actuary, that requires actuarial assumptions with regard to mortality, expected future service (including age at entry into the Plan, if applicable and tier), and compensation increases of the members and beneficiaries. The combined active member and employer contribution rates are expected to finance the costs of benefits for employees that are allocated during the year, with an additional amount to finance any unfunded accrued liability. Participating 60 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 9: Pension Plans (Continued)
employers may pay a portion of the active members' contributions through negotiations and bargaining agreements.

Employee contribution rates for the fiscal year ended June 30, 2021 were from 9.15% to 15.55% for Tier 1 General members, and 9.06% for Tier 2 General members.

Employer contribution rates for the year ended June 30, 2021, are as follows:

Tier 1 Members Tier 2 Members
Percentage Total Total
City and DWP
General members 38.38% 35.86%
The required employer contributions and the amount paid to SBCERA by the City and DWP for the year ended June 30, 2021, were $1,792,978 and $1,159,105, respectively, for a total contribution of $2,952,083. The employer contributions were equal to the required employer contributions for the year ended June 30, 2021.

Pension Liability, Pension Expense and Deferred Outflows/Inflows of Resources At June 30, 2021, the City and DWP reported a net pension liability of $13,823,466 and $8,399,717, respectively, for a combined total of $22,223,183 for their combined proportionate share of the SBCERA's net pension liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020. The SBCERA's publicly available financial report provides details on the change in the net pension liability.

The City’s and DWP’s proportions of the net pension liability were based on the City’s and DWP’s contributions received by SBCERA during the measurement period for employer payroll paid dates from July 1, 2019 through June 30, 2020, relative to the total employer contributions received from all of SBCERA's participating employers. At June 30, 2020, the City’s proportion was 0.345% and the DWP’s proportion was

0.210%, which was a decrease of 11.99% and a decrease of 14.63%, respectively, from the beginning of the measurement period.

For the year ended June 30, 2021, the City and DWP recognized $977,885 and $1,517,180 respectively, for a combined pension expense of $2,495,065 for their proportionate shares of SBCERA's pension expense.
61 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 9: Pension Plans (Continued)
At June 30, 2021, the City and DWP reported their proportionate shares of deferred outflows of resources and deferred inflows of resources related to pensions, from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
City Plan
$ 1,792,978 $ -
Changes in proportion and differences between 1,099,074 7,528,843 employer's contributions and proportionate
share of contributions
Changes in assumptions and other inputs 1,619,352 -
Net excess of projected over actual earnings 2,916,974 - on pension plan investments
Difference between actual and expected 169,523 131,156
experience in the total pension liability
Subtotal - City Plan 7,597,901 7,659,999
DWP Plan
1,159,105 -
Changes in proportion and differences between 206,835 826,456 employer's contributions and proportionate
share of contributions
Changes in assumptions and other inputs 983,986 -
Net excess of projected over actual earnings 1,772,476 - on pension plan investments
Difference between actual and expected 103,009 79,696
experience in the total pension liability
Subtotal - DWP Plan 4,225,411 906,152
Total - All Plans $ 11,823,312 $ 8,566,151
Contributions made subsequent to the
measurement date
Contributions made subsequent to the
measurement date
62 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 9: Pension Plans (Continued)
The $2,952,083 reported as deferred outflows of resources related to pensions resulting from combined City and DWP contributions to SBCERA subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to SBCERA pensions will be recognized in pension expense as follows:

Fiscal
Year Ended
June 30, City Plan DWP Plan Total Plans
2022 $ (687,985) $ 384,101 $ (303,884)
2023 (125,480) 727,619 602,139
2024 (232,510) 631,575 399,065
2025 (771,431) 431,201 (340,230)
2026 (37,670) (14,342) (52,012)
$ (1,855,076) $ 2,160,154 $ 305,078
Deferred Outflows/(Inflows) of Resources
Actuarial Assumptions and Methods
The significant actuarial assumptions and methods used to measure the total pension liability are as follows:

Actuarial valuation date June 30, 2020
Actuarial cost method Entry age normal
Amortization method Level percent of payroll
Investment rate of return 7.25%
Inflation 3.00%
Projected salary increases 4.5% to 14.5%
Administrative expenses 0.7% of payroll
Mortality rates used in the actuarial valuations are based on the Headcount-Weighted RP 2014 Healthy Annuitant Mortality Table projected generationally with the two-dimensional MP-2016 projection scale.

The actuarial assumptions used in the June 30, 2020, valuation were based on the results of an actuarial experience study for the three-year period of July 1, 2016, through June 30, 2019.

The long-term expected rate of return on pension plan investments is 7.25%. 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 inflation) are developed for each major asset class. These returns are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage, adding expected inflation and subtracting expected investment expenses and a risk margin. The target allocation and projected arithmetic real rates of return for each major asset class, after deducting inflation but before deducting investment expenses are shown in the following table. 63 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 9: Pension Plans (Continued)
This information was used in the derivation of the long-term expected investment rate of return assumption for the June 30, 2020 actuarial valuation. This information will change every three years based on the actuarial experience study.

Long-Term Expected
Target Arithmetic Real Rate
Asset Class Allocation of Return
Large Cap U.S. Equity 11.00% 5.42%
Small Cap U.S. Equity 2.00% 6.21%
Developed International Equity 9.00% 6.50%
Emerging Market Equity 6.00% 8.80%
U.S. Core Fixed Income 2.00% 1.13%
High Yield/Credit Strategies 13.00% 3.40%
International Core Fixed Income 1.00% -0.04%
Emerging Market Debt 8.00% 3.44%
Real Estate 3.00% 4.57%
Value Added Real Estate 3.00% 6.53%
Cash & Equivalents 2.00% -0.03%
International Credit 11.00% 5.89%
Absolute Return 7.00% 3.69%
Other Real Assets 5.00% 10.64%
Private Equity 16.00% 10.70%
Discount rate
The discount rate used to measure the TPL was 7.25% for June 30, 2020. The projection of cash flows used to determine the discount rate assumed employer and member contributions will be made at rates equal to the actuarially determined contribution rates. For this purpose, only employee and employer contributions that are intended to fund benefits for current plan members and their beneficiaries are included.

Projected employer contributions that are intended to fund the service costs for future plan members and their beneficiaries, as well as projected contributions from future plan members, are not included. Based on those assumptions, the Plan’s Fiduciary Net Position was projected to be available to make all projected future benefit payments for current plan members. Therefore, the long-term expected rate of returns on pension plan investments of 7.25% was applied to all periods of projected benefit payments to determine the TPL as of June 30, 2020.
64 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 9: Pension Plans (Continued)
Sensitivity of Net Pension Liability to Changes in Discount Rate The following presents the Net Pension Liability (NPL) of the City and DWP plans as of June 30, 2020, calculated using the discount rate of 7.25%, as well as what the respective NPLs would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25%) or 1-percentage-point higher (8.25%) than the current rate.

1.00% Current 1.00%
Decrease Discount Rate Increase
June 30, 2020 6.25% 7.25% 8.25%
City's proportionate share of
net pension liability $ 19,429,037 $ 13,823,466 $ 9,233,430 DWP's proportionate share of
net pension liability 11,810,373 8,399,717 5,606,954
Pension Plan Fiduciary Net Position
Detailed information about the SBCERA's fiduciary net position is available in a separately issued SBCERA comprehensive annual financial report. That report may be obtained on the Internet at www.SBCERA.org; by writing to SBCERA at 348 W. Hospitality Lane, Third Floor, San Bernardino, California 92415; or by calling (909) 885-7980 or (877) 722-3721.
c. PARS Retirement Enhancement Plan
Plan Description
The PARS retirement enhancement plan, a single employer defined benefit plan, provides a supplemental benefit to miscellaneous employees hired on or before December 31, 2012, and classified as General or Non-Represented. The supplemental benefit enhances the San Bernardino County Employee’s Retirement Association (SBCERA) formula age factors by adding an incremental percentage to make the total benefit a constant 2.7% factor at every age from age 55 and older or until SBCERA’s benefit percentage is equal to or greater than 2.7% and the net PARS benefit is zero.

As a result of the recent PEPRA Amendments, the City decided to close the plan to all individuals hired on or after January 1, 2013.

Benefits Provided
Eligibility for an immediate benefit is defined as reaching age 55, completing 5 years of continuous service as a regular employee covered by SBCERA (with approved leaves of absence not considered interruptions in continuous service), and retiring concurrently from both SBCERA and the PARS plan. Employees will only receive a supplemental retirement benefit from this plan if they retire between the ages of 55 and 60. Furthermore, the earlier they retire, the larger their supplemental benefit will be. If the employee retires past the age at which he or she would receive any benefit from the plan, he or she will receive a lump sum payment equal to the balance of his or her employee contributions with 3% interest per annum. 65 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 9: Pension Plans (Continued)
The plan provides a pre-retirement death benefit to spouses or registered domestic partners of employees who have met the age and service eligibility conditions for retirement (but failed to meet the concurrent retirement provision with SBCERA) under the plan on the date of their death prior to retirement. The benefit shall be equal to the employee’s supplemental retirement benefit assuming the employee had retired on the date of death and elected a 100% joint-and-survivor annuity. If there is no eligible beneficiary, a lump sum payment equal to the balance of his or her employee contributions with 3% interest per annum will be paid to his or her estate. If the employee dies past the age at which he or she would receive any benefit from the plan, his or her beneficiary will receive a lump sum payment equal to the balance of his or her employee contributions with 3% interest per annum.

Employees who terminate employment with the City prior to retirement will receive a refund of their employee contributions with 3% interest per annum.

As of the actuarial valuation date of June 30, 2019, plan membership consisted of the following:

Actives 22
Terminated vested & other inactives 11
Retirees and beneficiaries 6
Total 39
Contributions
Commencing on July 2, 2010, eligible General and Non-Represented employees are required to make employee contributions equal to 2.87% of compensation. Employee contributions shall cease for any participant under the Plan at the time the participant’s SBCERA benefit factor is equal to or greater than 2.7%. The mandatory contributions are picked up by the City. The City contributed $56,596 for fiscal year ended June 30, 2021.

Net Pension Liability
Net pension liability is measured as the total pension liability, less the pension plan’s fiduciary net position. The Plan’s net pension liability is measured as of June 30, 2021 using an actuarial valuation as of June 30, 2019, rolled forward to June 30, 2021 using standard update procedures.

A summary of components of the Plan’s net pension liability as of June 30, 2021, is shown below, followed by principal assumptions and methods used to determine the net pension liability.

Total pension liability $ 1,788,696
Plan fiduciary net position 1,804,816
Net pension liability $ (16,120)
Plan fiduciary net position as a % of total pension liability 100.9% 66 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 9: Pension Plans (Continued)
Actuarial Assumptions and Methods
The following actuarial methods and assumptions were used in the June 30, 2020, funding valuation:

Actuarial Cost Method Entry Age Normal
Amortization Method
Level percent or level dollar Level dollar
Closed, open, or layered periods Closed
Amortization period at 6/30/2019 18 years
Amortization growth rate 0.00%
Asset Valuation Method
Smoothing period None
Recognition method None
Corridor None
Inflation 3.00%
Salary Increases 4.50% to 14.50% depending on year of service Investment Rate of Return 6.50%
Cost of Living Adjustments 2.00%
Mortality Consistent with the pre and post retirement
mortality rates used to value General Employees
in SBCERA Plan
Discount Rate
The discount rate used to measure the total pension liability was 6.50%. The plan’s fiduciary net position was projected to be available to make all projected future benefit payments of the current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return, net of investment expenses.

The money-weighted rate of return considers the changing amounts actually invested during a period and weights the amount of pension plan investments by the proportion of time they are available to earn a return during that period. External cash flows are determined on a monthly basis and are assumed to occur at the end of each month.

External cash inflows are netted with external cash outflows, resulting in a net external cash flow in each month. The money-weighted rate of return is calculated net of investment expenses.

The money-weighted rate of return for the fiscal year ended June 30, 2021, was

22.96%.

The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are per Milliman's investment consulting practice as of June 30, 2021.

Asset Class Index Target Allocation
Long-Term Expected
Rate of Return
US Cash BAML 3-Mon Tbill 1.38% -0.32%
US Core Fixed Income Barclays Aggregate 46.48% 1.37%
US Equity Market Russell 3000 39.07% 5.33%
Foreign Developed Equity MSCI EAFE NR 6.73% 6.27%
Emerging Markets Equity MSCI Emerging Markets NR 4.58% 8.64% US REITs FTSE NAREIT Equity REIT 1.76% 5.75%
67 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 9: Pension Plans (Continued)
Changes in Net Pension Liability
Changes in Net Pension Liability
Total Pension
Liability (a)
Plan Fiduciary
Net Position (b)
Net Pension
Liability (a)-(b)
Balances as of June 30, 2020 $ 1,665,573 $ 1,435,701 $ 229,872 Changes for the year:

Service cost 71,014 - 71,014
Interest on total pension liability 110,994 - 110,994
Effect of economic/demographic gains or losses - - -
Benefit payments (58,885) (58,885) -
Employer contributions - 56,596 (56,596)
Member contributions - 46,547 (46,547)
Net investment income - 334,232 (334,232)
Administrative expenses - (9,375) 9,375
Balances as of June 30, 2021 $ 1,788,696 $ 1,804,816 $ (16,120) Sensitivity of Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability, calculated using the discount rate of

6.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is one percentage point lower (5.50%) or one percentage point higher (7.50%) than the current rate:

1.00% Current 1.00%
Decrease Discount Rate Increase
(5.50%) (6.50%) (7.50%)
$ 205,186 $ (16,120) $ (200,192)
Pension Plan Fiduciary Net Position
The pension plan fiduciary net position at June 30, 2021, was as follows:

Assets
Cash and cash equivalents $ 24,912
Investments
Fixed Income 838,789$
Stocks 909,323
Real Estate 31,792
Total Investments 1,779,904
Total Assets 1,804,816
Net Position Restricted for Pension $ 1,804,816
68 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 9: Pension Plans (Continued)
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2021, the City recognized pension expense of -$51,538.

At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between expected and actual experience 9,559 $ $ 218,083 Changes of assumptions 22,153 1,291
Net difference between projected and actual earnings - 171,853 Total $ 31,712 $ 391,227
Amounts currently reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year ended June 30:
2022 (95,700) $
2023 (112,287)
2024 (95,695)
2025 (55,833)
$ (359,515)
Note 10: Liability, Workers’ Compensation, and Purchased Insurance a. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the California Joint Powers Insurance Authority (CJPIA). The CJPIA 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 CJPIA 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 CJPIA 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 Programs of the CJPIA
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. 69 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 10: Liability, Workers’ Compensation, and Purchased Insurance (Continued) 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 sub-limit of $50 million per occurrence. The coverage structure includes retained risk that is pooled among members, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website:
https://cjpia.org/coverage/risk-sharing-pools/.

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 CJPIA’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 as part of a reinsurance policy, and Employer’s Liability losses from $5 million to $10 million are pooled among members. c. Purchased Insurance
Pollution Legal Liability Insurance
The City participates in the pollution legal liability insurance program which is available through the CJPIA. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims-made basis. There is a $250,000 deductible. The CJPIA has an aggregate limit of $20 million.
70 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 10: Liability, Workers’ Compensation, and Purchased Insurance (Continued) Property Insurance
The City participates in the all-risk property protection program of the CJPIA. This insurance protection is underwritten by several insurance companies. City property is currently insured according to a schedule of covered property submitted by the City to the CJPIA. City property currently has all-risk property insurance protection in the amount of $78,812,150. There is a $10,000 deductible per occurrence except for nonemergency vehicle insurance which has a $2,500 deductible.

Crime Insurance
The City purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the CJPIA. 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.

Note 11: Litigation, Commitments and Contingent Liabilities At June 30, 2021, the City was involved as a defendant in several lawsuits arising out of the ordinary conduct of its affairs. It is the opinion of City management that settlements of these lawsuits, including losses for claims that are incurred but not reported, if any, will not have a material effect on the financial position of the City.

Note 12: Joint Venture Organizations
a. Big Bear Fire Authority
The City is a member of the Big Bear Fire Authority (Authority). The Authority was formed in 2012 under the California Joint Exercise of Powers Act to merge the City of Big Bear Lake and Big Bear City fire agencies under one umbrella to provide fire protection and prevention services in the Big Bear Valley area of San Bernardino County.

The Board consists of ten directors, including the elected or appointed members of the boards of directors of the participating agencies. The term of office of each director shall be concurrent with that director’s term of office on the participating agency’s board of directors.

The City of Big Bear Lake does not have an equity interest in the Authority. However, the City does have an ongoing financial interest because the City is able to influence the operations of the Authority so that the Authority uses its resources on behalf of the City.

Also, an ongoing financial responsibility exists because the Authority is dependent on continued funding from the City.
71 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 12: Joint Venture Organizations (Continued)
Below are the most currently available condensed audited financial statements of the Authority as of June 30, 2021. Separate financial statements of the Authority are available from its offices at the Big Bear Fire Department located at 41090 Big Bear Blvd., Big Bear Lake, California 92315.

Total
Assets $ 8,219,900
Deferred Outflows of Resources 21,197,119
Liabilities (36,394,300)
Deferred Inflows of Resources (5,879,884)
Net Position $ (12,857,165)
Revenues $ 16,157,523
Expenses 20,858,966
Change in Net Position (4,701,443)
Net Position - Beginning of Year (8,155,722)
Net Position - End of Year $ (12,857,165)
b. Bear Valley Basin Groundwater Sustainability Agency
The City, through the Department of Water and Power (DWP) enterprise fund, is a member of the Bear Valley Basin Groundwater Sustainability Agency (the Agency). The Agency was formed under a joint powers agreement on May 25, 2017 by the DWP, Big Bear City Community Services District (BBCCSD), Big Bear Municipal Water District (BBMWD), and Big Bear Regional Wastewater Agency (BBARWA). The purpose of the Agency is to satisfy the requirements of the Sustainable Groundwater Management Act.

The Board consists of four directors, including one representative from BBCCSD, one representative from BBARWA, one elected representative from BBMWD, and one appointed commissioner from DWP.

The DWP does not have an equity interest in the Agency. However, the DWP does have an ongoing financial interest because the DWP is able to influence the operations of the Agency so that the Agency uses its resources on behalf of the DWP. Also, an ongoing financial responsibility exists because the Agency is dependent on continued funding from the DWP.

Below are the most currently available condensed audited financial statements of the Authority as of June 30, 2021. Separate financial statements of the Authority are available from its offices at the DWP located at 41972 Garstin Dr., Big Bear Lake, California 92315. 72 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 12: Joint Venture Organizations (Continued)
Total
Assets 64,400 $
Liabilities (64,400)
Net Position - $
Revenues $ 40,887
Expenses 40,887
Change in Net Position -
Net Position - Beginning of Year -
Net Position - End of Year $ -
Note 13: Successor Agency Trust for Assets of the Former Improvement Agency 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 Big Bear Lake that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 9, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

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.

The Successor Agency to the Former Improvement Agency is reported as a fiduciary fund (private purpose trust fund).
73 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 13: Successor Agency Trust for Assets of the Former Improvement Agency (Continued) a. Cash and Investments
Cash and investments reported in the Successor Agency in the accompanying financial statements consisted of the following:

Cash and investments pooled with the City $ 970,923
Cash and investments with fiscal agent 947,246
$ 1,918,169
The Successor Agency’s funds are pooled with the City of Big Bear Lake’s cash and investments in order to generate optimum interest income. See Note 3 for information required by GASB Statement No. 40 related to authorized investments, credit risk, etc. b. Notes Receivable
In 2009, the Agency issued a promissory note with Big Bear Lake, L.P. in the amount of $5,394,914 to be distributed in five installments. The note bears interest at 3% per year.

Repayment of principal and interest will be made to the Agency commencing on May 1 in the year following the completion of project based on a calculation of 50% of residual receipts as defined in the Agreement. Any outstanding principal amount and unpaid interest shall be due and payable on the 55th anniversary of completion. This asset was transferred to the Successor Agency upon dissolution. As of June 30, 2021, the notes receivable balance, including unpaid interest is $7,056,222. c. Long-term Debt
Long-term debt for the Successor Agency as of June 30, 2021, was as follows:

Beginning Ending Due Within
July 1, 2020 Additions Deletions June 30, 2021 One Year Public Offerings:

Housing Set-Aside Revenues Bonds, Series 1999 2,180,000 $ $ - 170,000 $ $ 2,010,000 $ 180,000 2005 Tax Allocation Refunding Revenue Bonds 3,395,000 - 510,000 2,885,000 525,000 Unamortized Bond Premium (2005 Bonds) 11,811 - 2,362 9,449 - Total $ 5,586,811 $ - 682,362 $ $ 4,904,449 $ 705,000
A description of long-term debt outstanding as of June 30, 2021, follows:

Tax Allocation Refunding Revenue Bonds
On November 22, 2005, the Big Bear Lake Financing Authority issued $8,875,000 in Revenue Bonds to fund two loans to the Big Bear Lake Improvement Agency. The proceeds of the 2005 Tax Allocation Refunding Revenue Bonds were used for the following purposes: to currently refund the Authority’s outstanding 1995 Tax Allocation Refunding Revenue Bonds, to fund reserve accounts for the loans; and to pay the costs of issuing the bonds. The bonds maturing on August 1, 2017 and 74 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 13: Successor Agency Trust for Assets of the Former Improvement Agency (Continued) August 1, 2023, are subject to mandatory redemption in part by lot on August 1 each year commencing August 1, 2016 and August 1, 2022, respectively, from sinking fund payments made by the Authority into the Principal account pursuant to the Indenture in the aggregate respective principal amounts. This liability was transferred to the Successor Agency upon dissolution of the improvement agency.

On June 14, 2012, Moody’s Investors Service (“Moody’s”) downgraded all California tax allocation bonds rated ‘Baa3’ and above. As such, the Bonds’ insured rating was downgraded from ‘A3’ to ‘Ba1’ and underlying rating was downgraded from ‘A3’ to ‘Ba1’. According to Moody’s, all California tax allocation bond ratings remain on review for possible withdrawal.

Housing Set-Aside Revenue Bonds
On June 24, 1999, the Improvement Agency issued $4,245,000 in 1999 Housing Set-Aside Revenue Bonds with interest rates ranging from 3.500% to 5.375%. The Agency has pledged tax revenues as security for the 1999 Housing Set-Aside Revenue Bonds and is required to make payments to the Big Bear Lake Financing Authority to meet the debt service requirements of the bonds. Accordingly, the debt service activity of the Authority is accounted for in the Improvement Agency Debt Service Fund. The bonds maturing in the years 2000 to 2015 are serial bonds payable in annual installments of $30,000 to $125,000 with interest rates ranging from 3.500% to 5.250%, while term bonds of $2,910,000 are due August 1, 2029, and bear interest at 5.375%.

This liability was transferred to the Successor Agency upon dissolution of the improvement agency.

The annual debt service requirements as of June 30, 2021, including interest, are as follows:

Year Ending June 30, Principal Interest
2022 705,000 $ 215,455 $
2023 740,000 182,799
2024 780,000 148,305
2025 810,000 112,061
2026 850,000 73,903
2027-2030 1,010,000 111,800
$ 4,895,000 $ 844,323
Bonds
Pledged Revenue
The City pledged, as security for bonds issued, either directly or through the Successor Agency, 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 and accomplish Low- and Moderate-Income Housing projects. 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 $5,739,323 with annual debt service requirements as indicated above. 75 CITY OF BIG BEAR LAKE, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 13: Successor Agency Trust for Assets of the Former Improvement Agency (Continued) For the current year, the total property tax revenue recognized by the Successor Agency for the payment of indebtedness incurred by the dissolved redevelopment agency was $1,159,139 and the debt service obligation on the bonds was $926,469. d. Insurance
The Successor Agency is covered under the City of Big Bear Lake’s insurance policies.

Therefore, the limitation and self-insured retentions applicable to the City of Big Bear Lake also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be obtained by contacting the City.
e. Restatement of Net Position
The Successor Agency reported a restatement of beginning net position on July 1, 2020, in the amount of $7,056,222. In prior years, the Successor Agency reported an allowance for uncollectible accounts equal to that of the outstanding note receivable (see Note 13b) as it was previously determined that the note was completely forgivable. During the year, the City’s attorney reviewed the promissory note and it was determined that the note was not forgivable; as such, the Successor Agency eliminated the allowance for doubtful accounts and reported the note receivable in its entirety, in accordance with the new legal determination.
76 CITY OF BIG BEAR LAKE, CALIFORNIA

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 5,677,580 5,677,580 $ 5,677,580 $ $ - Resources (Inflows):

Taxes 11,538,600 11,538,600 17,428,856 5,890,256
Licenses and permits 904,500 904,500 1,115,389 210,889
Intergovernmental 307,137 114,300 265,967 (41,170)
Charges for services 836,930 836,930 942,388 105,458
Use of money and property 142,500 142,500 111,693 (30,807) Fines and forfeitures 10,000 10,000 8,650 (1,350)
Miscellaneous 25,000 25,000 92,358 67,358
Transfers in 937,734 930,300 1,002,984 65,250
Amounts Available for Appropriation 20,179,710 20,379,981 26,645,865 6,265,884 Charges to Appropriations (Outflows):

General Government
City Council 246,400 246,400 176,333 70,067
City Manager 242,850 251,250 270,846 (19,596)
City Clerk 327,600 287,600 330,379 (42,779)
Finance 293,000 293,001 290,685 2,316
Human Resources 1,064,450 1,064,449 1,081,052 (16,603)
City Attorney 150,000 150,000 323,009 (173,009)
Other Internal Services 211,600 211,600 346,187 (134,587) Technology Services 341,740 353,527 363,080 (9,553)
Civic Center 308,200 309,975 336,415 (26,440)
PAC Operations and Maintenance 173,600 132,580 92,460 40,120 Successor Agency Administration 250,000 250,000 337,187 (87,187) Public Safety
Law Enforcement 4,727,827 4,735,261 4,694,698 40,563
Animal Regulation 58,400 58,400 52,008 6,392
Traffic Utilities 13,000 13,000 10,623 2,377
Community Development
Planning 1,049,850 1,049,849 1,045,023 4,826
Planning Commission 35,150 35,150 28,254 6,896
Code Compliance 500,700 586,061 586,061 -
Building and Safety 588,090 588,090 546,121 41,969
Tourism Registration / Administration 693,200 607,841 527,339 80,502 Parks and Recreation
Performing Arts Center Operations 66,620 60,017 58,967 1,050 City Parks 427,300 427,301 390,496 36,805
Public Works
Engineering 350,250 359,218 419,720 (60,502)
Street Maintenance and Snow Removal 1,947,760 1,947,885 2,237,945 (290,060) Street Lighting 84,000 84,000 95,465 (11,465)
City Parking Lots / Chamber Building 233,300 233,299 225,305 7,994 Vehicle Maintenance 175,100 222,721 225,973 (3,252)
Capital outlay - - 13,100 (13,100)
Debt service:

Principal retirement 103,000 102,965 102,965 -
Interest and fiscal charges 3,600 3,662 3,662 -
Transfers out 517,446 239,701 515,181 2,265
Total Charges to Appropriations 14,906,288 15,182,548 15,726,539 (543,991) Budgetary Fund Balance, June 30 $ 5,273,422 $ 5,197,433 $ 10,919,326 $ 5,721,893 The notes to required supplementary information are an integral part of this schedule. 77 CITY OF BIG BEAR LAKE, CALIFORNIA

BUDGETARY COMPARISON SCHEDULE

SANITATION
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 4,833,595 $ 4,833,595 $ 4,833,595 $ - Resources (Inflows):

Licenses and permits 11,000 11,000 13,540 2,540
Charges for services 5,828,800 5,828,800 5,820,059 (8,741) Use of money and property 40,000 40,000 2,925 (37,075)
Miscellaneous - - 3,260 3,260
Amounts Available for Appropriations 10,713,395 10,713,395 10,673,379 (40,016) Charges to Appropriations (Outflows):

Health and sanitation 4,758,850 4,760,649 4,690,255 70,394 Capital outlay 10,500 10,500 - 10,500
Transfers out 504,255 750,000 504,255 -
Total Charges to Appropriations 5,519,350 5,275,404 5,194,510 80,894 Budgetary Fund Balance, June 30 $ 5,194,045 $ 5,437,991 $ 5,478,869 $ 40,878 The notes to required supplementary information are an integral part of this schedule. 78 CITY OF BIG BEAR LAKE, CALIFORNIA

BUDGETARY COMPARISON SCHEDULE

FIRE DISTRICT
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ - $ - $ - $ -
Resources (Inflows):

Taxes 5, 5,747,034 5,868,067 747,034 121,033
Amounts Available for Appropriations 5,747,034 5,747,034 5,868,067 121,033 Charges to Appropriations (Outflows):

Public safety 5, 5,747,034 5,868,067 747,034 (121,033)
Total Charges to Appropriations 5,747,034 5,747,034 5,868,067 (121,033) Budgetary Fund Balance, June 30 $ - $ - $ - $ -
The notes to required supplementary information are an integral part of this schedule. 79 CITY OF BIG BEAR LAKE, CALIFORNIA

SAN BERNARDINO COUNTY EMPLOYEES' RETIREMENT ASSOCIATION (SBCERA) PLANS

SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30 FOR THE LAST TEN FISCAL YEARS 1
City of Big Bear Lake Plan:

Proportionate Share Plan's Fiduciary Net
Proportion of the Proportionate of the Net Pension Position as a % Reporting Date 2 Net Pension Share of Net Liability as a % of of the Total as of June 30, Liability Pension Liability Covered Payroll Covered Payroll Pension Liability 2021 0.345% $ 13,823,466 $ 5,078,347 272.20% 71.96%
2020 0.392% 10,624,065 4,484,497 236.91% 79.61%
2019 0.818% 20,730,712 5,887,446 352.12% 79.89%
2018 0.708% 18,653,622 5,859,630 318.34% 77.90%
2017 0.717% 17,695,050 5,553,599 318.62% 76.86%
2016 0.752% 14,607,397 5,655,229 258.30% 80.98%
2015 0.772% 13,121,350 6,215,143 211.12% 82.47%
Big Bear Lake Department of Water and Power Plan:

Proportionate Share Plan's Fiduciary Net
Proportion of the Proportionate of the Net Pension Position as a % Reporting Date 2 Net Pension Share of Net Liability as a % of of the Total as of June 30, Liability Pension Liability Covered Payroll Covered Payroll Pension Liability 2021 0.210% $ 8,399,717 $ 2,934,142 286.28% 71.96%
2020 0.246% 6,671,491 2,522,357 264.49% 79.61%
2019 0.248% 6,277,538 2,466,731 254.49% 79.89%
2018 0.228% 6,020,247 2,422,438 248.52% 77.90%
2017 0.225% 5,549,574 2,799,460 198.24% 76.86%
2016 0.253% 4,923,166 2,409,126 204.35% 80.98%
2015 0.270% 4,595,016 2,568,583 178.89% 82.47%
Notes to Schedule of Proportionate Share of the Net Pension Liability:

Benefit Changes: None
Changes of Assumptions: None
1 Historical information is required only for measurement for which GASB 68 is applicable. Fiscal year 2015 was the first year of implementation, therefore only seven years are shown.
2 The proportions and proportionate share of the net pension liability are measured as of one year behind the reporting date. Refer to notes to basic financial statements.
80 CITY OF BIG BEAR LAKE, CALIFORNIA

PARS RETIREMENT ENHANCEMENT PLAN

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS 1
2021 2020 2019
Total Pension Liability
Service cost $ 68,613 71,014 $ 79,718 $
Interest 113,518 110,994 105,010
Effect of liability gains or losses - - -
Effect of assumption changes or Inputs - - -
Effect of economic/demographic gains or losses - (171,207) - Benefit payments, Including refunds of employee contributions (58,885) (45,607) (39,948) Net Change in Total Pension Liability 123,123 (34,683) 144,780 Total Pension Liability - Beginning 1,665,573 1,700,256 1,555,476 Total Pension Liability - Ending (a) $ 1,788,696 $ 1,665,573 $ 1,700,256 Plan Fiduciary Net Position
Contribution - employer $ 67,377 56,596 $ 81,886 $
Contribution - employee 50,205 46,547 50,606
Net investment income 51,832 334,232 81,187
Benefit payments, including refunds of employee contributions (58,885) (45,607) (39,948) Other changes in fiduciary net position (9,375) (7,876) (7,053) Net Change in Fiduciary Net Position 369,115 115,931 166,678 Plan Fiduciary Net Position - Beginning 1,435,701 1,319,770 1,153,092 Plan Fiduciary Net Position - Ending (b) $ 1,804,816 $ 1,435,701 $ 1,319,770 Plan Net Pension (Asset)/Liability - Ending (a) - (b) $ (16,120) $ 229,872 $ 380,486 100.90% 86.20% 77.62%
Covered Payroll $ 1,737,784 1,483,206 $ 1,738,547 $
-1.09% 13.23% 21.89%
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

Changes of Assumptions: There were no changes in assumptions Plan Fiduciary Net Position as a Percentage of the Total Pension Liability
Plan Net Pension Liability as a Percentage of Covered Payroll Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2013. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
1 Historical information is required only for measurement for which GASB 68 is applicable. Fiscal year 2015 was the first year of implementation, therefore only seven years are shown.
81 2018 2017 2016 2015
$ 77,022 $ 82,232 $ 79,260 $ 89,126
106,259 114,010 96,330 83,597
- - 41,425 -
104,146 (2,907) 14,610 -
- (280,570) - -
(34,439) (62,962) (38,934) (35,096)
258,198 (155,407) 192,691 137,627
1,452,685 1,710,883 1,259,994 1,122,367
$ 1,710,883 1,555,476 $ 1,452,685 $ $ 1,259,994
$ 80,526 $ 81,788 $ 72,286 $ 75,002
54,237 56,455 59,474 62,189
69,341 92,432 3,790 14,283
(34,439) (62,962) (38,934) (35,096)
(4,313) (5,931) (3,533) (2,907)
191,923 135,211 93,083 113,471
825,958 1,017,881 732,875 619,404
$ 1,017,881 1,153,092 $ 825,958 $ $ 732,875
$ 693,002 402,384 $ 626,727 $ $ 527,119

74.13% 59.49% 56.86% 58.16%
$ 2,218,290 2,038,315 $ 2,148,465 $ $ 2,070,806

19.74% 31.24% 29.17% 25.45%
82 CITY OF BIG BEAR LAKE, CALIFORNIA
PARS RETIREMENT ENHANCEMENT PLAN 1

SCHEDULE OF INVESTMENT RETURNS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS 2
Fiscal Year Ending June 30
Net Money-Weighted Rate of
Return
2021 22.96%
2020 3.82%
2019 6.73%
2018 6.49%
2017 10.46%
2016 0.49%
2015 2.15%
Notes to Schedule of Investment Returns:
2 GASB Statement No. 67, which requires ten years of history for this schedule, was implemented during Fiscal Year 2013/14.

Additional years will be added as they become available in the future. 1 The City also reports the SBCERA Retirement Plan, a cost-sharing, multiple-employer defined benefit pension plan.

SBCERA issues a publicly available financial report that includes ten-year information regarding that Plan's money-weighted rate of return on pension plan investments. The separate SBCERA report can be obtained from SBCERA at 348 W. Hospitality Lane, Third Floor, San Bernardino, California 92415-0014. 8383

CITY OF BIG BEAR LAKE, CALIFORNIA

SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
Fiscal Year Actuarially Actual Contribution Contribution Ending Determined Employer Deficiency Covered as a % of June 30, Contribution Contribution (Excess) Payroll Covered Payroll 2021 $ 1,792,978 $ 1,792,978 $ - $ 4,779,509 37.51%
2020 1,816,142 1,816,142 - 5,078,347 35.76%
2019 1,639,155 1,639,155 - 4,484,497 36.55%
2018 2,410,122 2,410,122 - 5,887,446 40.94%
2017 2,639,711 2,639,711 - 5,859,630 45.05%
2016 2,501,350 2,501,350 - 5,553,599 45.04%
2015 1,994,764 1,994,764 - 5,655,229 35.27%
Fiscal Year Actuarially Actual Contribution Contribution Ending Determined Employer Deficiency Covered as a % of June 30, Contribution Contribution (Excess) Payroll Covered Payroll 2021 $ 1,159,105 $ 1,159,105 $ - $ 3,105,284 37.33%
2020 1,175,252 1,175,252 - 2,934,142 40.05%
2019 1,092,203 1,092,203 - 2,522,357 43.30%
2018 963,613 963,613 - 2,466,731 39.06%
2017 875,584 875,584 - 2,422,438 36.14%
2016 905,480 905,480 - 2,799,460 32.34%
2015 903,474 903,474 - 2,409,126 37.50%
Fiscal Year Actuarially Actual Contribution Contribution Ending Determined Employer Deficiency Covered as a % of June 30, Contribution Contribution (Excess) Payroll Covered Payroll 2021 $ 53,350 $ 56,596 $ (3,246) $ 1,483,206 3.82%
2020 66,894 67,377 (483) 1,737,784 3.88%
2019 74,887 81,886 (6,999) 1,738,547 4.71%
2018 82,613 80,526 2,087 2,038,315 3.95%
2017 86,779 81,788 4,991 2,218,290 3.69%
2016 59,225 72,286 (13,061) 2,148,465 3.36%
2015 67,856 75,002 (7,146) 2,070,806 3.62%
City of Big Bear Lake SBCERA Cost-Sharing Multiple-Employer Pension Plan:

City of Big Bear Lake PARS Single-Employer Pension Plan:

Big Bear Lake Department of Water and Power SBCERA Cost-Sharing Multiple-Employer Pension Plan:
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal year 2015 was the first year of implementation, therefore only seven years are shown.

The Notes to Required Supplementary Information are an Integral Part of this Schedule. 84 &,7< 2) %,* %($5 /$.( &$/,)251,$
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CITY OF BIG BEAR LAKE, CALIFORNIA

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:

Cash and investments $ - $ - $ 101,460 $ 85,411
Accounts receivable 69,744 - - -
Accrued interest receivable - - 42 58
Due from other governments 3,594 - 168,626 1,729
Total Assets $ 73,338 $ - $ 270,128 $ 87,198
Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits):

Liabilities:

Accounts payable $ - $ - $ - $ -
Accrued liabilities - - - -
Due to other governments - - - -
Due to other funds - - - -
Total Liabilities - - - -
Deferred Inflows of Resources:

Unavailable revenues - - - -
Total Deferred Inflows of Resources - - - -
Fund Balances (Deficits):

Restricted:

Public safety 73,338 - - -
Public works - - 270,128 -
Health and sanitation - - - 87,198
Public education government access - - - -
Committed:

Contingency reserve - disaster - - - -
Unassigned - - - -
Total Fund Balances (Deficits) 73,338 - 270,128 87,198
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits) 73,338 $ - $ $ 270,128 $ 87,198 Traffic Safety Gas Tax Measure I
Mobile Source
Air Pollution
Reduction
Special Revenue Funds
88 CITY OF BIG BEAR LAKE, CALIFORNIA

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:

Cash and investments
Accounts receivable
Accrued interest receivable
Due from other governments
Total Assets
Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits):

Liabilities:

Accounts payable
Accrued liabilities
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances (Deficits):

Restricted:

Public safety
Public works
Health and sanitation
Public education government access
Committed:

Contingency reserve - disaster
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits)
(CONTINUED)
$ 1,101 $ 10,855 $ 1,053,940 $ 283,356
- - 8,228 -
- - 907 194
756,184 1,946 122,713 -
$ 12,801 757,285 $ 1,185,788 $ $ 283,550
$ - $ 4,924 $ 207,091 $ -
- 10,855 19,282 -
- 40 - -
787,854 958,322 - -
787,854 974,141 226,373 -
- 756,184 2,740 -
- 756,184 2,740 -
- - - 283,550
- - - -
- - 806,675 -
- - - -
- - 150,000 -
(786,753) (961,340) - -
(786,753) (961,340) 956,675 283,550
$ 12,801 757,285 $ 1,185,788 $ $ 283,550
Village
Streetscape
Maintenance Refuse
Supplemental
Law
Enforcement
Local
Transportation
Special Revenue Funds
89 CITY OF BIG BEAR LAKE, CALIFORNIA

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:

Cash and investments
Accounts receivable
Accrued interest receivable
Due from other governments
Total Assets
Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits):

Liabilities:

Accounts payable
Accrued liabilities
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances (Deficits):

Restricted:

Public safety
Public works
Health and sanitation
Public education government access
Committed:

Contingency reserve - disaster
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits)
$ 20,705 $ 269,100 $ 4,243,369 $ 375,227
- 13,591 399,022 -
- 187 2,873 212
- - - -
$ 20,705 $ 4,645,264 282,878 $ $ 375,439
$ 9 28 $ 2 $ 63 $ -
- - - -
- 1,418 - -
- - - -
9 1,446 2 63 -
- - 4,254 -
- - 4,254 -
- - - -
- 19,259 4,640,947 375,439
- - - -
- 282,786 - -
- - - -
- - - -
19,259 282,786 4,640,947 375,439
$ 20,705 $ 4,645,264 282,878 $ $ 375,439
Developer
Impact-General
Facilities
Pass-through
Fees
PEG Access
Fund Measure Y
Special Revenue Funds
90 CITY OF BIG BEAR LAKE, CALIFORNIA

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:

Cash and investments
Accounts receivable
Accrued interest receivable
Due from other governments
Total Assets
Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits):

Liabilities:

Accounts payable
Accrued liabilities
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances (Deficits):

Restricted:

Public safety
Public works
Health and sanitation
Public education government access
Committed:

Contingency reserve - disaster
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits)
(CONTINUED)
$ 255,918 $ 430,640 $ 409,532 $ -
- - - -
161 286 276 -
- - - 17,587
$ 256,079 $ 430,926 $ 17,587 409,808 $
$ - $ - $ - $ -
- - - -
- - - -
- - - 17,587
- - - 17,587
- - - -
- - - -
- - 409,808 -
256,079 430,926 - -
- - - -
- - - -
- - - -
- - - -
256,079 430,926 409,808 -
$ 256,079 $ 430,926 $ 17,587 409,808 $
Developer
ImpactCirculation
Developer
ImpactDrainage
Developer
Impact-Fire
Suppression RMRA
Special Revenue Funds
91 CITY OF BIG BEAR LAKE, CALIFORNIA

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:

Cash and investments
Accounts receivable
Accrued interest receivable
Due from other governments
Total Assets
Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits):

Liabilities:

Accounts payable
Accrued liabilities
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances (Deficits):

Restricted:

Public safety
Public works
Health and sanitation
Public education government access
Committed:

Contingency reserve - disaster
Unassigned
Total Fund Balances (Deficits)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances (Deficits)
Total
Governmental
Funds
$ 29,415 176,879 $ 7,746,908 $
- - 490,585
- - 5,196
- - 1,072,379
$ 29,415 176,879 $ 9,315,068 $
$ 19,477 163,037 $ $ 394,712
- 9,938 40,075
13,842 - 15,300
- - 1,763,763
176,879 29,415 2,213,850
- - 763,178
- - 763,178
- - 766,696
- - 5,992,778
- - 893,873
- - 282,786
- - 150,000
- - (1,748,093)
- - 6,338,040
$ 29,415 176,879 $ 9,315,068 $
General Capital
Projects
Street
Improvements
Capital Projects Funds
92 THIS PAGE INTENTIONALLY LEFT BLANK
9393

CITY OF BIG BEAR LAKE, CALIFORNIA

COMBINING STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Revenues:

Taxes $ - $ 535,390 $ - $ -
Licenses and permits - 189,601 - -
Intergovernmental - - 644,985 8,507
Charges for services - - - -
Use of money and property - - (139) 66
Developer participation - - - -
Total Revenues 189,601 535,390 644,846 8,573
Expenditures:

Current:

General government - - - -
Community development - - - -
Public works - - - -
Health and sanitation - - - -
Capital outlay - - - -
Total Expenditures - - - -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 189,601 535,390 644,846 8,573 Other Financing Sources (Uses):

Transfers in - - - -
Transfers out (535,390) (125,160) (586,071) -
Total Other Financing Sources (Uses) (125,160) (535,390) (586,071) - Net Change in Fund Balances 64,441 - 58,775 8,573
Fund Balances (Deficits), Beginning of the Year 8,897 - 211,353 78,625 Fund Balances (Deficits), End of the Year 73,338 $ - $ $ 270,128 $ 87,198 Special Revenue Funds
Traffic Safety Gas Tax Measure I
Mobile Source
Air Pollution
Reduction
94 CITY OF BIG BEAR LAKE, CALIFORNIA

COMBINING STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Revenues:

Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Developer participation
Total Revenues
Expenditures:

Current:

General government
Community development
Public works
Health and sanitation
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):

Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficits), Beginning of the Year
Fund Balances (Deficits), End of the Year
(CONTINUED)
$ - $ - $ - $ -
- - - -
- - 5,000 178,663
- 90,840 3,499,459 -
- - (1,791) 375
- - - -
- 90,840 3,502,668 179,038
- - - -
- - - -
- 401,803 - -
- - 3,175,712 -
- - - -
- 401,803 3,175,712 -
(310,963) - 326,956 179,038
- 115,615 - -
- (694,992) (139,230) (7,434)
(694,992) 115,615 (139,230) (7,434)
(694,992) (195,348) 187,726 171,604
(91,761) (765,992) 768,949 111,946
$ ( (786,753) $ 961,340) $ 956,675 $ 283,550
Special Revenue Funds
Local
Transportation
Village
Streetscape
Maintenance Refuse
Supplemental
Law
Enforcement
95 CITY OF BIG BEAR LAKE, CALIFORNIA

Big Bear Lake City CouncilJanuary 3, 2022

Big Bear Lake City Council
January 3, 2022