Agenda packet — Compton City Council, March 15, 2022 (part 1 of 2)

Members of the public may address the City Council on any item shown on the agenda or matter of the Council’s authority after completion of “Request to Address the Council Form” available in the lobby of the Council Chambers. This form must be completed 15 minutes prior to the scheduled meeting time.

Pursuant to Section 54957.5 of the California Government Code, Any writings (Except for those writings which are exempt from disclosure) which are distributed to all or a majority of the members of the City Council are available for public inspection in the lobby of the City Council Chambers and in the office of the City Clerk during regular business hours.

COMPTON CITY COUNCIL
AGENDA
03/15/2022
5:30 PM
Closed Session 4:30 P.M.

Public Meeting 5:30 P.M.

CITY COUNCIL CHAMBERS
205 SOUTH WILLOWBROOK AVENUE
COMPTON, CALIFORNIA 90220

OPENING

MOMENT OF SILENCE

PLEDGE OF ALLEGIANCE

ROLL CALL

PUBLIC COMMENTS ON CLOSED SESSION AGENDA ITEMS
(Persons wishing to address the City Council on the Closed Session items may do so at this time.

Comments are limited to one (1) minute per speaker and shall be limited to Closed Session agenda items)
-2- City Council Agenda
3/15/2022 5:30 PM
CLOSED SESSION – 4:30 p.m.

CONFERENCE WITH LEGAL COUNSEL - PENDING LITIGATION
Briana Smith, et al. v. City of Compton, LASC Case No. 18STCV01917 George Baldwin v. City of Compton, LASC Case No. 18STCV00656 Pursuant to Government Code Section 54856.9(a)

RECESS TO CLOSED SESSION

OPENING
PUBLIC MEETING – 5:30 P.M.

REPORT ON CLOSED SESSION ACTION(S)

COMMENDATORY RESOLUTIONS/PRESENTATIONS

1. COMMEMORATIVE RESOLUTION - " AWARD OF EXCELLENCE" Dr. Eugene Allen, M.D. (Mayor Emma Sharif)

PUBLIC COMMENTS ON AGENDA ITEMS AND NON-AGENDA MATTERS

CONSENT AGENDA
Consent items are routine and expected to be non-controversial. They will be acted upon by the Council at one time without discussion unless a Council Member requests an item be removed or discussed.

APPROVAL OF MINUTES

2. FEBRUARY 15, 2022

WATER DEPARTMENT

3. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE ISSUANCE OF A PURCHASE ORDER FOR PAYMENT OF

WATER SYSTEM ANNUAL FEES TO THE STATE WATER RESOURCES
CONTROL BOARD ($38,889.22)
-3- City Council Agenda
3/15/2022 5:30 PM

REGULAR AGENDA

CITY MANAGER'S REPORT

4. A LETTER OF SUPPORT FOR THE RESTORATION OF EMILY HART

HOLLIFIELD NAME ON THE COMPTON COLLEGE LIBRARY

5. PRESENTATION - COMPONENTS OF PENSION AND OTHER POSTEMPLOYMENT BENEFITS LONG TERM LIABILITY - (City Controller)

6. POWER POINT PRESENTATION - HOMELESS SERVICE PROVIDER UPDATE - Homeless Outreach Program Integrated Care System (HPOICS)

7. POWER POINT PRESENTATION - GENERAL PLAN UPDATE AND MIG PROPOSAL - Community Development Department

NEW BUSINESS

8. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON SUPPORTING WOMEN’S HISTORY MONTH IN MARCH

9. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT AND

ISSUE A PURCHASE ORDER TO FIRETRUCKS UNLIMITED FOR THE
PURCHASE OF ONE (1) 2021 DODGE RAM 3500 DIESEL TYPE 1 AMBULANCE REMOUNT ($124,964.00)

10. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON TO

RECEIVE AND FILE A DONATIONS POLICY

11. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON TO

ADOPT A FISCAL SUSTAINABILITY PLAN

12. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON TO

RECEIVE AND FILE INTERNAL CONTROL POLICIES RELATING TO

BUDGETING AND GRANT MANAGEMENT PRACTICES

13. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON TO

RECEIVE AND FILE INTERNAL CONTROL POLICIES RELATING TO GENERAL

ACCOUNTING, BANK RECONCILIATION, AND CAPITAL (FIXED) ASSET

PRACTICES

COUNCIL COMMENTS

ADJOURNMENT
NEXT REGULAR MEETING: 3/22/2022 @ 5:30 PM
Visit our website at http://www.comptoncity.org
FEBRUARY 15, 2022
The Compton City Council Closed Session meeting was called to order at 4:35 p.m. by Mayor Emma Sharif. The Moment of Silence Ceremony and the Pledge of Allegiance was also led by Mayor Sharif.

ROLL CALL
Council Members Present – J. Bowers, L. Darden, Mayor E. Sharif Council Members Absent – M. Chambers, I. Galvan (Both entered during closed session.)

Other Officials Present: E. Perrodin, A. Godwin, B. Mims, R. Simpson

CLOSED SESSION AGENDA ITEM

CONFERENCE WITH LEGAL COUNSEL
Urban Graffiti Enterprises, Inc. v. City of Compton, LASC Case No. 19PSCV00135 and Michael Fletcher, et al. v. City of Compton, LASC Case Number BC670866 - Pursuant to Government Code Section 54856.9(a)

PUBLIC COMMENTS REGARDING CLOSED SESSION AGENDA ITEMS ONLY There were no audience comments.

City Attorney Eric Perrodin requested a closed session for a conference with legal counsel regarding Urban Graffiti Enterprises, Inc. v. City of Compton, LASC Case No. 19PSCV00135 and Michael Fletcher, et al. v. City of Compton, LASC Case Number BC670866 - Pursuant to Government Code Section 54856.9(a).

On motion by Darden, seconded by Bowers, the City Council approved the closed session by the following vote on roll call:

AYES: Council Members – Bowers, Darden, Sharif
NOES: Council Members – None
ABSENT: Council Members – Chambers, Galvan

RECESS TO CLOSED SESSION
On motion by Darden, seconded by Bowers, the City Council voted to recess to closed session at 4:36 p.m. by the following vote on roll call:

AYES: Council Members – Bowers, Darden, Sharif
NOES: Council Members – None
ABSENT: Council Members – Chambers, Galvan

RECONVENE TO OPEN SESSION
On motion by Galvan, seconded by Darden the Council reconvened at 5:35 p.m. by the following roll call vote:

Council Members Present: Chambers, Galvan, Darden Bowers, Sharif Council Members Absent: None

REPORT OUT OF CLOSED SESSION
City Attorney Perrodin reported that there was no reportable action taken by the City Council during the closed session.

2. PUBLIC COMMENTS ON AGENDA ITEMS AND NON-AGENDA MATTERS Pastor Willie Rollins informed the City Council that the potholes were filled on his street, however, the work performed by the crew was inadequate. Pastor Rollins indicated that the proper equipment was not used, as the gravel was poured, and the workers simply rolled over the pavement with their vehicle tires while talking and laughing and seemed unconcerned regarding the quality of their work. Pastor Rollins suggested that the City provide better supervision and quality control to ensure that the workers do a better job for the City of Compton.

Richard Earl read a letter from Mr. and Mrs. Taylor thanking Councilmember Bowers and City Manager Simpson for cleaning up the area near the Compton Creek from Alondra to Compton and added that Mr. Carl Steele and his crew were very professional and courteous and further requested that the City keep the cleaning momentum going. Mr. Earl invited the City Council to attend the Black History Celebration hosted by the Concerned Citizens of Compton and the 125 Historical Society at the Dollarhide Community Center on February 19, 2022, from 3:00 p.m. to 6:00 p.m.

Marjorie Shipp raised concerns that permit parking was removed by a previous City Manager in 2019 without notifying the residents of the community. Ms. Shipp requested that the current City Manager locate the paperwork concerning permit parking and consider renewing or reinstating permit parking in the Richland Farms area as well as other areas of Compton.

Maria Villareal, CEO Latino Chamber of Commerce, welcomed a new Notary service as a new member of the Latino Chamber of Commerce. Ms. Villareal indicated that the Notary also is a Tax Preparer, and she can be reached at (424) 785-5926. Ms. Villareal indicated that she has a passion for the small businesses, as they are the backbone of the community and noted that she will continue to assist. Ms. Villareal made reference to a brochure illustrating the small businesses and their services in the City and requested that such a brochure once again, be made available to the residents and businesses.

Joyce Kelly commented that she is very disturbed about what is happening in Compton.

Ms. Kelly accused the Mayor of dividing the City and urged the Council to turn the City around and eradicate the illegal marijuana shops with the assistance of Code Enforcement and the Sheriff’s Department. Ms. Kelly then requested that the City Council work together to improve the City of Compton.

DeShon Showtime announced that Comptonmania will take place on May 14, 2022, to provide an opportunity for the Compton vendors, businesses and residents to showcase their products and bring back Compton pride. Mr. DeShon indicated that Compton is a beautiful City which must let the World know about the talents of the City and further invited everyone to visit [email protected] or call: (562) 277-7253 for additional information.

Gilda Blueford commented that in 1984 Los Angeles hosted the Olympics and Compton indicated that the entire City of Compton rose to the occasion. Thirty-eight years later, Compton had the same opportunity, however, the City dropped the ball, by not cleaning and sprucing up Compton to prepare for the many visitors who came into the City. Ms. Blueford indicated that people from all over the World came to Compton and it was embarrassing and disappointing to see that the City was not properly prepared. Ms. Blueford further questioned when the City would hire a new City Manager and also questioned why the Taxpayer Oversight Committee has not submitted any quarterly reports to the residents. Ms. Blueford concluded by urging the City Attorney to look into the whereabouts of the diverted $135,000 Planning money from 2016.

Craig Henry raised concerns regarding the need to improve the infrastructure of the City and indicated that it is important that the City administration keep their word to make improvements.

Mr. Henry thanked City Manager Simpson for his assistance and further stated that the City of Compton is a landlord with rental agreements that must be honored and further requested the City Council’s assistance with improving the condition of the buildings maintained by the City of Compton.

Missy Barber commented that the United Hands organization is once again, requesting assistance with the parking tickets their service vehicle received, while providing food and goods to the residents of Compton. Ms. Barber raised concerns that the issues and requests submitted by the residents of the community are not being addressed by the City Council. She further commented that the Mayor must lead by example and not ridicule certain members of the City Council. Ms.

Barber then urged the City to require City workers to conduct themselves in a professional manner and properly repair the streets.

Lynn Boone commented that Mayor Sharif is the Chairperson and also raised concerns that the City Council should act as policy makers. She further explained that by setting policies, the Council can make corrections or improvements which can become law. Ms. Boone raised concerns that the residents do not receive responses or solutions to their concerns and issues when they bring them forward at the City Council meetings. Ms. Boone alleged that the City Manager is not a professional and not qualified for the position and he was only supposed to be temporary and should not be allowed to retire in his current position. Ms. Boone raised concerns regarding agenda item Number 9 and urged the City Council to pull this item from the City Council agenda.

Fidel Marquez raised concerns regarding the need to improve the infrastructure of the City. Mr.

Marquez indicated that there is a problem with District 1 and the construction developments provided by the Olson Company and added that residents near the construction location have had brown water for the last two weeks and the bug infestation is getting worse by the day.

Mr. Marquez then noted that the residents do not want the development in the area, and added that the developer, KBK is currently being sued by the Marriott and Hilton Hotels. Mr. Marquez concluded by emphasizing that the City must require the Compton Sheriffs to do their job and combat the illegal vehicle street takeovers, and further urged the City Council to upgrade and improve the City of Compton.

SPECIAL PRESENTATION TO YOUTH BUILD
The Mayor and City Council presented commendations to Sarah Silvers, the Compton Youth Build and Chef Mario Morales of Impactful Bites and his Students for excelling in the culinary arts and also for providing culinary delights to the Seniors at the 2022 St. Valentine’s Day Luncheon.

The Mayor and City Council also presented flower arrangement to all the liaisons that assisted the City Councilmembers.

CONSENT AGENDA

APPROVAL OF MINUTES

1. JANUARY 18, 2022 (Approved)

CITY FIRE DEPARTMENT

2. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON DECLARING SIX (6) FIRE DEPARTMENT AGED OUT FIRE ENGINES AS

SURPLUS PROPERTY AND AUTHORIZING THE DONATION OF SAID

VEHICLES TO BIT PROS FIRE SERVICE TRUCK AND AMBULANCE REPAIR (Approved Resolution Number 25,607)

CITY MANAGER

3. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE ISSUANCE OF A PURCHASE ORDER TO THE

CALIFORNIA CITIES FOR SELF-RELIANCE JOINT POWERS AUTHORITY FOR ANNUAL FUNDING CONTRIBUTION ($30,000) (Approved Resolution Number 25,608)

PUBLIC WORKS DEPARTMENT

4. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE CITY MANAGER TO ESTABLISH A PURCHASE ORDER

TO THE UNIFIRST UNIFORM COMPANY TO PROVIDE UNIFORMS FOR THE

PUBLIC WORKS STREET MAINTENANCE DEPARTMENT - PARKS
MAINTENANCE DIVISION IN AN AMOUNT NOT TO EXCEED ($7000) (Approved Resolution Number 25,609)
On motion by Chambers, seconded by Darden, the consent agenda was approved by the following vote on roll call:

AYES: Council Members – Chambers, Galvan, Bowers, Darden, Sharif NOES: Council Members – None
ABSENT: Council Members – None

REPORTS OF OFFICERS, BOARDS, COMMISSIONS AND COMMITTEES AND CITY

COUNCIL

5. APPOINTMENT(S) OF OFFICERS, COUNCIL MEMBERS,

BOARDS/COMMISSIONS AND COMMITTEES

DESIGNATION OF VOTING DELEGATES AND ALTERNATES -

SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS
(SCAG) ANNUAL GENERAL ASSEMBLY (MAY 5-6, 2022)
Mayor Sharif nominated Councilmember Chambers to serve as the appointee to the Southern California Association of Governments and appointed Councilmember Darden as the alternate.

On motion by Galvan, seconded by Chambers, Councilmembers Michelle Chambers and Lillie Darden were appointed to the Southern California Association of Governments by the following vote on roll call:

AYES: Council Members – Chambers, Galvan, Bowers, Darden, Sharif NOES: Council Members – None
ABSENT: Council Members – None

6. ABOLISHMENT AND OR CREATION

OF BOARDS/COMMISSIONS/COMMITTEES
It was moved by Galvan, seconded by Chambers, for discussion.

City Clerk Alita Godwin explained that on October 5, 2021, the City Council voted to remove all commissioners with expired terms. This action created complete vacancies on all boards/commissions/committees. City Clerk Godwin then indicated that it is the Council’s decision relative to which boards/committees/commissions they would like to abolish, with the exception of the Personnel Board, Planning Commission, Parks and Recreation Commission and Compton Taxpayers Committee (Measure P).

City Attorney Eric Perrodin indicated that only the Personnel Board, Planning Commission, Parks and Recreation and the Measure P Commission are in the Charter and the other boards, committees and commissions were established by ordinance over the years. Attorney Perrodin then indicated that the City Council has the authority to re-constitute the various boards, commissions, and committees with members to serve.

Councilman Bowers commented that he would like to move forward with appointments to all of the boards, committees and commissions.

Councilman Galvan offered a motion to keep all the boards, committees and commissions.

City Clerk Godwin indicated that any appointments to the committees and commission must be placed on the City Council agenda for consideration.

Councilmember Darden indicated that she is not in favor of abolishing all of the boards, committees and commissions, adding that some community members have expressed desire to volunteer their time to serve, such as the Block Club Commission and the Beautification Committee.

City Clerk Godwin noted that there is no need to present a motion since all the boards, committees and commissions are still established, and added that the City Council only needs to make appointments. City Clerk Godwin then indicated that she would provide the City Council with a list explaining the function and duties of the various boards/committees/commissions.

Mayor Sharif requested that the City Manager identify grant funding sources to allow the appointees the necessary funding to adequately fulfill their duties.

CITY MANAGER’S REPORT

7. LEGISLATION UPDATE REPORT - Caliph & Mel Assagai, California Policy Solutions (Re-scheduled to February 22, 2022)

8. PRESENTATION - DISCLOSURES IN AUDITED FINANCIAL STATEMENTS REGARDING PENSION AND OTHER POST-EMPLOYMENT BENEFITS (City Controller) (Rescheduled to February 22, 2022)

NEW BUSINESS

9. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE CITY MANAGER TO ENTER INTO A THIRD

AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH AND

ESTABLISH A PURCHASE ORDER FOR INTERWEST CONSULTING GROUP

TO PROVIDE ON-CALL CIVIL AND TRAFFIC ENGINEERING SERVICES ($343,520)
It was moved by Galvan, seconded by Chambers, for discussion.

Councilman Bowers raised concerns that this item has been going on for a while and he has never seen a report of anything accomplished. Councilman Bowers suggested that the funding be used for the return of the various committees and commissions.

Councilman Galvan commented that this is the third amendment to the contract and questioned how much money has been paid to this company thus far. City Manager Simpson replied that he did not have the exact total for the amendments, however, he would investigate and report back to the Council. Councilman Galvan then suggested that the item be brought back with the total amount paid to the company, prior to voting on the amendment. Councilman Galvan then withdrew his motion.

Councilmember Chambers offered a motion to approve the item and Mayor Sharif (who stepped from the Chair) to offer a second to the motion.

Councilmember Darden raised concerns regarding the amendment and further suggested that the item be brought back before the Council, along with the pertinent information requested by the Council and the community.

Councilman Bowers agreed and further requested that Staff provide details of the work performed and the associated costs.

Councilmember Chambers withdrew her motion and Mayor Sharif withdrew her second.

COUNCIL COMMENTS
City Clerk Alita Godwin wished her Godmother, Dorothy “Mom” Kelley a very Happy 101st Birthday and Cora Walker a Happy 95th Birthday.

Councilmember Chambers offered the following communications/announcements:
 Thanked everyone involved with the wonderful Senior Valentine’s Day Luncheon and particularly thanked all the City Council’s Liaisons for their tireless work and dedication to serving the residents.
 Requested that the City Manager look into acquiring the assistance of the Compton Sheriffs in removing the illegally parked vehicles along El Segundo Blvd.  Commented that the City’s website must be updated with current information for the businesses and residents of the community.
 Requested that the City Manager make certain that all City properties that are being leased out are properly maintained and up to the proper leasing standards.  Requested that the Council meeting be adjourned in memory of Terry Moore and Dawn Yvette Coleman.

Councilmember Galvan offered the following communications/announcements:
 Commented that he has received numerous complaints regarding the condition of the trash receptables at Cesar Chavez Park and requested that the trash bins be replaced as soon as possible.
 Requested an update regarding the return of the gymnasium at Leuders Park to the residents.
 Requested that the City Manager address the unsatisfactory condition of the old City Hall building and make the necessary repairs/corrections as soon as possible.  Requested that the City Manager bring forth a resolution in support of Ms. Emily HartHolifield’s name being restored to the Compton Community College Library.  Requested that the City Attorney review the issue of parking citations received by the United Hand’s nonprofit organization.
 Commented on the success of NFL Superbowl Half-time Performers Kendrick Lamar and Dr. Dre and added that the City of Compton was well represented. (Councilman Galvan exited the meeting at 7:11 p.m.)
Councilmember Bowers offered the following communications/announcements:
 Commented on the promotion of Compton during the Superbowl Half-time Performance and indicated that the City should have been better prepared to receive visitors and the special focus placed on the City.
 Commented that the Olympic Games are coming to Los Angeles and indicated that the City of Compton must improve its infrastructure and be prepared to offer tours, along with goods and other services to individuals visiting the City.  Indicated that his Office will continue to work towards providing CERT (Community Emergency Response Team) training to all parties interested.  Requested that the City Manager provide a centralized notification system in English and Spanish for the informational/educational benefit of the citizens.

Councilmember Darden offered the following communications/announcements:
 Announced that she attended an event regarding New Alternative Fuel Fleet Vehicles and thanked Assistant City Manager Triphenia Simmons for coordinating the electric vehicle program.
 Thanked the Mayor and Council and everyone involved with the hugely successful Senior Valentine’s Day Luncheon.
 Announced that the Los Angeles Association of Black Personnel is hosting a career Webinar on February 18, 2022, from 9:00 a.m. to 12:00 noon.  Requested that the City Manager provide an update regarding the repair of the Artesia Bridge.

Mayor Sharif offered the following communications/announcements:
 Mayor Sharif suggested that the City Manager move forward with the street design services to ensure that the City will be able to obtain critical funding to complete the project.
 Mayor Sharif announced that there will be a Black History Month celebration at the Compton Grocery Outlet, 2175 W. Rosecrans Avenue on February 19, 2022.  Mayor Sharif announced that the Los Angeles County Department of Health is offering free in-home Covid-19 vaccinations---please call: 833-540-0473 for additional information.
 Mayor Sharif thanked everyone involved with the wonderful Senior Valentines’ Day Luncheon at the Dollarhide Community Center.
 Mayor Sharif announced that Compton Community College is offering free Covid-19 testing in the Student Health Center.
 Mayor Sharif requested that the City Council meeting be adjourned in memory of Gertrude Jackson and Pastor Bobby Newman, Sr.

ADJOURNMENT
On motion by Chambers, seconded by Darden, the meeting was adjourned in memory of Patricia Ricket, Terry Moore, Dawn Yvette Coleman, Gertrude Jackson and Pastor Bobby Newman at 7:15 p.m. by the following vote on roll call:

AYES: Council Members – Chambers, Bowers, Darden, Sharif NOES: Council Members – None
ABSENT: Council Members – Galvan
________________________________________ ___________________________________

CITY CLERK OF THE CITY OF COMPTON MAYOR OF THE CITY OF COMPTON March 15, 2022
TO: MAYOR AND CITY COUNCIL MEMBERS
FROM: MUNICIPAL WATER DEPARTMENT
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE ISSUANCE OF A PURCHASE ORDER FOR

PAYMENT OF WATER SYSTEM ANNUAL FEES TO THE STATE
WATER RESOURCES CONTROL BOARD ($38,889.22)

SUMMARY
Adoption of this resolution will authorize the City Manager to issue a purchase order for water system annual fees to the State Water Resources Control Board (SWRCB) in the amount of Thirty-Eight Thousand, Eight Hundred Eighty-Nine Dollars and Twenty-Two Cents ($38,889.22).

BACKGROUND
The State Water Resources Control Board’s (SWRCB) mission is to preserve, enhance and restore the quality of California’s water resources and drinking water for the protection of the environment, public health and all beneficial uses, and to ensure proper water resource allocation and efficient use, for the benefit of present and future generations.

To uphold this mission the SWRCB has established a series of regulations aimed at increasing total funding for California’s Drinking Water Program and addressing drinking water issues by charging public water systems an annual fee. While the fees are aimed at ensuring the SWRCB has adequate funding to implement the Program, the regulations could result in very significant fee increases for affected systems.

The SWRCB is promulgating the regulations pursuant to its authority under the Safe Drinking Water Act, which applies to all persons who supply water for human consumption, and meet the law’s definition of “public water system”. Senate Bill (SB 83) modified the SWRCB’s authority to impose annual operating fees on public water systems. Based on SB 83, the SWRCB’s regulations establish a fee structure based on each water system’s total number of connections.

3. Staff Report – SWRCB Water System Annual Fees
March 15, 2022, Page 2

STATEMENT OF THE ISSUE
A public water system is defined as a system that provides water for human consumption to 15 or more connections or regularly serves 25 or more people daily for at least 60 days out of a year.

The Compton Municipal Water Department is a public water system and legally distinct as a Community Water System that has over 13,000 connections and provides safe drinking water to its customers 24 hours a day, 7 days a week, 365 days a year.

Therefore, the Compton Municipal Water Department is obligated under legislation to pay the full amount of the annual water system fees to the State Water Resources Control Board, as prescribed in the Drinking Water Fee Regulations, Section 64300.

ALTERNATIVES
Staff does not recommend any alternatives.

FISCAL IMPACT
Funds in the amount of $38,889.22 are available in the Compton Municipal Water Department’s Fiscal Year 2021-2022 budget in Account No. 5000-90-0000-4262.

RECOMMENDATION
Staff recommends that Council adopt this resolution.

DON NGUYEN

GENERAL MANAGER

MUNICIPAL WATER DEPARTMENT
APPROVED FOR FORWARDING:

RONERICK SIMPSON

CITY MANGER
RESOLUTION NO. ___________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE ISSUANCE OF A PURCHASE ORDER FOR

PAYMENT OF WATER SYSTEM ANNUAL FEES TO THE STATE WATER
RESOURCES CONTROL BOARD ($38,889.22)
WHEREAS, the State Water Resources Control Board’s (SWRCB) mission is to preserve, enhance and restore the quality of California’s water resources and drinking water for the protection of the environment, public health and all beneficial uses, and to ensure proper water resource allocation and efficient use, for the benefit of present and future generations; and
WHEREAS, the SWRCB has established a series of regulations aimed at increasing total funding for California’s Drinking Water Program and addressing drinking water issues by charging public water systems an annual fee; and
WHEREAS, the SWRCB is promulgating the regulations pursuant to its authority under the Safe Drinking Water Act, which applies to all persons who supply water for human consumption, and meet the law’s definition of a “public water system”. Senate Bill (SB 83) modified the SWRCB’s authority to impose annual operating fees on public water systems.

WHEREAS, the Compton Municipal Water Department is a public water system, and legally distinct as a Community Water System and therefore, is obligated under legislation to pay the annual water system fees to SWRCB, as prescribed in the Drinking Water Fee Regulations; and
WHEREAS, the funds for this expenditure are available in the Municipal Water Department’s Fiscal Year 2021-2022 budget in Account No. 5000-90-0000-4262.

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

Section 1. That the City Manager is hereby authorized to issue a purchase order to the State Water Resources Control Board for water system annual fees.

Section 2. That funds in the amount of Thirty-Eight Thousand Eight Hundred Eighty-Nine Dollars and Twenty-Two Cents ($38,889.22) are available in the Municipal Water Department’s Fiscal Year 2021-2022 budget in Account No.5000-90-0000-4262.

Section 3. That copies of this Resolution shall be filed in the offices of the City Manager, City Controller, City Clerk, City Attorney and the Municipal Water Department.

Section 4. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

ADOPTED this _____________ day of ______________, 2022. ________________________________

MAYOR OF THE CITY OF COMPTON
RESOLUTION NO. ________________

Page 2 ends

ATTEST:
____________________________________

CITY CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss

CITY OF COMPTON )
I, Alita Godwin, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council of the City of Compton, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on the __________ day of ____________________, 2022.

That said Resolution was adopted by the following vote, to wit:

AYES: COUNCIL MEMBERSNOES: COUNCIL MEMBERSABSTAIN: COUNCIL MEMBERSABSENT: COUNCIL MEMBERS- ____________________________________

CITY CLERK OF THE CITY OF COMPTON

March 15, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: CITY MANAGER
SUBJECT: A LETTER OF SUPPORT FOR THE RESTORATION OF EMILY

HART HOLLIFIELD NAME ON THE COMPTON COLLEGE

LIBRARY

SUMMARY
The item for consideration is a Letter of Support for the restoring of Emily Hart Hollifield name on the Compton College Library building.

STATEMENT OF THE ISSUE
At the December 21, 2021 City Council meeting, Councilmember Isaac Galvan requested the City Manager to prepare a Letter of Support for the restoring of Emily Hart Hollifield name to the Compton College Library.

FISCAL IMPACT
There is no fiscal impact associated with this item.

RECOMMENDATION
Staff seeks Council direction.

RONERICK D. SIMPSON

CITY MANAGER

4. March 15, 2022
Re: Letter of Support – Reinstate Emily Hart Hollifield’s name on Compton College Library Dear Honorable Compton College Board of Trustees:

As an elected member of the Compton City Council – District 2, I’m submitting this request as a Letter of Support to the Board of Trustees restore the name Emily Hart Hollifield on the Compton College Library building.

Mrs. Hollifield has been an active and influential member of the Compton community for over 60 years. Mrs.

Hollifield was responsible for establishing the first block club in Compton and the first Compton Hub City Area Republican group. Also, she served as the Educational Chair for the Compton chapter of the NAACP. Mrs.

Hollifield has been an advocate for education of our youth and job development and training for all Compton residents throughout her entire life of public service.

Mrs. Hollifield was the first woman to be elected to the Compton College Board of Trustees and served in that role for more than 20 years.

The College removed Mrs. Hollifield name from the library during the College’s 11-year period loss accreditation and campus-wide construction activities and projects. Since the removal, Mrs. Hollifield and numerous members of the community, in including Ms. Hollifield, have requested we her named be restored; however, those requests and attempts have been unsuccessful.

In conclusion, the City believes the Compton Library is an institutional landmark, and the City and Mrs. Emily Hart Holifield name should be restored on the building or another building on campus that will acknowledge and celebrate all of the her significant contributions’ to the College family and the residents of Compton.

Best Regards,
Isaac Galvan, District 2
Compton City Councilmember
March 15, 2022
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: CITY MANAGER’S OFFICE
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON SUPPORTING WOMEN’S HISTORY MONTH IN MARCH

SUMMARY
The City Manager request that the Council consider adopting a Resolution that will support Women History Month in March.

BACKGROUND
In March 1910 a German activist, Clara Zetkin, suggested that International Women’s Day be recognized as an international holiday at the International Conference of Working Women in Copenhagen, Denmark, and all 17 countries in attendance at the conference agreed.

In 1980, President Jimmy Carter declared the week of March 8th as National Women’s History Week. In his proclamation, he stated the achievements, leadership, courage, and strength of the women who built America was as vital as that of the men. The recognition was renewed by later presidents until 1987, when Congress designated March as Women’s History Month.

Throughout the month of March, Women’s History Month celebrates the contributions of women. It is a time to reflect on the courage of women of past generations and to celebrate how their efforts and bravery have afforded women the opportunities and freedom they have today.

STATEMENT OF ISSUE
Women’s History Month is a month-long observance recognizing all of women’s contributions and their vital roles that played throughout history.

FINANCIAL IMPACT
There is no fiscal impact resulting from adoption of this resolution.

RECOMMENDATION
Staff recommends that the City Council adopt the attached Resolution.

RONERICK SIMPSON

CITY MANAGER

8. RESOLUTION NO. ___________________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON SUPPORTING WOMEN’S HISTORY MONTH IN MARCH
WHEREAS, in March 1910 a German activist, Clara Zetkin, suggested that International Women’s Day be recognized as an international holiday at the International Conference of Working Women in Copenhagen, Denmark and all 17 countries in attendance agreed; and
WHEREAS, in 1980, President Jimmy Carter declared the week of March 8th as National Women’s History Week; and
WHEREAS, the recognition was renewed by later presidents until 1987, when Congress designated March as Women’s History Month; and WHEREAS, it is a time to reflect on the courage of women of past generations and to celebrate how their efforts and bravery afforded women the opportunities and freedoms they have today.

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

SECTION 1. That the City of Compton hereby declares its support for Women History Month in March.

SECTION 2. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

SECTION 3. That a certified copy of this Resolution shall be filed in the offices of the City Clerk and City Manager.

ADOPTED this __________________ day of __________________2022 _______________________________

MAYOR OF THE CITY OF COMPTON
ATTEST:
___________________________________

CITY CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES
CITY OF COMPTON: ss
RESOLUTION NO. _________________

Page 2 ends

I, Alita Godwin, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council, signed by the Mayor and attested by the City Clerk at a regular meeting hereof held on the __________ day of ___________, 2022.

That said Resolution was adopted by the following vote to wit:

AYES: COUNCIL MEMBERSNOES: COUNCIL MEMBERSABSENT: COUNCIL MEMBERSABSTAIN: COUNCIL MEMBERS- ___________________________________

CITY CLERK OF THE CITY OF COMPTON
March 15, 2022
TO: MAYOR AND COUNCIL MEMBERS
FROM: FIRE DEPARTMENT
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

COMPTON AUTHORIZING THE CITY MANAGER TO ENTER

INTO AN AGREEMENT AND ISSUE A PURCHASE ORDER TO
FIRETRUCKS UNLIMITED FOR THE PURCHASE OF ONE (1)
2021 DODGE RAM 3500 DIESEL TYPE 1 AMBULANCE
REMOUNT ($124,964.00)

SUMMARY
Adoption of the attached resolution will authorize the City Manager to enter into an agreement and issue a purchase order to Firetrucks Unlimited to deliver one (1) Type 1 Ambulance Remount in an amount not to exceed One Hundred TwentyFour Thousand, Nine Hundred Sixty-Four Dollars and Zero Cents for use by the Fire Department ($124,964.00).

BACKGROUND
The Fire Department (“Department”) utilizes three squad units and two ambulances to respond to paramedic service calls throughout the City of Compton.

The ambulance units are primarily utilized to provide medical attention to patients until they can be transported by the City’s contracted service provider, McCormick Ambulance Company. The ambulances, purchased in 2005 and 2008, have reached the end of their useful life in accordance with the Los Angeles County Emergency Medical Services Agency Policy No. 455 and become cost prohibitive to maintain.

The Fire Department needs to replace the ambulance, given its age and costs to maintain, to render reliable medical services. During Fiscal Year 2020 – 2021, approximately Thirty Eight Thousand Dollars ($38,000.00) was expended in maintenance and repairs to keep the vehicles operational. The Department has expended Twenty Six Thousand, Five Hundred Dollars ($26,500.00) to date this fiscal year in maintenance and repair costs. One of the units has been taken completely out of service as the current cost to repair it is not cost effective. The new vehicle comes with a warranty that relieves the cost of maintenance, less routine preventative maintenance (fluids and filter changes).

STATEMENT OF THE ISSUE
The Department advertised a Request for Proposals on December 1, 2021, to build out a Type 1 Ambulance (Paramedic Unit) Remount using a 2021 Dodge Ram 3500 Diesel and attach one of the current ambulance’s patient compartments

9. Staff Report – Resolution Authorizing P.O. to Fire Trucks Unlimited For Type 1 Ambulance Remount
March 15, 2022, Page 2
to the new truck chassis in the The Bulletin Newspaper. Fire Trucks Unlimited was the only vendor that submitted a proposal and staff qualified their proposal as responsive and comprehensive.

Firetrucks Unlimited specializes in refurbishing and building units from the ground up. The Department has purchased a Ladder Truck from them that is still in service and Firetrucks Unlimited has stood behind its product.

FISCAL IMPACT
Under the terms of the agreement with Fire Trucks Unlimited, the cost for one (1) Type 1 Ambulance Remount is One Hundred Twenty-Four Thousand Nine Hundred Sixty-Four Dollars and Zero Cents ($124,964.00). The purchase order will be issued in an amount not to exceed One Hundred Twenty-Four Thousand, Nine Hundred Sixty-Four Dollars and Zero Cents ($124,964.00).

Funding is available in Account No. 6000-720-000-4333 (Equipment Rental – Automotive Equipment) for the vehicle purchase.

RECOMMENDATION
Staff recommends that Council adopt the attached Resolution.

ANTHONY ADAMS

FIRE CHIEF
APPROVED FOR FORWARDING:

RONERICK SIMPSON

CITY MANAGER
RESOLUTION NO. _____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT

AND ISSUE A PURCHASE ORDER TO FIRETRUCKS UNLIMITED FOR THE PURCHASE OF ONE (1) 2021 DODGE RAM 3500 DIESEL TYPE 1
AMBULANCE REMOUNT ($124,964.00)
WHEREAS, the Fire Department (“Department”) currently runs three (3) Paramedic Units to cover the entire City which is essential for safe and efficient emergency response and operation; and
WHEREAS, the Department replaced two (2) aged out ambulances with two (2) new squads in 2019; and currently runs three (3) Paramedic Units to cover the entire City of Compton; and
WHEREAS, a third squad is needed to replace the current in-service 2008 Ambulance which is constantly in need of repair; and
WHEREAS, an RFP was published on December 1, 2021, and the City Clerk received one (1) proposal from Firetrucks Unlimited for One Hundred Twenty-Four Thousand Nine Hundred Sixty-Four Dollars and Zero Cents ($124,964.00); and WHEREAS, maintaining the vehicle has become cost prohibitive as the Department expended $38,000 in Fiscal Year 2020-2021 and $26,500 to date in Fiscal Year 2021-2022; and
WHEREAS, Firetrucks Unlimited provided a responsive and comprehensive proposal that meets the Department’s needs; and
WHEREAS, the Department has purchased other apparatus from Firetrucks Unlimited in the past, and recognizes the organization to be capable and professional.

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

Section 1. That the proposal from Firetrucks Unlimited is hereby accepted and all other proposals rejected.

Section 2. That the City Manager, on the advice and approval of the City Attorney, is hereby authorized to enter into an agreement with Firetrucks Unlimited for the purchase and delivery of one (1) Type 1 Ambulance Remount.

Section 3. That a purchase order is authorized to be issued for Firetrucks Unlimited in an amount not-to-exceed One Hundred Twenty-Four Thousand, Nine Hundred Sixty-Four Dollars and Zero Cents for use by the Fire Department ($124,964.00).

Section 4. That funds for this expenditure are available in the approved Fiscal Year 2021-2022 Budget in Account No. 6000-720-000-4333.

Section 5. That a copy of this Resolution shall be filed in the offices of the City Clerk, City Manager, City Controller, City Attorney and the Fire Department.

Section 6. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

ADOPTED this _________________ day of ___________, 2022

_______________________________

MAYOR OF THE CITY OF COMPTON
RESOLUTION NO. ________________

PAGE TWO
ATTEST:
___________________________________

CITY CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES

CITY OF COMPTON
I, Alita Godwin, City Clerk of the City of Compton, do hereby certify that the forgoing resolution was adopted by the City Council, signed by the Mayor, and attested to by the City Clerk at a regular meeting thereof held on _______ day of ____________, 2022.

That this Resolution was adopted by the following vote, to wit:

AYES: Council MembersNOES: Council MembersABSTAIN: Council MembersABSENT: Council Members- ___________________________________

CITY CLERK OF THE CITY OF COMPTON

FIRETRUCKS UNLIMITED
.
1175 Center Point Dr.., Henderson, NV 89074
(702) 558-3352 [Phone] - (702) 832-0277 [Fax]
www.firetrucksunlimited.com URL

AGREEMENT FOR REMOUNT/REFURBISHMENT OF AMBULANCE
THIS AGREEMENT is made between Firetrucks Unlimited LLC (FTU), of 1175 Center Point Dr., Henderson, Nevada, ("Company") and:

City of Compton
(Legal Name of Buyer)
Of
205 South Willow Brook Avenue, Compton CA 90220
(Address, City, County, State, Zip)
310-605-5530
("Buyer" Phone Number)
BUYER INFORMATION (check one):

Municipal Corporation Non-Profit Corporation
Business Corporation Sole Proprietorship
Other (specify)Governmental-Political Subdivision of the State of California State of Incorporation:CA Date of Incorporation:

1. ACCEPTANCE: Company agrees to provide the remount/refurbishment services and Buyer agrees to purchase such services to be performed on one (1) RAM 3500 Type 1 Modular Ambulance ("Ambulance") described in the Specifications included in Bid RFP TYPE 1 MODULAR AMBULANCE submitted on December 23, 2021 and Company’s responsive proposal, each of which is incorporated herein and made a part of this Agreement.

3. PRICE AND DELIVERY: Buyer shall pay to Company as the Purchase Price for the Ambulance the sum of
One hundred twenty four thousand nine hundred sixty four. $124,964.00 This purchase price includes the following taxes:

N/A
B
Any applicable taxes not specifically noted above will be paid by the Buyer directly, or will be added to the Purchase Price and paid by Company. If Buyer claims exemption from any tax, Buyer agrees to promptly furnish the applicable exemption certificate(s) and to indemnify and save Company harmless from any such tax, interest or penalty, which may at any time be assessed against Company as a result of this transaction.

4. TERMS OF PAYMENT: Terms of payment shall be:
(A) Cash due upon signing $62,482.00 ________________
Trade due upon signing $N/A _____________________
Due upon delivery of Ambulance $62,482.00 _______________ (B) Check applicable method of payment for remaining balance due:

Cash/cash equivalent at time of delivery
Installment Sales Contract - Financing*
Lease-Purchase Agreement - Financing*
* Lender/Leasing Company:_____________________________________

5. CONTINGENCIES: Company will not be liable for any delay, failure to make delivery, or other default due to strikes or labor unrest, war, riot, federal, state or local government action, orders from government agencies to cease operations, fire, flood or other disaster or acts of God, accidents, breakdown of machinery when out of the Company’s control, lack of or inability to obtain materials, parts or supplies, or any other causes or circumstances beyond the reasonable control of Company which prevent or hinder Company’s manufacture and/or delivery of the Apparatus.

6. WARRANTY: Company provides a limited warranty on the Remount/refurbishment in accordance with the warranty terms set forth in the Specifications. Limited warranty is for one year on all refurbished items. Some components included extended warranties.

EXCEPT TO THE EXTENT PROHIBITED BY LAW, COMPANY MAKES NO OTHER WARRANTY,

EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THE FACE HEREOF.

SEE SEPARATE WARRANTY STATEMENT(S) FOR COMPLETE INFORMATION.

7. DISCLAIMER OF CONSEQUENTIAL DAMAGES: COMPANY EXPRESSLY DISCLAIMS ANY

LIABILITY FOR CONSEQUENTIAL OR INCIDENTAL DAMAGES WHICH MAY BE SUSTAINED BY

BUYER, INCLUDING BUT NOT LIMITED TO THOSE ARISING FROM THE USE, INABILITY TO USE,

MAINTENANCE OR REPAIR OF THE APPARATUS, WHETHER UNDER THEORIES OF BREACH OF EXPRESS OR IMPLIED WARRANTY, NEGLIGENCE, STRICT LIABILITY, OR OTHERWISE.

8. CANCELLATION: This contract is not subject to cancellation by Buyer, unless for material breach by Company, except upon payment to Company of reasonable cancellation charges, which shall take into account expenses already incurred and commitments made by Company and Company's anticipated profit.

9. ENTIRE AGREEMENT; AMENDMENTS: This contract, including its appendices, embodies the entire understanding between the parties relating to the subject matter contained herein and merges all prior discussions and agreements between them. No agent or representative of Company has authority to make any representations, statements, warranties or agreements not herein expressed. All modifications or amendments of this contract, including the appendices, and Change Orders, must be in writing signed by an authorized representative of each of the parties hereto.

10. SEVERABILITY: If any provision hereof shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision, and this contract shall be construed as if the invalid, illegal or unenforceable provision had never been contained in it, unless to do so clearly negates the overall intent or purpose of the parties in entering into this contract.

11. CHANGES IN COMMERCIAL SPECIFICATIONS: Specifications for all commercial components of the Apparatus, manufactured by companies other than FTU, are subject to change without notice based on unavailability of such components, and provided that any substitutions are of an equivalent quality and functionality. Specifications for such components will be as available at the time of manufacture of the Apparatus. Company shall not be liable for any specification deviations from the original contract specifications on such components made by their original manufacturer.

12. CHANGES IN REGULATIONS/INDUSTRY STANDARDS: The Purchase Price is subject to adjustment for changes to the Apparatus necessitated by changes in applicable government regulations (such as FMVSS or emissions regulations), industry standards (such as NFPA standards), replacement of discontinued models or components from vendors, or freight charges.

Buyer is responsible for any cost increases due to such changes beyond Company’s control.

D
IN WITNESS WHEREOF, Buyer and Company have caused this Agreement to be executed by their duly authorized representatives this ________ day of ____________ , 20____ .

City of Compton __________________________________________________________ (Buyer's Legal Name)
By: _____________________ By: _____________________
Title: ____________________ Title: ____________________ By: _____________________ By: _____________________
Title: ____________________ Title: ____________________ Sales Representative: Brian Reyburn ________________________________ Organization Name: Firetrucks Unlimited _____________________________ By:______________________________________
Title: ____________________________________
This contract is not a valid and binding obligation until approved, dated and executed by Firetrucks Unlimited LLC, Henderson, Nevada.

ACCEPTED AND APPROVED BY FIRETRUCKS UNLIMITED LLC.:

By:______________________________________
Title: ____________________________________
Date: ____________________________________

MARCH 15, 2022
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: FINANCE COMMITTEE OF THE CITY OF COMPTON
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

COMPTON TO RECEIVE AND FILE A DONATIONS POLICY

SUMMARY
Adoption of this resolution will authorize a Donations Policy to be received and implemented by City staff and elected officials. The policy exhibits internal control practices to provide greater control over the acceptance and handling of donations.

BACKGROUND
The City’s FY2018-2019 Single Audit Report states the following:
2014-051A – Material Weaknesses in Internal Control (MW) SCO Finding 3 – Material weaknesses in internal control resulted in the City’s losing $3.72 million
Condition On November 3, 2017, the former Deputy Treasurer of the City was sentenced to six and a half years in federal prison on charges stemming from his embezzlement of more than $3.72 million of City funds from May 2010 through December 2016. The former Deputy Treasurer held his position for more than 20 years; his primary responsibilities included the verification of daily collections to the Cashier Count Report and completion of the bank deposit process.

According to a forensic audit report, dated March 2017, the City's former Deputy Treasurer was able to obscure his embezzlement scheme for over six years. This was partly because: (1) he embezzled small amounts on a daily basis by duplicating and otherwise falsifying bank deposit slips, while presenting accurate documents for recording in the City's accounting system; and (2) internal controls were insufficient to allow the theft to be detected, as City Management failed to closely monitor bank accounts.

Some basic internal control deficiencies are as follows:

10. Finance Committee – Resolution Review and Accept Donations Policy March 15, 2022, page 2 of 7
 Failure to implement proper segregation of duties, which is key to protecting assets such as cash. The former Deputy Treasurer was allowed to perform  the first cash count and reconcile count by himself, and also to complete all necessary paperwork for the deposit process. This internal control deficiency provided him with the opportunity to embezzle cash;  Failure to complete monthly bank reconciliations in a timely manner (see Finding SCO Finding 8); and
Failure to implement read-only access for online monitoring of bank activity in the City Controller's Office. An employee assigned to monitor the City's banking activity might have been able to quickly identify discrepancies between the total cash deposited and the total cash amount stated in the Cashier Count Reports.

Recommendation: Although the City stated that it has implemented several new procedures within the Treasurer's Office, and that the City Controller's Office has implemented read-only access for monitoring bank activity, these procedures have yet to be incorporated in its formal Policy and Procedures manual. The SCO recommended that the City update its formal Policy and Procedures manual to incorporate the recently implemented internal control procedures, and complete these updates as soon as possible.

E+P concurs with the SCO finding and recommendation.
2014-067B – Integrity and Ethical Values (MW)
Criteria: Codes of conduct and other policies regarding acceptable business practices, conflicts of interest, or expected standards to ethical and moral behavior are established and communicated to all City Management and employees.

Condition: Deputy Treasurer admitted to embezzling money from the City's cash receipts on 12/15/16. The Mayer Hoffman McCann CPA firm reported that it was unable to reach an opinion on whether the City's FY 2010-11 June financial statements were free of material misstatements, due to their inability to obtain sufficient evidence from the Mayor or the City with respect to the Mayor's concerns of fraud on 7/24/12. Governance practices recommended by the FY 2011-12 Civil Grand Jury Report were not implemented, such as: develop a strategic plan, develop and report on performance measures, develop specific goals for the City’s executive and conduct annual evaluation of City’s executive. The City Council failed to exercise oversight over the City’s financial and operational activities. Prior years’ audit and review finding and recommendation were not implemented.

Related Finding(s): SCO Finding 3, 7, 17
Finance Committee – Resolution Review and Accept Donations Policy March 15, 2022, page 3 of 7
Recommendation: We recommend that the City update its formal Policy and Procedures manual to incorporate the recently implemented internal control procedures, and complete these updates as soon as possible. 2014-069B – Integrity and Ethical Values (MW)
Criteria: Everyday interaction with vendors, clients, auditors, and other parties is based on honesty and fairness.

Condition: Questionable payments were made to contractors. The City's staff circumvented the petty cash reimbursement policy. Deputy Treasurer admitted to embezzling money from the City's cash receipts on 12/15/16. The Mayer Hoffman McCann CPA firm reported that it was unable to reach an opinion on whether the City's FY 2010-11 June financial statements were free of material misstatements, due to their inability to obtain sufficient evidence from the Mayor or the City with respect to the Mayor's concerns of fraud on 7/24/12. Governance practices recommended by the FY 2011 -12 Civil Grand Jury Report were not implemented, such as: develop a strategic plan, develop and report on performance measures, develop specific goals for the City’s executive and conduct annual evaluation of City’s executive. The City Council failed to exercise oversight over the City’s financial and operational activities. Prior years’ audit and review finding and recommendation were not implemented.

Related Finding(s): SCO Finding 1, 4, 6, 7, 17
Recommendation: We recommend that the City Council fulfill its fiduciary responsibility by exercising meaningful oversight over the City’s affairs. The City also should develop and implement policies and procedures to endure that its management performs a detailed review and gains full understanding before entering into any type of legally-binding agreement.
2014-093B – Assignment of Authority and Responsibility (MW) Criteria: Does each employee know how his or her work interrelates to others in the way in which authority and responsibility are assigned, and how duties are related concerning internal control?
Condition: There is a lack of segregation of duties relating to some critical functions.

Related Finding(s): SCO Finding 10
Recommendation: We recommend that the City assess its current processes and implement policies and procedures to segregate incompatible functions.

Finance Committee – Resolution Review and Accept Donations Policy March 15, 2022, page 4 of 7
2014-100B – Risk Identification (MW)
Criteria: Management is appropriately and comprehensively identifying risk using various methodologies.

Condition: No risk assessment, evaluation, or risk prioritization was completed during the SCO’s review period.

Recommendation: We recommend that the City start doing risk assessments to be able to identify and properly address risks.
2014-107B – Policies and Procedures (General Applications) (MW) Criteria: The control activities identified as necessary are in place and being applied.

Condition: Outside the City Controller's Office, most of the employees that the SCO interviewed were unaware of control activities in place or how they are being applied.

Recommendation: We recommend that the City update its formal Policy and Procedures manual to incorporate the recently implemented internal control procedures, and complete these updates as soon as possible. 2014-108B – Policies and Procedures (General Applications) (MW) Criteria: Control activities are regularly evaluated to ensure that they are still appropriate and working as intended.

Condition: Outside the City Controller's Office, most of the employees that the SCO interviewed were unaware of control activities in place or how they are being applied.

Recommendation: We recommend that the City continue to review and update its Administrative Policies and Procedures manuals to ensure consistency with current processes and organizational structure; and perform periodic and ongoing reviews to ensure proper documentation, accuracy, and completeness in its financial transactions and records. When completed, the updated Administrative Policies and Procedures manuals should be readily available to all responsible employees. The manuals should clearly state the authority and responsibility of all employees, especially the authority to authorize transactions and the responsibility for the safekeeping of assets and records.

Finance Committee – Resolution Review and Accept Donations Policy March 15, 2022, page 5 of 7
2014-115B – Common Categories of Control Activities (SD) Criteria: Administrative and operation policies are in writing, current, and do they set clear procedures for compliance.

Condition: There were written administrative and operation policies; however, these policies and procedures have not been updated.

Related Finding(s): SCO Finding 13
Recommendation: We recommend that the City continue to review and update its Administrative Policies and Procedures manuals to ensure consistency with current processes and organizational structure; and perform periodic and ongoing reviews to ensure proper documentation, accuracy, and completeness in its financial transactions and records.
2014-120B – Communication (SD)
Criteria: Management ensures that effective internal communications occur.

Condition: The SCO’s observation and inquiry suggests that employees receive clear messages from top management; however, management does not receive significant information from employees. For example, billings approved by the City Manager, although questionable due to lack of adequate review and documentation, were never questioned by City employees.

Recommendation: We recommend that the City Council fulfill its fiduciary responsibility by exercising meaningful oversight over the City’s affairs. The City should also develop and implement policies and procedures to ensure that its management performs a detailed review and gains full understanding before entering into any type of legally-binding agreement.
2014-130B – On-Going Monitoring (BP)
Criteria: Meetings with employees are used to provide management with feedback on whether internal control is effective.

Condition: City employees cannot remember when the last meeting relating to internal controls was conducted between employees and management.

Finance Committee Report – Resolution Review and Accept Donations Policy March 15, 2022, page 6 of 7
Recommendation: We recommend that the City have periodic internal control meetings with employees to gain insights of the employees’ perspective and get some feedback.

As a result of these audit findings, the City needed a Donations Policy to exercise greater controls over the acceptance and handling of donations.

STATEMENT OF THE ISSUE
There is currently no Standard Operating Procedure or City Municipal Code for Donations acceptance or handling. A Donations policy is needed in order to demonstrate compliance with known internal control deficiencies with regards to Donations acceptance and handling. The deficiencies noted are deficiencies in monitoring, deficiencies in communication, deficiencies in control activities, deficiencies in the control environment, and deficiencies in risk assessment.

If the proposed policies implemented properly by City staff and elected officials, they will help minimize risk for the City and will assist the City with achieving the commonly referenced 5 internal control framework elements: Control Environment, Control Activities, Information and Communication, Monitoring and Risk Assessment.

The policy covers Types of Donations, Due Diligence Procedures, Acceptance protocol, Donations Acknowledgement, and Donations handling once accepted.

The receiving and filing of the Donations policy displays the City’s commitment to adhering to important internal control measures, as well as sets rules for orderly operations in regards to donations.

Lastly, it is also important to know that policies may need to change in the future to keep up with current environment or any unforeseen circumstances.

Finance Committee – Resolution Review and Accept Donations Policy March 15, 2022, page 7 of 7

FINANCIAL IMPACT
There is no financial cost to implementing these policies, except for staff time to implement the policies. Additionally, implementing these policies will demonstrate the City’s commitment to maintaining proper internal controls

RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution.

CITY OF COMPTON FINANCE COMMITTEE
APPROVED FOR FORWARDING:

RONERICK SIMPSON

CITY MANAGER
RESOLUTION NO. __________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON TO

RECEIVE AND FILE A DONATIONS POLICY
WHEREAS, Adoption of this resolution will authorize a Donations Policy to be received and filed and implemented by City staff and elected officials. The policy exhibits internal control practices to provide greater control over the acceptance and handling of donations.

WHEREAS, The City’s FY2018-2019 Single Audit Report states the following:
2014-051A – Material Weaknesses in Internal Control (MW) SCO Finding 3 – Material weaknesses in internal control resulted in the City’s losing $3.72 million
Condition On November 3, 2017, the former Deputy Treasurer of the City was sentenced to six and a half years in federal prison on charges stemming from his embezzlement of more than $3.72 million of City funds from May 2010 through December 2016. The former Deputy Treasurer held his position for more than 20 years; his primary responsibilities included the verification of daily collections to the Cashier Count Report and completion of the bank deposit process.

Given the City's continuing budget deficit, City Management should have maintained rigorous internal controls over cash handling and reconciliation processes. Instead, the City failed to implement basic internal controls in its cash receipt process, resulting in a loss of millions of dollars badly needed by the City. Some basic internal control deficiencies are as follows:
 Failure to implement proper segregation of duties, which is key to protecting assets such as cash. The former Deputy Treasurer was allowed to perform  the first cash count and reconcile count by himself, and also to complete all necessary paperwork for the deposit process. This internal control deficiency provided him with the opportunity to embezzle cash;
 Failure to complete monthly bank reconciliations in a timely manner (see Finding SCO Finding 8); and
Failure to implement read-only access for online monitoring of bank activity in the City Controller's Office. An employee assigned to monitor the City's banking activity might have been able to quickly identify discrepancies between the total cash deposited and the total cash amount stated in the Cashier Count Reports.

E+P concurs with the SCO finding and recommendation.

Resolution No. _______

Page 2 ends

2014-067B – Integrity and Ethical Values (MW)
Criteria: Codes of conduct and other policies regarding acceptable business practices, conflicts of interest, or expected standards to ethical and moral behavior are established and communicated to all City Management and employees.

Related Finding(s): SCO Finding 3, 7, 17
Recommendation: We recommend that the City update its formal Policy and Procedures manual to incorporate the recently implemented internal control procedures, and complete these updates as soon as possible. 2014-069B – Integrity and Ethical Values (MW)
Criteria: Everyday interaction with vendors, clients, auditors, and other parties is based on honesty and fairness.

Prior years’ audit and review finding and recommendation were not implemented.

Resolution No. _______

Page 3 ends

2014-093B – Assignment of Authority and Responsibility (MW) Criteria: Does each employee know how his or her work interrelates to others in the way in which authority and responsibility are assigned, and how duties are related concerning internal control?
Condition: There is a lack of segregation of duties relating to some critical functions.

Related Finding(s): SCO Finding 10
Recommendation: We recommend that the City assess its current processes and implement policies and procedures to segregate incompatible functions. 2014-100B – Risk Identification (MW)
Criteria: Management is appropriately and comprehensively identifying risk using various methodologies.

Condition: No risk assessment, evaluation, or risk prioritization was completed during the SCO’s review period.

Condition: Outside the City Controller's Office, most of the employees that the SCO interviewed were unaware of control activities in place or how they are being applied.

Resolution No. _______

Page 4 ends

2014-115B – Common Categories of Control Activities (SD) Criteria: Administrative and operation policies are in writing, current, and do they set clear procedures for compliance.

Condition: There were written administrative and operation policies; however, these policies and procedures have not been updated.

Condition: City employees cannot remember when the last meeting relating to internal controls was conducted between employees and management.

Recommendation: We recommend that the City have periodic internal control meetings with employees to gain insights of the employees’ perspective and get some feedback.

WHEREAS, As a result of these audit findings, the City needed a Donations Policy to exercise greater controls over the acceptance and handling of donations.

WHEREAS, There is currently no Standard Operating Procedure or City Municipal Code for Donations acceptance or handling. A Donations policy is needed in order to demonstrate compliance with known internal control deficiencies with regards to Donations acceptance and handling. The deficiencies noted are deficiencies in monitoring, deficiencies in communication, deficiencies in control activities, deficiencies in the control environment, and deficiencies in risk assessment.

WHEREAS, If the proposed policies are implemented properly by City staff and elected officials, they will help minimize risk for the City and will assist the City with achieving the commonly referenced 5 internal control framework elements: Control Environment, Control Activities, Information and Communication, Monitoring and Risk Assessment.

Resolution No. _______

Page 5 ends

WHEREAS, The policy covers Types of Donations, Due Diligence Procedures, Acceptance protocol, Donations Acknowledgement, and Donations handling once accepted.

WHEREAS, The receiving and filing of the Donations policy displays the City’s commitment to adhering to important internal control measures, as well as sets rules for orderly operations in regards to donations.

WHEREAS, Policies may need to change in the future to keep up with current environment or any unforeseen circumstances.

WHEREAS, There is no financial cost to implementing these policies, except for staff time to implement the policies. Additionally, implementing these policies will demonstrate the City’s commitment to maintaining proper internal controls.

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

Section 1. That the City Council receive and file the attached policies.

Section 2. That a copy of this Resolution shall be filed in the offices of the City Clerk, City Attorney, City Manager, and City Controller.

Section 3. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

ADOPTED this ____________ day of _____________, 2022.
________________________________

MAYOR OF THE CITY OF COMPTON
ATTEST:
___________________________________

CITY CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss

That said Resolution was adopted by the following vote, to wit:

AYES: COUNCILMEMBERSNOES: COUNCILMEMBERSABSTAIN: COUNCILMEMBERSABSENT: COUNCILMEMBERS- ____________________________________

CITY CLERK OF THE CITY OF COMPTON

CITY OF COMPTON

DONATIONS ACCEPTANCE FORM
City of Compton Tax ID:95-6000696. The Internal Revenue Service states that the deductible amount of a charitable contribution is limited to the value of cash or property donated minus what the donor receives in exchange for the contribution. Please keep this receipt and file it with your tax records as proof of your gift. The Foundation reserves the right to refuse donations.

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PART I: DONOR INFORMATION
Name/Title of Employee Completing Form: _____ Date:

Name of Donor:

Check box if donor is Anonymous: Official Date of Donation:

Tel: Mailing Address:

Email address:

Relationship of Donor to City or Foundation:

Charitable Tax Receipt Received? Has the Donor requested Recognition for their gift? Y N Please check box if: Donation is being made to the “City” or the “Foundation” PART II: DESCRIPTION OF ITEM(S) DONATED: {Please check all applicable boxes. Attach Sheet for Additional Items}:

Cash/Checki/Wire/
Payroll Deduction/
Or Credit Cardii
(please circle one)
Other Financial
Instrument
{ie: Stocks, Bonds,
Notes, etc…}
Professional or
Personal
Services (see
table below)
Supplies or
Equipment
(see table below)
Pledge of Periodic
Payments
(see table below)
Other (i.e. Real Property,
Artwork or please
describe below)iii
Item # Description Serial #; Model #;
Original Title
Obtained (Y/N)?
$Dollar$ Value
On Date Received
{Without documentation, donation
will be recorded at $1}
(check box
if external appraisal is required)
Date(s)
Received/
Or To-Be_
Received
Condition
{New; Used; or
Requires
Modification}
1 Title
2 Title
Total: $
Will the Donated Item Require Any of the Following (please check all applicable boxes):

Service, Repair, Maintenance, or Certification? Costs for Storage, Pick-up, Installation? Safety Issue? Hazardous Materials Issue?
Please Explain:

CITY OF COMPTON

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If the donated item(s) has a value of $1,000 or more, has it been examined and determined that it has a useful life of at least one year and requires no repair or some form of maintenance? MARK THE BOX: NO YES Equipment Inspected By (attach appraisal in PDF):

Date Inspected:

Final Location or Storage arrangement:

PART III: USE OF DONATED ITEMiv
This donation involves a: (Please check all applicable boxes) Time Restrictionv Purpose Restrictionvi Permanent Restrictionvii Temporary Restrictionviii Gift is to be retained and used for designated
Purpose
Gift may be sold, proceeds used for designated purpose (if gift is sold within three (3) years of the date of contribution, IRS Form 8282 ixwill be sent to the donor and the IRS)
What is the proposed use of the donated item(s)? What are the restrictions? Please explain or attach: (If unrestricted, please put N/A): _________
CUSTOMER Name (please print):

CUSTOMER SIGNATURE:

Make check payable to City of Compton. Checks made payable to the City of Compton may not be tax deductible. Donor should consult their tax attorney
Credit card information section and signature line, pop up or drop down fields are preferred:

Enter credit card information. Visa Master card Discover American Express * Credit Card Number:
(enter numbers without spaces) Card Code:
* Expiration Date:
(MM/YY)
* Total Amount: $

CITY OF COMPTON

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PART IVx:

DEPARTMENT/PROGRAM RECEIVING BENEFIT OF GIFT (Please check all applicable boxes):
40 Mayor and Council 51 City Manager
42 City Attorney 44 City Treasurer
47 City Clerk 67
Community
Improvement Services
65 City Controller
78 Community
Development
71/72 Public Works 62 Internal Services
69 Fire 84 Parks and Recreation
61 Non-Departmental 85 Water
91 Successor Agency
Others
REVENUE-TYPE (Please check all applicable boxes):

Donations - Unrestricted* Unrestricted Contributions- Goods* Special Events
Unrestricted ContributionsServices*
Fire Special Events Restricted Contributions- Goods*
Special Annual Events Restricted Contributions- Services* Cultural Special Events Restricted Contributions – CASH of Financial Instrument
Misc - Credit
* Restricted means – Donor specified
time and/or purpose of use

END OF FORM
i Make check payable to City of Compton. Checks made payable to the City of Compton may not be tax deductible. Donor should consult their tax attorney ii Credit card information section and signature line, pop up or drop down fields are preferred:

Enter credit card information.
* Credit Card Number:
(enter numbers without spaces)
Zip Code:
* Expiration Date:
(MM/YY)
Card Code
* Total Amount:
iii If Artwork, then please contact the City Manager’s Department iv If nothing is filled out, or if no restriction is specified here, then the donation is deemed “Unrestricted” automatically, and will be used at the discretion of the City Council. v Restricted means – Donor specified time or purpose of use vi Restricted means – Donor specified time or purpose of use vii Restricted means – Donor specified time or purpose of use

CITY OF COMPTON

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viii Restricted means – Donor specified time or purpose of use ix IRS Form 8282 is for donee organizations to report information to the IRS and donors about dispositions of certain charitable deduction property made within 3 years after the donor contributed the property.

CITY OF COMPTON

DONATIONS POLICY
Purpose:

To provide guidelines for the City's acceptance of gifts and donations in a responsible, ethical, transparent and accountable manner, consistent with the City’s strategic goals and objectives, and are in the best interest of the City.

Types of Donations:

Donations may be offered in the form of cash, real or personal property.

Designated donations means those donations that the donor specifies for a particular City department, location, or purpose, or time to be spent. Undesignated donations means those donations that are given to the City for an unspecified use or unspecified time to be spent.

Procedures:

The City Manager or appropriate Department Head shall perform an initial evaluation of a proposed donation. Factors to be considered include, but are not limited to the following:
• Whether acceptance of the gift is in the City’s best interest and is consistent with applicable policies, ordinances, and resolutions;
• Whether the acceptance of the gift would give rise to an appearance of impropriety;
• Due diligence shall be performed on the donor to validate the legitimacy of the donor.
• In the case of a restricted gift, whether the gift obligates the City to make an immediate or initial City expenditure that has not been included in the approved City budget, and whether it may result in ongoing costs. • To avoid the appearance of impropriety, among other things, the City shall not accept gifts from or on behalf of any donor who is in the process of obtaining discretionary approval from the City, or who applied for discretionary approval 18 months prior to the proposed gift. In the event a donor seeks discretionary approval from the City within 18 months following City's acceptance of a gift, the City shall return the gift to the donor.

CITY DONATIONS POLICY
2 • All gifts shall become City property.
• It shall be the responsibility of the receiving department to send a thank you letter to the donor and ensure that the donation is used only for its intended official City use.

Acceptance of Donations:

All donations to the City, including offers of donations to employees affiliated with the City, shall immediately be submitted for consideration for acceptance by City staff. Appropriate City staff shall review every donation and determine if the benefits to be derived warrant acceptance of the donation. The following points list the threshold amounts for donation acceptance.
 Offers of Donations of cash or items valued at up to $5,000 may be accepted by the City Manager. The City Manager shall report all gifts to the City Controller or designee promptly. On a Quarterly basis, the City Manager shall bring a report of all donations that were accepted under the threshold for going to Council. The report shall contain the following information:
o Date Received,
o Donor Name
o Donor’s Financial Interest involving the City if any
o Nature of Gift
o Number of items, if applicable
o Value (estimate if non-cash)
o Disposition method or Intended Use
 Offers of donations of cash or items valued at more than $5,000 must be accepted by the City Council. Donations valued at more than $100,000 shall be accepted through a written agreement and approve by the City Council.

Acknowledgement of Donations:
 Donation Acceptance Form is required to be completed by the receiving Department Head or the City Manager’s Office for all donations provided to the City.
 Acknowledgement of the Donation should be in writing and be the responsibility of the City Manager or designee.

Disposition of the Donated Asset

CITY DONATIONS POLICY
3 Before selling or disposing of a donated asset, the department needs to review the gift documentation (e.g., donor letter/agreement) to ensure there is no restriction on the disposition of the donated asset. The department must make note of any restrictions to be followed on the use of the proceeds if sold.

Proper authorization must be obtained pursuant to city policy before selling a donated asset. Documentation is needed to support the value from sale or other type of disposal. A net gain or loss needs to be recorded. “In Kind” Donations
In-kind donations are gifts of goods or services that are not capital assets. They are not reported in the City’s records and reports unless they are “material” or the underlying source of the donation is a governmental grant or program.

Examples of “in kind” donations include services or staff time, and noncapitalized goods such as furniture, small dollar equipment, materials and supplies. Services may be considered an “in kind” donation when they are performed specifically for the department and paid for by a “Friends of” organization or other non-City entity.
 Departments should maintain a record of “in kind” donations when the value exceeds $5,000 or more (based on available documentation or estimated fair market value) within a given fiscal year from a single source.

At a minimum, these records should include a description of the items, donor or organization’s name, value, and date. These records must be available to the Controller’s Office upon request.
 “In kind” donations must be reported in the City’s records when they are “material”. In general, departments must contact the City Controller or designee for specific guidance and advice regarding specific situations.  “In kind” donations must also be reported when the underlying funding source is actually a governmental grant or program. When a donation meets these criteria, departments must maintain records for post audit and other reviews as determined by the Controller’s Office.

When the “in kind” donation meets any of the above criteria, departments should contact the City Controller or designee for specific instructions on recording this activity.

Donated Investments

CITY DONATIONS POLICY
4 Gifts may be received in the form of investments, such as stocks and bonds.

Departments are encouraged to notify the City Controller or designee and the City Treasurer when they receive such gifts. The following procedures should be followed:
 Obtain a donor letter, which should:
o Identify the donor contributing the gift.
o Identify any restriction(s) on the use of the donated investment (both principal and interest)
o Identify the investment and value of investment (principal amount) o Receive the investment (ownership transfer)
 The department should notify the Treasurer’s Office, which will arrange the transfer of investment ownership with the donor’s brokerage firm.  Record the investment.

The department should contact the City Controller or designee to book the investment.

Selling a Donated Investment
o Before selling a donated investment, the department needs to review the gift documentation to ensure there is no restriction on selling the donated investment, and make note of any restriction to be followed on the use of the proceeds if sold.
o Proper authorization needs to be sought before selling. o Documentation from the Treasurer’s Office is needed to support the value sold or disposed.

Page 1 ends

Department Name and/or Special Fund Name
205 South Willowbrook Avenue, Compton
City, CA 90220
Department Phone Number
Date
Donor Name___________________
Donor Address _________________
Donor City, State, Zip____________
Dear ,
Thank you for your contribution of . If this contribution is property rather than cash, a detailed description should be attached or noted below.

Please keep this written acknowledgement of your gift to the City for your tax records.

Thank you for your support!
Very truly yours,
Department Representative
Description of donated property:
(It is the responsibility of the donor to estimate the fair market value of donated items.) Because a “gift” may include something like a rebate or discount, please estimate the value of any goods or services you received from the City in connection with your gift and make sure that amount is not included in the estimated value of your gift:

No goods or services were provided by the City in connection with the gift.

MARCH 15, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: CITY CONTROLLER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

TO ADOPT FISCAL SUSTAINABILITY PLAN ELEMENTS

SUMMARY
The City of Compton Finance Committee met on Oct. 11, 2021 and recommended adopting Fiscal Sustainability Plan elements to ensure that the City can incorporate a plan for greater future fiscal health. The adoption of a Fiscal Sustainability plan was devised in response to the findings of #2018-037, #2019-025 and #2014-104B of the FY2019 Single Audit Report from Eadie and Payne, the City’s external audit firm. Staff recommends to expand on these basic elements in a more detailed plan to be presented by 6/30/23. However, at this time the Finance Committee and staff believe that adopting a framework is necessary to help address the audit findings and help the City move forward with general implementation. Further, the framework allows the City to communicate to the public its goals for achieving future fiscal sustainability.

BACKGROUND
As a result of the audit by the State Controller’s office of the City in 2018, and as a result of the audit conducted by Eadie & Payne, a list of audit findings and recommendations were produced. Several of the findings and recommendations (within the Single Audit Report of FY2019, which consolidates these audit findings and management corrective action plans into one document) prompted the City with a need to adopt a Fiscal Sustainability Plan.

The City’s FY2018-2019 Single Audit Report states the following findings:
2014-104B – Risk Identification (SD)
Criteria: Management is identifying risks City-wide and for each significant activity level of the City.

Condition: The City experienced a high degree of management turnover, which can result in a lack of consistent leadership, operational stability, and efficiency.

Between January 1, 2010 and January 18, 2017, nine different individuals served as City Manager. Audit issues noted in prior years' review and audit reports were

11. Finance Committee – Resolution Adopt Fiscal Sustainability Plan Elements March 15, 2022, page 2 of 5
not corrected. Likewise, recommendations to address the noted issues were not implemented.

No risk assessment, evaluation, or risk prioritization was completed during our review period.

Related Finding(s): SCO Finding 14
Recommendation: We recommend that City Management identify risks on a City-wide level, as well as for each significant activity level of the City. 2019-025 – Negative Fund Balances (MW)
Criteria: The City should operate to maintain adequate fund balances in all of its funds to mitigate current and future risks, such as revenue shortfalls and unanticipated expenditures.

Condition: There are negative fund balances for various funds including the general fund, grant funds, nonmajor governmental funds, and internal service funds.

Cause: Lack of policies and procedures over cash management and budgetary restrictions. Weakness in internal control over operational spending and lack of consideration of long-term financial planning.

Effect or Potential Effect: The deficits could have a significant effect on operations on a go-forward basis. City programs and services involved with the fund may be curtailed.

Repeat of a Prior-Year Finding: 2018-037, 2014-049A
Recommendation: We recommend that management review the negative fund balances and the affected operations to make provisions to eliminate the deficit balances going forward.

A fiscal sustainability plan is a plan that City Councilmembers and City staff can follow, so that the City’s long term and short-term fiscal health can be considered when making decisions for on-going City operations and for new endeavors. Staff performed research and found fiscal sustainability and economic development plans from various California cities and compiled this list of elements which were straight forward and which the Finance Committee believes should be easily agreed upon.

Finance Committee – Resolution Adopt Fiscal Sustainability Plan Elements March 15, 2022, page 3 of 5

STATEMENT OF ISSUE
A fiscal sustainability plan is being recommended for adoption in order to provide guidance and to ensure that future fiscal health initiatives will be implemented appropriately. The plan that is currently being presented is in a framework format with general provisions that can be widely agreed upon to fulfill its intended purpose, which is to enhance and ensure the City’s future fiscal health. A more detailed plan, including recommended City initiatives, will also be needed to provide more guidance for situations not directly addressed by the general elements of the framework. If approved we will recommend to staff to begin work on a more detailed plan.

There is currently no Fiscal Sustainability Plan in place. At this time though, it is being recommended to adopt these basic and general provisions of the Fiscal Sustainability Plan, so that guidance may be given & implementation may begin immediately.

Implementation would include firm consideration of the framework during budget preparation and in staff reports for Council agenda items. Of note, these elements provide guidance across various City functions, activities and departments. Further, we ask that a discussion also take place and, if desired, the Council could make further recommendations to add or remove any of the listed elements. However, we believe it is important to adopt a satisfactory framework as soon as possible in order for staff to implement the guidance into operations immediately.

The fiscal sustainability elements to be approved are as follows:

1. The City will proactively seek to protect and expand its tax base by encouraging a healthy underlying local economy.

2. The City will work to enhance and protect the property values of all Compton residents and property owners.

3. The City will work to enhance and protect the City’s quality of life through strategic and sustained investment in quality capital infrastructure improvements that are both long lasting and fiscally responsible.

4. The City will encourage shopping, dining, and visiting at Compton stores, restaurants, and hotels.

5. The City will establish and maintain appropriate cash reserves.

6. The City will manage its Facilities Financial Planning Reserve so that General Fund contributions to the reserve shall not be less than three percent (3%) of the total General Fund Revenue Budget.

7. City revenue performance will be reviewed no less than quarterly and appropriate budget adjustments will be made in advance of the end of a budget year if revenue performance is not meeting projections.

8. The City will initiate a "results-based budgeting" approach that allows the public and the City Council to prioritize City expenditures strategically rather than simply adjusting legacy expenditures to reflect inflation.

9. The City will implement a Performance Measurement/Management Strategy as part of an ongoing effort to ensure high-quality and efficient performance.

Finance Committee – Resolution Adopt Fiscal Sustainability Plan Elements March 15, 2022, page 4 of 5

10. The City will consider competitive contracting of services and equipment when appropriate and where clear, cost-effective alternatives exist.

11. The City will make it a priority to be energy efficient in its provision of public services.

12. The City will establish appropriate cost-recovery targets for its fee structure and will annually adjust its fee structure to ensure that the fees continue to meet cost recovery targets.

13. The City will oppose efforts of the State and County governments to divert revenues from the City or to increase the unfunded service mandate of City taxpayers.

14. The City will work in partnership with its employees to ensure fair compensation and that costs related to pension and other benefits are appropriately allocated between employer and employees.

15. The City will vigorously defend itself and its taxpayers against frivolous lawsuits.

FISCAL IMPACT
If this framework of fiscal sustainability elements is adopted by the Council, it will establish goals and directives to ensure the City’s future fiscal health. Further it will communicate to stakeholders of the City that the City is committed to the improvement and success of the City’s fiscal health. The elements included therein provide guidance for cost savings and revenue enhancements that will ultimately improve the City’s financial position, while simultaneously addressing related auditor findings and recommendations. It is also important to know that policies may need to change to keep up with current environment or any unforeseen circumstances.

ALTERNATIVE
The City would continue to remain in a position without fiscal sustainability guidance for staff to start implementing into day-to-day operations, and these audit findings would likely continue to be repeated until such a policy is adopted and implemented.

Finance Committee – Resolution Adopt Fiscal Sustainability Plan Elements March 15, 2022, page 5 of 5

RECOMMENDATION
The Finance Committee recommends that the City Council adopt the attached Resolution.

SHARON RHBAN NAVIZADEH,

CITY CONTROLLER

ON BEHALF OF THE

CITY OF COMPTON FINANCE COMMITTEE
APPROVED FOR FORWARDING:

RONERICK SIMPSON

CITY MANAGER
RESOLUTION NO. __________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON TO

ADOPT A FISCAL SUSTAINABILITY PLAN
WHEREAS, The City of Compton Finance Committee met on Oct. 11, 2021 and recommended adopting Fiscal Sustainability Plan elements to ensure that the City can incorporate a plan for greater future fiscal health. The adoption of a Fiscal Sustainability plan was devised in response to the findings of #2018-037, #2019-025 and #2014-104B of the FY2019 Single Audit Report from Eadie and Payne, the City’s external audit firm. Staff recommends to expand on these basic elements in a more detailed plan to be presented by 6/30/23. However, at this time the Finance Committee and staff believe that adopting a framework is necessary to help address the audit findings and help the City move forward with general implementation. Further, the framework allows the City to communicate to the public its goals for achieving future fiscal sustainability.

WHEREAS, As a result of the audit by the State Controller’s office of the City in 2018, and as a result of the audit conducted by Eadie & Payne, a list of audit findings and recommendations were produced. Several of the findings and recommendations (within the Single Audit Report of FY2019, which consolidates these audit findings and management corrective action plans into one document) prompted the City with a need to adopt a Fiscal Sustainability Plan.

WHEREAS, The City’s FY2018-2019 Single Audit Report states the following:
2014-104B – Risk Identification (SD)
Criteria: Management is identifying risks City-wide and for each significant activity level of the City.

Condition: The City experienced a high degree of management turnover, which can result in a lack of consistent leadership, operational stability, and efficiency. Between January 1, 2010 and January 18, 2017, nine different individuals served as City Manager. Audit issues noted in prior years' review and audit reports were not corrected. Likewise, recommendations to address the noted issues were not implemented.

No risk assessment, evaluation, or risk prioritization was completed during our review period.

Related Finding(s): SCO Finding 14
Recommendation: We recommend that City Management identify risks on a Citywide level, as well as for each significant activity level of the City. 2019-025 – Negative Fund Balances (MW)
Criteria: The City should operate to maintain adequate fund balances in all of its funds to mitigate current and future risks, such as revenue shortfalls and unanticipated expenditures.

Condition: There are negative fund balances for various funds including the general fund, grant funds, nonmajor governmental funds, and internal service funds.

Effect or Potential Effect: The deficits could have a significant effect on operations on a go-forward basis. City programs and services involved with the fund may be curtailed.

WHEREAS, A fiscal sustainability plan is a plan that City Councilmembers and City staff can follow, so that the City’s long term and short-term fiscal health can be considered Resolution No. _______

Page 2 ends

when making decisions for on-going City operations and for new endeavors. Staff performed research and found fiscal sustainability and economic development plans from various California cities and compiled this list of elements which were straight forward and which the Finance Committee believes should be easily agreed upon.

WHEREAS, A fiscal sustainability plan is being recommended for adoption in order to provide guidance and to ensure that future fiscal health initiatives will be implemented appropriately. The plan that is currently being presented is in a framework format with general provisions that can be widely agreed upon to fulfill its intended purpose, which is to enhance and ensure the City’s future fiscal health. A more detailed plan, including recommended City initiatives, will also be needed to provide more guidance for situations not directly addressed by the general elements of the framework. If approved we will recommend to staff to begin work on a more detailed plan.

WHEREAS, There is currently no Fiscal Sustainability Plan in place. At this time though, it is being recommended to discuss and adopt these basic and general provisions of the Fiscal Sustainability Plan, so that guidance may be given & implementation may begin immediately. Implementation would include firm consideration of the framework during budget preparation and in staff reports for Council agenda items. Of note, these elements provide guidance across various City functions, activities and departments. Further, we ask that a discussion also take place and, if desired, the Council could make further recommendations to add or remove any of the listed elements. However, we believe it is important to adopt a satisfactory framework as soon as possible in order for staff to implement the guidance into operations immediately.

WHEREAS, The fiscal sustainability elements to be approved are as follows: