Agenda packet — Diamond Bar City Council, January 16, 2024 (part 1 of 3)

City Council Agenda
Tuesday, January 16, 2024 6:30 PM
South Coast Air Quality Management District/Main Auditorium 21865 Copley Drive, Diamond Bar, CA 91765
How to Observe the Meeting From Home:

The public can observe the meeting by calling +1 (631) 992-3221, Access Code: 788-712-202 OR visit:
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How to Submit Public Comment:

The public may provide public comment by attending the meeting in person, by sending an email, or by logging into the teleconference. Please send email public comments to the City Clerk at [email protected] by 4:00 p.m. on the day of the meeting and indicate in the Subject Line “FOR PUBLIC COMMENT.” Written comments will be distributed to the Council Members, noted for the record at the meeting and posted on the City’s official agenda webpage as soon as reasonably practicable (found here: http://diamondbarca.iqm2.com/Citizens/Default.aspx).

The public may log into the meeting through this link:
https://attendee.gotowebinar.com/register/549651796761651548. Members of the public will be called upon one at a time during the Public Comment portion of the agenda. Speakers are limited to five minutes per agenda item, unless the Mayor determines otherwise.

American Disability Act Accommodations:

Pursuant to the Executive Order, and in compliance with the Americans with Disabilities Act, if you need special assistance to participate in the Council Meeting, please contact the City Clerk’s Office (909) 839- 7010 within 72 hours of the meeting. City Council video recordings with transcription will be available upon request the day following the Council Meeting.

The City of Diamond Bar thanks you in advance for taking all precautions to prevent spreading the COVID-19 virus.

JANUARY 16, 2024 PAGE 2

ANDREW CHOU
Council Member
RUTH M. LOW
Council Member

STEVE TYE
Council Member

STAN LIU
Mayor

CHIA TENG
Mayor Pro Tem
City Manager Dan Fox • City Attorney Omar Sandoval • City Clerk Kristina Santana

DIAMOND BAR CITY COUNCIL MEETING RULES
Welcome to the meeting of the Diamond Bar City Council. Meetings are open to the public and are broadcast on Spectrum Cable Channel 3 and Frontier FiOS television Channel 47. You are invited to attend and participate. Copies of staff reports or other written documentation relating to agenda items are on file and available for public inspection by contacting the Office of the City Clerk. If requested, the agenda will be made available in an alternative format to a person with disability as required by Section 202 of the Americans with Disabilities Act of 1990. If you have questions regarding an agenda item, please contact the City Clerk at (909) 839-7010 during regular business hours.

PUBLIC INPUT
Members of the public may address the Council on any item of business on the agenda during the time the item is taken up by the Council. In addition, members of the public may, during the Public Comment period address the Council on any Consent Calendar item or any matter not on the agenda and within the Council’s subject matter jurisdiction. Any material to be submitted to the City Council at the meeting should be submitted through the City Clerk.

Speakers are limited to five minutes per agenda item, unless the Mayor determines otherwise. The Mayor may adjust this time limit depending on the number of people wishing to speak, the complexity of the matter, the length of the agenda, the hour and any other relevant consideration.

Speakers may address the Council only once on an agenda item, except during public hearings, when the applicant/appellant may be afforded a rebuttal.

Public comments must be directed to the City Council. A person who disrupts the orderly conduct of the meeting after being warned by the Mayor or the Mayor’s designee that their behavior is disrupting the meeting, may result in the person being removed from the meeting.

INFORMATION RELATING TO AGENDAS AND ACTIONS OF THE COUNCIL Agendas for regular City Council meetings are available 72 hours prior to the meeting and are posted in the City’s regular posting locations, on DBTV (on Spectrum Cable Channel 3 and Frontier FiOS television Channel 47) and on the City’s website at www.diamondbarca.gov/agendas. The City Council may take action on any item listed on the agenda.

HELPFUL PHONE NUMBERS
Copies of agendas, rules of the Council, Video of meetings: (909) 839-7010 Computer access to agendas: www.diamondbarca.gov/agendas General information: (909) 839-7000
Written materials distributed to the City Council within 72 hours of the City Council meeting are available for public inspection immediately upon distribution in the City Clerk’s Office at 21810 Copley Dr., Diamond Bar, California, during normal business hours.

THIS MEETING IS BEING VIDEO RECORDED AND BY PARTICIPATING VIA TELECONFERENCE, YOU ARE GIVING YOUR PERMISSION TO BE TELEVISED.

THIS MEETING WILL BE RE-BROADCAST EVERY SATURDAY AND SUNDAY AT 9:00 A.M. AND ALTERNATE TUESDAYS AT 8:00 P.M. AND IS ALSO AVAILABLE FOR

LIVE VIEWING AT
HTTPS://ATTENDEE.GOTOWEBINAR.COM/REGISTER/549651796761651548 AND ARCHIVED VIEWING ON THE CITY’S WEB SITE AT WWW.DIAMONDBARCA.GOV.

CITY OF DIAMOND BAR

CITY COUNCIL AGENDA
January 16, 2024
CALL TO ORDER: 6:30 p.m.

PLEDGE OF ALLEGIANCE: Mayor
INVOCATION: David Zacarias, Worship Leader,
Landmark Church
ROLL CALL: Chou, Low, Tye, Mayor Pro Tem
Teng, Mayor Liu
APPROVAL OF AGENDA: Mayor

1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: NONE.

2. CITY MANAGER REPORTS AND RECOMMENDATIONS:

3. PUBLIC COMMENTS:
“Public Comments” is the time reserved on each regular meeting agenda to provide an opportunity for members of the public to directly address the Council on Consent Calendar items or other matters of interest not on the agenda that are within the subject matter jurisdiction of the Council. Although the City Council values your comments, pursuant to the Brown Act, members of the City Council or Staff may briefly respond to public comments if necessary, but no extended discussion and no action on such matters may take place. There is a five-minute maximum time limit when addressing the City Council. At this time, the teleconference moderator will ask callers one at a time to give their name and if there is an agenda item number they wish to speak on before providing their comment.

JANUARY 16, 2024 PAGE 2

4. SCHEDULE OF FUTURE EVENTS:

4.1 Free Catalytic Converter Etching – January 17, 2024, 9:00 a.m. – 11:00 a.m., Calvary Chapel Golden Springs, 22324 Golden Springs Dr.

4.2 Planning Commission Meeting – January 23, 2024, 6:30 p.m. – 8:00 p.m., online teleconference and City Hall Windmill Room, 21810 Copley Dr.

4.3 Parks & Recreation Commission Meeting – January 25, 2024, 6:30 p.m. – 8:00 p.m., online teleconference and City Hall Windmill Room, 21810 Copley Dr.

4.4 City Council Meeting – February 6, 2024, 6:30 p.m., online teleconference and SCAQMD Main Auditorium, 21865 Copley Dr.

5. CONSENT CALENDAR:

All items listed on the Consent Calendar are considered by the City Council to be routine and will be acted on by a single motion unless a Council Member or member of the public request otherwise, in which case, the item will be removed for separate consideration.

5.1 CITY COUNCIL MINUTES OF THE DECEMBER 19, 2023 REGULAR MEETING.

5.1.a December 19, 2023 City Council Regular Meeting Minutes Recommended Action:

Approve the December 19, 2023 Regular City Council meeting minutes.

Requested by: City Clerk

5.2 RATIFICATION OF CHECK REGISTER DATED DECEMBER 13, 2023 THROUGH JANUARY 9, 2024 TOTALING $2,364,013.03.

Recommended Action:

Ratify the Check Register.

Requested by: Finance Department

5.3 TREASURER'S STATEMENT
Recommended Action:

Approve the December 2023 Treasurer’s Statement.

Requested by: Finance Department
JANUARY 16, 2024 PAGE 3

5.4 MASTER AGREEMENT ADMINISTERING AGENCY-STATE

AGREEMENT ON STATE-FUNDED PROJECTS WITH THE STATE OF

CALIFORNIA (CALTRANS), AND PROGRAM SUPPLEMENT

AGREEMENT FOR INTERSECTION SAFETY IMPROVEMENTS
PROJECT (CIP# TI24301) FUNDED UNDER THE HIGHWAY SAFETY
IMPROVEMENT PROGRAM.

Recommended Action:

A. Approve, and authorize the Public Works Director/City Engineer to sign, the Master Agreement Administering Agency-State Agreement No. 07-5455S21 and Program Supplement No. 00000A335 accepting $302,850 in grant funds from the Highway Safety Improvement Program (HSIP);
B. Adopt Resolution No. 2024-01 authorizing the Public Works Director/City Engineer to sign necessary documents in administering the HSIP Grant; and
C. Determine that the approval of the funding agreement is not subject to environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Article 18, Section 15378(b)(4).

Requested by: Public Works Department

6. PUBLIC HEARINGS:

6.1 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
ALLOCATIONS FOR FISCAL YEAR 2024/2025.

Recommended Action:

A. Open the public hearing to receive public testimony; B. Close the public hearing; and
C. Adopt Resolution No. 2024-02 approving the Community Development Block Grant Funding Allocations for Fiscal Year 2024/2025.

Requested by: Community Development Department

7. COUNCIL CONSIDERATION:

7.1 TRANSMITTAL OF THE FISCAL YEAR 2022/23 ANNUAL
COMPREHENSIVE FINANCIAL REPORT (ACFR).

Recommended Action:

A. Receive and File the Fiscal Year 2022/23 Annual Comprehensive Financial Report;
JANUARY 16, 2024 PAGE 4
B. Approve an appropriation of Unassigned General Fund Reserves in the amount of $76,000 to the OPEB Reserve Fund (105);
C. Approve an appropriation of Unassigned General Fund Reserves in the amount of $1,204,585 to the Park & Facility Development Fund (262); and
D. Approve an appropriation of Unassigned General Fund Reserves in the amount of $1,204,585 to the Building Maintenance & Replacement Fund (504).

Requested by: Finance Department

7.2 RESULTS OF WASTE HAULER PROCUREMENT.

Recommended Action:

Receive presentation, deliberate and provide direction to staff.

Requested by: City Manager

8. COUNCIL SUB-COMMITTEE REPORTS AND MEETING ATTENDANCE REPORTS/COUNCIL MEMBER COMMENTS:

9. ADJOURNMENT:

Agenda #: 5.1
Meeting Date: January 16, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: CITY COUNCIL MINUTES OF THE DECEMBER 19, 2023 REGULAR MEETING.

STRATEGIC
GOAL: Open, Engaged & Responsive Government
RECOMMENDATION:

Approve the December 19, 2023 Regular City Council meeting minutes.

FINANCIAL IMPACT:

None.

BACKGROUND/DISCUSSION:

Minutes have been prepared and are being presented for approval.

PREPARED BY:

REVIEWED BY:

5.1 Packet Pg. 7
Attachments:

1. 5.1.a December 19, 2023 City Council Regular Meeting Minutes

5.1 Packet Pg. 8

CITY OF DIAMOND BAR

MINUTES OF THE CITY COUNCIL REGULAR MEETING

SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT/MAIN AUDITORIUM 21865 COPLEY DRIVE, DIAMOND BAR, CA 91765
DECEMBER 19, 2023
CALL TO ORDER: Mayor Liu called the Regular City Council meeting to order at 6:30 p.m. in the South Coast Air Quality Management District Main Auditorium, 21865 Copley Drive, Diamond Bar, CA 91765.

PLEDGE OF ALLEGIANCE: Council Member Low led the Pledge of Allegiance.

INVOCATION: Reverend Tino Cordova, Diamond Bar United Church of Christ provided the Invocation.

ROLL CALL: Council Members Andrew Chou, Ruth Low, Steve Tye, Mayor Stan Liu

Absent: Mayor Pro Tem Chia Yu Teng
Staff Present In Person: Dan Fox, City Manager; Ryan McLean, Assistant City Manager; Omar Sandoval, City Attorney; Anthony Santos, Assistant to the City Manager; Jason Jacobsen, Finance Director; Cecilia Arellano, Senior Community Relations Coordinator; Marsha Roa, Community Relations Manager Staff Present Telephonically: David Liu, Public Works Director; Hal Ghafari, Public Works Manager/Assistant City Engineer; Greg Gubman, Community Development Director; Dat Tran, Associate Planner; Amy Haug, Human Resources & Risk Manager; Ryan Wright, Parks and Recreation Director
Also Present: Daniel Dail, Lieutenant Diamond Bar/Walnut Station; Stephen Tousey, Captain, Diamond Bar/Walnut Station; Leticia Pacillas, LACFD Community Services Liaison (telephonically)
APPROVAL OF AGENDA: Mayor Liu approved the agenda as presented.

1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS:

1.1 Through My Lens Photo Contest Winner presentations by Council Members and Diamond Bar Community Foundation President John Forbing.

2. CITY MANAGER REPORTS AND RECOMMENDATIONS: NONE

3. PUBLIC COMMENTS:

Cynthia Yu, Diamond Bar Library, announced the return of the Winter Reading Club. Additional information is available at www.lacountylibrary.org

5.1.a
Packet Pg. 9
DECEMBER 19, 2023 PAGE 2 CITY COUNCIL
Shelley Gentry commented on what she deemed to be glaring errors and issues not discussed in the Royal Vista project’s EIR.

Wanda Ewing, Royal Vista Open Space Non-Profit, requested the City Council to comment on the Draft Environmental Impact Report for the Royal Vista Housing project and submit a formal comment in opposition to the proposed project.

ACM/McLean stated that no emails were received and no one online wishing to speak during public comments.

4. SCHEDULE OF FUTURE EVENTS: CM/Fox presented the Schedule of Future Events.

5. CONSENT CALENDAR: C/Low moved, C/Chou seconded, to approve the Consent Calendar as presented with the exception of Item 5.6 pulled by C/Low for further discussion. Motion carried 4-0 by the following Roll Call vote:

AYES: COUNCIL MEMBERS: Chou, Low, Tye, M/Liu
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: MPT/Teng

5.1 APPROVED CITY COUNCIL MINUTES:

5.1.1 DECEMBER 5, 2023 REGULAR MEETING.

5.2 RATIFIED CHECK REGISTER DATED NOVEMBER 29, 2023 THROUGH DECEMBER 12, 2023 TOTALING $867,500.72.

5.3 APPROVED NOVEMBER 2023 TREASURER’S STATEMENT.

5.4 RATIFIED MAYOR’S APPOINTMENTS OF COUNCIL MEMBERS TO

SERVE ON LOCAL AND REGIONAL BOARDS, COMMISSIONS AND
COMMITTEES AND ADOPTED RESOLUTION NO. 2023-36

CONFIRMING APPOINTMENTS TO THE SAN GABRIEL VALLEY
COUNCIL OF GOVERNMENTS.

5.5 ADOPTED PROCLAMATION DECLARING DECEMBER 19, 2023 AS ARBOR DAY.

ITEMS WITHDRAWN FROM CONSENT CALENDAR:

5.6 APPROVED AND AUTHORIZED THE CITY MANAGER TO SIGN THE

LANDSCAPE MAINTENANCE AGREEMENTS WITH THE STATE OF

CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS)

AND LANDSCAPE MAINTENANCE SERVICES AGREEMENT WITH

LYCOMING, LLC FOR APPROVED LANDSCAPING IMPROVEMENTS

5.1.a
Packet Pg. 10
DECEMBER 19, 2023 PAGE 3 CITY COUNCIL

WITHIN THE CALTRANS RIGHT-OF-WAY ABUTTING THE BREA
CANYON BUSINESS PARK AT 850 SOUTH BREA CANYON ROAD.

CM/Fox responded to C/Low’s question regarding jurisdiction and responsibility of the property owner for maintenance costs.

C/Low moved, C/Tye seconded, to approve Consent Calendar Item 5.6.

Motion carried by the following Roll Call vote:

AYES: COUNCIL MEMBERS: Chou, Low, Tye, M/Liu
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: MPT/Teng

7. PUBLIC HEARINGS: NONE

8. COUNCIL CONSIDERATION: NONE
9, COUNCIL SUBCOMMITTEE REPORTS AND MEETING ATTENDANCE
REPORTS/COUNCIL MEMBER COMMENTS:

C/Chou has enjoyed end of year festivities and activities with his family, attended the well-executed Snow Fest, thanks to staff and volunteers, congratulated the Walnut Valley Education Foundation on a successful Teddy Bear Tea and attended the Sanitation District meeting.

C/Low expressed appreciation to the Diamond Bar Community Foundation for their activities and support of City activities including the Photo Contest and Windmill Lighting, thanked staff for their great work over the past 12 months and residents for giving her the privilege of serving on the City Council. She wished everyone a Merry Christmas, Happy Holidays and a smashing 2024.

C/Tye agreed with C/Chou that the Snow Fest was a wonderful event with 100 tons of snow, spoke about representing the City at Foothill Transit on their 35th Anniversary, attended The Country Estates “Making Spirits Bright” and learned that 700 toys, formula, diapers, etc. had been provided to children of families at Twenty-Nine Palms, and attended the JPIA meeting in La Palma where building improvements are underway. He wished everyone a very Merry Christmas and a Happy New Year, Happy Kwanzaa and Happy whatever one celebrates.

M/Liu thanked staff and volunteers for an amazing year and turning the Snow Fest into a winter wonderland for kids and families, thanked the community for their kindness, empathy and generosity during the holidays, and thanked everyone for the privilege and honor of serving the community and for making Diamond Bar a better place to live, work and be educated. Happy and safe Holidays to everyone.

5.1.a
Packet Pg. 11
DECEMBER 19, 2023 PAGE 4 CITY COUNCIL
ADJOURNMENT: With no further business to conduct, M/Liu adjourned the Regular City Council Meeting was adjourned at 7:16 p.m. to January 16, 2024 at 6:30 p.m.

Respectfully Submitted:
________________________________
Kristina Santana, City Clerk
The foregoing minutes are hereby approved this 16th day of January, 2024.

Stan Liu, Mayor

5.1.a
Packet Pg. 12
Agenda #: 5.2
Meeting Date: January 16, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: RATIFICATION OF CHECK REGISTER DATED DECEMBER 13, 2023 THROUGH JANUARY 9, 2024 TOTALING $2,364,013.03.

STRATEGIC
GOAL: Responsible Stewardship of Public Resources
RECOMMENDATION:

Ratify the Check Register.

FINANCIAL IMPACT:

Expenditure of $2,364,013.03.

BACKGROUND/DISCUSSION:

The City has established the policy of issuing accounts payable checks on a weekly basis with City Council ratification at the next scheduled City Council Meeting.

The attached check register containing checks dated December 13, 2023 through January 9, 2024 totaling $2,364,013.03 is being presented for ratification. All payments have been made in compliance with the City’s purchasing policies and procedures, and have been reviewed and approved by the appropriate departmental staff. The attached Affidavit affirms that the check register has been audited and deemed accurate by the Finance Director.

PREPARED BY:

5.2 Packet Pg. 13
REVIEWED BY:

Attachments:

1. 5.2.a Check Register Affidavit 1-16-2024

2. 5.2.b Check Register 1-16-2024

5.2 Packet Pg. 14

CITY OF DIAMOND BAR

CHECK REGISTER AFFIDAVIT
The attached listings of demands, invoices, and claims in the form of a check register including checks dated December 13, 2023 through January 9, 2024 has been audited and is certified as accurate. Payments have been allowed from the following funds in these amounts:

Signed: __________________________________ Finance Director Jason M. Jacobsen

5.2.a
Packet Pg. 15
City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 10627 12/18/2023 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 21250 GOLDEN SPRNGS PED - TC-1
100655 52210 $75.29
CHECK TOTAL $75.29
10680 12/18/2023 SOUTHERN CALIFORNIA EDISON SAFETY LIGHTS - 3564 S BREA CYN RD BPED - LS-3100655 52210 $35.49 CHECK TOTAL $35.49
10681 12/18/2023 SOUTHERN CALIFORNIA EDISON SAFETY LIGHTS - 2746 BREA CYN BPED - LS-3
100655 52210 $42.74
CHECK TOTAL $42.74
10682 12/18/2023 SOUTHERN CALIFORNIA EDISON GS-1 - 23331 GOLDEN SPRINGS PED - GS-1
100655 52210 $90.61
CHECK TOTAL $90.61
10683 12/18/2023 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 20781 PATHFINDER - TC-1
100655 52210 $109.64
CHECK TOTAL $109.64
10684 12/18/2023 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 20439 GOLDEN SPRINGS PED - TC-1
100655 52210 $111.76
CHECK TOTAL $111.76
10685 12/18/2023 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 717 GRAND AVE TC-1
100655 52210 $116.07
CHECK TOTAL $116.07
10686 12/18/2023 SOUTHERN CALIFORNIA EDISON GS-1 - 2838 S DBB PED - GS-1 100655 52210 $99.88 CHECK TOTAL $99.88
10687 12/18/2023 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 20791 GOLDEN SPRINGS - TC-1
100655 52210 $132.77
CHECK TOTAL $132.77
10688 12/21/2023 SOUTHERN CALIFORNIA EDISON 633 GRAND (110723-120723) FY23-24 238638 52210 $16.32 CHECK TOTAL $16.32
10689 12/22/2023 TASC FLEX SPENDING MEDICAL/CHILDCARE
12/22/2023
238 21118 $4.81
12/22/2023 TASC FLEX SPENDING MEDICAL/CHILDCARE
12/22/2023
239 21118 $4.81
12/22/2023 TASC FLEX SPENDING MEDICAL/CHILDCARE
12/22/2023
241 21118 $4.81

5.2.b
Packet Pg. 16
City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 12/22/2023 TASC FLEX SPENDING MEDICAL/CHILDCARE
12/22/2023
207 21118 $13.94
12/22/2023 TASC FLEX SPENDING MEDICAL/CHILDCARE
12/22/2023
250 21118 $26.85
12/22/2023 TASC FLEX SPENDING MEDICAL/CHILDCARE
12/22/2023
206 21118 $48.85
12/22/2023 TASC FLEX SPENDING MEDICAL/CHILDCARE
12/22/2023
100 21118 $1,846.10
CHECK TOTAL $1,950.17
10690 12/22/2023 VANTAGEPOINT TRNSFR AGNTS303248DEFERRED COMP

CONTRIBUTIONS/LOAN PYMTS
12/22/2023
225 21109 $1.88
12/22/2023 VANTAGEPOINT TRNSFR AGNTS303248DEFERRED COMP

CONTRIBUTIONS/LOAN PYMTS
12/22/2023
239 21109 $141.34
12/22/2023 VANTAGEPOINT TRNSFR AGNTS303248DEFERRED COMP

CONTRIBUTIONS/LOAN PYMTS
12/22/2023
241 21109 $141.34
12/22/2023 VANTAGEPOINT TRNSFR AGNTS303248DEFERRED COMP

CONTRIBUTIONS/LOAN PYMTS
12/22/2023
206 21109 $186.55
12/22/2023 VANTAGEPOINT TRNSFR AGNTS303248DEFERRED COMP

CONTRIBUTIONS/LOAN PYMTS
12/22/2023
238 21109 $282.68
12/22/2023 VANTAGEPOINT TRNSFR AGNTS303248DEFERRED COMP

CONTRIBUTIONS/LOAN PYMTS
12/22/2023
207 21109 $292.34
12/22/2023 VANTAGEPOINT TRNSFR AGNTS303248DEFERRED COMP

CONTRIBUTIONS/LOAN PYMTS
12/22/2023
250 21109 $474.49
12/22/2023 VANTAGEPOINT TRNSFR AGNTS303248DEFERRED COMP

CONTRIBUTIONS/LOAN PYMTS
12/22/2023
100 21109 $18,518.67
CHECK TOTAL $20,039.29
10691 12/22/2023 CALPERS PENSION CONTRIBUTION 12/2/23-
12/15/23 & 12/1-31/23
225 21110 $19.15
12/22/2023 CALPERS PENSION CONTRIBUTION 12/2/23-
12/15/23 & 12/1-31/23
239 21110 $160.20
12/22/2023 CALPERS PENSION CONTRIBUTION 12/2/23-
12/15/23 & 12/1-31/23
241 21110 $160.20

5.2.b
Packet Pg. 17
City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 12/22/2023 CALPERS PENSION CONTRIBUTION 12/2/23-
12/15/23 & 12/1-31/23
238 21110 $228.97
12/22/2023 CALPERS PENSION CONTRIBUTION 12/2/23-
12/15/23 & 12/1-31/23
206 21110 $554.56
12/22/2023 CALPERS PENSION CONTRIBUTION 12/2/23-
12/15/23 & 12/1-31/23
207 21110 $611.03
12/22/2023 CALPERS PENSION CONTRIBUTION 12/2/23-
12/15/23 & 12/1-31/23
250 21110 $2,260.76
12/22/2023 CALPERS PENSION CONTRIBUTION 12/2/23-
12/15/23 & 12/1-31/23
100 21110 $43,040.46
CHECK TOTAL $47,035.33
10692 12/27/2023 ALL CITY MANAGEMENT

SERVICES INC

CROSSING GUARD SERVICES -
10/29/23-11/11/23
100310 55412 $12,138.48
12/27/2023 ALL CITY MANAGEMENT

SERVICES INC

CROSSING GUARD SERVICES -
11/12/23-11/25/23
100310 55412 $7,036.80
CHECK TOTAL $19,175.28
10693 12/27/2023 ANCOM GROUP INC INSTRUCTOR PAYMENT - EDUCATION - FALL 23
100520 55320 $270.00
CHECK TOTAL $270.00
10694 12/27/2023 BISHOP JOHN INSTRUCTOR PAYMENT - MARTIAL ARTS - FALL 23
100520 55320 $216.00
CHECK TOTAL $216.00
10695 12/27/2023 BLOOMINGBAY INC SHERIFF VOLUNTEER ON PATROL APPRECIATION DINNER 23
100320 52410 $1,341.06
CHECK TOTAL $1,341.06
10696 12/27/2023 KATHY BREAUX INSTRUCTOR PAYMENT - ART - FALL 23 100520 55320 $58.80 CHECK TOTAL $58.80
10697 12/27/2023 CIVICPLUS LLC MUNI CODE UPDATE 100140 54900 $12.20 CHECK TOTAL $12.20
10698 12/27/2023 COCO SUTZE CHENG INSTRUCTOR PAYMENT - ZUMBA - FALL 23 100520 55320 $120.00
CHECK TOTAL $120.00
10699 12/27/2023 CODING MINDS INC INSTRUCTOR PAYMNET - COMPUTER - FALL 22
100520 55320 $264.00
12/27/2023 CODING MINDS INC INSTRUCTOR PAYMENT - COMPUTER - FALL 22
100520 55320 $132.00

5.2.b
Packet Pg. 18
City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 12/27/2023 CODING MINDS INC INSTRUCTOR PAYMENT - COMPUTER - WS23
100520 55320 $132.00
12/27/2023 CODING MINDS INC INSTRUCTOR PAYMENT - COMPUTER - WS 23
100520 55320 $132.00
12/27/2023 CODING MINDS INC INSTRUCTOR PAYMENT - COMPUTER - WS 23
100520 55320 $198.00
12/27/2023 CODING MINDS INC INSTRUCTOR PAYMENT - COMPUTERS - SUM 23
100520 55320 $423.00
12/27/2023 CODING MINDS INC INSTRUCTOR PAYMENT - COMPUTER - SUM 23
100520 55320 $282.00
12/27/2023 CODING MINDS INC INSTRUCTOR PAYMENT - COMPUTER - SUM 23
100520 55320 $282.00
12/27/2023 CODING MINDS INC INSTRUCTOR PAYMENT - COMPUTER - FALL 23
100520 55320 $120.00
CHECK TOTAL $1,965.00
10700 12/27/2023 COPP CONTRACTING INC AREA 2 - RES/COLL REHAB PROJ

RETENTION
301 29004 $1,600.63
12/27/2023 COPP CONTRACTING INC AREA 2 - RES/COLL REHAB PROJ

RETENTION
301 29004 $2,846.88
12/27/2023 COPP CONTRACTING INC AREA 2 - RES/COLL REHAB PROJ

RETENTION
301 29004 $3,177.00
12/27/2023 COPP CONTRACTING INC AREA 2 - RES/COLL REHAB PROJ

RETENTION
301 29004 $5,861.05
12/27/2023 COPP CONTRACTING INC AREA 2 - RES/COLL REHAB PROJ

RETENTION
301 29004 $12,044.93
12/27/2023 COPP CONTRACTING INC AREA 2 - RES/COLL REHAB PROJ

RETENTION
301 29004 $15,675.54
12/27/2023 COPP CONTRACTING INC AREA 2 - RES/COLL REHAB PROJ

RETENTION
301 29004 $31,945.03
12/27/2023 COPP CONTRACTING INC AREA 2 - RES/COLL REHAB PROJ

RETENTION
301 29004 $40,301.19
12/27/2023 COPP CONTRACTING INC AREA 2 - RES/COLL REHAB PROJ

RETENTION
301 29004 $45,878.75
CHECK TOTAL $159,331.00
10701 12/27/2023 CRAFCO INC ROAD MAINT (SYCAMORE PARK) FY23- 24 100655 51250 $2,108.20
CHECK TOTAL $2,108.20
10702 12/27/2023 CT & T CONCRETE PAVING INC AREA 3 RESIDENTIAL ADA CURB RA 301610 56101 $152,608.00

5.2.b
Packet Pg. 19
City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT CHECK TOTAL $152,608.00
10703 12/27/2023 DAVID EVANS AND ASSOCIATES
INC
LANDSCAPE PLAN CHECK SVCS-9/24
THRU 10/28/23
100 22107 $55.00
12/27/2023 DAVID EVANS AND ASSOCIATES
INC
LANDSCAPE PLAN CHECK SVCS-9/24
THRU 10/28/23
100 22107 $186.50
12/27/2023 DAVID EVANS AND ASSOCIATES
INC
LANDSCAPE PLAN CHECK SVCS-9/24
THRU 10/28/23
100 22107 $617.50
12/27/2023 DAVID EVANS AND ASSOCIATES
INC
LANDSCAPE PLAN CHECK SVCS-9/24
THRU 10/28/23
100 22107 $847.50
CHECK TOTAL $1,706.50
10704 12/27/2023 DEPARTMENT OF JUSTICE LIVESCAN FEES 100220 52510 $96.00 CHECK TOTAL $96.00
10705 12/27/2023 DIANA CHO & ASSOCIATES CBDG ADMINISTRATIVE SERVICES-AREA 3 SEPT 2023
301610 56101 $1,360.00
CHECK TOTAL $1,360.00
10706 12/27/2023 EXTERIOR PRODUCTS CORP US FLAG INSTALL/REMOVAL (VETERAN DAY) FY23-24
100630 56116 $6,487.50
12/27/2023 EXTERIOR PRODUCTS CORP EQUIP MAINT & REPAIR (DBC) FY23-24 100510 52320 $2,271.07 12/27/2023 EXTERIOR PRODUCTS CORP EQUIP MAINT & REPAIR (DBC) FY23-24 100510 52310 $2,500.00 CHECK TOTAL $11,258.57
10707 12/27/2023 FOOTHILL BUILDING MATERIALS
INC
SANDBAGS (STATION#119) FY23-24 100350 51200 $628.53
12/27/2023 FOOTHILL BUILDING MATERIALS
INC
SANDBAGS (STATION#121) FY23-24 100350 51200 $628.53
CHECK TOTAL $1,257.06
10708 12/27/2023 FRANCOISE S ZAMBRA INSTRUCTOR PAYMENT - PILATES - FALL 23 100520 55320 $432.00
CHECK TOTAL $432.00
10709 12/27/2023 FUN EXPRESS LLC SUPPLIES FOR WINTER SNOW FEST 100520 51200 $4,308.85 12/27/2023 FUN EXPRESS LLC SUPPLIES FOR HALLOWEEN PARTY 100520 51200 $3,706.43 CHECK TOTAL $8,015.28
10710 12/27/2023 GERALDINE KELLER INSTRUCTOR PAYMENT - CULINARY - FALL 23
100520 55320 $51.00
CHECK TOTAL $51.00

5.2.b
Packet Pg. 20
City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 10711 12/27/2023 WOODS MAINTENANCE

SERVICES INC
GRAFFITI ABATEMENT NOVEMBER 2023 100430 55540 $3,475.00 CHECK TOTAL $3,475.00
10712 12/27/2023 HEATHER JEN CHANG CONTRACT CLASS INSTRUCTOR- ART 100520 55320 $741.00 CHECK TOTAL $741.00
10713 12/27/2023 HODGMAN ENTERPRISES PRINTING, MALING OF WINTER SPRING 2024 REC GUIDE
100240 52110 $10,944.01
CHECK TOTAL $10,944.01
10714 12/27/2023 HOME DEPOT CREDIT SERVICES CREDIT INVOICE 100630 52320 ($551.13) 12/27/2023 HOME DEPOT CREDIT SERVICES MAINT TOOLS&EQUIP FY23-24 100630 52320 $306.88 12/27/2023 HOME DEPOT CREDIT SERVICES MAINT TOOLS&EQUIP FY23-24 100630 52320 $75.03 12/27/2023 HOME DEPOT CREDIT SERVICES MAINT TOOLS& EQUIP FY23-24 100655 51250 $104.96 12/27/2023 HOME DEPOT CREDIT SERVICES MAINT TOOLS &EQUIP FY23-24 100630 52320 $133.36 CHECK TOTAL $69.10
10715 12/27/2023 HUMANE SOCIETY OF POMONA

VALLEY INC

IVHS ANIMAL CONTROL SERVICES IN

NOVEMBER
100340 55404 $38,134.67
CHECK TOTAL $38,134.67
10716 12/27/2023 JAVIER DJEU INSTRUCTOR PAYMENT - PICKLEBALL - FALL 23
100520 55320 $1,286.40
CHECK TOTAL $1,286.40
10717 12/27/2023 JNA EVENTS SERVICES LLC SENIOR DANCE CATERING 100520 55310 $6,563.25 CHECK TOTAL $6,563.25
10718 12/27/2023 JOE A GONSALVES & SON INC STATE LOBBYIST - PROF. SERVICES IN JAN. 2024
100130 54900 $2,500.00
CHECK TOTAL $2,500.00
10719 12/27/2023 KEVIN D JONES PS -SR-57/60 CONFLUENCE PROJ ADVOCACY - NOV 2023
100615 54400 $4,000.00
CHECK TOTAL $4,000.00
10720 12/27/2023 KIMBERLY DOWNEY ESMOND CONTRACT CLASS INSTRUCTOR - YOUTH DANCE
100520 55320 $1,065.60
CHECK TOTAL $1,065.60
10721 12/27/2023 LEACH ROOFING COMPANY CDBG HOME IMP PROJECT-23720

BOWER CASCADE
225440 54900 $2,008.00

5.2.b
Packet Pg. 21
City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT CHECK TOTAL $2,008.00
10722 12/27/2023 LEWIS ENGRAVING INC OUTGOING MAYOR PHOTO NAME PLATE
100140 52140 $21.25
12/27/2023 LEWIS ENGRAVING INC NAME BADGE 100140 52140 $17.95 CHECK TOTAL $39.20
10723 12/27/2023 LOCAL AGENCY ENGINEERING

ASSOCIATES INC

PS - ENGINEERING STAFF
AUGMENTATION - NOV 2023
100610 54400 $647.50
12/27/2023 LOCAL AGENCY ENGINEERING

ASSOCIATES INC
PS - STAFF AUGMENTATION - NOV 2023 207615 54400 $2,070.00 CHECK TOTAL $2,717.50
10724 12/27/2023 LOOMIS COURIER SERVICES - NOVEMBER 2023 100210 54900 $729.78 12/27/2023 LOOMIS COURIER SERVICES - NOVEMBER 2023 100510 54900 $729.78 CHECK TOTAL $1,459.56
10725 12/27/2023 LOS ANGELES COUNTY PUBLIC
WORKS
FY22-23 CATCH BASIN
CLEANOUT(070123-063023)
201655 55530 $7,985.58
12/27/2023 LOS ANGELES COUNTY PUBLIC
WORKS
CS - INDUSTRIAL SERVICES - NOV 2023 100610 55550 $2,113.84 CHECK TOTAL $10,099.42
10726 12/27/2023 LOS ANGELES COUNTY SHERIFF'S
DEPT
FY2023-24 GEN LAW ENFORCEMENT
SERVICES 10-2023
100310 55400 $627,720.11
CHECK TOTAL $627,720.11
10727 12/27/2023 LOWE'S BUSINESS ACCOUNT SMALL TOOLS & EQUIPMENT FY23-24 100630 52320 $43.80 12/27/2023 LOWE'S BUSINESS ACCOUNT SMALL TOOLS & EQUIPMENT FY23-24 100630 51300 $143.41 12/27/2023 LOWE'S BUSINESS ACCOUNT SMALL TOOLS & EQUIPMENT FY23-24 100620 51300 $204.96 CHECK TOTAL $392.17
10728 12/27/2023 NICHOLS CONSULTING

ENGINEERS, CHTD
AREA 3 RES/COLL & CURB RAMP
DESIGN - THRU 12/01/23
301610 56101 $35,532.62
CHECK TOTAL $35,532.62
10729 12/27/2023 NINYO & MOORE INC GEOTECHNICAL INVESTIGATION FOR 3000 BLOCK OF DBB
100615 54430 $926.25
12/27/2023 NINYO & MOORE INC PR2023-1983 / 900 N DIAMOND BAR

BLVD- GEOTECH SVCS
100 22109 $866.25
12/27/2023 NINYO & MOORE INC PR2023-1983 / 900 N DIAMOND BAR

BLVD- GEOTECH SVCS
100 22109 $2,983.75

5.2.b
Packet Pg. 22
City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 12/27/2023 NINYO & MOORE INC PR2023-1983 / 900 N DIAMOND BAR

BLVD- GEOTECH SVCS
100 22109 $1,935.00
CHECK TOTAL $6,711.25
10730 12/27/2023 NORTH AMERICAN YOUTH

ACTIVITIES LLC

CONTRACT CLASS INSTRUCTOR-YOUTH
SOCCER
100520 55320 $1,125.00
CHECK TOTAL $1,125.00
10731 12/27/2023 ONE TIME PAY VENDOR ANNETTE WOODSON RECREATION REFUND 100 20202 $20.00 CHECK TOTAL $20.00
10732 12/27/2023 ONE TIME PAY VENDOR BILLY FERMIN FACILITY DEPOSIT REFUND 100 20202 $100.00 CHECK TOTAL $100.00
10733 12/27/2023 ONE TIME PAY VENDOR DR. SAMIR BATNIJI FACILITY REFUND 100 20202 $500.00 CHECK TOTAL $500.00
10734 12/27/2023 ONE TIME PAY VENDOR GLORIA BAHENA FACILITY REFUND 100 20202 $500.00 CHECK TOTAL $500.00
10735 12/27/2023 ONE TIME PAY VENDOR KATHRYN

COUGHENOUR
FACILITY REFUND 100 20202 $500.00
CHECK TOTAL $500.00
10736 12/27/2023 ONE TIME PAY VENDOR KELLER WILLIAMS

SIGNATURE REALTY
FACILITY REFUND 100 20202 $1,249.64
CHECK TOTAL $1,249.64
10737 12/27/2023 ONE TIME PAY VENDOR LETICIA CERVANTEZ FACILITY DEPOSIT REFUND 100 20202 $100.00 CHECK TOTAL $100.00
10738 12/27/2023 ONE TIME PAY VENDOR LINET MENESES FACILITY REFUND 100 20202 $901.50 CHECK TOTAL $901.50
10739 12/27/2023 ONE TIME PAY VENDOR MARIANO BORBON RECREATION PROGRAM REFUND 100 20202 $40.00 CHECK TOTAL $40.00
10740 12/27/2023 ONE TIME PAY VENDOR MIN JO FACILITY REFUND 100 20202 $200.00 CHECK TOTAL $200.00
10741 12/27/2023 ONE TIME PAY VENDOR ORALIA MACIAS FACILITY REFUND 100 20202 $200.00 CHECK TOTAL $200.00
10742 12/27/2023 ONE TIME PAY VENDOR WALNUT VALLEY FACILITY REFUND 100 20202 $750.00

5.2.b
Packet Pg. 23
City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT

EDUCATION

FOUNDATION
CHECK TOTAL $750.00
10743 12/27/2023 ONE TIME PAY VENDOR AMY HAUG REIMB-HOLIDAY LUNCHEON 100220 52520 $197.31 CHECK TOTAL $197.31
10744 12/27/2023 ONE TIME PAY VENDOR SUPER DIAMOND AGE

SENIOR CLUB

SENIOR CLUB INSURANCE

REIMBURSEMENT
225440 54900 $1,027.03
CHECK TOTAL $1,027.03
10745 12/27/2023 ONE TIME PAY VENDOR - CND
REFUND
EDDIE W NG PR2023-0001871/232 N PINTADO DR 100 22105 $250.00 CHECK TOTAL $250.00
10746 12/27/2023 PAPER RECYCLING &

SHREDDING
PAPER SHREDDING – DEC 2023 250170 55000 $105.00
CHECK TOTAL $105.00
10747 12/27/2023 PHOTO ART INDUSTRIES PHOTO FOR OUTGOING MAYOR 100110 52130 $268.30 CHECK TOTAL $268.30
10748 12/27/2023 REGIONAL TAP SERVICE CENTER FOOTHILL PASSES - NOVEMBER 2023 206650 55610 $169.86 12/27/2023 REGIONAL TAP SERVICE CENTER FOOTHILL PASSES - NOVEMBER 2023 206650 55620 $679.44 CHECK TOTAL $849.30
10749 12/27/2023 REGISTRAR-RECORDER/COUNTY
CLERK
ELECTRONIC RECORDING 100140 54900 $20.00
CHECK TOTAL $20.00
10750 12/27/2023 REINBERGER CORPORATION BUSINESS CARD 100140 52110 $86.51 12/27/2023 REINBERGER CORPORATION BUSINESS CARDS FOR COUNCIL

MEMBERS
100140 52110 $423.77
CHECK TOTAL $510.28
10751 12/27/2023 RKA CONSULTING GROUP BUILDING AND SAFETY SERVICES OCTOBER 2023
100420 55100 $46,280.08
CHECK TOTAL $46,280.08
10752 12/27/2023 SIMPSON ADVERTISING INC TRAFFIC DETOUR MAP 100240 54900 $595.00 12/27/2023 SIMPSON ADVERTISING INC DBC 20TH ANNIVERSARY LOGO 100520 54900 $695.00 12/27/2023 SIMPSON ADVERTISING INC LAYOUT AND DESIGN OF JAN 2024 CITY

NEWSLETTER
100240 54900 $1,575.00

5.2.b
Packet Pg. 24
City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT CHECK TOTAL $2,865.00
10753 12/27/2023 SO COAST AIR QUALITY MGT

DISTRICT
FACILITY LEASE IN JAN. 2024 100130 52302 $2,688.58
CHECK TOTAL $2,688.58
10754 12/27/2023 SOCIAL VOCATIONAL SERVICES LITTER AND WEED REMOVAL (RIGHT OF WAY-NOV) FY23-24
100645 55528 $3,113.00
CHECK TOTAL $3,113.00
10755 12/27/2023 SSN & S INC VEHICLE MAINT (LIC#1479429) FY23-24 502430 52312 $211.91 CHECK TOTAL $211.91
10756 12/27/2023 SWRCB ACCOUNTING OFFICE FY23-24 NPDES ANNUAL PERMIT FEE (MS4)
201610 54200 $20,085.00
CHECK TOTAL $20,085.00
10757 12/27/2023 THE GAS COMPANY CITYHALL (111023-121123) FY23-24 100620 52215 $15.29 12/27/2023 THE GAS COMPANY HERITAGE PARK (111323-121223) FY23- 24 100630 52215 $205.23
12/27/2023 THE GAS COMPANY DIAMOND BAR CENTER (111423-
121323) FY23-24
100510 52215 $1,820.99
CHECK TOTAL $2,041.51
10758 12/27/2023 TORTI GALLAS AND PARTNERS
INC

TOWN CENTER SPECIFIC PLAN
NOVEMBER 2023
103410 54900 $32,154.75
CHECK TOTAL $32,154.75
10759 12/27/2023 TRIANGLE SPORTS INC YOUTH BASKETBALL JERSEYS 100520 51200 $3,322.11 CHECK TOTAL $3,322.11
10760 12/27/2023 TRIFYTT SPORTS LLC CONTRACT CLASS INSTRUCTOR-YOUTH SPORTS
100520 55320 $1,642.80
CHECK TOTAL $1,642.80
10761 12/27/2023 ULINE INC BEV CNT GRT/ 23300 GOLDEN SPRINGS DR
254180 56116 $1,954.25
CHECK TOTAL $1,954.25
10762 12/27/2023 ULINE INC DIAMOND BAR CENTER SUPPLIES 100510 51200 $42.67 CHECK TOTAL $42.67
10763 12/27/2023 UNITED SITE SERVICES OF

CALIFORNIA INC

RESTROOM RENTALS FOR WINTER SNOW
FEST
100520 55300 $1,505.63
CHECK TOTAL $1,505.63

5.2.b
Packet Pg. 25
City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 10764 12/27/2023 WALNUT VALLEY WATER DISTRICT WVWD (CITYHALLW 110123-113023) NOV FY23-24
100620 52220 $908.62
12/27/2023 WALNUT VALLEY WATER DISTRICT WVWD (D38W 110123-113023) NOV FY23-24
238638 52220 $11,258.70
12/27/2023 WALNUT VALLEY WATER DISTRICT WVWD (D38RW 110123-113023) NOV FY23-24
238638 52220 $1,795.03
12/27/2023 WALNUT VALLEY WATER DISTRICT WVWD (D39W 110123-113023) NOV FY23-24
239639 52220 $7,640.88
12/27/2023 WALNUT VALLEY WATER DISTRICT WVWD (D41W 110123-113023) OCT FY23-24
241641 52220 $6,825.96
12/27/2023 WALNUT VALLEY WATER DISTRICT WVWD (DBCW 110123-113023) NOV FY23-24
100510 52220 $477.16
12/27/2023 WALNUT VALLEY WATER DISTRICT WVWD (PARKSW 110123-113023) NOV FY23-24
100630 52220 $21,898.55
12/27/2023 WALNUT VALLEY WATER DISTRICT WVWD (PARKSRW 110123-113023) NOV FY23-24
100630 52220 $1,218.95
CHECK TOTAL $52,023.85
10765 12/27/2023 WANSEO CHUNG INSTRUCTOR PAYMENT - YOGA - FALL 23 100520 55320 $504.00
CHECK TOTAL $504.00
10766 12/27/2023 YUNEX LLC CIP TM23201 BBS&CCTV PRJ 301610 56102 $865,720.00 12/27/2023 YUNEX LLC TS MAINT - REPAIR - DBB/SPROUTS 207650 55536 $1,111.02 12/27/2023 YUNEX LLC TS MAINTENANCE - SEPT 2023 207650 55536 $5,540.00 12/27/2023 YUNEX LLC TS MAINT/CALL-OUTS - SEPT 2023 207650 55536 $5,226.58 12/27/2023 YUNEX LLC TS MAINT REPAIR - SUNSET

XING/GOLDEN SPRINGS
207650 55536 $7,187.02
12/27/2023 YUNEX LLC TS MAINT REPAIR - GLDN

SPRGS/PROSPECTORS
207650 55536 $4,968.56
12/27/2023 YUNEX LLC TS MAINT REPAIR - GLDN SPRGS/LEMON 207650 55536 $3,802.73 CHECK TOTAL $893,555.91
10767 1/2/2024 AMERICOMP TONER & REPAIR
LLC

PRINTER MAINTENANCE - PAPER TRAY

AND TONER
100230 51200 $317.99
CHECK TOTAL $317.99
10768 1/2/2024 BONTERRA PSOMAS MITIGATION MONITORING-TRACT53670 10/28/22-3/30/23
100 22107 $3,147.53
CHECK TOTAL $3,147.53

5.2.b
Packet Pg. 26
City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 10769 1/2/2024 COLLEY AUTO CARS INC VEHICLE MAINT (LIC#1407074) FY23-24 502655 52312 $199.00 CHECK TOTAL $199.00
10770 1/2/2024 DAPEER ROSENBLIT & LITVAK LLP CODE ENF CITY PROSECUTOR OCTOBER 2023
100120 54024 $4,881.20
CHECK TOTAL $4,881.20
10771 1/2/2024 EXTERIOR PRODUCTS CORP MAINTENANCE OPERATING SUPPLIES 100630 52320 $577.50 1/2/2024 EXTERIOR PRODUCTS CORP MAINTENANCE OPERATING SUPPLIES 100620 52320 $684.87 CHECK TOTAL $1,262.37
10772 1/2/2024 FEDERAL EXPRESS

CORPORATION
FEES FOR OVERNIGHT CHECK DELIVERY 100510 51200 $43.52
CHECK TOTAL $43.52
10773 1/2/2024 FRONTIER COMMUNICATIONS
CORP

SUMMARY BILL - INTERNET/CITY HALL -
DEC 2023
100230 54030 $775.00
CHECK TOTAL $775.00
10774 1/2/2024 GATEWAY CORP CENTER ASSOC ASSOC DUES (JAN 2024) FY23-24 100620 52400 $2,615.19 CHECK TOTAL $2,615.19
10775 1/2/2024 GO LIVE TECHNOLOGY INC PS/PROJECT MGMT - SOLAR APP - NOV 2023
503230 56135 $360.00
CHECK TOTAL $360.00
10776 1/2/2024 GOVCONNECTION INC ANNUAL RENEWAL - VERITAS 100230 52314 $6,820.00 1/2/2024 GOVCONNECTION INC IPAD FOR NEW CITY STAFF 100230 56100 $873.98 CHECK TOTAL $7,693.98
10777 1/2/2024 HINDERLITER DE LLAMAS &

ASSOCIATES

CONTRACT SVCS - SALES TAX OCT-DEC
2023
100210 54900 $181.37
1/2/2024 HINDERLITER DE LLAMAS &

ASSOCIATES

CONTRACT SVCS - SALES TAX OCT-DEC
2023
100210 54010 $900.00
CHECK TOTAL $1,081.37
10778 1/2/2024 LA COUNTY ASSESSOR OFFICE SBF ABSTRACT - NOV 2023 100230 52314 $50.00 CHECK TOTAL $50.00
10779 1/2/2024 LOS ANGELES COUNTY PUBLIC
WORKS

SUMP PUMP
MAINT(SYCAMORECYNPARK 100123-
110923)FY23
100630 52320 $4,495.21
CHECK TOTAL $4,495.21

5.2.b
Packet Pg. 27
City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 10780 1/2/2024 MOBILE RELAY ASSOCIATES INC REPEATER SERVICES FOR EMERGENCY

PREPARDNESS IN JAN
100350 52300 $78.75
CHECK TOTAL $78.75
10781 1/2/2024 NETWORK PARATRANSIT SYSTEMS
INC
FY2023-24 DIAMOND RIDE SR TRANSP. -
NOV 2023
206650 55560 $19,520.75
CHECK TOTAL $19,520.75
10782 1/2/2024 PRINTING & MAILING SERVICES
INC
PRINTING AND BINDING OF CITY'S 2024

CALENDAR
100240 52110 $7,074.27
CHECK TOTAL $7,074.27
10783 1/2/2024 PUBLIC STORAGE #23051 PARKS AND RECREATION OFF SITE

STORAGE UNITS
100520 52302 $798.00
1/2/2024 PUBLIC STORAGE #23051 PARKS AND RECREATION OFF SITE

STORAGE UNITS
100520 52302 $836.00
CHECK TOTAL $1,634.00
10784 1/2/2024 SC FUELS FLEET VEHICLE FUEL (120123-121523) FY23-24
502430 52312 $47.99
1/2/2024 SC FUELS FLEET VEHICLE FUEL (120123-121523)
FY23-24
502130 52312 $66.28
1/2/2024 SC FUELS FLEET VEHICLE FUEL (120123-121523)
FY23-24
502620 52312 $330.16
1/2/2024 SC FUELS FLEET VEHICLE FUEL (120123-121523)
FY23-24
502655 52312 $650.02
1/2/2024 SC FUELS FLEET VEHICLE FUEL (120123-121523)
FY23-24
502630 52312 $764.21
CHECK TOTAL $1,858.66
10785 1/2/2024 SPECTRUM BUSINESS CABLE TV - DBC - DEC 2023 100230 54030 $127.15 CHECK TOTAL $127.15
10786 1/2/2024 THE COMDYN GROUP INC GIS SUPPORT - 11/18/23-12/15/23 100230 54900 $3,971.50 CHECK TOTAL $3,971.50
10787 1/2/2024 THE SAN GABRIEL VALLEY

NEWSPAPER GR
LEGAL AD - LLAD #38 - RESO 2023-21 238638 52160 $1,466.83 1/2/2024 THE SAN GABRIEL VALLEY

NEWSPAPER GR
LEGAL AD - LLAD #39 - RESO 2023-22 239639 52160 $2,551.85 CHECK TOTAL $4,018.68
10788 1/2/2024 THE SAN GABRIEL VALLEY

NEWSPAPER GR
LEGAL AD - LLAD #41 - RESO 2023-23 241641 52160 $1,573.79

5.2.b
Packet Pg. 28
City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT CHECK TOTAL $1,573.79
10789 1/2/2024 UNITED RECORDS MANAGEMENT
INC

OFF-SITE STORAGE - BACK-UP TAPES -
NOV 2023
100230 55000 $594.00
CHECK TOTAL $594.00
10790 1/2/2024 WAXIE SANITARY SUPPLY JANITORIAL SUPPLIES (DBC) FY23-24 100510 51210 ($77.01) 1/2/2024 WAXIE SANITARY SUPPLY JANITORIAL SUPPLIES (PARKS) FY23-24 100630 51200 $184.04 1/2/2024 WAXIE SANITARY SUPPLY JANITORIAL SUPPLIES 100510 51210 $865.79 CHECK TOTAL $972.82
10791 1/2/2024 WEST COAST ARBORISTS INC TREE MAINT D41 (111623-113023) FY23- 24 241641 55522 $7,210.35
CHECK TOTAL $7,210.35
10792 1/2/2024 WISCONSIN QUICK LUBE INC VEHICLE MAINTENANCE (LIC#1479428) FY23-24
502430 52312 $143.44
CHECK TOTAL $143.44
10793 1/2/2024 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
LEGAL SVCS - NOVEMBER 2023 100120 54020 $1,716.00
1/2/2024 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
LEGAL SERVICES - NOVEMBER 2023 100120 54020 $11,061.60
1/2/2024 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
LEGAL SERVICES - NOVEMBER 2023 100120 54020 $79.20
1/2/2024 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
LEGAL SERVICES - NOVEMBER 2023 100120 54020 $211.20
1/2/2024 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
LEGAL SERVICES - NOVEMBER 2023 100120 54020 $1,029.60
1/2/2024 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
LEGAL SERVICES - NOVEMBER 2023 100120 54020 $26.40
1/2/2024 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
LEGAL SERVICES - NOVEMBER 2023 100120 54020 $580.80
CHECK TOTAL $14,704.80
10805 1/2/2024 ABOUND FOOD CARE FISCAL YEAR 23-24 FOOD RECOVERY

SERVICES
250170 54900 $1,632.25
CHECK TOTAL $1,632.25
10806 1/2/2024 LINGO TELECOM LLC CITYWIDE ANALOG PHONE SYSTEM - DEC 2023
100230 52200 $2,310.48
CHECK TOTAL $2,310.48

5.2.b
Packet Pg. 29
City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 10807 1/2/2024 DIAMOND BAR WOMAN'S CLUB FY 23/24 9TH ANNUAL CASINO NIGHT - TABLE FOR 10
101110 52600 $1,000.00
CHECK TOTAL $1,000.00
10808 1/2/2024 RETAIL MARKETING SERVICES INC NOV 2023 CART SERVICES 250170 55000 $45.00 CHECK TOTAL $45.00
10809 1/2/2024 TYLER TECHNOLOGIES INC COMPUTER SOFTWARE - ELM PROJECT - 11/7/23-11/9/23
503230 56135 $6,200.00
CHECK TOTAL $6,200.00
10810 1/2/2024 ULINE INC BEV CNT GRT/ 1174 FLINTLOCK RD 253180 51300 $48.47 CHECK TOTAL $48.47
10811 1/2/2024 VERIZON WIRELESS WIRELESS PHONE SERVICE - 11/17/23 - 12/16/23
100230 52200 $2,095.93
CHECK TOTAL $2,095.93
10812 1/2/2024 VERMONT SYSTEMS INC WEBTRAC INTERFACE - INITIAL SET-UP

MEETING
100230 52314 $175.00
CHECK TOTAL $175.00
GRAND TOTAL $2,364,013.03

5.2.b
Packet Pg. 30
Agenda #: 5.3
Meeting Date: January 16, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: TREASURER'S STATEMENT

STRATEGIC
GOAL: Responsible Stewardship of Public Resources
RECOMMENDATION:

Approve the December 2023 Treasurer’s Statement.

FINANCIAL IMPACT:

None.

BACKGROUND/DISCUSSION:

Consistent with City policy, the Finance Department presents the monthly Treasurer’s Statement to the City Council for review and approval. This statement shows the cash balances with a breakdown of various investment accounts and the yield to maturity from investments. This statement also includes an investment portfolio management report which details the activities of investments. All investments have been made in accordance with the City’s Investment Policy.

PREPARED BY:

REVIEWED BY:

5.3 Packet Pg. 31
Attachments:

1. 5.3.a Treasurer's Cash Report - Dec 2023

2. 5.3.b Treasurer's Portfolio & Certification - Dec 2023_FINAL

5.3 Packet Pg. 32

CASH & INVESTMENT BALANCES
Cash Funds
General Account $2,862,762.44
Payroll Account $0.00
Change Fund - General Fund $600.00
Petty Cash Account $500.00
Cash With Fiscal Agent (US Bank 2021 Bonds) $1,519.92
Total Cash Funds $2,865,382.36
City & LAIF Invested Funds (Book Value):

Local Agency Investment Fund $2,452,433.53
City-Managed Fixed-Income Securities (0-5 year maturity) $66,364,969.18 Total Investment Funds (Book Value) $68,817,402.71
Fiscal Year-To-Date Effective Rate of Return (City Funds & LAIF) 3.70% (6 months) Fiscal YTD Interest Earnings (City Funds & LAIF) $1,287,081.95 (6 months) FY 2023-24 Budgeted Investment Earnings (City Funds & LAIF) $987,450.00 (12 months) Invested Funds With OPEB Trust (Managed by CalPERS/State Street) $771,350.08 Historical rate of return as of 9/30/2023 (since 2016, 7.25 yrs) 1.51% OPEB Trust Fiscal Year-To-Date Unrealized Gain/(Loss) $37,913.63 (6 months) GRAND TOTAL - CASH & INVESTMENTS $72,454,135.15

CITY OF DIAMOND BAR - CITY TREASURER'S REPORT
AS OF DECEMBER 31, 2023

5.3.a
Packet Pg. 33

INVESTMENTS BOOK VALUE

PERCENT OF

PORTFOLIO TERM

DAYS TO

MATURITY

YIELD TO

MATURITY
Federal Credit Union CD $10,674,000.00 15.51% 1,381 1,029 4.099% Local Agency Investment Fund $2,452,433.53 3.56% 1 1 3.843% Corporate Notes $453,817.57 0.66% 1,638 1,268 5.000%
Federal Agency Coupon Securities $12,980,442.56 18.86% 1,082 606 3.961% Federal Agency Discount-Amortizing $1,989,557.78 2.89% 92 36 5.406% Treasury Coupon Securities $11,964,479.02 17.39% 1,116 517 2.664% Federal Agency Callable $9,498,885.11 13.80% 1,528 365 2.561% Certificates of Deposit-Banks $3,958,877.40 5.75% 1,523 613 2.146% Municipal Bonds $2,023,126.80 2.94% 1,565 986 3.673%
Money Market Fund $12,821,782.94 18.63% 1 1 5.300%
Total Investments and Averages $68,817,402.71 100.00% 971 488 3.745%

TOTAL INTEREST EARNED
I certify that this report accurately reflects all City pooled investments Daniel Fox and is in conformity with the investment policy of the City of Diamond Bar City Treasurer approved by City Council and on file in the City Clerk's office. The investment program herein provides sufficient cash flow liquidity to meet the next six months estimated expenditures.
$215,576.23 $1,287,081.95

CITY OF DIAMOND BAR

INVESTMENT PORTFOLIO SUMMARY REPORT
December 31, 2023

MONTH ENDING FISCAL YEAR-TO-DATE
December 31, 2023 2023-2024

5.3.b
Packet Pg. 34
City of Diamond Bar
Portfolio Management
December 31, 2023
City of Diamond Bar
21810 Copley Drive
Diamond Bar, CA
(909)839-7053
Portfolio Summary
% of
Portfolio
Book
Value Investments
Market
Value
Par
Value
Days to
Term Maturity
YTM/C
Federal Credit Union CD 10,674,000.00 10,608,725.46 10,674,000.00 15.51 1,381 1,029 4.099 Local Agency Investment Funds 2,452,433.53 2,415,226.43 2,452,433.53 3.56 1 1 3.843 Corporate Notes 500,000.00 453,817.57 453,817.57 0.66 1,638 1,268 5.000 Federal Agency Coupon Securities 13,000,000.00 12,976,212.61 12,980,442.56 18.86 1,082 606 3.961 Federal Agency Disc. -Amortizing 2,000,000.00 1,989,557.78 1,989,557.78 2.89 92 36 5.406 Treasury Coupon Securities 12,000,000.00 11,765,746.88 11,964,479.02 17.39 1,116 517 2.664 Federal Agency Callable 9,500,000.00 9,136,023.00 9,498,885.11 13.80 1,528 365 2.561 Certificate of Deposit 3,959,000.00 3,816,601.64 3,958,877.40 5.75 1,523 613 2.146 Municipal Bonds 2,145,000.00 1,988,430.65 2,023,126.80 2.94 1,565 986 3.676 Money Market Fund 12,821,782.94 12,821,782.94 12,821,782.94 18.63 1 1 5.300 68,817,402.71 100.00%
Investments
69,052,216.47 67,972,124.96 971 488 3.745
Current Year
December 31
215,576.23
Fiscal Year To Date
1,287,081.95
Average Daily Balance
Effective Rate of Return
68,220,890.39 69,066,671.74

3.72% 3.70%
Total Earnings Month Ending
__________________________________________________ ____________________ Jason M. Jacobsen, Finance Director
Portfolio POOL
AP
Reporting period 12/01/2023-12/31/2023
Run Date: 01/11/2024 - 07:37 PM (PRF_PM1) 7.3.0
Report Ver. 7.3.6.1
01/11/2024

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Par Value Book Value
Maturity
Date
Stated
Market Value Rate
December 31, 2023
Portfolio Details - Investments
Average
Balance Issuer
Portfolio Management
City of Diamond Bar
YTM/C
CUSIP Investment # Term
Purchase
Date
Federal Credit Union CD
03784JTK0 10443 Apple Bank For Savings 07/22/2022 248,000.00 248,000.00 248,000.00 3.200 731 203 3.200 07/22/2024 07181JAG9 10444 Baxter Credit Union 07/22/2022 248,000.00 248,000.00 248,000.00 3.150 731 203 3.150 07/22/2024 917352AA4 10454 Utah Community Fed Cr Union 07/27/2022 248,000.00 248,000.00 248,000.00 3.150 730 207 3.150 07/26/2024 00224TAL0 10528 A+ FEDERAL CU 01/27/2023 249,000.00 249,000.00 249,000.00 4.700 731 392 4.700 01/27/2025 02589ACS9 10419 American Express Bank 05/18/2022 246,000.00 244,052.66 246,000.00 3.100 1,097 504 3.100 05/19/2025 90352RCM5 10424 US ALLIANCE FED CREDIT UNION 05/31/2022 249,000.00 246,987.08 249,000.00 3.100 1,095 515 3.100 05/30/2025 130162BL3 10621 CALIFORNIA CREDIT UNION 12/28/2023 243,000.00 243,000.00 243,000.00 5.100 550 546 5.100 06/30/2025 795451BQ5 10461 Sallie Mae Bank 07/06/2022 248,000.00 248,000.00 248,000.00 3.400 1,097 553 3.400 07/07/2025 37424PAG9 10570 GESA CREDIT UNION 07/31/2023 248,000.00 248,000.00 248,000.00 5.500 731 577 5.500 07/31/2025 20825WBC3 10474 Connexus CU 08/26/2022 248,000.00 248,000.00 248,000.00 3.500 1,096 603 3.500 08/26/2025 90353EBC6 10550 USF FCU 03/15/2023 249,000.00 249,000.00 249,000.00 5.050 915 623 5.050 09/15/2025 914242AA0 10492 UNIVERSITY CREDIT UNION 09/26/2022 249,000.00 249,000.00 249,000.00 4.000 1,096 634 4.000 09/26/2025 16863LAE5 10502 CHIEF FINANCIAL FCU 10/12/2022 249,000.00 249,000.00 249,000.00 4.600 1,098 652 4.600 10/14/2025 92348DAA7 10500 VERIDIAN CU 10/24/2022 249,000.00 249,000.00 249,000.00 4.500 1,096 662 4.500 10/24/2025 20367GBD0 10440 Community Commerce Bank 07/27/2022 248,000.00 248,000.00 248,000.00 3.050 1,280 757 3.050 01/27/2026 530520AC9 10530 LIBERTY FIRST CU 01/27/2023 249,000.00 249,000.00 249,000.00 4.500 1,096 757 4.500 01/27/2026 19123RAA0 10529 COCA-COLA FCU 01/31/2023 249,000.00 249,000.00 249,000.00 4.600 1,098 763 4.600 02/02/2026 39573LAV0 10255 GREENSTATE CREDIT UNION 02/26/2021 248,000.00 224,875.74 248,000.00 0.650 1,826 787 0.650 02/26/2026 59524LAA4 10549 MID CAROLINA CU 03/13/2023 249,000.00 249,000.00 249,000.00 4.850 1,096 802 4.850 03/13/2026 87868YAL7 10551 TECHNOLOGY CU 03/23/2023 249,000.00 249,000.00 249,000.00 5.000 1,096 812 5.000 03/23/2026 722000AC0 10575 PIMA FEDERAL CREDIT 08/17/2023 248,000.00 248,000.00 248,000.00 5.300 1,096 959 5.300 08/17/2026 42228LAH4 10496 HEALTHCARE SYSTEMS FCU 09/21/2022 249,000.00 249,000.00 249,000.00 3.600 1,461 994 3.600 09/21/2026 91823MBE4 10499 VCC BANK 10/14/2022 249,000.00 249,000.00 249,000.00 4.250 1,461 1,017 4.250 10/14/2026 50625LBR3 10606 LAFAYETTE FCU 11/30/2023 248,000.00 248,000.00 248,000.00 5.250 1,096 1,064 5.250 11/30/2026 06251A3K4 10402 America's Credit Union 12/16/2021 248,000.00 227,139.23 248,000.00 1.350 1,826 1,080 1.350 12/16/2026 58404DUA7 10622 Medallion Bank 12/29/2023 248,000.00 248,000.00 248,000.00 4.500 1,096 1,093 4.500 12/29/2026 856285E98 10410 State Bank of India 01/31/2022 248,000.00 230,670.75 248,000.00 1.750 1,827 1,127 1.750 02/01/2027 89235MNT4 10442 Toyota Financial SGS Bank 07/22/2022 248,000.00 248,000.00 248,000.00 3.400 1,826 1,298 3.400 07/22/2027 14042THZ3 10453 Capital One Bank USA 07/27/2022 248,000.00 248,000.00 248,000.00 3.500 1,826 1,303 3.500 07/27/2027 55026MAE5 10487 LUMINATE BANK 09/15/2022 249,000.00 249,000.00 249,000.00 3.400 1,826 1,353 3.400 09/15/2027 052392BT3 10495 AUSTIN TELCO FCU 09/21/2022 249,000.00 249,000.00 249,000.00 3.800 1,826 1,359 3.800 09/21/2027 472207AE9 10491 JEANNE D'ARC CREDIT UNION 09/30/2022 249,000.00 249,000.00 249,000.00 3.800 1,826 1,368 3.800 09/30/2027 06543PDA0 10494 BANK OF THE VALLEY NE 09/30/2022 249,000.00 249,000.00 249,000.00 4.100 1,826 1,368 4.100 09/30/2027 011852AE0 10547 Alaska USA FCU 03/08/2023 249,000.00 249,000.00 249,000.00 4.600 1,827 1,528 4.600 03/08/2028 89854LAD5 10564 TTCU FED CU 07/26/2023 248,000.00 248,000.00 248,000.00 5.000 1,827 1,668 5.000 07/26/2028 534574AC2 10571 LINCOLN PARK COMMUNITY BANK 08/28/2023 248,000.00 248,000.00 248,000.00 5.000 1,827 1,701 5.000 08/28/2028 72221MAA1 10578 PINAL COUNTY FED CU 09/08/2023 248,000.00 248,000.00 248,000.00 5.700 1,827 1,712 5.700 09/08/2028 291916AG9 10596 Empower FED Credit Union 10/23/2023 248,000.00 248,000.00 248,000.00 5.100 1,827 1,757 5.100 10/23/2028 Portfolio POOL
AP
Run Date: 01/11/2024 - 07:37 PM (PRF_PM2) 7.3.0
Report Ver. 7.3.6.1

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Par Value Book Value
Maturity
Date
Stated
Market Value Rate
December 31, 2023
Portfolio Details - Investments
Average
Balance Issuer
Portfolio Management
City of Diamond Bar
YTM/C
CUSIP Investment # Term
Purchase
Date
Federal Credit Union CD
91739JAD7 10589 UTAH FIRST CD 10/30/2023 248,000.00 248,000.00 248,000.00 5.100 1,827 1,764 5.100 10/30/2028 98138MCA6 10590 WORKERS FCU 10/30/2023 248,000.00 248,000.00 248,000.00 5.200 1,827 1,764 5.200 10/30/2028 89839KAD7 10604 TRUSTSTAR BANK 11/22/2023 248,000.00 248,000.00 248,000.00 4.750 1,827 1,787 4.750 11/22/2028 77357DAB4 10607 ROCKLAND FCU 11/30/2023 248,000.00 248,000.00 248,000.00 5.000 1,827 1,795 5.000 11/30/2028 949764JY1 10617 Wells Fargo 12/27/2023 248,000.00 248,000.00 248,000.00 4.100 1,827 1,822 4.100 12/27/2028 Subtotal and Average 10,014,354.84 10,674,000.00 10,608,725.46 10,674,000.00 1,381 1,029 4.099 Local Agency Investment Funds
LAIF 10028 Local Agency Investment Fund 2,452,433.53 2,415,226.43 2,452,433.53 3.843 1 1 3.843 Subtotal and Average 2,568,562.56 2,452,433.53 2,415,226.43 2,452,433.53 1 1 3.843 Corporate Notes
06048WR36 10515 Bank of America Corp. 12/27/2022 500,000.00 453,817.57 453,817.57 2.000 1,638 1,268 5.000 06/22/2027 Subtotal and Average 453,299.55 500,000.00 453,817.57 453,817.57 1,638 1,268 5.000 Federal Agency Coupon Securities
3130AV2E1 10534 Federal Home Loan Bank 02/22/2023 500,000.00 499,931.06 499,931.06 5.000 364 51 5.103 02/21/2024 3130ARHG9 10416 Federal Home Loan Bank 03/29/2022 2,000,000.00 1,974,200.00 1,999,326.59 2.125 701 58 2.344 02/28/2024 3133ENMZ0 10624 Federal Farm Credit Bank 12/21/2023 500,000.00 494,696.47 494,696.47 1.200 104 93 5.400 04/03/2024 3130ASDS5 10460 Federal Home Loan Bank 07/08/2022 1,000,000.00 998,342.18 998,342.18 2.750 721 179 3.099 06/28/2024 3130AT6G7 10483 Federal Home Loan Bank 09/22/2022 750,000.00 746,993.54 746,993.54 3.500 722 256 4.100 09/13/2024 3130ATVD6 10533 Federal Home Loan Bank 02/22/2023 750,000.00 749,082.29 749,082.29 4.875 569 256 5.058 09/13/2024 3133EPBH7 10543 Federal Farm Credit Bank 03/01/2023 500,000.00 498,983.66 498,983.66 4.750 723 417 4.939 02/21/2025 3133ENZG8 10458 Federal Farm Credit Bank 07/11/2022 500,000.00 501,381.69 501,381.69 3.375 1,075 536 3.176 06/20/2025 313373B68 10537 Federal Home Loan Bank 02/27/2023 500,000.00 497,513.44 497,513.44 4.375 1,110 802 4.619 03/13/2026 3130ASJ59 10447 Federal Home Loan Bank 07/18/2022 1,000,000.00 1,005,333.69 1,005,333.69 3.375 1,425 893 3.141 06/12/2026 3133EPQC2 10572 Federal Farm Credit Bank 08/02/2023 1,000,000.00 999,139.91 999,139.91 4.625 1,080 928 4.661 07/17/2026 45818WED4 10498 INTER-AMERICAN DEV. BANK 09/13/2022 500,000.00 491,340.79 491,340.79 2.980 1,731 1,256 3.902 06/10/2027 3130ASGU7 10432 Federal Home Loan Bank 06/16/2022 1,000,000.00 1,020,268.00 999,371.36 3.500 1,821 1,257 3.520 06/11/2027 3130AXMQ8 10588 Federal Home Loan Bank 10/30/2023 1,000,000.00 1,000,000.00 1,000,000.00 5.600 1,460 302 5.600 10/29/2027 3133EPCG8 10545 Federal Farm Credit Bank 03/01/2023 1,000,000.00 995,060.88 995,060.88 4.125 1,736 1,430 4.267 12/01/2027 3130AWMN7 10563 Federal Home Loan Bank 07/21/2023 500,000.00 503,945.01 503,945.01 4.375 1,785 1,621 4.177 06/09/2028 Subtotal and Average 13,192,794.82 13,000,000.00 12,976,212.61 12,980,442.56 1,082 606 3.961 Federal Agency Disc. -Amortizing
313384RG6 10580 Federal Home Loan Bank 10/02/2023 1,000,000.00 999,852.78 999,852.78 5.300 92 1 5.447 01/02/2024 313384UE7 10610 Federal Home Loan Bank 12/11/2023 1,000,000.00 989,705.00 989,705.00 5.220 92 71 5.364 03/12/2024 Portfolio POOL
AP
Run Date: 01/11/2024 - 07:37 PM (PRF_PM2) 7.3.0

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Par Value Book Value
Maturity
Date
Stated
Market Value Rate
December 31, 2023
Portfolio Details - Investments
Average
Balance Issuer
Portfolio Management
City of Diamond Bar
YTM/C
CUSIP Investment # Term
Purchase
Date
Subtotal and Average 1,989,476.06 2,000,000.00 1,989,557.78 1,989,557.78 92 36 5.406 Treasury Coupon Securities
912828WJ5 10417 U.S. Treasury 04/25/2022 2,000,000.00 1,983,672.00 1,998,427.10 2.500 751 135 2.720 05/15/2024 9128286Z8 10435 U.S. Treasury 06/14/2022 1,000,000.00 976,875.00 992,995.94 1.750 747 181 3.222 06/30/2024 912828Y87 10434 U.S. Treasury 06/08/2022 1,000,000.00 975,742.00 994,507.33 1.750 784 212 2.730 07/31/2024 91282CED9 10415 U.S. Treasury 03/22/2022 3,000,000.00 2,903,439.00 2,981,292.61 1.750 1,089 439 2.290 03/15/2025 91282CEU1 10459 U.S. Treasury 07/08/2022 1,000,000.00 997,564.29 997,564.29 2.875 1,073 531 3.051 06/15/2025 9128285C0 10456 U.S. Treasury 07/11/2022 1,000,000.00 997,374.42 997,374.42 3.000 1,177 638 3.158 09/30/2025 9128285J5 10445 U.S. Treasury 07/18/2022 1,000,000.00 997,824.08 997,824.08 3.000 1,201 669 3.125 10/31/2025 91282CDQ1 10403 U.S. Treasury 01/04/2022 1,000,000.00 925,664.00 996,901.16 1.250 1,822 1,095 1.357 12/31/2026 91282CEW7 10436 U.S. Treasury 07/14/2022 1,000,000.00 1,007,592.09 1,007,592.09 3.250 1,812 1,276 3.014 06/30/2027 Subtotal and Average 11,962,563.45 12,000,000.00 11,765,746.88 11,964,479.02 1,116 517 2.664 Federal Agency Callable
3130ARYU9 10428 Federal Home Loan Bank 05/23/2022 1,000,000.00 994,442.00 1,000,000.00 3.000 641 53 3.000 02/23/2024 3134GXYM0 10433 Federal Home Loan Mtg Corp 06/28/2022 750,000.00 749,124.00 749,207.19 3.125 731 87 3.349 06/28/2024 3134GYE57 10527 Federal Home Loan Mtg Corp 01/26/2023 500,000.00 500,000.00 500,000.00 5.020 547 25 5.020 07/26/2024 3133EMVS8 10259 Federal Farm Credit Bank 04/14/2021 500,000.00 468,659.00 500,000.00 0.690 1,461 469 0.690 04/14/2025 3130AL7M0 10254 Federal Home Loan Bank 02/24/2021 500,000.00 460,993.50 499,677.92 0.625 1,826 54 0.676 02/24/2026 3133EMSH6 10258 Federal Farm Credit Bank 03/03/2021 500,000.00 463,515.50 500,000.00 0.790 1,826 792 0.790 03/03/2026 3133ENKG4 10397 Federal Farm Credit Bank 01/11/2022 1,000,000.00 933,642.00 1,000,000.00 1.470 1,826 10 1.470 01/11/2027 3133ENMA5 10405 Federal Farm Credit Bank 01/26/2022 1,500,000.00 1,417,582.50 1,500,000.00 1.840 1,826 1,121 1.840 01/26/2027 3130AQKJ1 10406 Federal Home Loan Bank 01/28/2022 1,500,000.00 1,398,064.50 1,500,000.00 1.700 1,826 27 1.700 01/28/2027 3133ENH52 10475 Federal Farm Credit Bank 08/23/2022 500,000.00 500,000.00 500,000.00 4.030 1,826 1,330 4.030 08/23/2027 3130AUDL5 10513 Federal Home Loan Bank 12/30/2022 750,000.00 750,000.00 750,000.00 4.550 1,826 364 4.550 12/30/2027 3134GYXY3 10566 Federal Home Loan Mtg Corp 07/31/2023 500,000.00 500,000.00 500,000.00 6.050 1,823 26 6.048 07/27/2028 Subtotal and Average 9,498,816.41 9,500,000.00 9,136,023.00 9,498,885.11 1,528 365 2.561 Certificate of Deposit
246399AB5 10451 Deleware Police Fed Credit Uni 07/20/2022 246,000.00 245,877.40 245,877.40 3.000 618 88 3.210 03/29/2024 61760AZR3 10226 Morgan Stanley Bank 05/02/2019 246,000.00 243,893.01 246,000.00 2.750 1,827 122 2.753 05/02/2024 29278TKJ8 10230 EnerBank USA 08/07/2019 247,000.00 241,213.04 247,000.00 2.150 1,827 219 2.152 08/07/2024 75472RAE1 10233 Raymond James Bank NA 08/23/2019 247,000.00 240,310.01 247,000.00 2.000 1,827 235 2.002 08/23/2024 14042RRH6 10429 Capital One Bank 05/18/2022 248,000.00 246,036.83 248,000.00 3.100 1,097 504 3.100 05/19/2025 87165GR79 10430 Synchrony Bank 05/20/2022 248,000.00 246,033.11 248,000.00 3.100 1,096 505 3.100 05/20/2025 48128UDS5 10250 JP Morgan Chase 05/28/2020 248,000.00 231,727.23 248,000.00 1.000 1,826 148 1.001 05/28/2025 254673F68 10431 Discover Bank 06/01/2022 246,000.00 244,005.19 246,000.00 3.100 1,097 518 3.100 06/02/2025 59001PAS8 10457 Meritrust Fed CU 07/08/2022 248,000.00 248,000.00 248,000.00 3.350 1,096 554 3.350 07/08/2025 066519QK8 10256 BANK UNITED NA 03/05/2021 248,000.00 224,768.35 248,000.00 0.650 1,826 794 0.000 03/05/2026 Portfolio POOL
AP
Run Date: 01/11/2024 - 07:37 PM (PRF_PM2) 7.3.0

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Par Value Book Value
Stated
Market Value Rate
December 31, 2023
Portfolio Details - Cash
Average
Balance Issuer
Portfolio Management
City of Diamond Bar
YTM/C
CUSIP Investment # Term
Purchase
Date

0.00 68,220,890.39 69,052,216.47 971 488 3.745
Average Balance 0 0
Total Cash and Investments 67,972,124.96 68,817,402.71
Portfolio POOL
AP
Run Date: 01/11/2024 - 07:37 PM (PRF_PM2) 7.3.0

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Stated
Rate
Transaction
Date
December 1, 2023 through December 31, 2023
Activity By Type
Balance
Portfolio Management
City of Diamond Bar
CUSIP Investment # Issuer
Purchases
or Deposits
Redemptions
or Withdrawals
Federal Credit Union CD
130162BL3 10621 CALIFORNIA CREDIT UNION 5.100 12/28/2023 243,000.00 0.00 58404DUA7 10622 Medallion Bank 4.500 12/29/2023 248,000.00 0.00 949764JY1 10617 Wells Fargo 4.100 12/27/2023 248,000.00 0.00 Subtotal 739,000.00 0.00 10,674,000.00
Local Agency Investment Funds (Monthly Summary)
LAIF 10028 Local Agency Investment Fund 3.843 0.00 300,000.00 Subtotal 0.00 300,000.00 2,452,433.53
Corporate Notes
Subtotal 453,817.57
Federal Agency Coupon Securities
3133ENMZ0 10624 Federal Farm Credit Bank 1.200 12/21/2023 494,120.00 0.00 3130A0F70 10573 Federal Home Loan Bank 3.375 12/08/2023 0.00 1,000,000.00 ** 3134GYMT6 10542 Federal Home Loan Mtg Corp 5.820 12/20/2023 0.00 500,000.00 Subtotal 494,120.00 1,500,000.00 12,980,442.56
Federal Agency Disc. -Amortizing
313384QJ1 10576 Federal Home Loan Bank 5.260 12/11/2023 0.00 1,000,000.00 ** 313384UE7 10610 Federal Home Loan Bank 5.220 12/11/2023 986,660.00 0.00 Subtotal 986,660.00 1,000,000.00 1,989,557.78
Treasury Coupon Securities
Subtotal 11,964,479.02
Federal Agency Callable
Subtotal 9,498,885.11
Certificate of Deposit
Subtotal 3,958,877.40
Municipal Bonds
Subtotal 2,023,126.80
Wells Fargo Sweep Account
Subtotal 0.00
Portfolio POOL
AP
Run Date: 01/11/2024 - 07:37 PM (PRF_PM3) 7.3.0
** - Indicates incomplete recording of maturity redemption.

Report Ver. 7.3.6.1

5.3.b
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Stated
Rate
Transaction
Date
December 1, 2023 through December 31, 2023
Activity By Type
Balance
Portfolio Management
City of Diamond Bar
CUSIP Investment # Issuer
Purchases
or Deposits
Redemptions
or Withdrawals
Money Market Fund
857492888 10562 State Street Advisors 5.300 3,941,033.23 2,000,000.00 Subtotal 3,941,033.23 2,000,000.00 12,821,782.94
Total 6,160,813.23 4,800,000.00 68,817,402.71
Portfolio POOL
AP
Run Date: 01/11/2024 - 07:37 PM (PRF_PM3) 7.3.0

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Agenda #: 5.4
Meeting Date: January 16, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: MASTER AGREEMENT ADMINISTERING AGENCY-STATE

AGREEMENT ON STATE-FUNDED PROJECTS WITH THE STATE OF

CALIFORNIA (CALTRANS), AND PROGRAM SUPPLEMENT

AGREEMENT FOR INTERSECTION SAFETY IMPROVEMENTS
PROJECT (CIP# TI24301) FUNDED UNDER THE HIGHWAY SAFETY
IMPROVEMENT PROGRAM.

STRATEGIC
GOAL: Safe, Sustainable & Healthy Community
RECOMMENDATION:

A. Approve, and authorize the Public Works Director/City Engineer to sign, the Master Agreement Administering Agency-State Agreement No. 07-5455S21 and Program Supplement No. 00000A335 accepting $302,850 in grant funds from the Highway Safety Improvement Program (HSIP);
B. Adopt Resolution No. 2024-01 authorizing the Public Works Director/City Engineer to sign necessary documents in administering the HSIP Grant; and C. Determine that the approval of the funding agreement is not subject to environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Article 18, Section 15378(b)(4).

FINANCIAL IMPACT:

The State of California has awarded the City up to $302,850 in Highway Safety Improvement Program (HSIP) grant funds. As a condition, the grant requires ten (10) percent local match funds from the City. As budgeted, $33,650 of Transportation Development Act (TDA) funds (Fund 209) are available as a local match in the Fiscal Year 2023/24 Capital Improvement Program.

BACKGROUND/DISCUSSION:

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Using grant funding from the State, the City previously developed a Local Roadway Safety Plan (LRSP) in adherence to Federal regulations established by the State of California. The LRSP serves as a local complement to the State's Strategic Highway Safety Plan (SHSP). Tailored to address the jurisdiction's specific needs, the LRSP aims to assist the local public roadway owner, the City, in addressing highway safety needs within its respective area. The plan comprises a prioritized list of improvements and actions that highlight defined needs and contribute to the broader statewide safety plan.

To implement the improvement opportunities identified by the Diamond Bar's LRSP, the City prepared an application for the State's Highway Safety Improvement Program (HSIP) Cycle 11 grant funding. On March 11, 2023, the State released HSIP Cycle 11 grant application results, and the City was awarded $302,850 with a ten (10) percent local match requirement for a total project budget of $336,500.

Subsequently, the City prepared and submitted a project plan encompassing improvements such as nearside supplemental traffic signal heads, pedestrian countdown units with Accessible Pedestrian Signal (APS), and high visibility crosswalks re-striping. These enhancements aim to maximize visibility and operations at critical intersections, namely:
• Diamond Bar Boulevard/Golden Springs Drive
• Diamond Bar Boulevard/Sunset Crossing Road
• Diamond Bar Boulevard/Grand Avenue
• Diamond Bar Boulevard/Pathfinder Road
• Diamond Bar Boulevard/Brea Canyon Road
• Golden Springs Drive/Brea Canyon Road
• Golden Springs Drive/Carpio Drive
• Grand Avenue/Summitridge Drive
• Brea Canyon Road/Pathfinder Road
This proposed plan, along with all requisite documentation, was presented to the California Department of Transportation (Caltrans), the grant administrator. An illustration of the proposed improvements is provided in Attachment 4.

Caltrans responded with a notification letter, designating $27,540 in State’s HSIP funds for the Preliminary Engineering (PE)/Design phase, effective from October 1, 2023. A local match of $3,060 was also allocated in the City’s current CIP, resulting in a total design budget of $30,600. Any work approved for funding and undertaken in the PE/Design phase after this date will be eligible for reimbursement.

The Preliminary Engineering (PE)/Design phase represents the essential first stage of planning and design, encompassing the evaluation of project feasibility, defining its scope, and formulating an improvement plan that will guide subsequent construction phase. Following the successful completion of the PE/Design phase and the necessary approvals, the project will advance to the construction phase. The remaining fund balance of $305,900 from the total project budget of $336,500 will be allocated for the construction.

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Acceptance of the HSIP grant fund necessitates the City to execute a Master Agreement Administering Agency-State Agreement with Caltrans (Attachment 1) and a Program Supplement Agreement (Attachment 2) accepting $302,850 in HSIP grant funds. To streamline grant management, communications, and reporting to Caltrans, the City must also designate a representative. It is recommended that the City Council adopt the attached resolution (Attachment 3) designating the City's Public Works Director/City Engineer to review and approve related documents on behalf of the City.

ENVIRONMENTAL REVIEW:

The City Council's approval of the funding agreement is not a “project” under the California Environmental Quality Act (CEQA), and is thus exempt from environmental review. Section 15387(b)(4) of the CEQA Guidelines expressly states that actions resulting in “(t)he creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment” are not projects.

LEGAL REVIEW:

The City Attorney has reviewed and approved the Agreements and Resolution as to form.

PREPARED BY:

REVIEWED BY:

Attachments:

1. 5.4.a Administering Agency-State Agreement City of Diamond Bar and Caltrans

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2. 5.4.b Program Supplement Agreement (PSA)

3. 5.4.c Resolution No. 2024-01

4. 5.4.d Project's Proposed Improvements

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07 City of Diamond Bar
-------- ---------------------------------------------- District Administering Agency
Agreement No. 07-5455S21
This AGREEMENT, is entered into effective this _______ day of __________, 20___, by and between the City of Diamond Bar, hereinafter referred to as "ADMINISTERING AGENCY," and the State of California, acting by and through its Department of Transportation (Caltrans), hereinafter referred to as "STATE", and together referred to as "PARTIES" or individually as a "PARTY."
RECITALS:

1. WHEREAS, the Legislature of the State of California has enacted legislation by which certain State funds are made available for use on local transportation related projects of public entities qualified to act as recipients of these state funds; and

2. WHEREAS, ADMINISTERING AGENCY has applied to the California Transportation Commission (CTC) and/or STATE for funding from a State-funded program (herein referred to as STATE FUNDS), as defined in the Local Assistance Program Guidelines (LAPG) and/or in the respective CTC Guidelines, for use on local authorized transportation related projects as a local administered project(s), hereinafter referred to as "PROJECT"; and

3. WHEREAS, said PROJECT will not receive any federal funds; and

4. WHEREAS, before STATE FUNDS will be made available for PROJECT, ADMINISTERING AGENCY and STATE are required to enter into an agreement to establish terms and conditions applicable to the ADMINISTERING AGENCY when receiving STATE FUNDS for a designated PROJECT facility and to the subsequent operation and maintenance of that completed facility.

NOW, THEREFORE, the PARTIES agree as follows:

MASTER AGREEMENT

ADMINISTERING AGENCY-STATE AGREEMENT

STATE-FUNDED PROJECTS

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ARTICLE I - PROJECT ADMINISTRATION

1. This AGREEMENT shall have no force or effect with respect to any program project unless and until a project- specific Program Supplement to this AGREEMENT for state funded projects, hereinafter referred to as "PROGRAM SUPPLEMENT", has been fully executed by both STATE and ADMINISTERING AGENCY.

2. The State approved project-specific allocation notification letter and approved CTC allocation documentation designate the party responsible for implementing PROJECT, type of work, and location of PROJECT for projects requiring CTC allocation by PROJECT component of work.

3. The PROGRAM SUPPLEMENT sets out special covenants as a condition for the ADMINISTERING AGENCY to receive STATE FUNDS from/through STATE for designated PROJECT. The PROGRAM SUPPLEMENT shall also show these STATE FUNDS that have been initially encumbered for PROJECT along with the matching funds to be provided by ADMINISTERING AGENCY and/or others. Execution of PROGRAM SUPPLEMENT by the PARTIES shall cause ADMINISTERING AGENCY to adopt all the terms of this AGREEMENT as though fully set forth therein in the PROGRAM SUPPLEMENT. Unless otherwise expressly delegated in a resolution by the governing body of ADMINISTERING AGENCY, and with written concurrence by STATE, the PROGRAM SUPPLEMENT shall be approved and managed by the governing body of ADMINISTERING AGENCY.

4. ADMINISTERING AGENCY agrees to execute and return each project-specific PROGRAM SUPPLEMENT. The PARTIES agree that STATE may suspend future allocations, encumbrances and invoice payments for any on- going or future STATE FUNDED PROJECT performed by ADMINISTERING AGENCY if any project-specific PROGRAM SUPPLEMENT is not returned, unless otherwise agreed by STATE in writing.

5. ADMINISTERING AGENCY further agrees, as a condition to the release and payment of STATE FUNDS encumbered for the PROJECT described in each PROGRAM SUPPLEMENT, to comply with the terms and conditions of this AGREEMENT and all the agreed-upon Special Covenants or Remarks incorporated within the PROGRAM SUPPLEMENT, and Cooperative/Contribution Agreement where appropriate, defining and identifying the nature of the specific PROJECT.

6. STATE FUNDS will not participate in any portion of PROJECT work performed in advance of the effective date of allocation by CTC, or by STATE for allocations delegated to STATE by CTC, for said PROJECT.

7. Projects allocated with STATE FUNDS will be administered in accordance with the current CTC STIP Guidelines, applicable chapter(s) of the LAPG, LAPM and/or any other instructions published by STATE.

8. ADMINISTERING AGENCY agrees to ensure compliance with all relevant State laws and requirements for work related to PROJECT, including the California Environmental Quality Act (CEQA).

9. ADMINISTERING AGENCY's eligible costs for preliminary engineering work includes all preliminary work directly related to PROJECT up to contract award for construction, including, but not limited to, environmental studies and permits (E&P), preliminary surveys and reports, laboratory work, soil investigations, the preparation of plans, specifications and estimates (PS&E), advertising for bids, awarding of a contract and project development contract administration.

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10. ADMINISTERING AGENCY's eligible costs for construction engineering include actual inspection and supervision of PROJECT construction work; construction staking; laboratory and field testing; and the preparation and processing of field reports, records, estimates, final reports, and allowable expenses of employees/consultants engaged in such activities.

11. Unless the PARTIES agree otherwise in writing, ADMINISTERING AGENCY's employees or its contracted engineering consultant shall be responsible for all PROJECT engineering work.

12. ADMINISTERING AGENCY shall not proceed with final design of PROJECT until final environmental approval of PROJECT. Final design entails the design work necessary to complete the PS&E and other work necessary for a construction contract but not required earlier for environmental clearance of that PROJECT.

13. If PROJECT is not on STATE-owned right-of-way, PROJECT shall be constructed in accordance with Chapter 11 of the LAPM that describes minimum statewide design standards for local agency streets and roads. The design standards for projects off the National Highway System (NHS) allow STATE to accept either the current Caltrans Highway Design Manual standards, the current FHWA-adopted American Association of State Highway and Transportation Officials (AASHTO) A Policy on Geometric Design of Highways and Streets standards, or the approved geometric design standards of ADMINISTERING AGENCY. Additionally, for projects off the NHS, STATE will accept ADMINISTERING AGENCY-approved standard specifications, standard plans, materials sampling and testing quality assurance programs that meet the conditions described in the then current Local Assistance Procedures Manual.

14. If PROJECT involves work within or partially within STATE-owned right-of-way, that PROJECT shall also be subject to compliance with the policies, procedures and standards of the STATE Project Development Procedures Manual and Highway Design Manual and where appropriate, an executed cooperative agreement between STATE and ADMINISTERING AGENCY that outlines the PROJECT responsibilities and respective obligations of the PARTIES. ADMINISTERING AGENCY and its contractors shall each obtain an encroachment permit through STATE prior to commencing any work within STATE rights-of-way or work which affects STATE facilities.

15. When PROJECT is not on the State Highway System (SHS) but includes work to be performed by a railroad, the contract for such work shall be prepared by ADMINISTERING AGENCY or by STATE, as the PARTIES may hereafter agree. In either event, ADMINISTERING AGENCY shall enter into an agreement with the railroad providing for future maintenance of protective devices or other facilities installed under the contract.

16. ADMINISTERING AGENCY shall comply with the provisions of sections 4450 and 4454 of the California Government Code, as well as other Department of General Services guidance, if applicable, for the contract PS&E for the construction of buildings, structures, sidewalks, curbs and related facilities for accessibility and usability. Further requirements and guidance are provided in Title 24 of the California Code of Regulations.

17. ADMINISTERING AGENCY shall provide a full-time public employee to be in responsible charge of each PROJECT. ADMINISTERING AGENCY shall provide or arrange for adequate supervision and inspection of each PROJECT. ADMINISTERING AGENCY may utilize consultants to perform supervision and inspection work for PROJECT with a

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fully qualified and licensed engineer. Utilization of consultants does not relieve ADMINISTERING AGENCY of its obligation to provide a full-time public employee to be in responsible charge of each PROJECT.

18. Unless otherwise provided in the PROGRAM SUPPLEMENT, ADMINISTERING AGENCY shall advertise, award, and administer the PROJECT construction contract or contracts.

19. The cost of maintenance, security, or protection performed by ADMINISTERING AGENCY or contractor forces during any temporary suspension of PROJECT or at any other time may not be charged to the PROJECT.

20. ADMINISTERING AGENCY shall submit PROJECT-specific award information to STATE's District Local Assistance Engineer, within sixty (60) days after contract award.

21. ADMINISTERING AGENCY shall submit the final report documents that collectively constitute a "Final Project Expenditure Report", LAPM Exhibit 17-M, within one hundred eighty (180) days of PROJECT completion. Failure by ADMINISTERING AGENCY to submit a "Final Project Expenditure Report", within 180 days of project completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the Local Assistance Procedures Manual.

22. ADMINISTERING AGENCY shall comply with the Americans with Disabilities Act (ADA) of 1990 that prohibits discrimination on the basis of disability and all applicable regulations and guidelines issued pursuant to the ADA.

23. The Governor and the Legislature of the State of California, each within their respective jurisdictions, have prescribed certain nondiscrimination requirements with respect to contract and other work financed with public funds. ADMINISTERING AGENCY agrees to comply with the requirements of the FAIR EMPLOYMENT PRACTICES ADDENDUM, attached hereto as Exhibit A and further agrees that any agreement entered into by ADMINISTERING AGENCY with a third party for performance of work connected with PROJECT shall incorporate Exhibit A (with third party's name replacing ADMINISTERING AGENCY) as parts of such agreement.

24. ADMINISTERING AGENCY shall include in all contracts and subcontracts awarded when applicable, a clause that requires each subcontractor to comply with California Labor Code requirements that all workers employed on public works aspects of any project (as defined in California Labor Code sections 1720-1815) be paid not less than the general prevailing wage rates predetermined by the Department of Industrial Relations as effective at the date of contract award by the ADMINISTERING AGENCY.

ARTICLE II - RIGHTS-OF-WAY

1. No contract for the construction of a STATE FUNDED PROJECT shall be awarded until all necessary rights of way have been secured. Prior to the advertising for construction of PROJECT, ADMINISTERING AGENCY shall certify and, upon request, shall furnish STATE with evidence that all necessary rights-of-way are available for construction purposes or will be available by the time of award of the construction contract.

2. The furnishing of rights of way by ADMINISTERING AGENCY as provided for herein includes, and is limited to, the following, unless the PROGRAM SUPPLEMENT provides otherwise.
(a) Expenditures of capital and support to purchase all real property required for

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PROJECT free and clear of liens, conflicting easements, obstructions and encumbrances, after crediting PROJECT with the fair market value of any excess property retained and not disposed of by ADMINISTERING AGENCY. (b) The cost of furnishing of right-of-way as provided for herein includes, in addition to real property required for the PROJECT, title free and clear of obstructions and encumbrances affecting PROJECT and the payment, as required by applicable law, of damages to owners of remainder real property not actually taken but injuriously affected by PROJECT.
(c) The cost of relocation payments and services provided to owners and occupants pursuant to Government Code sections 7260-7277 when PROJECT displaces an individual, family, business, farm operation or nonprofit organization. (d) The cost of demolition and/or the sale of all improvements on the right-of-way after credit is recorded for sale proceeds used to offset PROJECT costs. (e) The cost of all unavoidable utility relocation, protection or removal. (f) The cost of all necessary hazardous material and hazardous waste treatment, encapsulation or removal and protective storage for which ADMINISTERING AGENCY accepts responsibility and where the actual generator cannot be identified, and recovery made.

3. ADMINISTERING AGENCY agrees to indemnify and hold STATE harmless from any liability that may result in the event the right-of-way for a PROJECT is not clear as certified by ADMINISTERING AGENCY, including, but not limited to, if said right-of-way is found to contain hazardous materials requiring treatment or removal to remediate in accordance with Federal and State laws. ADMINISTERING AGENCY shall pay, from its own non- matching funds, any costs which arise out of delays to the construction of PROJECT because utility facilities have not been timely removed or relocated, or because rights-of-way were not available to ADMINISTERING AGENCY for the orderly prosecution of PROJECT work.

ARTICLE III - MAINTENANCE AND MANAGEMENT

1. ADMINISTERING AGENCY will maintain and operate the property acquired, developed, constructed, rehabilitated, or restored by PROJECT for its intended public use until such time as the parties might amend this AGREEMENT to otherwise provide.

With the approval of STATE, ADMINISTERING AGENCY or its successors in interest in the PROJECT property may transfer this obligation and responsibility to maintain and operate PROJECT property for that intended public purpose to another public entity.

2. Upon ADMINISTERING AGENCY's acceptance of the completed construction contract or upon contractor being relieved of the responsibility for maintaining and protecting PROJECT, ADMINISTERING AGENCY will be responsible for the maintenance, ownership, liability, and the expense thereof, for PROJECT in a manner satisfactory to the authorized representatives of STATE and if PROJECT falls within the jurisdictional limits of another Agency or Agencies, it is the duty of ADMINISTERING AGENCY to facilitate a separate maintenance agreement(s) between itself and the other jurisdictional Agency or Agencies providing for the operation, maintenance, ownership and liability of PROJECT. Until those agreements are executed, ADMINISTERING AGENCY will be responsible for all PROJECT operations, maintenance, ownership and liability in a manner satisfactory to the authorized representatives of STATE. If, within ninety (90) days after receipt of notice from STATE that a PROJECT, or any portion thereof, is not

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being properly operated and maintained and ADMINISTERING AGENCY has not satisfactorily remedied the conditions complained of, the approval of future STATE FUNDED PROJECTS of ADMINISTERING AGENCY will be withheld until the PROJECT shall have been put in a condition of operation and maintenance satisfactory to STATE. The provisions of this section shall not apply to a PROJECT that has been vacated through due process of law with STATE's concurrence.

3. PROJECT and its facilities shall be maintained by an adequate and well-trained staff of engineers and/or such other professionals and technicians as PROJECT reasonably requires. Said operations and maintenance staff may be employees of ADMINISTERING AGENCY, another unit of government, or a contractor under agreement with ADMINISTERING AGENCY. All maintenance will be performed at regular intervals or as required for efficient operation of the complete PROJECT improvements.

4. ADMINISTERING AGENCY shall comply with all applicable law, including but not limited to, all applicable legal authority regarding construction standards.

ARTICLE IV - FISCAL PROVISIONS

1. All contractual obligations of STATE are subject to the appropriation of resources by the Legislature and the allocation of resources by the CTC.

2. STATE'S financial commitment of STATE FUNDS will occur only upon the execution of this AGREEMENT, the execution of each project-specific PROGRAM SUPPLEMENT and/or STATE's approved finance letter.

3. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices in arrears for reimbursement of allowable PROJECT costs at least once every six months commencing after the STATE FUNDS are encumbered on either the project-specific PROGRAM SUPPLEMENT or through a project-specific finance letter approved by STATE. STATE reserves the right to suspend future allocations and invoice payments for any on-going or future STATE FUNDED project performed by ADMINISTERING AGENCY if PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a sixmonth period

4. Invoices shall be submitted on a standardized billing summary template, in accordance with Chapter 5 of the LAPM to claim reimbursement by ADMINISTERING AGENCY. For construction invoices, pay estimates must be included.

5. ADMINISTERING AGENCY must retain at least one copy of supporting backup documentation for allowable costs incurred and claimed for reimbursement by ADMINISTERING AGENCY. ADMINISTERING AGENCY agrees to submit supporting backup documentation with invoices if requested by State. Acceptable backup documentation includes, but is not limited to, agency's progress payment to the contractors, copies of cancelled checks showing amounts made payable to vendors and contractors, and/or a computerized summary of PROJECT costs.

6. Payments to ADMINISTERING AGENCY can only be released by STATE as reimbursements of actual allowable PROJECT costs already incurred and paid for by the ADMINISTERING AGENCY.

7. Indirect Cost Allocation Plans/Indirect Cost Rate Proposals (ICAP/ICRP), Central Service Cost Allocation Plans and related documentation are to be prepared and provided to the Inspector General - Independent Office of Audits and Investigations for review and approval prior to ADMINISTERING AGENCY seeking reimbursement of

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indirect cost incurred within each fiscal year being claimed for reimbursement.

ICAPs/ICRPs must be prepared in accordance with the requirements set forth in 2 CFR, Part 200, Chapter 5 of the LAPM, and the ICAP/ICRP approval procedures established by STATE.

8. STATE will withhold the greater of either two (2) percent of the total of all STATE FUNDS encumbered for each PROGRAM SUPPLEMENT or $40,000 until ADMINISTERING AGENCY submits the Final Report of Expenditures for each completed PROGRAM SUPPLEMENT PROJECT.

9. The estimated total cost of PROJECT, the amount of STATE FUNDS obligated, and the required matching funds may be adjusted by mutual consent of the PARTIES with a finance letter, and an allocation notification letter when applicable. STATE FUNDING may be increased to cover PROJECT cost increases only if such additional funds are available and the CTC and/or STATE concurs with that increase in the form of an allocation and finance letter.

10. When such additional STATE FUNDS are not available, ADMINISTERING AGENCY agrees that any increases in PROJECT costs must be defrayed with ADMINISTERING AGENCY's own funds.

11. ADMINISTERING AGENCY shall use its own non-STATE FUNDS to finance the local share of eligible costs and all PROJECT expenditures or contract items ruled ineligible for financing with STATE FUNDS. STATE shall make the final determination of ADMINISTERING AGENCY's cost eligibility for STATE FUNDED financing with respect to claimed PROJECT costs.

12. ADMINISTERING AGENCY will reimburse STATE for STATE's share of costs for work performed by STATE at the request of ADMINISTERING AGENCY. STATE's costs shall include overhead assessments in accordance with section 8755.1 of the State Administrative Manual.

13. STATE FUNDS allocated by the CTC and/or STATE are subject to the timely use of funds provisions approved in CTC Guidelines and State procedures approved by the CTC and STATE.

14. STATE FUNDS encumbered for PROJECT are available for liquidation only for a limited period from the beginning of the State fiscal year when those funds were appropriated in the State Budget. STATE FUNDS not liquidated within these periods will be reverted unless a Cooperative Work Agreement (CWA) is submitted by ADMINISTERING AGENCY and approved by the California Department of Finance in accordance with Section 16304 of the Government Code. The exact date of fund reversion will be reflected in the STATE signed PROJECT finance letter.

15. Payments to ADMINISTERING AGENCY for PROJECT-related travel and subsistence (per diem) expenses of ADMINISTERING AGENCY forces and its contractors and subcontractors claimed for reimbursement or as local match credit shall not exceed rates authorized to be paid to rank and file STATE employees under current California Department of Human Resources (CalHR) rules unless a Cooperative Work Agreement (CWA) is submitted by ADMINISTERING AGENCY and approved by the California Department of Finance in accordance with Government Code section 16304. If the rates invoiced by ADMINISTERING AGENCY are in excess of CalHR rates, ADMINISTERING AGENCY is responsible for the cost difference, and any overpayments inadvertently paid by STATE shall be reimbursed to STATE by ADMINISTERING AGENCY on demand.

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16. ADMINISTERING AGENCY agrees to comply with California Government Code 4525- 4529.14. Administering Agency shall undertake the procedures described in California Government Code 4527(a) and 4528(a). Administering Agency shall also comply with 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards, excluding 2 CFR Part 200.318-200.326.

17. ADMINISTERING AGENCY agrees and will assure that its contractors and subcontractors will be obligated to agree that Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allowability of individual PROJECT cost items. Every recipient and sub-recipient receiving PROJECT funds under this AGREEMENT shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards, excluding 2 CFR Part 200.318-200.326Governments. ADMINISTERING AGENCY agrees to comply with the provisions set forth in 23 CFR Parts 140, 645 and 646 when contracting with railroad and utility companies.

18. Every recipient and sub-recipient receiving PROJECT funds under this AGREEMENT shall comply with 2 CFR 200 excluding 2 CFR Part 200.318-200.326, 48 CFR Chapter 1, Part 31, LAPM, Public Contract Code (PCC) 10300- 10334 (procurement of goods), PCC 10335-10381 (non-A&E services), California Government Code 4525-4529.5 including 4527(a) and 4528(a), and other applicable STATE regulations.

19. Any PROJECT costs for which ADMINISTERING AGENCY has received payment or credit that are determined by subsequent audit to be questioned, disallowed, or unallowable under 2 CFR, Part 200, 48 CFR, Chapter 1, Part 31, 23 CFR Parts 140, 645 and 646, LAPM, Public Contract Code (PCC) 10300-10334 (procurement of goods), PCC 10335-10381 (non-A&E services), California Government Code 4525-4529.5 including 4527(a) and 4528(a), and other applicable STATE regulations are subject to repayment by ADMINISTERING AGENCY to STATE and may result in STATE imposing sanctions on ADMINISTERING AGENCY as described in Chapter 20 of the Local Assistance Procedures Manual.

20. Should ADMINISTERING AGENCY fail to refund any moneys due upon written demand by STATE as provided herein or should ADMINISTERING AGENCY breach this AGREEMENT by failing to complete PROJECT without adequate justification and approval by STATE, then, within thirty (30) days of demand, or within such other period as may be agreed to in writing between the PARTIES hereto, STATE, acting through the State Controller, the State Treasurer, the CTC or any other public entity or agency, may intercept, withhold and demand the transfer of an amount equal to the amount paid by or owed to STATE for each PROJECT, from future apportionments, or any other funds due ADMINISTERING AGENCY from the Highway Users Tax Fund or any other sources of funds, and/or may also withhold approval of future STATE FUNDED projects proposed by ADMINISTERING AGENCY.

21. Should ADMINISTERING AGENCY be declared to be in breach of this AGREEMENT or otherwise in default thereof by STATE, and if ADMINISTERING AGENCY is constituted as a joint powers authority, special district, or any other public entity not directly receiving funds through the State Controller, STATE is authorized to obtain reimbursement from whatever sources of funding are available, including the withholding or transfer of funds, from those constituent entities comprising a joint powers authority or by bringing of an action against ADMINISTERING AGENCY or its constituent member entities, to recover all funds provided by STATE hereunder.

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22. ADMINISTERING AGENCY acknowledges that the signatory party represents the ADMINISTERING AGENCY and further warrants that there is nothing within a Joint Powers Agreement, by which ADMINISTERING AGENCY was created, if any exists, that would restrict or otherwise limit STATE's ability to recover STATE FUNDS improperly spent by ADMINISTERING AGENCY in contravention of the terms of this AGREEMENT.

ARTICLE V

AUDITS, THIRD PARTY CONTRACTING, RECORDS RETENTION AND REPORTS

1. STATE reserves the right to conduct technical and financial audits of PROJECT work and records and ADMINISTERING AGENCY agrees, and shall require its contractors and subcontractors to agree, to cooperate with STATE by making all appropriate and relevant PROJECT records available for audit and copying as required by paragraph three (3) of Article V.

2. ADMINISTERING AGENCY, its contractors and subcontractors shall establish and maintain a financial management system and records that properly accumulate and segregate reasonable, allowable, and allocable incurred PROJECT costs and matching funds by line item for the PROJECT. The financial management system of ADMINISTERING AGENCY, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles, enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices sent to or paid by STATE.

3. ADMINISTERING AGENCY, ADMINISTERING AGENCY's contractors and subcontractors, and STATE shall each maintain and make available for inspection and audit by STATE, the California State Auditor, or any duly authorized representative of STATE or the United States, all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts, and ADMINISTERING AGENCY shall furnish copies thereof if requested. All of the above-referenced parties shall make such AGREEMENT and PROGRAM SUPPLEMENT materials available at their respective offices at all reasonable times during the entire PROJECT period and for three (3) years, or 35 years for Prop 1B funds, from the date of final payment to ADMINISTERING AGENCY.

4. ADMINISTERING AGENCY shall not award a construction contract over $25,000 on the basis of a noncompetitive negotiation for work to be performed under this AGREEMENT without the prior written approval of STATE. All contracts awarded by ADMINISTERING AGENCY intended or used as local match credit must meet the requirements set forth in this AGREEMENT regarding local match funds.

5. ADMINISTERING AGENCY shall comply with Chapter 10 (commencing with Section 4525) Division 5 of Title 1 of the Government Code and shall undertake the procedures described in California Government Code 4527(a) and 4528(a). Administering Agency shall comply with Chapter 10 of the LAPM for AE Consultant Contracts.

6. ADMINISTERING AGENCY shall comply with Government Code Division 5 Title 1 sections 4525-4529.5 and shall undertake the procedures described in California Government Code 4527(a) and 4528(a) for procurement of professional service contracts. Administering Agency shall follow Public Contract Code Section 10335- 10381 for other professional service contracts.

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7. Any subcontract entered into by ADMINISTERING AGENCY as a result of this AGREEMENT shall contain all of the provisions of Article IV, FISCAL PROVISIONS, and this ARTICLE V, AUDITS, THIRD-PARTY CONTRACTING, RECORDS RETENTION AND REPORTS and shall mandate that travel and per diem reimbursements and third- party contract reimbursements to subcontractors will be allowable as PROJECT costs only after those costs are incurred and paid for by the subcontractors.

8. To be eligible for local match credit, ADMINISTERING AGENCY must ensure that local match funds used for a PROJECT meet the fiscal provisions requirements outlined in ARTICLE IV in the same manner that is required of all other PROJECT expenditures.

9. Except as provided in this Article, this AGREEMENT is solely between and for the benefit of the PARTIES and there are no third-party beneficiaries.

ARTICLE VI - MISCELLANEOUS PROVISIONS

1. ADMINISTERING AGENCY agrees to use all PROJECT funds reimbursed hereunder only for transportation purposes that are in conformance with Article XIX of the California State Constitution and other California laws.

2. ADMINISTERING AGENCY shall conform to all applicable State and Federal statutes and regulations, and the Local Assistance Program Guidelines and Local Assistance Procedures Manual as published by STATE and incorporated herein, including all subsequent approved revisions thereto applicable to PROJECT unless otherwise designated in the project-specific executed PROJECT SUPPLEMENT.

3. This AGREEMENT is subject to any additional restrictions, limitations, conditions, or any statute enacted by the State Legislature or adopted by the CTC that may affect the provisions, terms, or funding of this AGREEMENT in any manner.

4. ADMINISTERING AGENCY and the officers and employees of ADMINISTERING AGENCY, when engaged in the performance of this AGREEMENT, shall act in an independent capacity and not as officers, employees or agents of STATE.

5. Each project-specific PROGRAM SUPPLEMENT shall separately establish the terms and funding limits for each described PROJECT funded under this AGREEMENT and that PROGRAM SUPPLEMENT. No STATE FUNDS are obligated against this AGREEMENT.

6. ADMINISTERING AGENCY certifies that neither ADMINISTERING AGENCY nor its principals are suspended or debarred at the time of the execution of this AGREEMENT, and ADMINISTERING AGENCY agrees that it will notify STATE immediately in the event a suspension or a debarment occurs after the execution of this AGREEMENT.

7. ADMINISTERING AGENCY certifies, by execution of this AGREEMENT, that no person or selling agency has been employed or retained to solicit or secure this AGREEMENT upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by ADMINISTERING AGENCY for the purpose of securing business. For breach or violation of this warranty, STATE has the right to annul this AGREEMENT without liability, pay only for the value of the PROJECT work actually performed, or in STATE's discretion, to deduct from the price of PROGRAM SUPPLEMENT consideration, or otherwise recover, the full amount of such commission, percentage, brokerage, or contingent fee.

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8. In accordance with Public Contract Code section 10296, ADMINISTERING AGENCY hereby certifies under penalty of perjury that no more than one final unappealable finding of contempt of court by a federal court has been issued against ADMINISTERING AGENCY within the immediate preceding two (2) year period because of ADMINISTERING AGENCY's failure to comply with an order of a federal court that orders ADMINISTERING AGENCY to comply with an order of the National Labor Relations Board.

9. ADMINISTERING AGENCY shall disclose any financial, business, or other relationship with STATE that may have an impact upon the outcome of this AGREEMENT or any individual PROJECT encompassed within a PROGRAM SUPPLEMENT. ADMINISTERING AGENCY shall also list current contractors who may have a financial interest in the outcome of a PROJECT undertaken pursuant to this AGREEMENT. These disclosures shall be delivered to STATE in a form deemed acceptable by the STATE prior to execution of this AGREEMENT.

10. ADMINISTERING AGENCY hereby certifies that it does not have, nor shall it acquire, any financial or business interest that would conflict with the performance of any PROJECT initiated under this AGREEMENT.

11. ADMINISTERING AGENCY certifies that this AGREEMENT was not obtained or secured through rebates, kickbacks or other unlawful consideration either promised or paid to any STATE employee. For breach or violation of this warranty, STATE shall have the right, in its sole discretion, to terminate this AGREEMENT without liability, to pay only for PROJECT work actually performed, or to deduct from a PROGRAM SUPPLEMENT price or otherwise recover the full amount of such rebate, kickback, or other unlawful consideration.

12. Any dispute concerning a question of fact arising under this AGREEMENT that is not disposed of by agreement shall be decided by the STATE's Contract Manager, who shall be identified to ADMINISTERING AGENCY at the time of execution of this AGREEMENT and, as applicable , any time that Contract Manager changes during the duration of this AGREEMENT who may consider any written or verbal evidence submitted by ADMINISTERING AGENCY. The decision of the Contract Manager, issued in writing, shall be conclusive and binding on the PARTIES on all questions of fact considered and determined by the Contract Manager.

13. Neither the pendency of a dispute nor its consideration by the Contract Manager will excuse the ADMINISTERING AGENCY from full and timely performance in accordance with the terms of this AGREEMENT and each PROGRAM SUPPLEMENT.

14. Neither STATE nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by ADMINISTERING AGENCY under or in connection with any work, authority or jurisdiction of ADMINISTERING AGENCY arising under this AGREEMENT. It is understood and agreed that ADMINISTERING AGENCY shall fully defend, indemnify and save harmless STATE and all of its officers and employees from all claims and suits or actions of every name, kind and description brought forth under, including but not limited to, tortious, contractual, inverse condemnation or other theories or assertions of liability occurring by reason of anything done or omitted to be done by ADMINISTERING AGENCY under this AGREEMENT.

15. Neither ADMINISTERING AGENCY nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by STATE, under or in connection with any work, authority or

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jurisdiction arising under this AGREEMENT. It is understood and agreed that STATE shall fully defend, indemnify and save harmless the ADMINISTERING AGENCY and all of its officers and employees from all claims, suits or actions of every name, kind and description brought forth under, including but not limited to, tortious, contractual, inverse condemnation and other theories or assertions of liability occurring by reason of anything done or omitted to be done by STATE under this AGREEMENT.

16. In the event of (a) ADMINISTERING AGENCY failing to timely proceed with effective PROJECT work in accordance with the project-specific PROGRAM SUPPLEMENT; (b) failing to maintain any applicable bonding requirements; and (c) otherwise materially violating the terms and conditions of this AGREEMENT and/or any PROGRAM SUPPLEMENT, STATE reserves the right to terminate funding for that PROJECT upon thirty (30) days' written notice to ADMINISTERING AGENCY.

17. No termination notice shall become effective if, within thirty (30) days after receipt of a Notice of Termination, ADMINISTERING AGENCY either cures the default involved or, if the default is not reasonably susceptible of cure within said thirty (30) day period the ADMINISTERING AGENCY proceeds thereafter to complete that cure in a manner and time line acceptable to STATE.

18. Any such termination shall be accomplished by delivery to ADMINISTERING AGENCY of a Notice of Termination, which notice shall become effective not less than thirty (30) days after receipt, specifying the reason for the termination, the extent to which funding of work under this AGREEMENT and the applicable PROGRAM SUPPLEMENT is terminated and the date upon which such termination becomes effective, if beyond thirty (30) days after receipt. During the period before the effective termination date, ADMINISTERING AGENCY and STATE shall meet to attempt to resolve any dispute. In the event of such termination, STATE may proceed with the PROJECT work in a manner deemed proper by STATE. If STATE terminates funding for PROJECT with ADMINISTERING AGENCY for the reasons stated in paragraph sixteen (16) of ARTICLE VI, STATE shall pay ADMINISTERING AGENCY the sum due ADMINISTERING AGENCY under the PROGRAM SUPPLEMENT and/or STATE-approved finance letter prior to termination, provided, however, ADMINISTERING AGENCY is not in default of the terms and conditions of this AGREEMENT or the project-specific PROGRAM SUPPLEMENT and that the cost of any PROJECT completion to STATE shall first be deducted from any sum due ADMINISTERING AGENCY.

19. In the case of inconsistency or conflicts with the terms of this AGREEMENT and that of a project-specific PROGRAM SUPPLEMENT and/or Cooperative Agreement, the terms stated in that PROGRAM SUPPLEMENT and/or Cooperative Agreement shall prevail over those in this AGREEMENT.

20. Without the written consent of STATE, this AGREEMENT is not assignable by ADMINISTERING AGENCY either in whole or in part.

21. No alteration or variation of the terms of this AGREEMENT shall be valid unless made in writing and signed by the PARTIES, and no oral understanding or agreement not incorporated herein shall be binding on any of the PARTIES.

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City of Diamond Bar
City of Diamond Bar
IN WITNESS WHEREOF, the parties have executed this AGREEMENT by their duly authorized officer.

STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION
________________________________
Chief, Office of Project Management ________________________________ Oversight
Division of Local Assistance
Representative Name & Title
(Authorized Governing Body
Representative)
By______________________________ By______________________________ Date______________________________ Date______________________________ ________________________________

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EXHIBIT A - FAIR EMPLOYMENT PRACTICES ADDENDUM

1. In the performance of this Agreement, ADMINISTERING AGENCY will not discriminate against any employee for employment on account of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. ADMINISTERING AGENCY will take affirmative action to ensure that employees are treated during employment without regard to their race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. Such action shall include, but not be limited to, the following:
employment; upgrading; demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. ADMINISTERING AGENCY shall post in conspicuous places, available to employees for employment, notices to be provided by STATE setting forth the provisions of this Fair Employment section.

2. ADMINISTERING AGENCY, its contractor(s) and all subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code, 12900 et seq.), and the applicable regulations promulgated thereunder (Cal. Code Regs., Title 2, 11000, et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code section 12900(a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this AGREEMENT by reference and made a part hereof as if set forth in full. Each of the ADMINISTERING AGENCY'S contractors and all subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreements, as appropriate.

3. ADMINISTERING AGENCY shall include the nondiscrimination and compliance provisions of this clause in all contracts and subcontracts to perform work under this AGREEMENT.

4. ADMINISTERING AGENCY will permit access to the records of employment, employment advertisements, application forms, and other pertinent data and records by STATE, the State Fair Employment and Housing Commission, or any other agency of the State of California designated by STATE, for the purposes of investigation to ascertain compliance with the Fair Employment section of this Agreement.

5. Remedies for Willful Violation:
(a) STATE may determine a willful violation of the Fair Employment provision to have occurred upon receipt of a final judgment to that effect from a court in an action to which ADMINISTERING AGENCY was a party, or upon receipt of a written notice from the Fair Employment and Housing Commission that it has investigated and determined that ADMINISTERING AGENCY has violated the Fair Employment Practices Act. (b) For willful violation of this Fair Employment Provision, STATE shall have the right to terminate this Agreement either in whole or in part, and any loss or damage sustained by STATE in securing the goods or services thereunder shall be borne and paid for by ADMINISTERING AGENCY and by the surety under the performance bond, if any, and STATE may deduct from any moneys due or thereafter may become due to ADMINISTERING AGENCY, the difference between the price named in the Agreement

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and the actual cost thereof to STATE to cure ADMINISTERING AGENCY's breach of this Agreement.

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00000A335
FOR STATE FUNDED PROJECTS NO 07-5455S21
0724000103
November 01, 2023
07-LA-1-DMBR
HSIPSL-5455(018)
5455
This Program Supplement, effective , hereby adopts and incorporates into the Administering Agency-State Agreement No. 07-5455S21 for State Funded Projects which was entered into between the ADMINISTERING AGENCY and the STATE with an effective date of and is subject to all the terms and conditions thereof. This PROGRAM SUPPLEMENT is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No. approved by the ADMINISTERING AGENCY on (See copy attached).

The ADMINISTERING AGENCY further stipulates that as a condition to the payment by the State of any funds derived from sources noted below encumbered to this project, Administering Agency accepts and will comply with the Special Covenants and remarks set forth on the following pages.

On Diamond Bar Blvd at Golden Springs, Sunset Crossing, Grand Ave, Pathfinder, Brea Canyon.

On Golden Springs at Brea Canyon, Carpio. Grand Ave/summitridge. BreCanyon/Pathfinder.

Install nearside supplemental traffic signals, install pedestrian countdown signal heads, and restri

0.0(MILES)
Estimated Cost State Funds Matching Funds

CITY OF DIAMOND BAR
By ________________________________ By ________________________________ Title _______________________________
Date _______________________________
Attest _______________________________ Date _______________________________ Division of Local Assistance
I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance:

Accounting Officer _______________________ Date _______________ PROGRAM SUPPLEMENT NO.
to

ADMINISTERING AGENCY-STATE AGREEMENT
Adv. Project ID Date:

Location:

Project Number:

E.A. Number:

Locode:

PROJECT LOCATION:

TYPE OF WORK: LENGTH:

LOCAL OTHER
$30,600.00 $3,060.00 $0.00
Chief, Office of Project Implementation

STATE OF CALIFORNIA
Department of Transportation
$27,540.00
STATE $27,540.00
Program Supplement 07--545-A335- SERIAL 1Page of 3
11/1/2023

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SPECIAL COVENANTS OR REMARKS
07-LA-1-DMBR
HSIPSL-5455(018)

1. A. This PROJECT has received STATE funds from Highway Safety Improvement Program (HSIP). The ADMINISTERING AGENCY agrees to administer the PROJECT in accordance with the Highway Safety Improvement Program (HSIP) Guidelines, the Local Assistance Procedures Manual (LAPM), the Local Assistance Program Guidelines (LAPG), and this PROGRAM SUPPLEMENT.

B. The STATE funds for this PROJECT may be provided under one or more phases, which are Preliminary Engineering (PE), Right-of-Way (R/W) and Construction (Con).

A phase-specific fund allocation is required, in addition to other requirements, before reimbursable work can occur for the phase identified. Each allocation will be assigned an effective date and identify the amount of funds allocated per phase. Unless otherwise determined, the effective date of the phase-specific allocation will constitute the start of reimbursable expenditures for the phase. The STATE funds available for reimbursement will be limited to the amount allocated by the STATE for the phase.

C. At the time of the first fund allocation approval for the Project, this PROGRAM SUPPLEMENT, a STATE-approved Allocation Letter and STATE Finance Letter are prepared to allow reimbursement of eligible PROJECT expenditures for the phase allocated.

D. STATE and ADMINISTERING AGENCY agree that any additional fund allocations made after the execution of this PROGRAM SUPPLEMENT, for the phase that has been authorized in the first fund allocation approval or for a new phase, will be encumbered on this PROJECT by use of a STATE-approved Allocation Letter and a STATE Finance Letter and are subject to the terms and conditions thereof.

E. This PROJECT is subject to the delivery requirements enacted by the HSIP guidelines. The delivery requirements may be accessed at: https://dot.ca.gov/programs/local-assistance/fedand-state-programs/highway-safety-improvement-program/delivery-requirements-statusapproved-projects.

F. Award information shall be submitted by the ADMINISTERING AGENCY to the District Local Assistance Engineer immediately after project contract award and prior to the submittal of the ADMINISTERING AGENCY'S first invoice for the construction contract. Failure to do so will cause a delay in the State processing of invoices for the construction phase.

G. The ADMINISTERING AGENCY shall invoice STATE for PE, R/W and CON costs no later than 180 days after the end of expenditure the phase. For construction costs, the ADMINISTERING AGENCY has 180 days after project completion or contract acceptance to make the final payment to the contractor, prepare the final Report of Expenditures and final invoice, and submit to STATE for verification and
Program Supplement 07--545-A335- SERIAL Page 2 of 3

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SPECIAL COVENANTS OR REMARKS
07-LA-1-DMBR
HSIPSL-5455(018)
payment.

H. ADMINISTERING AGENCY agrees to submit the final report documents that collectively constitute a "Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Failure of ADMINISTERING AGENCY to submit a "Final Report of Expenditures" within 180 days of PROJECT completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the current LAPM provisions.

I. ADMINISTERING AGENCY agrees to comply with the requirements in 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (applicable to Federal and State Funded Projects).

J. By executing this PROGRAM SUPPLEMENT, ADMINISTERING AGENCY agrees to provide the STATE, upon request, with the information related to the PROJECT for the purpose of project evaluation or other purposes.

K. The ADMINISTERING AGENCY shall construct the PROJECT in accordance with the scope of work presented in the application and approved by the State. Any changes to the approved PROJECT scope without the prior expressed approval of the State are ineligible for reimbursement and may result in the entire PROJECT becoming ineligible for reimbursement.

Program Supplement 07--545-A335- SERIAL Page 3 of 3

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RESOLUTION NO. 2024-01

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND

BAR DESIGNATING THE PUBLIC WORKS DIRECTOR/CITY

ENGINEER TO REPRESENT THE CITY OF DIAMOND BAR AND SIGN

DOCUMENTS RELATED TO THE GRANT FUNDS FROM THE STATE

OF CALIFONIA UNDER HIGHWAY SAFETY IMPROVEMENT
PROGRAM.

WHEREAS, the City of Diamond Bar applied for Highway Safety Improvement Program (HSIP) grant funding from the State of California acting by and through its Department of Transportation (“Caltrans”); and
WHEREAS, the HSIP grant will assist the City in intersection safety improvements; and
WHEREAS, the City of Diamond Bar will receive up to $302,850 in grant funds from Caltrans under HSIP and needs to designate a representative to work with Caltrans to implement the grant.

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

SECTION 1. That the City Council of the City of Diamond Bar designates the Public Works Director/City Engineer to represent the City and sign the HSIP grant documents on behalf of the City.

PASSED, APPROVED AND ADOPTED this 16
th day of January, 2024.

CITY OF DIAMOND BAR
__________________________
Stan Liu, Mayor
ATTEST:

I, Kristina Santana, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at a regular meeting of the City Council of the City of Diamond Bar held on the 16th day of January, 2024, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAINED: COUNCIL MEMBERS:
__________________________
Kristina Santana, City Clerk

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!
!
! !
!
!
!
!
!!
·142
·71
·60
·57
!"10
Golden Springs
Dr & Carpio Dr
Grand Ave &
Summitridge Ave
Diamond
Bar Blvd &
Grand Ave Golden Springs Dr
& Brea Canyon Rd
Diamond Bar Blvd
& Pathfinder Rd
Diamond Bar
Walnut
Chino Hills
Diamond Bar
Blvd & Brea
Canyon Rd
Diamond Bar
Blvd & Golden
Springs Dr
Diamond Bar
Blvd & Sunset
Crossing Rd
Brea Canyon Rd
& Pathfinder Rd
Vicinity Map
Exhibit 1
0 0.45 0.9 1.8 Miles
Study Intersections
City Boundary
Los Angeles County
Caltrans District 7
·210
·142
·60
·72
·71
·66
·57
·91
·39
·83
·90
%&605
!"5
!"10
Los Angeles County
San Bernardino County
Orange County

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S02: Installation of supplemental near-side signal heads S17PB: Install pedestrian countdown signal heads
S18PB: Install High Visibility Pedestrian Crossing as shown on the schematic maps on the following pages.

For illustration only, not
the actual Installation.

Similar to the new
installation on Grand Ave
and Golden Springs Dr.

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Diamond Bar Blvd
Golden Springs Dr
S02
Install Nearside
Supplemental Signal
S18PB
Convert Existing
Crosswalk to High
Visibility Crosswalk
SI_1
Figure
Countermeasure Diagrams
Diamond Bar Boulevard and Golden Springs Drive
Location
200 ft
250’Radius Inuence Area

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Diamond Bar Blvd
Sunset Crossing Rd
S02
Install Nearside
Supplemental Signal
S18PB
Convert Existing
Crosswalk to High
Visibility Crosswalk
SI_2
Figure
Diamond Bar Boulevard and Sunset Crossing Road
Location
200 ft
Countermeasure Diagrams
2 5
0’Radius Inuence Area

5.4. Packet Pg. 6
Grand Ave
Diamond Bar Blvd
S17PB
Install pedestrian
countdown signal heads
with Accessible
Pedestrian Signal (APS)
Countermeasure Diagrams
SI_3
Figure
Diamond Bar Boulevard and Grand Avenue
Location
200 ft
250’Radius Inuence Area

5.4 Packet Pg.

Diamond Bar Blvd
Countermeasure Diagrams
SI_4
Figure
Diamond Bar Boulevard and Pathfinder Road
Location
300 ft
S17PB
Install pedestrian
countdown signal heads
with Accessible
Pedestrian Signal (APS)
Pathfinder Rd
2 5
0’Ra
dius Inuence Area

5.4 Packet Pg.

SI_5
Figure
Diamond Bar Boulevard and Brea Canyon Road
Location
300 ft
Countermeasure Diagrams
S17PB
Install pedestrian
countdown signal heads
with Accessible
Pedestrian Signal (APS)
Brea
Ca
nyo
n
Blv
d
Diamond Bar Blvd
Inuence Area

5.4 Packet Pg.

Golden Springs Dr
Brea Canyon Rd
S02
Install Nearside
Supplemental Signal
S18PB
Convert Existing
Crosswalk to High
Visibility Crosswalk
S17PB
Install pedestrian
countdown signal heads
with Accessible
Pedestrian Signal (APS)
SI_6
Figure
Golden Springs Drive and Brea Canyon Road
Location
300 ft
Countermeasure Diagrams
250’Radius Inuence Area

5.4. Packet Pg. 7
Carpio Dr
Golden Springs Dr
S17PB
Install pedestrian
countdown signal heads
with Accessible
Pedestrian Signal (APS)
Countermeasure Diagrams
SI_7
Figure
Golden Springs Drive and Carpio Drive
Location
200 ft
250’Radius Inuence Area

5.4 Packet Pg.

Grand Ave
Summitbridge Dr
S02
Install Nearside
Supplemental Signal
S18PB
Convert Existing
Crosswalk to High
Visibility Crosswalk
SI_8
Figure
Grand Avenue and Summitridge Drive
Location
200 ft
Countermeasure Diagrams
250’Radius
Inuence Area

5.4 Packet Pg.

Pathfinder Rd
S02
Install Nearside
Supplemental Signal
S18PB
Convert Existing
Crosswalk to High
Visibility Crosswalk
Brea
Canyon
Rd
SI_9
Figure
Brea Canyon Road and Pathfinder Road
Location
Countermeasure Diagrams
200 ft
250’R
a
d
ui s In

u
e
nce
Area

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Agenda #: 6.1
Meeting Date: January 16, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM ALLOCATIONS FOR FISCAL YEAR 2024/2025.

STRATEGIC
GOAL: Responsible Stewardship of Public Resources
RECOMMENDATION:

FISCAL IMPACT:

Fiscal Year 2024/2025 funding for the Community Development Block Grant (CDBG) Program is estimated at $332,376, and is received from the Federal Government on a reimbursement basis. Approval of the 2024/2025 CDBG funding allocations will be incorporated into the Fiscal Year 2024/2025 City Budget. The CDBG Program does not impact the City's General Fund budget.

BACKGROUND:

By way of a Cooperative Agreement, the City of Diamond Bar is one of 48 participating cities served by the Los Angeles County Development Authority (LACDA) CDBG Program. The CDBG Program was established through the Housing and Community Development Act of 1974. The primary goals of the CDBG program are to provide for the development of viable urban communities by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income. Eligible CDBG projects are those that meet one of the following national objectives for the program:

6.1 Packet Pg. 77
• Benefiting low- and moderate-income persons;
• Addressing slums or blight; or
• Meeting a particular urgent community development need.

The projects must also fall within one of the eligible activity categories, which include acquisition of real property for an eligible use; acquisition, construction, and rehabilitation of public facilities; demolition and clearance of deteriorated buildings; community service for low- and moderate-income households; removal of barriers that restrict the mobility for elderly or disabled persons; or special economic development activities.

Funds may be used for a variety of community development activities, such as public services, ADA retrofit and improvements for parks, public works projects, and home improvement programs. The funds may only be used within low and moderate-income census tracts (of which the City has none) and/or to benefit low and moderate-income persons and/or presumed eligible persons (elderly or disabled).

Diamond Bar’s preliminary funding allocation for Fiscal Year 2024/25 is $254,581. In addition to the annual allocation, $77,795 is estimated to be available from prior year unexpended funds. Total funding for the FY 2024/25 CDBG program is thus $332,376.

LACDA anticipates receiving notification of the final allocation from the U.S. Department of Housing and Urban Development (HUD) during the first quarter of 2024. The CDBG Program has experienced funding adjustments in prior years, so the City should be prepared to accommodate a federal funding adjustment that could affect LACDA’s final allocations. In the event that the final allocation is higher or lower than this report’s estimate by 25% or less, the draft resolution provides authorization for the City Manager to administratively adjust the individual program allocations. Should the final allocation differ from the estimate by more than 25%, City Council approval of any program allocation changes would be required.

The City’s approved projects and budget must be submitted to the LACDA by February 1, 2024. Diamond Bar’s projects and budget will ultimately become part of the Los Angeles County’s CDBG program application to HUD.

Distribution of Funds
The City’s allocation of CDBG funds is subject to the following distribution limits:
• 15% of new allocations to support community service programs for eligible persons. • 85% of new allocations toward public works and housing projects that directly benefit eligible persons (e.g., ADA improvements for sidewalks and parks, and deferred loans for home improvements).
• Unallocated funds, including deferred loan repayments and carryovers from the prior fiscal year may be used to fund eligible public works and housing projects.

6.1 Packet Pg. 78
The cost of project administration and contract compliance services are charged on a project-based model which allows the City use CDBG funds to pay for costs associated with meeting the regulatory requirements on a per project basis. CDBG project administration is being implemented by City staff with assistance from the City’s consultant, Diana Cho and Associates. Project management for the CDBG-funded Home Improvement Program is performed by FRJ & Associates on behalf of the City.

Current Fiscal Year 2023/24 CDBG Projects and Allocations ($335,699) The programs funded for the current fiscal year, as amended, are summarized below:
o Senior Programming ($52,230) – These programs normally include information and referral, physical mobility classes, seminars, arts and crafts, game days, senior excursions, and special events, as well as partially subsidizing the salary of a Recreation Specialist. General Insurance has been purchased for the senior groups utilizing the Heritage Park Community Center and Diamond Bar Center. More than 500 seniors participate in the various programs and activities offered by the City. o Home Improvement Program (HIP) ($138,005) – The HIP offers deferred loans to eligible low- and moderate-income homeowners of single-family detached housing for necessary home improvements, as well as repairs to mitigate building and safety code deficiencies and/or violations. The City’s HIP policies provide interest-free, deferred loans of up to $30,000 to eligible households. Loans become payable when the homes are sold or refinanced. As of this writing, one project has been completed, one approved project is out to bid, one application is approved, and one application is under review. It is anticipated that five (5) projects will be approved by the end of the fiscal year.
o Area 4 Residential Neighborhood ADA Curb Ramp Improvements Project ($145,464) – Area 4 is generally bounded by the SPRR rail line at the City boundary with the City of Industry, Pathfinder Road to the north, the City boundary with the unincorporated community of Rowland Heights to the west, Pathfinder Road to the south, and the 57 Freeway to the east. The project is to provide ADA accessibility to existing sidewalks through the construction of ADA-compliant curb ramps at various locations where no curb ramps are presently provided. The project is currently in the design phase and is anticipated to construct up to 14 new ADA-compliant curb ramps.

6.1 Packet Pg. 79
DISCUSSION:

Proposed CDBG Projects and Allocations for FY 2024/25
The recommended project funding for Fiscal Year 2024/25 is based on the applications submitted and the estimated availability of funds. The City provides support to the projects that receive funding with technical assistance and monitoring to ensure compliance. The City is responsible for overseeing the operations of all the subrecipient supported activities, including compliance with all applicable federal requirements and for monitoring the achievement of performance goals.

Federal regulations require CDBG funds to be allocated and expended within three (3) years. In addition, the LACDA strongly encourages participant cities to earmark all monies as soon as feasible.

As stated in the Background section of this report, the CDBG funding estimate for FY 2024/25 is $332,376. The breakdown for the estimated funds is as follows:

New annual allocation $254,581
Prior year unallocated/reprogrammed funds 77,795
Total estimated CDBG funds for FY 2020/21 $332,376
N

6.1 Packet Pg. 80
Program Selection Process
On October 20, 2023, the City posted a notice on its website to inform organizations that it was accepting applications for program funding through November 17, 2022.

Applications from the City, the City’s five active senior clubs and the private nonprofit organization Heart of Hope were received during the application period to support the following programs and projects for the next fiscal year:

1. Senior Programs

2. Home Improvement Program

3. Area 5 Residential Neighborhood Curb Ramps

4. Services for children with special needs (Heart of Hope) Heart of Hope subsequently withdrew its application because it found that the client families would be reluctant to disclose their household incomes. To be eligible for CDBG funding, at least 51% of the households served by such organizations cannot earn more than 120% of the Area Median Income, and must be verified through tax returns or payroll documentation.

Funds requested from the three remaining applications total $342,372, which is $9,996 more than the estimated available funds. The recommended distribution of CDBG monies to utilize the entire funding estimate is detailed below.

Public Services/Senior Programs
The public service funding cap is $38,187, or 15% of the estimated new CDBG annual allocation for FY 2024/25.

With Heart of Hope’s withdrawal, the only application in this category is for funding to support senior programming. The City’s senior programs are administered through the Parks and Recreation Department. The City Council has previously approved a portion of the annual CDBG funding to be allocated to the Senior Programs budget.

As in prior years, the Senior Programs application proposes to accommodate several of the activities and supplies as requested by the Diamond Bar Senior Citizens Club, Diamond Bar Evergreen Senior Association, Sunshine Seniors Association, Diamond Age Senior Club, and Super Diamond Age Senior Club. The application also requests reimbursement for a portion of the City’s Senior Program Coordinator’s hours spent administering the programs, as well as for supplies and insurance purchased to host events at the Diamond Bar Center.

Parks and Recreation is requesting $37,372 (see Attachment 2) to offset senior programming expenses. The amount requested would leave the estimated allocation for this category with a surplus of $815.

Recommendation
With no other competing proposals in the Public Services category, it is recommended that the entire FY 2024/2025 funding estimate of $38,187 be allocated to Senior

6.1 Packet Pg. 81
Programs. This amount will cover supplies, liability insurance, CDBG project administration consultant costs and a portion of the Recreation Specialist salary.

Public Works and Housing
The allocation for Public Works and Housing projects includes $216,394 from the estimated FY 2024/2025 allocation (i.e., 85% of $254,581) and $77,795 in unallocated CDBG funds accumulated from project savings and loan repayments, for a total of $294,189.

Staff received two applications for funding from this category, which are included in Attachment 2:

1. The Diamond Bar Public Works Department requests $145,000 for the Area 5 Residential Neighborhood ADA Curb Ramps Improvement Project.

2. The Diamond Bar Community Development Department requests $160,000 for the Home Improvement Program.

The total funding requested from these two applications is thus $305,000, or $10,811 in excess of the estimated funding available in this category. o Area 5 Residential Neighborhood ADA Curb Ramp Improvements Project Area 5 is bounded by the Pomona Freeway (SR 60), Diamond Bar Boulevard, and the neighborhoods generally to the north and west of Armitos Place and Highcrest Drive. The project is to provide ADA accessibility to existing sidewalks through the construction of ADA-compliant curb ramps at various locations where no curb ramps are presently provided. The application requests $145,000 to construct nine (9) curb ramps to comply with the latest ADA requirements, as well as CDBG administration costs.

6.1 Packet Pg. 82
o Home Improvement Program
As stated, the HIP provides deferred zero-interest loans of up to $30,000 to eligible low and moderate-income homeowners for necessary home improvements as well as repairs to mitigate building and safety code deficiencies and/or violations. The requested allocation of $160,000 would accommodate at least five (5) loans, including program administration funds for the HIP consultant.

Recommendation
Because estimated funds are not available to fully fund these two requests, it is recommended that CDBG funding in the Public Works and Housing category be allocated as follows:

Area 5 Curb Ramp Project $ 139,189
Home Improvement Program $ 155,000
Total $ 294,189
SUMMARY OF RECOMMENDATIONS:

Total funding available for CDBG programs during the upcoming fiscal year is estimated to be $332,376. The funding requests received total $342,372, or $9,996 in excess of the estimated allocation. It is therefore recommended that the City Council approve the following distribution of funds, the total of which is equal to the estimated allocation:

FISCAL YEAR 2024/25 CDBG PROGRAM ALLOCATION RECOMMENDATIONS

PUBLIC SERVICES
Senior Programs $38,187
Public Services Subtotal $38,187

PUBLIC WORKS & HOUSING
Area 5 ADA Curb Ramp Improvements $139,189
Home Improvement Program $155,000
Public Works & Housing Subtotal $294,189
TOTAL CDBG FUNDING RECOMMENDATION FOR FY 2024/25 $332,376 ESTIMATED FY 2024/25 FUNDS AVAILABLE $332,376
PREPARED BY:

6.1 Packet Pg. 83
REVIEWED BY:

Attachments:

1. 6.1.a Resolution No. 2024-02 - FY 2024/25 CDBG Allocations

2. 6.1.b FY 2024/2025 CDBG Program Applications

6.1 Packet Pg. 84
RESOLUTION NO. 2024-02

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, CALIFORNIA, APPROVING THE CITY’S COMMUNITY

DEVELOPMENT BLOCK GRANT PROGRAM FOR FISCAL YEAR
2024/2025.

WHEREAS, On August 22, 1974, the President of the United States signed into law the Housing and Community Development Act of 1974 (Act); and WHEREAS, the primary goals of Title 1 of the Act are the development of viable urban communities by providing decent housing and a suitable living environment, and expanding economic opportunities, principally for persons of low and moderate income; and
WHEREAS, the City of Diamond Bar has received notification of the availability of $254,581 in Fiscal Year 2024/2025 Federal Community Development Block Grant (CDBG) funds to further the attainment of these goals; and WHEREAS, the City has an estimated amount of $77,795 in unallocated CDBG funds accumulated from project savings and deferred loan repayments; and WHEREAS, the combined total of $332,376 in CDBG funds is available to use for FY 2024/2025 projects; and
WHEREAS, applications have been submitted from community organizations and City Departments for the utilization of these funds; and WHEREAS, the City has published information regarding eligible activities under the Act and met with all interested groups and conducted a public hearing to solicit comments and suggestions from the community for the utilization of these funds.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Diamond Bar as follows:

Section 1. The funding allocation for the 2024/2025 Program year shall be:

PUBLIC SERVICE $38,187
Senior Programming $38,187
PUBLIC WORKS AND HOUSING $294,189
Home Improvement Program (HIP) $155,000
Area 5 Residential Neighborhood ADA $139,189
Curb Ramps Improvements Project

6.1.a
Packet Pg. 85
Resolution No. 2024-02
2 Section 2. The City Manager is authorized and directed to submit the City’s final Planning Summary for Fiscal Year 2024/2025 to the County of Los Angeles, reflecting the funding allocations set forth herein. Should the City’s final allocation increase or decrease by twenty-five percent (25%) or less from the figures contained herein, including proceeds from HIP loan repayments, the City Manager is authorized to administratively adjust (i.e., increase or decrease) the revised funds to eligible activities as necessary. Should the final allocation differ by more than 25%, adjustments to fund allocations shall be subject to City Council review and approval.

Section 3. The City Manager is authorized to execute the contractual and related documents to be prepared by the County of Los Angeles that are required for the implementation of the projects/programs set forth herein.

Section 4. This Resolution shall take effect from and after the date of its passage and adoption.

PASSED, APPROVED, AND ADOPTED this 16
th day of January, 2024.

CITY OF DIAMOND BAR
__________________________
Stan Liu, Mayor
ATTEST:

I, Kristina Santana, City Clerk of the City of Diamond Bar, California, do hereby certify that the foregoing Resolution was duly and regularly passed, approved and adopted by the City Council of the City of Diamond Bar, California at its regular meeting held on the 16 th day of January, 2024, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAINED: COUNCIL MEMBERS:
__________________________
Kristina Santana, City Clerk

6.1.a
Packet Pg. 86

MEMORANDUM
Parks and Recreation staff have reviewed the requests submitted for the allocation of CDBG funds for the 2024/25 FY and recommends the following allocation:

1. City Senior Program:
a. Program Supplies $2,772.00
b. Recreation Specialist salary $34,600.00
$37,372.00
Note: Remainder of City Senior Programs costs will be submitted in the proposed 2024/25 FY General Fund budget for review and consideration.

2. Liability Insurance for six Senior Clubs $6,000.00
Diamond Bar Senior Citizens Club
Diamond Bar Evergreen Senior Association
Sunshine Seniors Association
Diamond Age Senior Club
Super Diamond Age Senior Club
Federation of Hindus Association
Note: CDBG funds for senior organizations are held by the City and paid as reimbursement after required documentation demonstrates CDBG eligibility of expenses.

Grand Total Recommended Senior Allocation: $43,372.00
To: Diana Cho, CDBG Consultant
From: Christy Murphey, Recreation Superintendent
cc: Ryan Wright, Parks and Recreation Director
Date: November 17, 2023
Re: CDBG Recommended Allocation for Senior Programs – 2024/25 Fiscal Year

6.1.b
Packet Pg. 87

CITY OF DIAMOND BAR

COMMUNITY DEVELOPMENT BLOCK GRANT

REQUEST FOR PROPOSALS
2024-2025 PROGRAM YEAR
Funding is contingent upon the project's eligibility under the 1974 Housing and Community Development Act as amended and City Council approval. This application must be completed, and supplemental information regarding the organization and proposed project may be attached. The minimum funding request is $10,000 per project.

APPLICATION DEADLINE: Friday, November 17, 2023 3:00 p.m.

APPLICATION SUMMARY
Organization: City of Diamond Bar
Project Name: Senior
Programming
Amount
Requested:
$43,372.00
Location of Project: Diamond Bar Center, 1600 Grand Ave., Diamond Bar, CA 91765 Funds would be used to: Conduct educational and social programs to enrich the lives of local seniors.

These would include but not limited to: seminars, workshops, classes, special events, and excursions.

GENERAL INFORMATION
Organization Address: 21810 Copley Drive City: Diamond Bar Telephone/Fax Number: 909.839.7074 E-mail
Address:
[email protected]
Contact Person/Title: Christy Murphey, Recreation Superintendent Officials authorized to represent organization and expend funds:

Name: Andrew Chou Title: Mayor
Name: Dan Fox Title: City Manager
Federal I.D Number/Non-Profit Status: 95-4210629
This application is proposing a new existing X Project. (Check).

Has the project received past funding from the City of Diamond Bar?
YES
If yes, please identify the year/amount and source of
funding:

Funded annually, most recently
FY 2023/2024

6.1.b
Packet Pg. 88

GOALS AND OBJECTIVE OF PROJECT
Provide a detailed description of the proposed project by describing precisely what is to be accomplished with the requested funds.

Provide Senior programming for up to 385 persons per day. Develop and conduct a variety of recreational and informational classes, seminars, workshops, and events which meet the diverse needs of the seniors in Diamond Bar.

Describe the specific purpose of the project; identify the problems the project is intended to solve, and the age group of those to be served.

Meet the human services and recreational needs of a senior population with diverse cultural backgrounds. Age groups to be served are 55 and over.

Identify and describe the geographic boundaries of the target area. (Attach a map if appropriate).

Primary services area is Diamond Bar. Neighboring communities are serviced as well.

PROJECT CLIENT PROFILE
Diamond Bar clients assisted in previous
year:
34,639 client contacts
Diamond Bar clients assisted which meet the low/moderate income requirements:

Presumed
benefit.

Diamond Bar clients expected to be assisted in new project year:
350 Clients and 30,000 Client
Contacts
Describe the characteristics of client population in target area, including age, sex, income level, and ethnic background. Relate how the project will meet the federal requirements of benefiting low/moderate income persons.

6.1.b
Packet Pg. 89
The characteristics of client population in target area are seniors aged 55 and over. It is a mixed population by gender, however predominately female. The income level is presumed low to moderate and the ethnic background is 59% Asian and Pacific Islander, 27% White, 4% Black, 4% 2+ races and 6% other (including 80% non-Hispanic or Latino and 20% Hispanic or Latino).

Is your organization familiar with the CDBG electronic client data requirements?
YES
Is your organization familiar with the CDBG reporting requirements? YES

FINANCIAL INFORMATION
Please attach a proposed budget of the project. Include all items that CDBG funds are being requested to be used for. Include all other sources of funding and the total budget of the organization.

I hereby certify that if funds are granted to our organization they will be used to benefit low and low/moderate income residents of the City of Diamond Bar. We understand that the formal agreement with the City will define other reporting provisions and federally required assurances.

Signature: Christy Murphey
Title: Recreation Superintendent
Date: 11.17.2023

6.1.b
Packet Pg. 90
PROJECTED GENERAL FUND EXPENDITURES 31,783.18 $
PROJECTED REVENUE $ -
CDBG REQUEST $ 43,372.00
PROJECTED PROGRAM COST 75,155.18 $
PROJECTED PROGRAM COST DIFFERENCE 31,783.18 $
PERSONNEL SERVICES- CDBG $ 62,883.18
Salary 225-225440-50010 34,600.00 $
Salary - General Fund 28,283.18 $
$ 12,272.00
6 Clubs Liability Insurance 225-225440-54900 6,000.00 $ Program Supplies 225-225440-51200* 2,772.00 $
Program Supplies 100-100520-51200 3,500.00 $

CITY OF DIAMOND BAR
Recreation Specialist/Senior Club Insurance
Budget Discussion
FY 2024/2025
Senior Program Supplies

6.1.b
Packet Pg. 91

GRADE CLASSIFICATION A B C D E F G
6NE Maintenance Worker $22.01 $23.11 $24.27 $25.48 $26.75 $28.09 $29.49 $1,760.77 $1,848.80 $1,941.24 $2,038.31 $2,140.22 $2,247.23 $2,359.59 $3,814.99 $4,005.74 $4,206.03 $4,416.33 $4,637.15 $4,869.01 $5,112.46 $45,779.92 $48,068.91 $50,472.36 $52,995.98 $55,645.78 $58,428.06 $61,349.47 7NE Recreation Specialist $22.56 $23.69 $24.87 $26.12 $27.42 $28.79 $30.23 Senior Office Specialist $1,804.78 $1,895.02 $1,989.77 $2,089.26 $2,193.73 $2,303.41 $2,418.58 $3,910.37 $4,105.88 $4,311.18 $4,526.74 $4,753.07 $4,990.73 $5,240.26 $46,924.40 $49,270.62 $51,734.15 $54,320.85 $57,036.90 $59,888.74 $62,883.18 10NE Senior Maintenance Worker $24.29 $25.51 $26.78 $28.12 $29.53 $31.01 $32.56 $1,943.56 $2,040.73 $2,142.77 $2,249.91 $2,362.40 $2,480.52 $2,604.55 $4,211.04 $4,421.59 $4,642.67 $4,874.80 $5,118.54 $5,374.47 $5,643.19 $50,532.46 $53,059.08 $55,712.04 $58,497.64 $61,422.52 $64,493.65 $67,718.33 14NE Administrative Assistant $26.82 $28.16 $29.57 $31.04 $32.60 $34.23 $35.94 Permit Technician $2,145.32 $2,252.59 $2,365.22 $2,483.48 $2,607.65 $2,738.04 $2,874.94 $4,648.20 $4,880.61 $5,124.64 $5,380.87 $5,649.92 $5,932.41 $6,229.03 $55,778.39 $58,567.31 $61,495.67 $64,570.46 $67,798.98 $71,188.93 $74,748.38 17NE Accounting, HR, Network/Systems, $28.88 $30.32 $31.84 $33.43 $35.10 $36.86 $38.70 Planning, Engineering Technician $2,310.28 $2,425.79 $2,547.08 $2,674.44 $2,808.16 $2,948.56 $3,095.99 Recreation Coordinator $5,005.60 $5,255.88 $5,518.68 $5,794.61 $6,084.34 $6,388.56 $6,707.98 Senior Administrative Assistant $60,067.22 $63,070.58 $66,224.11 $69,535.31 $73,012.08 $76,662.68 $80,495.82 Public Works Inspector
18NE Neighborhood Improvement Officer $29.60 $31.08 $32.63 $34.27 $35.98 $37.78 $39.67 Media Specialist $2,368.03 $2,486.44 $2,610.76 $2,741.30 $2,878.36 $3,022.28 $3,173.39 $5,130.74 $5,387.28 $5,656.64 $5,939.47 $6,236.45 $6,548.27 $6,875.68 $61,568.88 $64,647.33 $67,879.69 $71,273.68 $74,837.36 $78,579.23 $82,508.19 19NE Facilities & Asset Maintenance Tech. $30.34 $31.86 $33.45 $35.12 $36.88 $38.72 $40.66 $2,427.23 $2,548.60 $2,676.03 $2,809.83 $2,950.32 $3,097.84 $3,252.73 $5,259.01 $5,521.96 $5,798.06 $6,087.96 $6,392.36 $6,711.98 $7,047.58 $63,108.11 $66,263.51 $69,576.69 $73,055.52 $76,708.30 $80,543.71 $84,570.90 21NE Administrative Coordinator $31.88 $33.47 $35.14 $36.90 $38.75 $40.68 $42.72 Executive Assistant $2,550.11 $2,677.62 $2,811.50 $2,952.07 $3,099.68 $3,254.66 $3,417.40 Accountant $5,525.25 $5,801.51 $6,091.58 $6,396.16 $6,715.97 $7,051.77 $7,404.36 Permit Services Coordinator $66,302.95 $69,618.09 $73,099.00 $76,753.95 $80,591.65 $84,621.23 $88,852.29 23NE Assistant Engineer $33.49 $35.16 $36.92 $38.77 $40.71 $42.74 $44.88 Assistant Planner $2,679.21 $2,813.17 $2,953.83 $3,101.52 $3,256.60 $3,419.43 $3,590.40 Sr. Neighborhood Improvement Officer $5,804.96 $6,095.21 $6,399.97 $6,719.97 $7,055.97 $7,408.77 $7,779.21 $69,659.55 $73,142.53 $76,799.66 $80,639.64 $84,671.62 $88,905.21 $93,350.47 Effective July 1, 2023
Approved by City Council on June 6, 2023
Schedule C

CITY OF DIAMOND BAR

COMPENSATION PLAN BY POSITION
FY 2023 - 2024

FULL-TIME NON-EXEMPT BENEFITED POSITIONS
55% of $62,883.18 (Step G) is
$34,585.75.

6.1.b
Packet Pg. 92

CITY OF DIAMOND BAR

COMMUNITY DEVELOPMENT BLOCK GRANT

APPLICATION DEADLINE: Friday, November 17, 2023 3:00 p.m.

APPLICATION SUMMARY
Organization: City of Diamond Bar
Project Name: Home
Improvement
Amount
Requested:
$160,000
Location of Project: 21800 Copley Drive
Funds would be used to: Provide grants and/or deferred loans to eligible low and moderate income homeowners for necessary improvements as well as to mitigate building and safety violations.

GENERAL INFORMATION
Organization Address: 21810 Copley Dr.

City:

Diamond Bar
Telephone/Fax Number: (909) 839-7080 E-mail
Address:
[email protected]
Contact Person/Title: City Staff
Officials authorized to represent organization and expend funds:

Name: Title:

Federal I.D Number/Non-Profit Status: N/A
This application is proposing a new existing X Project. (Check).

Has the project received past funding from the City of Diamond Bar?
Yes

6.1.b
Packet Pg. 93
If yes, please identify the year/amount and source of
funding:
2023-2024/$138,005

GOALS AND OBJECTIVE OF PROJECT
Provide a detailed description of the proposed project by describing precisely what is to be accomplished with the requested funds.

The objective of the Home Improvement Program is to provide grants and loans to assist low and moderate-income residential owner/occupants in maintaining the City’s existing residential neighborhoods through home rehabilitation.

Describe the specific purpose of the project; identify the problems the project is intended to solve, and the age group of those to be served.

The purpose of the Home Improvement Program is to preserve and enhance single family residential neighborhoods through out the City; to provide loans to eligible homeowners of single family detached dwellings for the preservation of safe, decent and sanitary housing; correct hazardous structural conditions; to make modifications necessary to provide ADA access to dwellings; to improve the overall exterior appearance of the home to eliminate blight; and correct exterior code violations, through the provision of loans. The Home Improvement Program is not directed toward a specific age group, but rather to eliminate blight and maintain affordable housing stock for low and moderateincome residents.

Identify and describe the geographic boundaries of the target area. (Attach a map if appropriate).

Citywide.

PROJECT CLIENT PROFILE
Diamond Bar clients assisted in previous
year:
22/23-4 23/24- 3-4 projected
Diamond Bar clients assisted which meet the low/moderate income requirements:

All
Diamond Bar clients expected to be assisted in new project year:
24/25- 3-4
Describe the characteristics of client population in target area, including age, sex, income level, and ethnic background. Relate how the project will meet the federal requirements of benefiting low/moderate income persons.

Is your organization familiar with the CDBG electronic client data requirements?
Yes
Is your organization familiar with the CDBG reporting requirements? Yes

6.1.b
Packet Pg. 94

Proposed HIP Budget (2024-2025) $160,000
Estimated Construction Cost $121,500
Lead/Asbestos Testing $ 5,000
Title Report Fees $ 1,500
Rehabilitation Administration $ 32,000
I hereby certify that if funds are granted to our organization they will be used to benefit low and low/moderate income residents of the City of Diamond Bar. We understand that the formal agreement with the City will define other reporting provisions and federally required assurances.

Signature:

Title: Housing Rehabilitation Coordinator
Date: 11/1/23

6.1.b
Packet Pg. 95

CITY OF DIAMOND BAR

COMMUNITY DEVELOPMENT BLOCK GRANT

The minimum funding request is $10,000 per project.

APPLICATION DEADLINE: Friday, November 17, 2023 3:00 p.m.

APPLICATION SUMMARY
Organization: City of Diamond Bar
Project Name: Area 5
Residential
Neighborhood
ADA Curb
Ramps
Improvements
Project
Amount
Requested:
$145,000
Location of Project: Various locations within the City’s ‘Area 5’ neighborhood Funds would be used to: Construct nine new or upgraded ADA-compliant sidewalk curb ramps in the Area 5 residential neighborhood

GENERAL INFORMATION
Organization Address: 21810 Copley Dr
City:

Diamond Bar
Telephone/Fax Number: (909) 839-7038 E-mail
Address:
[email protected]
Contact Person/Title: Michael Bhatanawin, P.E. - Associate Engineer Officials authorized to represent organization and expend funds:

Name: David G. Liu, P.E. Title: Director of Public Works/City Engineer Name: Title:

Federal I.D Number/Non-Profit Status: N/A

6.1.b
Packet Pg. 96
This application is proposing a new x
existing
Project.
(Check).

Has the project received past funding from the City of Diamond Bar?
No
If yes, please identify the year/amount and source of funding: N/A

GOALS AND OBJECTIVE OF PROJECT
Provide a detailed description of the proposed project by describing precisely what is to be accomplished with the requested funds.

The proposed project would utilize Community Development Block Grant (CDBG) funds for the project construction phase of new or upgraded handicapped accessible sidewalk curb ramps at various locations within the Area 5 residential neighborhood (Area) as shown in the attached Exhibit “A”. The curb ramps will be constructed to meet current standards of the Americans with Disabilities Act (ADA). Nine ADA-compliant sidewalk curb ramps will be built in the Area at various locations where currently there is not a ramp or the existing ramp is not compliant with the current standards. The constructed ramps will provide handicapped access and a safer environment to the public.

Describe the specific purpose of the project; identify the problems the project is intended to solve, and the age group of those to be served.

As recommended in the ADA Self Evaluation, this project is part of the City’s efforts to upgrade all non-ADA-compliant curb ramps citywide. The project would provide for the construction of curb ramps where no curb ramps currently exist and the reconstruction of curb ramps that are too steep, deteriorated, not wide enough, or create other accessibility barriers for severely disabled members of the public that use wheelchairs, canes, walkers or crutches.

Identify and describe the geographic boundaries of the target area. (Attach a map if appropriate).

The project target area is located within Area 5 Residential Neighborhood as shown in the attached Exhibit “A”. The proposed locations of the ramps are marked in the map.

PROJECT CLIENT PROFILE
Diamond Bar clients assisted in previous
year:

N/A (This is new project)
Diamond Bar clients assisted which meet the low/moderate income requirements:

General public
Diamond Bar clients expected to be assisted in new project year:

General public

6.1.b
Packet Pg. 97
Describe the characteristics of client population in target area, including age, sex, income level, and ethnic background. Relate how the project will meet the federal requirements of benefiting low/moderate income persons.

Is your organization familiar with the CDBG electronic client data requirements?
Yes
Is your organization familiar with the CDBG reporting requirements? Yes

See attached Exhibit ‘B’ for project budget
I hereby certify that if funds are granted to our organization they will be used to benefit low and low/moderate income residents of the City of Diamond Bar. We understand that the formal agreement with the City will define other reporting provisions and federally required assurances.

Signature:

Title: Director of Public Works/City Engineer
Date: 11/15/2023

6.1.b
Packet Pg. 98

6.1.b
Packet Pg. 99
EXHIBIT "B"

CITY OF DIAMOND BAR

COMMUNITY DEVELOPMENT BLOCK GRANT

REQUEST FOR PROPOSALS
2024-2025 PROGRAM YEAR
PRELIMINARY COST ESTIMATE FOR 2024-2025 CDBG PROGRAM CURB RAMP INSTALLATION ITEM NO. DESCRIPTION QUANTITY UNIT UNIT COST TOTAL COST 1 NEW ADA CURB RAMPS 9 EACH $13,300 $119,700
CDBG ADMINISTRATIVE COST $11,970
SUBTOTAL $131,670
CONTINGENCY (10% OF SUBTOTAL) $13,167
TOTAL $144,837
SAY $145,000

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Agenda #: 7.1
Meeting Date: January 16, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: TRANSMITTAL OF THE FISCAL YEAR 2022/23 ANNUAL
COMPREHENSIVE FINANCIAL REPORT (ACFR).

STRATEGIC
GOAL: Responsible Stewardship of Public Resources
RECOMMENDATION:

A. Receive and File the Fiscal Year 2022/23 Annual Comprehensive Financial Report; B. Approve an appropriation of Unassigned General Fund Reserves in the amount of $76,000 to the OPEB Reserve Fund (105);
C. Approve an appropriation of Unassigned General Fund Reserves in the amount of $1,204,585 to the Park & Facility Development Fund (262); and D. Approve an appropriation of Unassigned General Fund Reserves in the amount of $1,204,585 to the Building Maintenance & Replacement Fund (504).

FINANCIAL IMPACT:

The recommended action to appropriate funding in the amount of $76,000 to the OPEB Reserve fund, and $1,204,585 to both the Park & Facility Development Fund (262) and the Building Maintenance & Replacement Fund (504) will decrease the General Fund Unassigned Fund Balance by $2,485,170. The revised General Fund Unassigned Fund Balance will be $20,473,897.

BACKGROUND:

The Fiscal Year (FY) 2022/23 annual audit has been completed by the City’s independent audit firm of Lance, Soll and Lunghard, LLP (LSL). The City’s Finance Department, in concert with LSL, has prepared the FY 2022/23 Annual Comprehensive Financial Report (ACFR). The City’s Audit Subcommittee, which is comprised of Mayor Stan Liu and Mayor Pro Tem Chia Yu Teng, met on January 10, 2024 with the City

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Manager, Finance Director and an LSL representative to discuss the results of the audit.

In the opinion of LSL, the financial statements reflect fairly the financial position and results of operations for the fiscal year ended June 30, 2023. The auditors found no instances of material weaknesses in the City’s internal controls and no instances of noncompliance with certain provisions of laws, regulations, contracts or grants, which could have a material effect on the determination of financial statement amounts. They also indicated that there were no disagreements with management in completing their audit.

The ACFR has been prepared in conformance with the requirements of the Government Accounting Standards Board (GASB) Statement No. 34. As a result, the report format includes the Management Discussion and Analysis, Required Supplementary Information, and the Government-wide Financial Statements which include the Statement of Net Position and Statement of Activities. A copy of the FY 2022/23 ACFR is included as Attachment 1.

ANALYSIS:

Revenues
Citywide revenues for FY 2022/23 from all sources (i.e., all funds) was $44.5 million, which exceeded last year’s total by $5.3 million (or 13%).

General Fund revenues were $33.4 million, an increase of $3.5 million (or 12%) from the prior year, and consistent with the revised budget of $32.7 million. As with the prior year, $3.4 million in General Fund revenue is attributable to the receipt of a second, and final, installment of ARPA monies. The FY 2022/23 year-over-year increase of $3.5 million is thus primarily a result of revenue growth across key sources such as: property tax in lieu (increased $326 thousand), sales taxes (increased $471 thousand), transient occupancy taxes (increased $103 thousand), property taxes (increased $511 thousand), investment earnings (increased $1.1 million), the Diamond Bar Center (increased $330 thousand) and fees for services related to engineering, building & safety, and recreation classes (increased $375 thousand in aggregate).

Expenditures
Citywide expenditures for all City programs and activities in FY 2022/23 totaled $37.4 million, an increase of $3.9 million over the previous year. The FY 2022/23 budget was developed with the intention of restoring programs and services across the organization, in particular in the General Fund. As such, fiscal year budgeted and actual expenditures were higher in FY 2022/23 than in FY 2021/22. Specifically, the FY 2022/23 General Fund budget totaled $32.8 million compared to the FY 2021/22 revised budget of $30.5 million.

In addition to restoring programs and services, the City also increased its capital improvement program. In FY 2020/21, the City had to scale back its capital program due to reduced revenues largely tied to the pandemic. In FY 2021/22, the City’s capital program increased from $3.5 million to $7.5 million. In FY 2022/23, the City’s capital

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program increased from $7.5 million to $16.0 million. While much of the funding comes from grants and other restricted revenues, the growth nonetheless helps explain the increase in the overall spending that occurred generally throughout all categories.

General Fund Expenses – Budgetary Comparison
Total General Fund expenditures for FY 2022/23 were $29.0 million, an amount that was $4.7 million below the revised budget of $33.7 million. This budgetary savings is mostly attributed to unutilized funds appropriated for transfer-out in support other funds in the amount of $1.4 million (of which $1.3 million is needed to support on-going capital improvement projects and will be set aside for use in the current FY 2023/24). In addition to these savings, there was a combined savings of $1.9 million for contracted & professional services across all departments, of which $639 thousand has been carried over for re-appropriation in the current FY 2023/24 to meet ongoing contractual obligations (e.g. consultant services for the Town Center Specific Plan). Lastly, personnel and other operating expenditures came in $1.4 million less than budgeted.

General Fund Expenses – Year-Over-Year Comparison
Compared to the prior FY 2021/22, total General Fund expenses increased $1.9 million, mainly due to an increase of $585 thousand in contractual & professional services, an increase of $1.0 million in personnel and other operating expenses, and an increase of $263 thousand in transfer-out to other funds.

Reserve Balances
Taken in aggregate, fund balances for all governmental funds were $63.2 million at the end of FY 2022/23, an increase of $7.3 million compared to FY 2021/22. Of this total, $34.6 million in reserves belong to the City’s General Fund which may be used to meet the City’s ongoing obligations to its citizens and creditors.

Fund FY 2022/23 FY 2021/22 Change
General Fund $ 34,600,596 $ 30,226,704 $4,373,892
Other Governmental Funds 28,582,570 25,664,419 2,918,151 Totals $ 63,183,166 $ 55,891,123 $7,292,043

CITY OF DIAMOND BAR
Changes in Governmental Fund Balance Reserves
The total General Fund reserve balance of $34.6 million represents an increase of $4.4 million compared to last year. This is a favorable result under any circumstances, but should be viewed with the understanding that this amount includes $1.2 million in savings generated by the second tranche of ARPA monies. A history of governmental fund balances for the prior 10 years is shown below. More information on reserve balances can be found in Note 11 of the ACFR and in the Statistical Section.

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Reserve Funding
The FY 2022/23 ACFR includes the fund balance reserve reporting methodology set forth in GASB Statement No. 54. It is a long-term goal to of the City to build unrestricted reserve funds to provide flexibility, respond to emergencies, fund new projects and replace and maintain facilities, capital equipment and assets. Therefore, the City Council approved an updated Fund Balance and Reserves Policy on August 20, 2019 (Res. No. 2019-36) which established an amount of no less than 25% of General Fund expenditures as a formal commitment of fund balance to be set aside as an emergency contingency for Federal, State or Local emergencies. A copy of the Fund Balance and Reserves Policy is included as Attachment 2.

At June 30, 2023, the amount committed to emergency contingencies totals $7,981,243 (25% of the FY 2023/24 Adopted General Fund Budget). This amount is included within the $34.6 million General Fund reserve balance noted above and is highlighted separately in the below schedule which shows balances for key operating reserves.

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2023 2022 Change
General Fund
Committed Reserves
Contingency Reserve $ 7,981,243 $ 7,864,770 $ 116,473
Assigned Reserves
Community organization support 2,062 - $ 2,062
OPEB Reserve 291,182 353,283 (62,101)
Technology Reserve 591,346 442,418 148,928
Capital Improvement Projects 1,308,920 - 1,308,920
Tres Hermanos Conservancy Reserve 6,910 20,726 (13,816) General Plan Update Reserve 518,504 929,558 (411,054)
Law Enforcement Reserve 941,362 957,126 (15,764)
Unassigned Reserve 22,959,067 19,658,823 3,300,244
Total General Fund 34,600,596 30,226,704 4,373,892
Park Development Fund
Park and Facility Reserve 1,567,641 873,636 694,005
Vehicle Maintenance & Replacement Fund
Maintenance & Replacement Reserve 316,864 230,973 85,891 Building Maintenance & Replacement Fund
Maintenance & Replacement Reserve 1,062,451 1,164,608 (102,157) Computer Equipment Replacement Fund
Equipment Replacement Reserve 2,032,428 1,068,686 963,742 Grand Totals $ 39,579,980 $ 33,564,607 $ 6,015,373

CITY OF DIAMOND BAR
Highlighted Operating Fund Reserves
Fiscal Year Ended June 30,
As shown in the table above, as of June 30, 2023, the total Unassigned portion of the General Fund Reserve increased $3.3 million. Of this amount, $213 thousand has been carried over for re-appropriation in the current FY 2023/24 to meet ongoing contractual obligations, leaving a net increase of $3,087,463 available for funding other reserves pursuant to Section 5 of the aforementioned Fund Balance and Reserves Policy.

Other Post-Employment Benefits (OPEB) Fund
As required by GASB Statement No. 75, the ACFR includes disclosure of the City’s Other Post-Employment Benefits (OPEB) liability. In connection with the retirement benefits for employees provided through California Public Employees Retirement System (CalPERS), the City provides post-retirement health care benefits to retirees through the CalPERS Health Benefits program. Although the retiree pays most of the cost of this benefit the City is required to pay a small portion of this cost – the City’s OPEB obligation is derived from this benefit. The City’s total OPEB obligation at June 30, 2023 was $1,260,651. However, when taking into account the City’s OPEB trust fund balance of $645,436 (51% of liability) held with the California Employers’ Retiree Benefit Trust (CERBT) the net liability reduces to $615,215. Additional funding in the amount of $291,182 (23% of liability) is also set aside in an OPEB Reserve fund held

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by the City for future contributions to the trust, for a total funding status of 74%, which is an increase from the 71% funding status as of the prior year ending June 30, 2022, and a significant improvement from the 57% funding status the year ending June 30, 2021.

This funding level is considered quite favorable when compared to other cities but still falls below the desired 80% funding status established in the City’s Fund Balance and Reserves Policy. As a result, it is recommended that the City Council appropriate an additional $76,000 to the OPEB Reserve fund balance, bringing total assets to 80% of the liability. More information on OPEB may be found in Note 9 of the ACFR.

Park & Facility Development Fund and Building Facility & Maintenance Fund A key provision (Section 5) of the Fund Balance and Reserves Policy sets forth that after the minimum requirements set forth in Section 4 of the policy have been met, any remaining surplus at the end of the year shall be allocated to three funds in order to provide for the long-term fiscal sustainability of the City. These allocations provide that 40% shall be transferred to the Park & Facility Development Fund, 40% shall be transferred to the Building Facility & Maintenance Fund and the remaining 20% shall be returned to the Unassigned General Fund Reserves. A remaining surplus in the amount of $3,011,463 is available for this allocation; therefore, it is recommended that the City Council appropriate $1,204,585 (40%) to both the Park & Facility Development Fund and to the Building Facility & Maintenance Fund consistent with the Fund Balance and Reserves Policy. As a result of all reserve funding recommendations, the General Fund Unassigned Fund Balance will be $20.5 million, a net increase of $815 thousand from the prior year.

Pension Liability
GASB Statement No. 68 requires the inclusion of Net Pension Liability in the Statement of Net Position. As of June 30, 2023, the City reported a total net pension liability of $7,903,769 (an increase from the prior year amount of $3,014,631). As of the most recent valuation date of June 30, 2022, the City’s miscellaneous plan is approximately

75.7% funded, and the PEPRA Miscellaneous plan is 87.7% funded. These funding amounts reflect a decrease from the prior year funding amounts of 87.1% and 105.6%, respectively, and are solely the result of negative fluctuations in the market rate return of the statewide portfolio managed by CalPERS. More information on pensions may be found in Note 8 of the ACFR.

Excellence in Financial Reporting
The Finance Department has submitted the FY 2022/23 ACFR to the Government Finance Officers Association (GFOA) for consideration to receive the Certificate of Achievement for Excellence in Financial Reporting program. The City of Diamond Bar has been honored to receive this award for the past twenty-seven consecutive years.

PREPARED BY:

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REVIEWED BY:

Attachments:

1. 7.1.a City of Diamond Bar FY 2022/23 ACFR

2. 7.1.b 2019-01 - Fund Balance and Reserves Policy

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CITY OF DIAMOND BAR, CALIFORNIA
Annual Comprehensive Financial Report
June 30, 2023
Prepared by:

Finance Department

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CITY OF DIAMOND BAR, CALIFORINA
Annual Comprehensive Financial Report
June 30, 2023
Table of Contents
Page(s)

INTRODUCTORY SECTION
Letter of Transmittal ..................................................................................................................................................... i GFOA Certificate of Achievement for Excellence in Financial Reporting .................................................................. vi Organization Chart .................................................................................................................................................... vii List of Elected and Administrative Officials ............................................................................................................. viii

FINANCIAL SECTION
Independent Auditors’ Report .................................................................................................................................... 1 Management's Discussion and Analysis (Required Supplementary Information) ..................................................... 5

BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position ........................................................................................................................... 20 Statement of Activities ................................................................................................................................ 21 Fund Financial Statements
Balance Sheet – Governmental Funds ...................................................................................................... 22 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ................................................................................................................. 23 Statement of Revenues, Expenditures, and Changes in Fund Balances .................................................. 24 Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of the Governmental Funds to the Statement of Activities ................................................ 25 Statement of Net Position – Proprietary Funds .......................................................................................... 26 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds ...................................................................................................................... 27 Statement of Cash Flows – Proprietary Funds ........................................................................................... 28 Notes to Basic Financial Statements ............................................................................................................. 29

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CITY OF DIAMOND BAR, CALIFORNIA
Annual Comprehensive Financial Report
June 30, 2023
Table of Contents
Page(s)

REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Information:

Budgetary Comparison Schedule – General Fund ................................................................................. 58 Budgetary Comparison Information:

Budgetary Comparison Schedule – Traffic Improvement Fund ............................................................. 59 Schedule of Proportionate Share of the Net Pension Liability ........................................................................ 60 Schedule of Plan Contributions – Pension ..................................................................................................... 62 Schedule of Changes in the Net OPEB Liability and Related Ratios ............................................................. 64 Schedule of Contributions – OPEB ................................................................................................................. 66 Notes to Required Supplementary Information .............................................................................................. 69

SUPPLEMENTAL INFORMATION
Combining Balance Sheet .............................................................................................................................. 70 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................................................................................................................................ 78 Budgetary Comparison Schedules - Special Revenue Funds:

State Gas Tax Fund .................................................................................................................................... 86 Proposition A Transit Fund .......................................................................................................................... 87 Proposition C Transit Fund ......................................................................................................................... 88 Integrated Waste Management Fund .......................................................................................................... 89 Sewer Mitigation Fund ................................................................................................................................. 90 Air Quality Improvement Fund ..................................................................................................................... 91 Road Maintenance & Rehab Fund .............................................................................................................. 92 Trails & Bikeways Fund ............................................................................................................................... 93 Beverage Center Recycling Grant Fund ..................................................................................................... 94 Used Oil Block Grant Fund .......................................................................................................................... 95 Park and Facility Development Fund........................................................................................................... 96 Community Development Block Grant (CDBG) Fund ................................................................................ 97 Citizens Option for Public Safety (COPS) Fund .......................................................................................... 98 California Law Enforcement Equipment Program (CLEEP) Fund ............................................................... 99 Landscape Maintenance District Fund ...................................................................................................... 100 Measure R Local Return Fund .................................................................................................................. 101 PEG Fees Fund ......................................................................................................................................... 102 Hazard Mitigation Grant Fund ................................................................................................................... 103 Waste Hauler Fund .................................................................................................................................... 104 CASP Fees (SB1186) ................................................................................................................................ 105 Measure A Neighborhood Parks Acts Fund .............................................................................................. 106 Street Beautification Fund ......................................................................................................................... 107 Measure W Return Fund ........................................................................................................................... 108 Measure M Local Return Fund .................................................................................................................. 109

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CITY OF DIAMOND BAR, CALIFORNIA
Annual Comprehensive Financial Report
June 30, 2023
Table of Contents
Page(s)
SUPPLEMENTAL INFORMATION (Continued)
Budgetary Comparison Schedule – Capital Projects Fund:

Capital Improvement Funds ...................................................................................................................... 110 Budgetary Comparison Schedule – Debt Service Funds:

Public Financing Authority ......................................................................................................................... 111 Internal Service Funds:

Combining Statement of Net Position ........................................................................................................... 112 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ......................................................................................................................................... 113 Combining Statement of Cash Flows ........................................................................................................... 114

STATISTICAL SECTION
Financial Trends:

Net Position by Component - Last Ten Fiscal Years .................................................................................... 117 Changes in Net Position - Last Ten Fiscal Years ......................................................................................... 118 Fund Balances of Governmental Funds - Last Ten Fiscal Years ................................................................. 120 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years .............................................. 122 Revenue Capacity:

Property Tax Dollar Breakdown .................................................................................................................... 124 Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years .................................. 125 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years ........................................................... 126 Top 10 Property Taxpayers - Current Fiscal Year and Ten Fiscal Years Ago ............................................. 127 Property Tax Levies and Collections - Last Ten Fiscal Years ...................................................................... 128 Debt Capacity:

Ratios of Outstanding Debt by Type - Last Ten Fiscal Years....................................................................... 129 Direct and Overlapping Debt ........................................................................................................................ 130 Computation of Legal Debt Margin - Last Ten Fiscal Years ......................................................................... 131 Demographic and Economic Information:

Demographic and Economic Statistics - Last Ten Calendar Years .............................................................. 132 Taxable Sales by Category - Current Fiscal Year and Nine Fiscal Years Ago ............................................ 134 Operating Information:

Full-Time Equivalent City Employees by Function - Last Ten Fiscal Years ................................................. 136 Operating Indicators by Function - Last Ten Fiscal Years ............................................................................ 137 Capital Asset Statistics by Function - Last Ten Fiscal Years ....................................................................... 138

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Stan Liu Chia Yu Teng Ruth M. Low Andrew Chou Steve Tye Mayor Mayor Pro Tem Council Member Council Member Council Member At-Large District 4 At-Large District 3 District 1
City of Diamond Bar I 21810 Copley Drive Diamond Bar CA 91765-4178 www.DiamondBarCA.gov I (909) 839-7000
December 11, 2023
Honorable Mayor and Council Members
City of Diamond Bar
Diamond Bar, California
It is an honor to submit to you the Annual Comprehensive Financial Report (ACFR) of the City of Diamond Bar for the fiscal year ended June 30, 2023. This report consists of management’s representations concerning the finances of the City. Consequently, responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City’s management. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformance with generally accepted accounting principles (GAAP).

Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide assurance that the financial statements will be free from misstatement.

As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material aspects.

The City’s financial statements have been audited by Lance, Soll, & Lunghard, LLP, a firm of certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for fiscal year ended June 30, 2023, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. i

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Honorable Mayor and Council Members December 11, 2023
The independent auditor concluded based upon the audit that there was a reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended June 30, 2023, were fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement and should be read in conjunction with the MD&A. The City’s MD&A can be found immediately following the report of the independent auditors.

PROFILE OF THE CITY OF DIAMOND BAR
The City of Diamond Bar was incorporated on April 18, 1989, and is located at the eastern edge of Los Angeles County in the East San Gabriel Valley. Diamond Bar is primarily a residential community of about 57,000, situated among the meandering hills and valleys of Brea Canyon. Many desired services can be found in Diamond Bar's shopping and business centers. Recreational opportunities within the City include more than 75 acres of developed park facilities, hiking trails, a community center, a County-owned and operated 18- hole public golf course and more than 370 acres of undeveloped publicly owned open space.

Diamond Bar is also strategically located at the junction of the SR-57 and SR-60 freeways with easy access to I-10 and SR-71 freeways. This makes Diamond Bar a desirable and convenient location to live and work within close proximity to Los Angeles, Orange, Riverside and San Bernardino counties.

Diamond Bar is a General Law city and operates under the council-manager form of government. Policy making and legislative authority are vested in a fivemember City Council. The City Council is responsible, among other things, for passing ordinances, adopting the budget, appointing Commissioners, and hiring both the City Manager and contracting for City Attorney services. The Council Members are elected by districts on a non-partisan basis and serve four-year staggered terms, with elections held every other year. Each December, the City Council selects a Mayor and Mayor Pro Tem from its membership. The City Manager is responsible for overseeing the day-to-day operations of the City, and for appointing the heads of the various departments.

The City of Diamond Bar operates primarily as a “contract city” utilizing agreements with other governmental agencies, private sector firms and individuals to provide many of its essential services. This includes law enforcement ii

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Honorable Mayor and Council Members December 11, 2023
services, animal services, building and safety services, engineering, road maintenance and landscape maintenance.

The Los Angeles County Fire District provides fire protection, which is independent of the City. Los Angeles County also provides library services through a Library District, and sewer and sanitation services through a Sanitation District. Funds for these services are collected through property tax bills and are disbursed directly by the Los Angeles County Tax Collector's Office to those entities.

Water services for the City are provided by the Walnut Valley Water District.

Refuse collection is provided by private waste collection companies.

Additionally, schools are provided by both the Walnut Valley Unified School District and the Pomona Unified School District. Accordingly, none of these activities are included in this report.

ECONOMIC CONDITION AND OUTLOOK
This past year marks the end of the Emergency Declarations at the federal, state, county and local levels related to the COVID-19 global pandemic. While not totally eradicated, there are now adequate tools and resources in place to minimize the impacts of COVID-19 on the health care system and individuals allowing for the complete restoration of City programs and services.

From a financial perspective, there is reason to be more optimistic. Because of the severe financial impacts to cities across the nation, on March 11, 2021 the President signed the American Rescue Plan Act (ARPA) which is a $1.9 trillion relief package to mitigate the continuing effects of the COVID-19 pandemic. Of that amount, approximately $64 billion has been allocated to provide direct and flexible financial resources for every city and town in the nation.

The City of Diamond Bar has received its full allocation of American Rescue Plan Act (ARPA) Funds over the past two years totaling just over $6.8 million. In January 2022, the U.S. Treasury issued a final rule that provides for municipalities to attribute up to $10 million in ARPA Funds to be used on governmental services. As such, these funds have been used for a broad range of purposes including the replacement of lost revenue, restoration of City programs and services, COVID19 expenses not otherwise reimbursed, and general governmental services and projects that help build resiliency and financial stability for the residents and businesses of the City.

The Adopted FY 2023/24 Budget provides a positive outlook and continues to expand many City programs and services, advance deferred maintenance and Capital Improvement Projects, and focuses on key initiatives consistent with the City’s recently adopted 2024-2027 Strategic Plan. However, the City continues to remain watchful given the pressure on rising costs driven by a competitive labor market, higher fuel prices and other economic indicators that may lead to a iii

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recession in the near term; therefore, Economic Development continues to be an area of priority for the City. Accordingly, the FY 2023/24 Budget incorporates resources dedicated to continue planning efforts to create a pedestrian-oriented and walkable Town Center and programs to retain current businesses and attract new businesses that increase the City’s employment base and generate revenue.

AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Diamond Bar for its annual comprehensive financial report for the fiscal year ended June 30, 2022. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local financial reports.

In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized annual comprehensive financial report (ACFR), with contents that conform to program standards. The ACFR must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. The City of Diamond Bar has received the Certificate of Achievement for the last twentyeight consecutive years (fiscal years ended 1995 through 2022). We believe our current report continues to meet the Certificate of Achievement Program’s requirements and we will be submitting it to GFOA to determine its eligibility for another certificate.

REPORTING ENTITY AND ITS SERVICES
This Annual Comprehensive Financial Report includes all funds of the City. The City directly provides a limited range of services and contracts for several other services. The City's significant reliance on contracted services has the benefit of reducing expenses to the citizens of the City of Diamond Bar while simultaneously providing the City with a high degree of flexibility in responding to changing economic conditions.

Contracted services include law enforcement protection, building and safety, street maintenance, park maintenance, capital improvement projects, animal control, attorney services and engineering. Staff provided services include:
community development (which includes planning, building and safety administration, and neighborhood improvement), public works (which includes engineering, capital projects administration, street maintenance contract management, traffic and transportation matters, engineering contract management, park maintenance, landscape maintenance and solid waste contract management), parks & recreation (which includes senior services, iv

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Honorable Mayor and Council Members December 11, 2023
recreation services, community events and community center operation), public information, subsidized transit ticket sales, grant administration, financial management, administrative management, human resources and risk management, information systems and economic development. All of these activities are included in this report.

INTERNAL CONTROLS
The City of Diamond Bar’s accounting system has been developed by giving consideration to the adequacy of internal accounting controls. Internal accounting controls are implemented by the City to provide reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition; and that the City’s financial records used for preparing financial statements are maintained in a reliable fashion. The concept of reasonable assurance recognizes that the cost of these controls should not exceed the benefits derived from them. The City’s internal controls accomplish these objectives.

ACKNOWLEDGEMENTS
The preparation of this Annual Comprehensive Financial Report was made possible by the dedicated service and excellence found within the City's Finance Department staff, and through the cooperation of the entire City staff. Each City staff member has my sincere appreciation for their cooperation and contributions in the preparation of this Report.

I would like to thank Jason Jacobsen, Finance Director, for his prudent fiscal stewardship. In addition, I would also like to thank our independent auditor, Lance, Soll, and Lunghard, LLP, who provided expertise and advice in the preparation of the City's Annual Comprehensive Financial Report.

In closing, without the leadership and support of the City Council of the City of Diamond Bar, the preparation of this Report would not have been possible.

Sincerely,
Daniel Fox
City Manager
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Diamond Bar
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
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vii

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OFFICIALS OF THE CITY OF DIAMOND BAR
As of December 11, 2023
City Council
Stan Liu, Mayor
Chia Yu Teng, Mayor Pro Tem
Andrew Chou, Council Member
Ruth Low, Council Member
Steve Tye, Council Member
Administration and Department Heads
City Manager Dan Fox
Assistant City Manager Ryan McLean
City Clerk Kristina Santana

Director of:

Parks & Recreation Ryan Wright
Community Development Greg Gubman
Finance Jason Jacobsen
Information Systems Ken Desforges
Public Works David Liu
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1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Diamond Bar, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Diamond Bar, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof, and the respective budgetary comparison for the General Fund and the major special revenue funds, as listed in the table of contents, for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee

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To the Honorable Mayor and Members of the City Council
City of Diamond Bar, California
that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedules for the General Fund and major special revenue funds, and the required pension and other postemployment benefits schedules, as listed on the table of contents, presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual fund financial statements and schedules (supplementary information) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements 2 7.1.a
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To the Honorable Mayor and Members of the City Council
City of Diamond Bar, California
and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 8, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Brea, California
December 8, 2023
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Diamond Bar, we offer readers this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2023. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal.

FINANCIAL HIGHLIGHTS
 The total revenues from all sources totaled $44,495,555, an increase of 13% from the prior year.
 The total cost of all City programs totaled $37,437,635 an increase of 12% from the prior year.
 The assets and deferred outflows of the City of Diamond Bar exceeded its liabilities and deferred inflows at the close of the fiscal year by $394,747,347 (net position), an increase of $7.1 million from the prior year. Of this amount, $33,831,520 represents unrestricted net position may be used to meet the City’s ongoing obligations to citizens and creditors.
 As of the close of the current fiscal year, the City of Diamond Bar’s governmental funds reported combined ending fund balances of $63,183,166, an increase of $7,292,043 in comparison with the prior year.

Approximately $33.9 million of the $63.2 million is available for spending at the City’s discretion, including amounts assigned and committed by city council action.
 At the end of the current fiscal year, the Unassigned Fund Balance of the General Fund was $22,959,067 which represents a 16.8% increase from the prior year amount of $19,658,823. The Unassigned Fund Balance of $22,959,067 is in addition to a $7,981,243 reserve for
emergencies/contingencies as established by Council resolution and $1,308,920 committed to capital projects for City parks and facilities.  In June 2022 the City received $3.4 million of American Rescue Plan Act funds. This is the second of two equal advances the City received, with the first installment received in June 2021. The funds received in June 2022 were recognized as revenue and expensed by the City in fiscal year 2023 to address the fiscal impacts created by the COVID-19 pandemic. 5 7.1.a
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OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City of Diamond Bar’s basic financial statements. The City of Diamond Bar’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.

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

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

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

The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City of Diamond Bar that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Diamond Bar include general government, public safety, highways and streets, community development, and parks and recreation. The City of Diamond Bar currently has no business-type activities or enterprise funds.

The government-wide financial statements include not only the City of Diamond Bar itself, but also a legally separate financing authority. Although legally separate, the Diamond Bar Public Financing Authority is included because the City is financially accountable for it.

Fund Financial Statements – A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Diamond Bar, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with 6 7.1.a
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finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds.

Governmental Funds – Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources available at the end of the fiscal year. Such information may be useful in assessing the near-term financing requirements necessary to finance City programs. A reconciliation to facilitate a comparison between governmental funds and governmental activities is located on page 25 of the financial statements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impacts of the City’s near-term financing decisions. The governmental funds balance sheet can be found on page 22 of the financial statements, and the governmental funds statement of revenues, expenditures, and changes in fund balances can be found on page 24 of the financial statements.

The City of Diamond Bar adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget on page 58.

Proprietary Funds – The type of proprietary funds that the City maintains are internal service funds that are used to allocate costs internally among the various functions of the City. The City of Diamond Bar uses these funds to account for its liability insurance costs and vehicle, building and computer maintenance and replacement costs. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities within the government-wide financial statements.

Notes to the Financial Statements – The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

Other Information – In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s budgetary control and accounting and expenditures in excess of appropriations.
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GOVERNMENT-WIDE FINANCIAL ANALYSIS
City-wide Statement of Net Position – The Statement of Net Position is intended to measure an agency’s financial health at the end of the fiscal year. The “net position” is the net of the agency’s total assets and its total liabilities. At June 30, 2023, the City of Diamond Bar’s net position (total assets and deferred outflows less total liabilities and deferred inflows) was $394.7 million (see Table 1).

By far the largest portion of the City’s net position (84%) is its investment in capital assets (e.g., land, buildings, infrastructure, machinery, equipment, and construction in progress), net of the related outstanding debt used to acquire those assets. The City of Diamond Bar uses these capital assets to provide services to its citizens; consequently, these assets are not available for future spending.

Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. As shown in Table 1 below, the City’s investment in capital assets (net of related debt) decreased by approximately $1.4 million, which was a result of $7.7 million in depreciation expense, additional investments of $6.9 million, and an increase in liabilities used to finance the capital assets of $0.6 million.

The City’s total liabilities grew by $4.3 million due largely to an increase in net pension liability in the amount of $4.9 million; this amount fluctuates with the annual returns of CalPERS and after a significant decline in the previous year is now closer to historic levels. The City’s restricted net position increased by $3.1 million from last year. This is due to a combination of factors, including the unspent portion of restricted revenues received in special revenue funds. These funds are either accumulated to fund large capital projects or take several years to fully expend.

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Table 1

CITY OF DIAMOND BAR
Statement of Net Position
The unrestricted portion of the total net position represents those funds the City can use at its sole discretion. This portion is often looked at when evaluating a city’s financial health. The unrestricted net position increased by $5.3 million. This is due to several factors, including the use of ARPA revenues which help generate a surplus of funds, and the intentional accumulation of reserves for various city purposes pursuant to the City’s reserve policy.

Changes in Net Position – Although the Statement
of Net Position discussed above is an important
measure of financial health, it is only at a specific
point in time. A more useful measure is how the
City’s financial position is changing over time.

Table 2 below present a summary of the City’s
change in net position from the prior year, and the
specific revenue and expenditure performance
that caused the change.

Overall, the City ended the year with an increase to its net position of $7.1 million.

This is a substantial increase from the $5.4 million in the prior year. The General Fund contributed a meaningful portion to the overall increase in net position, with 2023 2022
Current and other assets $ 78,576,175 $ 72,267,493
Capital assets 339,594,656 340,434,601
Total Assets 418,170,831 412,702,094
Deferred Outflows 4,236,969 2,152,283
Current liabilities 9,237,421 9,449,360
Noncurrent liabilities 15,633,771 12,150,302
Total Liabilities 24,871,192 21,599,662
Deferred Inflows 2,789,261 5,565,288
Net Position:

Net investment in capital ass 331,607,485 332,972,933
Restricted 29,308,342 26,205,130
Unrestricted 33,831,520 28,511,364
Total Net Position $ 394,747,347 $ 387,689,427
Governmental Activities
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revenues rebounding strong in various categories, such as charges for service, property taxes (mainly supplemental and unsecured property taxes), sales tax, use of money & property, and transient occupancy tax. Total revenues for all Governmental Activities were $44.5 million. Expenses across all Governmental Activities totaled $37.4 million. Many of the reasons leading to these results have already been discussed, but some of the more notable factors are discussed below.

Table 2

CITY OF DIAMOND BAR
Changes in Net Position
2023 2022
Revenues:

Program Revenues:

Charges for services $ 7,983,986 $ 7,147,094
Opearting grants and contributions 9,630,820 9,745,284
Capital grants and contributions 853,518 -
General Revenues:

Property taxes 13,650,877 12,814,147
Transient occupancy taxes 1,462,904 1,359,842
Sales taxes 6,598,953 6,127,593
Franchise fees 1,687,104 1,308,250
Other taxes 1,540,855 1,400,481
Motor vehicle in lieu 56,347 65,523
Use of money & property 863,861 (895,646)
Other 166,330 136,203
Total Revenues 44,495,555 39,208,771
Expenses
General government 8,377,284 7,210,304
Public safety 8,149,425 7,993,744
Community development 3,663,339 2,579,271
Parks & recreation 4,481,255 3,903,018
Public works 12,621,030 11,641,746
Interest and fiscal charges 145,302 192,897
Total Expenses 37,437,635 33,520,980
Increase (Decrease) in net position 7,057,920 5,687,791 Net position - beginning 387,689,427 382,297,929
Restatement of net position - (296,293)
Net Position - ending $ 394,747,347 $ 387,689,427
Governmental Activities
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Revenues
As show in Table 2 above, total revenues on a citywide basis were $44.5 million.

This is approximately $5.3 million higher than last year. The bedrock of our revenue growth lies in the impressive 7% expansion across three crucial areas—property tax, sales tax, and transient occupancy tax (TOT). This growth signifies the economic vibrancy and increased activity within the City.

Throughout the year, revenues from the use of money & property demonstrated remarkable improvement, ending the year with a net increase of $1.8 million. This rebound can be primarily attributed to the prevailing increase in interest rates, showcasing the responsiveness of the City’s actively managed investment portfolio to market dynamics. It should be noted that total revenue from the use of money and property of $863,861 reflects total investment earnings of $2.03 million net of unrealized losses in the amount of -$1.17 million; losses which would only be realized were the portfolio liquidated at current market valuations (as of June 30, 2023).

Fiscal
Year
Interest Earnings
(millions)
YoY
Growth
Unrealized
Gain/(Loss)
(millions)
YoY
Growth Total
2022 0.54 $ 14.8% (1.44) $ 313.3% (0.90) $
2023 2.03 275.9% (1.17) -18.5% 0.86
Year-Over-Year Change
Use of Money & Property
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Expenses
The FY 2023 budget was developed with the intention of restoring programs and services across the organization, in particular in the General Fund. As such, fiscal year budgeted and actual expenditures were higher in FY 2023 than in FY 2022.

Specifically, the FY 2023 General Fund budget totaled $32.8 million compared to the FY 2022 revised budget of $30.5 million.

In addition to restoring programs and services, the City also increased its capital improvement program. In FY 2021, the City had to scale back its capital program due to reduced revenues largely tied to the pandemic. In FY 2022, the City’s capital program increased from $3.5 million to $7.5 million. In FY 2023, the City’s capital program increased from $7.5 million to $16.0 million. While much of the funding comes from grants and other restricted revenues, the growth nonetheless helps explain the increase in the overall spending that occurred generally throughout all categories.

Reserves
In 2011 the City Council adopted Resolution No. 2011-26 establishing policies related to fund balance and reserves. These policies were amended in August of 2019 with the adoption of Resolution No. 2019-36. In general, reserves are intended to serve a variety of goals and purposes. One of the key reserves set forth in the City’s reserve policies is for emergencies, such as natural disasters (earthquakes, flooding, wildfires, etc.), or unexpected events and circumstances that impact the City’s finances. The recent global pandemic is an excellent example of this. Another purpose of reserves is to set aside funds for the 12 7.1.a
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replacement of equipment, vehicles, facilities, and other capital needs. The accumulation of such funds over time minimizes the financial burden and impacts of funding these types of capital items, which often are very expensive, in a single year.

The degree to which a city has set aside reserves for the purposes noted above is an important measure of a city’s financial health. To that end, the City’s reserve policies establish the following reserves:

1. Contingency Reserve – No less than 25% of the adopted budget General Fund expenditures to provide for economic uncertainties, local emergencies or disasters, and other financial hardships or downturns in the local economy, including unforeseen operating or capital needs and cash flow requirements.

2. Other Post-Employment Benefit (OPEB) Reserve Fund – To cover the projected cost of future retiree benefits, the City will maintain a reserve so that the combined amount of the reserve and funds held in an OPEB trust are no less than 80% of the total OPEB liability based on the most recent actuarial valuation.

3. Building Facility and Maintenance Fund – The City will make annual contributions to this fund from the General Fund of no less than $100,000 to provide for the future replacement of systems and equipment at City Hall, the Diamond Bar Center, and other City buildings and facilities. In addition, the City will transfer 40% of the General Fund year-end surplus after funding the other reserves described in this section.

4. Vehicle Maintenance and Replacement Fund – To provide funding for the timely replacement of vehicles and related equipment with an individual cost of $10,000 or more, the City will annually make a contribution from its General Fund to the Vehicle Maintenance and Replacement Fund equal to its estimated operating costs plus depreciation net of any interest earnings and proceeds from the sale of assets.

5. Technology Reserve Fund – The City will maintain a technology reserve fund to accumulate funds for the replacement of essential technology systems and equipment. The annual contribution from the General Fund will be no less than $100,000.

6. Park Development Fund – This fund provides for the development and enhancement of the City’s parks and facilities. The City will transfer 40% of the General Fund year-end surplus after funding the other reserves described in this section.
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The aforementioned reserves are listed below in Table 3 along with other highlighted reserves.

See footnote 11 for more information on fund balances.

Table 3

CITY OF DIAMOND BAR
Changes in Reserves
The most striking thing to note from Table 3 above is that total reserves, as set forth in the City’s reserve policies, increased by $6,015,373 (or 18.0%) to a total of $39.6 million. It is important to note that all of these individual reserves, including those in other funds, ultimately derive from the General Fund, either from the allocation of year-end surpluses or annual contributions pursuant to the reserve policies summarized earlier.
2023 2022 Change
General Fund
Committed Reseves
Contingency Reserve $ 7,981,243 $ 7,864,770 $ 116,473
Assigned Reseves
Community organization support 2,062 2,062 - $
OPEB Reserve 291,182 353,283 (62,101)
Technology Reserve 591,346 442,418 148,928
Capital Improvement Projects 1,308,920 1,308,920 -
Tres Hermanos Conservancy Reserve 6,910 20,726 (13,816) General Plan Update Reserve 518,504 929,558 (411,054)
Law Enforcement Reserve 941,362 957,126 (15,764)
Unassigned Reserve 22,959,067 19,658,823 3,300,244
Total General Fund 34,600,596 30,226,704 4,373,892
Park Development Fund
Park and Facility Reserve 1,567,641 873,636 694,005
Vehicle Maintenance & Replacement Fund
Maintenance & Replacement Reserve 316,864 230,973 85,891 Building Maintenance & Replacement Fund
Maintenance & Replacement Reserve 1,062,451 1,164,608 (102,157) Computer Equipment Replacement Fund
Equipement Replacement Reserve 2,032,428 1,068,686 963,742 Grand Totals $ 33,564,607 39,579,980 $ 6,015,373 $
Fiscal Year Ended June 30,
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FUND FINANCIAL ANALYSIS
As noted earlier the City of Diamond Bar uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. These are presented starting on page 23 of the financial statements.

Governmental funds - The focus of the City of Diamond Bar’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a city’s net resources available for spending at the end of the fiscal year.

At June 30, 2023, the City of Diamond Bar’s governmental funds reported combined ending fund balances of $63.2 million, an increase of $7.3 million in comparison with the prior year. Approximately 35% of this amount ($22,233,273) constitutes unassigned fund balances, which is available for spending at the government’s discretion. The remainder of the fund balance is either restricted for particular purposes ($29,308,364), committed to contingencies per City policy ($7,981,243), or assigned to a specific purpose ($3,660,286). The balance sheet for governmental funds is presented on page 22 of the financial statements.

The General Fund, which is included as a governmental fund, is the main operating fund of the City. It is where most traditional services associated with local government, including public safety, recreation, development services, economic development, and public works. The services are funded primarily from unrestricted tax revenues, such as taxes and charges for services. At the end of the 2023 fiscal year, the unassigned fund balance of the General Fund was approximately $23 million, while the total fund balance was $34.6 million; this represents an increase of $4.4 million in total fund balance from last year. The factors leading to this increase are largely the same as those discussed above for the City as a whole, including, the use of ARPA revenues, and the strong performance in sales tax and TOT revenues.

As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures.

Unassigned fund balance represents 79% of total General Fund expenditures, including transfers out, while total fund balance represents 119% of the same amount.
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Weathering the Storm of the COVID-19 Pandemic
In retrospect, this past fiscal year stands as a testament to our collective resilience in navigating the unprecedented challenges posed by the global pandemic. The uncertainties and disruptions stemming from this period tested our organization’s ability to adapt when faced with extreme adversity. Yet, our city emerged from the pandemic stronger, and our commitment to financial stability and strategic management has shone through.

The continued growth in property tax, sales tax, and transient occupancy tax (TOT) revenues, coupled with prudent investments and fiscal policies, strengthened our financial position as the City exited the pandemic; for these reasons the City continues to stand as a beacon of economic strength in our region. It is management’s belief that the detailed financial statements that follow reflect this collective dedication to the ongoing well-being and prosperity of the Diamond Bar community.

CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets - The City of Diamond Bar’s investment in capital assets for its governmental activities as of June 30, 2023 amounts to $339.6 million (net of accumulated depreciation). This investment in capital assets includes land, right of way, buildings and improvements, furniture and fixtures, vehicles and equipment, infrastructure and construction in progress.

Table 4

CITY OF DIAMOND BAR
Capital Assets (net of depreciation)
The City’s capital assets decreased in value by approximately $0.8 million during fiscal year 2023. This decrease was due primarily to depreciation expense totaling almost $7.7 million, offset by an increase in construction in progress and other capital assets of $6.9 million.

Fiscal Year Fiscal Year
2023 2022
Land 6,369,506 $ 6,369,506
Right of way 265,614,104 265,614,104
Intangible assets 694,050 -
Buildings and improvements 8,885,017 9,214,069
Furniture and fixtures - 743
Vehicles & equipment 523,103 1,455,230
Infrastructure 54,616,096 55,727,592
Constuction in progress 2,892,780 2,053,357
Totals $ 340,434,601 339,594,656
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Construction in progress at the end of the year included projects in various stages of design or construction. Virtually all of the $2.9 million of construction in progress relates to streets improvement projects, including both residential and arterial roadways.

See footnote 4 for more information on capital assets.

Long-term debt – At the end of the current fiscal year, the City of Diamond Bar’s total long-term debt totaled $6,820,543, which includes outstanding bonds payable and accrued compensated absences as shown in Table 5 below.

Table 5

CITY OF DIAMOND BAR
Outstanding Long-Term Debt
In June 2021 the City issued the 2021 Lease Revenue Refunding Bonds to refinance the 2002 Lease Revenue Bonds. The 2002 bonds were originally issued to finance the construction of a community/senior center (the Diamond Bar Center) and other public improvements. The refunding, which capitalizes on historically low interest rates, will result in a savings of $1,736,355 over the remaining life of the bonds.

In addition to the bonds, city employees have accrued leave time (sick and vacation) totaling $1,005,543 as of June 30, 2023. This liability is primarily paid out as time off or the use of sick time and to this extent does not result in an increase in costs.

See footnote 5 for more information on long-term debt.

Fixed Rate 2021 Lease Revenue Refunding Bonds
(backed by the Public Financing Authority) 5,815,000 $
Compensated Absences 1,005,543
Total $ 6,820,543
At June 30, 2023
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ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The Adopted FY 2023/24 Budget incorporates a positive outlook and continues to expand many City programs and services, advance deferred maintenance and capital improvement projects, and focuses on key initiatives consistent with the City's Long-Term Financial Stability Report and recently adopted 2024-2027 Strategic Plan. The proposed Capital Improvement Program totals $12.0 million in new projects for FY 2023/24 and includes many projects that were in the design phase in FY 2022/23 which will now move to the construction phase in FY 2023/24.

The FY 2023/24 Adopted Budget also includes the use of General Fund Undesignated Reserves in the amount of $1.3 million for one-time projects and programs, $1.1 million of which is for capital improvement projects.

Similarly, the revenue outlook is reasonably optimistic, with growth in key General Fund revenues—including property taxes, sales taxes, TOT— and other taxes expected to be moderate and in line with historic and pre-pandemic growth rates.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT TEAM
This financial report is designed to provide our citizens, taxpayers, customers, and creditors with a general overview of the City of Diamond Bar’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City’s Finance Department, at the City of Diamond Bar, 21810 Copley Drive, Diamond Bar, California 91765.
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CITY OF DIAMOND BAR
Statement of Net Position
Governmental
Activities
Assets:

Cash and investments $ 72,156,901
Receivables:

Accounts 2,376,104
Notes and loans 432,236
Accrued interest 329,746
Due from other governments 1,067,332
Restricted assets:

Cash with fiscal agent 1,561
Lease receivables 2,212,295
Capital assets not being depreciated 274,876,390
Capital assets, net of depreciation 64,718,266
Total Assets 418,170,831
Deferred Outflows of Resources:

Deferred pension related items 4,013,585
Deferred OPEB related items 223,384
Total Deferred Outflows of Resources 4,236,969
Liabilities:

Current liabilities:

Accounts payable 3,775,215
Accrued liabilities 536,804
Accrued interest 18,434
Unearned revenue 1,091,851
Deposits payable 2,534,665
Due to other governments 500,452
Compensated absences - due within one year 300,000
Bonds payable - due within one year 480,000
Noncurrent liabilities:

Compensated absences - due in more than one year 705,543 Bonds payable - due in more than one year 6,409,244
Net pension liability - due in more than one year 7,903,769 Net OPEB liability - due in more than one year 615,215
Total Liabilities 24,871,192
Deferred Inflows of Resources:

Deferred pension related items 389,526
Deferred OPEB related items 187,440
Deferred lease related items 2,212,295
Total Deferred Inflows of Resources 2,789,261
Net Position:

Net investment in capital assets 331,607,485
Restricted for:

Community development projects 4,435,781
Public safety 366,818
Public works 21,761,109
Capital projects 2,743,073
Debt service 1,561
Unrestricted 33,831,520
Total Net Position $ 394,747,347
June 30, 2023
See Notes to Financial Statements.
20 7.1.a
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CITY OF DIAMOND BAR
Statement of Activities
Year Ended June 30, 2023
Operating Capital
Charges for Contributions Contributions Governmental
Expenses Services and Grants and Grants Activities
Functions/Programs
Primary Government:

Governmental Activities:

General government $ 8,377,284 $ 114,485 $ 4,160,007 $ - $ (4,102,792) Public safety 8,149,425 383,058 203,960 - (7,562,407)
Community development 3,663,339 2,450,481 293,720 - (919,138) Parks and recreation 4,481,255 1,583,261 - - (2,897,994) Public works 12,621,030 3,452,701 4,973,133 853,518 (3,341,678) Interest on long-term debt 145,302 - - - (145,302)
Total Primary Government $ 37,437,635 $ 7,983,986 $ 9,630,820 $ 853,518 (18,969,311) General Revenues:

Taxes:

Property taxes, levied for general purpose 13,650,877
Transient occupancy taxes 1,462,904
Sales taxes 6,598,953
Franchise taxes 1,687,104
Other taxes 1,540,855
Motor vehicle in lieu - unrestricted 56,347
Use of money and property 863,861
Other 166,330
Total General Revenues 26,027,231
Change in Net Position 7,057,920
Net Position at Beginning of Year 387,689,427
Net Position at End of Year $ 394,747,347
Net (Expenses)
Revenue and
Changes in Net
Program Revenues Position
See Notes to Financial Statements.
21 7.1.a
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CITY OF DIAMOND BAR
Balance Sheet
Governmental Funds
June 30, 2023
Special
Revenue
Funds
Capital
Projects
Funds
Other Total
Governmental Governmental
General Funds Funds
Assets:

Pooled cash and investments $ 37,932,326 $ 8,091,761 $ 612,824 $ 21,052,262 $ 67,689,173 Receivables:

Accounts 2,144,041 - - 232,063 2,376,104
Notes and loans - - - 432,236 432,236
Accrued interest 329,746 - - - 329,746
Lease receivables 2,212,295 - - - 2,212,295
Due from other governments 18,290 - 307,468 672,486 998,244 Due from other funds 276,296 - - - 276,296
Restricted assets:

Cash and investments with fiscal agents - - - 1,561 1,561 Total Assets $ 42,912,994 $ 8,091,761 $ 920,292 $ 22,390,608 $ 74,315,655 Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable $ 2,200,427 $ - $ 1,097,927 $ 355,839 $ 3,654,193 Accrued liabilities 500,001 - - 36,803 536,804
Unearned revenues 854,070 - - 237,781 1,091,851
Deposits payable 2,534,665 - - - 2,534,665
Due to other governments - - - 451,378 451,378
Due to other funds - - - 276,296 276,296
Total Liabilities 6,089,163 - 1,097,927 1,358,097 8,545,187 Deferred Inflows of Resources:

Unavailable revenues 10,940 - 307,468 56,599 375,007
Deferred inflows lease related 2,212,295 - - - 2,212,295 Total Deferred Inflows of Resources 2,223,235 - 307,468 56,599 2,587,302 Fund Balances:

Restricted for:

Community development projects - - - 4,435,803 4,435,803 Public safety - - - 366,818 366,818
Highways and streets - 8,091,761 - 13,669,348 21,761,109 Capital Projects - - - 2,743,073 2,743,073
Debt service - - - 1,561 1,561
Committed to:

Emergency contingencies 7,981,243 - - - 7,981,243
Assigned to:

Community organization support 2,062 - - - 2,062
Other Post Employment Benefits (OPEB) 291,182 - - - 291,182 Technology Reserve 591,346 - - - 591,346
Capital improvement projects 1,308,920 - - - 1,308,920
Tres Hermanos Conservancy 6,910 - - - 6,910
General Plan Update 518,504 - - - 518,504
Law Enforcement Reserve 941,362 - - - 941,362
Unassigned
Unassigned Reserve 22,959,067 - (485,103) (240,691) 22,233,273 Total Fund Balances 34,600,596 8,091,761 (485,103) 20,975,912 63,183,166 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 42,912,994 $ 8,091,761 $ 920,292 $ 22,390,608 $ 74,315,655 Traffic
Improvement
Fund
Capital
Improvement
Fund
See Notes to Financial Statements.
22 7.1.a
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CITY OF DIAMOND BAR
Reconciliation of the Balance Sheet of Government Funds to the Statement of Net Position
June 30, 2023
Fund balances of governmental funds $ 63,183,166
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets net of depreciation have not been included as financial resources in governmental fund activity. 338,684,655
Deferred outflows related to pension items:

Adjustments due to difference in proportions $ 439,481
Net difference between project and actual earnings on pension plan investments 1,447,761 Difference between expected and actual experiences 158,723 Change in assumptions 809,907
1,157,713 4,013,585
Deferred outflows related to OPEB:

Differences between expected and actual experience 3,909 Change in assumptions 160,886
Net difference between projected and actual experience 58,589 223,384 Long-term debt, compensated absences, other post employee benefit obligation and net pension liability that have not been included in the governmental fund activity:

Bonds payable (5,815,000)
Unamortized bond premiums (1,074,244)
Compensated Absences (1,005,543)
Net OPEB liability (615,215)
Net pension liability (7,903,769) (16,413,771)
Accrued interest payable for the current portion of interest due on bonds has not been reported in the governmental funds. (18,434) Deferred inflows related to pension items:

Difference between expected and actual experiences (106,306) net pension liability. (283,220) (389,526)
Deferred inflows related to OPEB:

Net differences between projected and actual return investments (187,440) (187,440) Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. 375,007
Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds.

The assets and liabilities of the internal service funds must be added to the statement of net position. 5,276,721
Net Position of Governmental Activities $ 394,747,347
Current year contributions that occurred after the measurement date Change in employer's proportion and differences between the employer's contributions and the employer's proportionate share of contributions See Notes to Financial Statements.
23 7.1.a
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CITY OF DIAMOND BAR
Statement of Revenues,
Expenditures and Changes in Fund Balances
Governmental Funds
Year Ended June 30, 2023
Capital
Projects
Funds
Other Total
Governmental Governmental
General Funds Funds
Revenues:

Taxes $ 16,445,551 $ - $ - $ 1,262,383 $ 17,707,934
Licenses and permits 2,275,281 - - 132,048 2,407,329
Intergovernmental 10,712,016 853,518 28,312 9,500,430 21,094,276 Charges for services 1,593,826 - - 703,715 2,297,541
Use of money and property 498,274 93,594 - 235,182 827,050 Fines and forfeitures 383,058 - - - 383,058
Miscellaneous 184,345 - 1,559 16,181 202,085
Total Revenues 32,092,351 947,112 29,871 11,849,939 44,919,273 Expenditures:

Current:

General government 7,020,328 - - 2,114 7,022,442
Public safety 8,144,825 - - 4,600 8,149,425
Community development 2,870,494 - - 652,393 3,522,887
Parks and recreation 1,941,947 - - 25,282 1,967,229
Public works 5,148,020 - - 2,255,704 7,403,724
Capital outlay - - 6,795,028 115,262 6,910,290
Debt service:

Principal retirement - - - 465,000 465,000
Interest and fiscal charges - - - 254,200 254,200
Total Expenditures 25,125,614 - 6,795,028 3,774,555 35,695,197 Excess (Deficiency) of Revenues
Over (Under) Expenditures 6,966,737 947,112 (6,765,157) 8,075,384 9,224,076 Other Financing Sources (Uses):

Transfers in 1,261,764 - 6,410,629 825,058 8,497,451
Transfers out (3,854,609) - - (6,574,875) (10,429,484)
Total Other Financing Sources
(Uses) (2,592,845) - 6,410,629 (5,749,817) (1,932,033)
Net Change in Fund Balances 4,373,892 947,112 (354,528) 2,325,567 7,292,043 Fund Balances, Beginning of Year 30,226,704 7,144,649 (130,575) 18,650,345 55,891,123 Fund Balances, End of Year $ 34,600,596 $ 8,091,761 $ (485,103) $ 20,975,912 $ 63,183,166 Special
Revenue
Funds
Traffic
Improvement
Fund
Capital
Improvement
Fund
See Notes to Financial Statements.
24 7.1.a
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CITY OF DIAMOND BAR
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
Year Ended June 30, 2023
Net change in fund balances - total governmental funds $ 7,292,043 Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period.

Capital Expenditures $ 6,827,804
Depreciation Expense (7,494,758) (666,954)
Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position.

Principal payment 465,000
Amortization of bond premium 107,424
Compensated Absences (62,618) 509,806
Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 1,474
Pension contributions are expenditures in the governmental funds, but reduce the Net Pension Liability in the statement of net position and changes in the Net Pension Liability are expensed in statement of activities. (313,518) OPEB contributions are expenditures in the governmental funds, but reduce the Net OPEB Liability on the statement of net position and changes in the Net OPEB Liability are expensed in the statement of activities. (15,897) Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. (479,830)
Compensated absences - due within one year
Bonds payable - due within one year
The net revenues (expenses) of the internal service funds is reported with governmental activities. 730,796
Change in Net Position of Governmental Activities $ 7,057,920 See Notes to Financial Statements.
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CITY OF DIAMOND BAR
Statement of Net Position
Proprietary Funds
June 30, 2023
Governmental
ActivitiesInternal
Service Funds
Assets:

Current:

Cash and investments $ 4,467,728
Due from other governments 69,088
Total Current Assets 4,536,816
Noncurrent:

Capital assets - net of accumulated depreciation 910,001 Total Noncurrent Assets 910,001
Total Assets $ 5,446,817
Liabilities and Net Position:

Liabilities:

Current:

Accounts payable $ 121,022
Due to other governments 49,074
Total Current Liabilities 170,096
Total Liabilities 170,096
Net Position:

Invested in capital assets 910,001
Unrestricted 4,366,720
Total Net Position 5,276,721
Total Liabilities and Net Position $ 5,446,817
See Notes to Financial Statements.
26 7.1.a
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CITY OF DIAMOND BAR
Statement of Revenues, Expenses
and Changes in Fund Net Position
Proprietary Funds
Year Ended June 30, 2023
Governmental
ActivitiesInternal
Service Funds
Operating Expenses:

Insurance premiums $ 510,516
Equipment repair and maintenance 518,408
Depreciation expense 228,425
Total Operating Expenses 1,257,349
Operating Income (Loss) (1,257,349)
Nonoperating Revenues (Expenses):

Interest revenue 36,811
Contributions 19,301
Total Nonoperating
Revenues (Expenses) 56,112
Income (Loss) Before Transfers (1,201,237)
Transfers in 1,997,033
Transfers out (65,000)
Changes in Net Position 730,796
Net Position:

Beginning of Year 4,545,925
End of Fiscal Year $ 5,276,721
See Notes to Financial Statements.
27 7.1.a
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CITY OF DIAMOND BAR
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2023
Governmental
ActivitiesInternal
Service Funds
Cash Flows from Operating Activities:

Insurance premiums paid $ (510,516)
Payments to suppliers (405,780)
Net Cash Provided (Used) by Operating Activities (916,296) Cash Flows from Non-Capital
Financing Activities:

Cash transfers out (65,000)
Cash transfers in 1,997,033
Net Cash Provided (Used) by
Non-Capital Financing Activities 1,932,033
Cash Flows from Capital
and Related Financing Activities:

Acquisition and construction of capital assets (55,434) Net Cash Provided (Used) by
Capital and Related Financing Activities (55,434)
Cash Flows from Investing Activities:

Interest Paid 36,811
Net Cash Provided (Used) by
Investing Activities 36,811
Net Increase (Decrease) in Cash
and Cash Equivalents 997,114
Cash and Cash Equivalents at Beginning of Year 3,470,614 Cash and Cash Equivalents at End of Year $ 4,467,728
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:

Operating income (loss) $ (1,257,349)
Adjustments to Reconcile Operating Income (Loss)
Net Cash Provided (Used) by Operating Activities:

Depreciation 228,425
Increase (decrease) in accounts payable 112,628
Total Adjustments 341,053
Net Cash Provided (Used) by
Operating Activities $ (916,296)
See Notes to Financial Statements.
28 7.1.a
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CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES A. Description of Reporting Entity
The City of Diamond Bar (the City) was incorporated April 18, 1989, as a "General Law” City governed by an elected five-member city council. As required by accounting principles generally accepted in the United States of America, these financial statements present the City of Diamond Bar (the primary government) and its component units. The component units discussed below are included in the City's reporting entity because of the significance of their operational or financial relationship with the City. These entities are legally separate from each other. However, the City of Diamond Bar's elected officials have a continuing full or partial accountability for fiscal matters of the other entities. The financial reporting entity consists of: (1) the City (2) organizations for which the City is financially accountable; and, (3) organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete.

An organization is fiscally dependent on the primary government if it is unable to adopt its budget, levy taxes or set rates or charges, or issue bonded debt without approval by the primary government. In a blended presentation, a component unit’s balances and transactions are reported in a manner similar to the balances and transactions of the City. Component units are presented on a blended basis when the component unit’s governing body is substantially the same as the City's or when the component unit provides services almost entirely to the City.

Blended Component Units
The Diamond Bar Public Financing Authority (the Authority) was formed on November 19, 2002. The purpose of the Authority is to issue debt to finance public improvements and other capital purchases for the City and Agency.

The activity of the Authority is reported in debt service and capital projects funds. Separate financial statements are not prepared for this blended component unit.

B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of changes in net position) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The City has no business-type activities.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

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

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The basic financial statements of the City are composed of the following:
 Government-wide financial statements
 Fund financial statements
 Notes to basic financial statements
29 7.1.a
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CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The government-wide financial statements, proprietary fund and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all assets and liabilities (current and long-term) are reported. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the fiscal year, which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all the eligibility requirements imposed by the provider have been met.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City's internal service funds are charges to departments for services. Operating expenses for the proprietary funds include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, generally only current assets and liabilities are reported in the governmental funds. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal year. Expenditures generally are recorded when a liability is incurred, except for principal and interest on long-term liabilities, claims and judgments, and compensated absences which are recognized as expenditures only when payment is due.

Property taxes, taxpayer-assessed taxes, such as sales taxes, gas taxes, and transient occupancy taxes, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period to the extent normally collected within the availability period. All other revenue items are considered to be measurable and available only when cash is received by the City.

The accounts of the City are organized and operated on the basis of funds, each of which is considered a separate accounting entity with a self-balancing set of accounts, established for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations.

As a general rule, the effect of Interfund activity has been eliminated from the government-wide financial statements.

Exceptions to this general rule are charges between the government’s proprietary funds functions and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services or privileges provided, 2) operating contributions and grants, and 3) capital contributions and grants, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues.

Likewise, general revenues include all taxes.

When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources. 30 7.1.a
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CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Fund Classifications
The City reports the following major governmental funds:

The General Fund is the primary operating fund of the City and is used to account for all revenues and expenditures of the City not legally restricted as to use. A broad range of municipal activities are provided through this fund including City Manager, City Attorney, Finance, City Clerk, Public Works, Building and Safety, and Parks and Recreation.

The Traffic Improvement Fund is used to account for funds which have been received from development projects and designated by the City Council for traffic mitigation projects.

The Capital Improvement Project Fund is used to account for improvements of construction of capital facilities.

The City's fund structure also includes the following fund types:

Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted or committed to expenditures for specified purposes.

Capital Projects Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets.

Debt Service Funds are used to account for the receipt of revenues and payments of debt service related to outstanding bonds.

Additionally, the City reports the following fund types:

Internal Service Funds have been established to finance and account for goods and services provided by one City department to other City departments or agencies. These activities include self-insurance, equipment, building maintenance and computer maintenance.

E. Investments
For financial reporting purposes, investments are stated at fair value.

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

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

F. Cash and Cash Equivalents
For purposes of the statement of cash flows, cash and cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity (an original maturity date of three months or less from the date of purchase) that they present insignificant risk of changes in value because of changes in interest rates. Cash and cash equivalents also represent the proprietary funds' share in the cash and investment pool of the City. All cash and investments of the proprietary (internal service) funds are pooled with the City's pooled cash and investments and are therefore considered cash equivalents for purposes of the statement of cash flows.
31 7.1.a
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CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Prepaid Costs
Prepaid costs are accounted for on the consumption method. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

H. Capital Assets
Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Contributed capital assets are valued at acquisition value at the date of contribution. Capital asset purchases (other than infrastructure) in excess of $5,000 are capitalized if they have an expected useful life of three years or more. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are recorded at acquisition value at the date of donation.

Capital assets include additions to public domain (infrastructure), certain improvements including roads, streets, sidewalks, medians and storm drains within the City.

Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the Government-wide and Proprietary Fund Financial Statements. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective balance sheet.

The lives used for depreciation purposes of each capital asset class are:

Buildings and improvements 50 years
Furniture and fixtures 7 years
Vehicles 5 years
Infrastructure 10 - 50 years
Equipment 3 years
Intangible Assets are capitalized at cost related to the enterprise resource management system. Amortization has been provided on a straight-line basis over the estimated useful life of 10 years.

I. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has two items that qualify for reporting in this category. It is deferred outflows relating to the net pension obligation and net OPEB obligation reported in the government-wide statement of net position. These outflows are the results of contributions made after the measurement period, adjustments due to difference in proportions, and the difference between actual contributions made and the proportionate share of the risk pool’s total contributions, differences between expected and actual experiences, net differences between projected and actual experiences on plan investments, and change in assumptions. 32 7.1.a
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CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and thus will not be recognized as an inflow of resources (revenue) until that time. The government has three items which arises under the modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, one item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources:
taxes and grant revenues. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. In addition, the government has items that qualify for reporting in this category which relate to deferred inflows relating to the net pension and net OPEB obligations reported in the government-wide statement of net position. These inflows are the result of the net difference between projected and actual earnings on plan investments, changes in employer’s proportion, difference between the employer’s contributions and the employer’s proportionate share of contributions, adjustments due to difference in proportions, differences between expected and actual experiences, and change in assumptions. Lastly, leases related items for the amount of the lease receivable plus any lease payments related to future periods, less any lease incentives paid to, or on behalf of, the lessee at or before the commencement of the lease term.

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

K. Fund Balance Flow Assumptions
Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

L. Compensated Absences
Vacation and sick leave time begin to accumulate as of the first day of employment to a maximum of 360 hours and 480 hours, respectively. Employees who accumulate sick leave in excess of 200 hours may be compensated for the excess up to 80 hours annually at one half the employees current wage rate.

A liability is recorded for unused vacation and similar compensatory leave balances since the employees' entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement.

A liability is recorded for unused sick leave balances only to the extent that it’s probable that the unused balances will result in termination payments. This is estimated by including in the liability the unused balances of employees currently entitled to receive termination payments, as well as those who are expected to become eligible to receive termination benefits as a result of continuing their employment with the City.

If an employee retires, resigns, or terminates in good standing with a minimum of five years of service, the employee is entitled to receive 100% of unused sick leave at one half the employees current wage rate. Compensated absences will be reported in government funds only if they have matured, such as upon retirement. 33 7.1.a
Packet Pg. 155

CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Pension Plan
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications.

Net Pension liability is expected to be paid in future years from future resources, typically liquidated from the General Fund.

N. Other Post-Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan), the assets of which are held by California Employers’ Retiree Benefit Trust (CERBT), and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Net OPEB liability is expected to be paid in future years from future resources, typically liquidated from the General Fund.

Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date June 30, 2023
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
O. Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB or Pension liability and fiduciary net position are recognized in OPEB or Pension expense systematically over time. Amounts are first recognized in OPEB or Pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB or Pension and are to be recognized in future OPEB or Pension expense.

The recognition period differs depending on the source of the gain or loss:

Net difference between projected and actual 5 years
earnings on plan investments

All other amounts Expected average remaining service lifetime (EARSL) P. Property Taxes
Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City accrues only those taxes which are received from the County within 60 days after year end.
34 7.1.a
Packet Pg. 156

CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property taxes are assessed and collected each fiscal year according to the following property tax calendar:

Lien date January 1
Levy date July 1
Due dates November 1 - 1st installment
February 1 - 2nd installment
Collection dates December 10 - 1st installment
April 10 - 2nd installment
Delinquent dates December 11 - 1st installment
April 11 - 2nd installment
Q. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. Net OPEB liability is expected to be paid in future years from future resources, typically liquidated from the General Fund.

R. Fund Equity
In the fund financial statements, government funds report the following fund balance classification:
 Nonspendable include amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.  Restricted include amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation.
 Committed include amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution.  Assigned include amounts that are constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed. The Director of Finance is authorized to assign amounts to a specific purpose, which was established by the governing body in resolution.  Unassigned include the residual amounts that have not been restricted, committed, or assigned to specific purposes. The General Fund is the only fund that reports a positive fund unassigned fund balance amount. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount.

However, in governmental funds other than the general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

An individual governmental fund could include nonspendable resources and amounts that are restricted or unrestricted (committed, assigned, or unassigned) or any combination of those classifications. Restricted amounts are to be considered spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available and committed, assigned, then unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used.
35 7.1.a
Packet Pg. 157

CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Deficit Fund Equity
At June 30, 2023, The City reported deficit fund equities in the following funds:

NOTE 3: CASH AND INVESTMENTS
As of June 30, 2023, cash and investments were reported in the accompanying financial statements as follows:

Statement of Net Position:

Cash and investments 72,156,901 $
Cash and investments with fiscal agents 1,561
$ 72,158,462
Cash and investments held by the City at June 30, 2023, consisted of the following:

Cash and cash equivalents:

Imprest cash on hand $ 2,297
Demand deposits 1,590,753
Total Cash and cash equivalents 1,593,050
Investments:

United States Government Sponsored Enterprise Securities 22,288,084 Federal Agency Securities 19,190,522
Certificates of Deposit 10,591,045
Corporate Notes 918,898
Municipal Bonds 1,963,613
Money Market Mutual Funds 7,300,341
Local Agency Investment Fund 8,311,348
Held by fiscal agents:

Money Market Mutual Funds 1,561
Total Investments and held by fiscal agents 70,565,412
$ 72,158,462

Fund Name Fund Type Deficit Cause
Measure A NonMajor Special Revenue Fund (184,000) $ (a) MTA Grant Fund NonMajor Special Revenue Fund (56,599) (a) Local Roadway Safety Plan NonMajor Special Revenue Fund (a) (92) Capital Improvement Fund Major Capital Projects Fund (485,103) (b) (a) Deficit due to timing differences between grant receipts and disbursements, and is expected to be eliminated through future grant revenues. (b) Deficit due to the timing differences between expenditures and the issuance of bonds to finance the project, and is expected to be eliminated once the bonds are issued. 36 7.1.a
Packet Pg. 158

CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the California Government Code and the City's Investment Policy The following table identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address' interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. The City Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC.

Authorized Investment Type
Maximum
Maturity
Maximum
Percentage of
Portfolio
Maximum
Investment in
One Issuer
United States Treasury Obligations 5 years None None
United States Government Sponsored Enterprise Securities 5 years None None Banker's Acceptances 180 days 40% 30%
Time Certificates of Deposits 5 years 30% 250,000 $
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 5 years 30% None
Money Market Mutual Funds 5 years 20% None
Repurchase Agreements 1 year None None
Medium-Term Corporate Notes (1) 5 years 30% 5%
Supranational 5 years 30% None
Local Agency Investment Fund (LAIF) N/A None 75,000,000 $ (1) Notes must be rated "A" or better
N/A - Not Applicable
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Authorized Investment Type
Maximum
Maturity
Maximum Percentage
of Portfolio
Maximum
Investment in
One Issuer
United States Treasury Obligations None None None
United States Government Sponsored
Enterprise Securities None 10% None
Banker's Acceptance 1 year None None
Time Certificate of Deposits None None None
Local Agency Investment Fund None None None
Money Market Funds None None None
Repurchase Obligations Tax Exempt 30 days None None
Taxable Government Money Market Portfolios None Equal to six months None of principal and
interest in the bonds
37 7.1.a
Packet Pg. 159

CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustee) to interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity:

Investment Type
12 Months or
Less 1 - 3 years 3 - 5 years Total
US Government Sponsored Securities 13,752,186 $ 6,684,727 $ 1,851,172 $ 22,288,085 Federal Agency Securities 5,640,596 6,271,552 7,278,374 19,190,522 Certificate of Deposits 482,430 6,652,342 3,456,273 10,591,045 Corporate Notes 494,910 - 423,988 918,898
Municipal Bonds 191,086 323,419 1,449,107 1,963,612
Money Market Mutual Funds 7,300,341 - - 7,300,341
Local Agency Investment Fund (LAIF) 8,311,348 - - 8,311,348 Held by Fiscal Agents:

Money Market Mutual Funds 1,561 - - 1,561
$ 19,932,040 36,174,458 $ 14,458,914 $ 70,565,412 $
Remaining Maturity (in Months)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating, as reported by Moody’s, as of year-end for each investment type:

Investment Type
Total as of
June 30, 2023 Aaa Aa2 Aa3 A1 Unrated
US Government Sponsored Securities 22,288,084 $ 22,288,084 $ - $ - $ - $ - $ Federal Agency Securities 19,190,522 19,190,522 - - - - Certificate of Deposits 10,591,045 - - - - 10,591,045
Corporate Notes 918,898 - - - - 918,898
Municipal Bonds 1,963,613 - 229,489 285,017 - 1,449,107 Money Market Mutual Funds 7,300,341 - - - - 7,300,341
Local Agency Investment Fund (LAIF) 8,311,348 - - - 8,311,348 Held by Fiscal Agents:

Money Market Mutual Funds 1,561 - - - - 1,561
$ 41,478,606 70,565,412 $ 229,489 $ 285,017 $ - $ 28,572,300 $ Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.

Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.” 38 7.1.a
Packet Pg. 160

CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
Investments by fair value level Totals 1 2 3
United States Treasure Obligations $ 22,288,084 $ 22,288,084 $ - $ - Federal Agency Securities 19,190,522 19,190,522 - -
Certificate of Deposit 10,591,045 10,591,045 - -
Corporate Notes 918,898 918,898 - -
Municipal Bonds 1,963,613 1,963,613 - -
Totals 54,952,162 $ $ 32,664,078 - $ $ -
Other investments
Local Agency Investment Fund 8,311,348
Money Market Mutual Funds 7,300,341
Cash with Fiscal Agents
Money Market Funds 1,561
Totals 15,613,250
Total Investments 70,565,412 $
Level
The City has the following recurring fair value measurements as of June 30, 2023:

Local Agency Investment Funds classified in Level 2 of the fair value hierarchy are valued using specified fair value factors. Federal Agency Securities classified in Level 2 of the fair value hierarchy are valued using institutional bond quotes.

Disclosures Relating to Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. The City does not accept 150% of the secured public totals. At June 30, 2023, the City deposits (bank balances) were insured by the Federal Depository Insurance Corporation up to $250,000 and the remaining balances were collateralized under California Law. The cash and investments held by Bond Trustee are uninsured and uncollateralized.

Investment in State Investment Pool
The City is a voluntary participant in the California Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer’s Office audits the fund annually. The fair value of the position in the investment pool is the same as the value of the pool shares.
39 7.1.a
Packet Pg. 161

CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 4: INTERFUND TRANSFERS AND DUE TO/FROM OTHER FUNDS Total
Transfers Out:

General Fund - $ 1, $ 825,058 032,518 $ 1, $ 3,854,609 997,033 $ Non-Major Governmental Funds 1,261,764 5, - 313,111 - 6,574,875 Internal Service Funds - 65,000 - - 65,000
Total 1,261,764 $ 6, $ 825,058 410,629 $ 1, $ 10,494,484 997,033 $ Transfers In
Internal Service
General Fund Funds
Capital
Improvement
Fund
Non-Major
Governmental
Funds
Transfers from the General Fund to the Internal Service Funds were made to fund the self-insurance, equipment replacement, computer equipment replacement and building facility & maintenance funds.

Transfers from the General Fund to the Capital Improvement Fund were made to fund various capital improvement projects.

Transfers from the General Fund to the Other Governmental Funds were made to fund various capital improvement projects, the City general plan revision, a fund deficit and debt service payments.

Transfers to the General Fund from the Other Governmental Funds were made to fund various capital projects and administrative expenditures.

Transfers to the Capital Improvement Fund from the Other Governmental Funds were made to fund various capital projects.

Due from other funds Due to other funds Amount
General Fund Other Governmental Funds 276,296 $
Short-term borrowings were made from the General Fund to Other Governmental due to negative cash. This is expected to be repaid in the immediate future with reimbursements. 40 7.1.a
Packet Pg. 162

CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 5: CAPITAL ASSETS
A summary of changes in the Governmental Activities capital assets at June 30, 2023, is as follows:

Balance at
June 30, 2022 Transfers Additions Deletions
Balance at
June 30, 2023
Capital assets not being depreciated:

Land $ 6,369,506 $ - $ - $ 6,369,506 - $
Right of way 265,614,104 - - 265,614,104 -
Construction in progress 2,053,357 (2,018,301) 2,857,724 2,892,780 - Total Capital Assets Not
being Depreciated 274,036,967 (2,018,301) 2,857,724 274,876,390 - Capital assets being depreciated:

Buildings and improvements 48,544,173 844,719 1,151,751 50,540,643 - Furniture and fixtures 259,868 - - - 259,868
Vehicles and equipment 5,397,486 (771,167) 86,020 4,712,339 - Infrastructure 198,444,727 1,173,582 2,787,743 202,406,052 - Intangibles - 771,167 - - 771,167
Total Capital Assets
being Depreciated 252,646,254 2,018,301 4,025,514 258,690,069 - Less accumulated depreciation for:

Buildings and improvements 39,330,103 2,325,523 - 41,655,626 - Furniture and fixtures 259,125 - 743 - 259,868
Vehicles and equipment 3,942,258 (77,117) 324,095 4,189,236 - Infrastructure 142,717,134 5,072,822 - 147,789,956 -
Intangibles - 77,117 - - 77,117
Total Accumulated
Depreciation 186,248,620 7,723,183 - 193,971,803 -
Total Capital Assets
Being Depreciated, Net 66,397,634 2,018,301 (3,697,669) 64,718,266 - Governmental Activities
Capital Assets, Net $ 340,434,601 $ - $ (839,945) $ 339,594,656 - $ Depreciation expense was charged to functions in the Statement of Activities as follows:

General government $ 637,192
Highways and streets 4,894,705
Parks, recreation and culture 1,962,861
Internal Service Funds depreciation charges to program 228,425 $ 7,723,183
41 7.1.a
Packet Pg. 163

CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 6: LONG-TERM LIABILITIES
Long-term liability activity for the year ended June 30, 2023, was as follows:

Balance at
June 30, 2022 Additions Deletions
Balance at
June 30, 2023
Due Within
One Year
Public Offering
Bonds payable
2021 Series A Lease Revenue Bonds 6,280,000 $ $ 465,000 - $ $ 5,815,000 $ 480,000 Total $ 6,280,000 $ 465,000 - $ 5,815,000 $ 480,000
Net unamortized bond premium 1,074,244
Net Long-Term Debt 6,889,244 $
Bonds Payable
2021 Series A Lease Revenue Refunding Bonds
The 2021 Series A Lease Revenue Refunding Bonds were originally issued on June 1, 2021, in the principal amount of $6,735,000. Interest is paid semiannually on December 1 and June 1. The interest rate on these bonds is 4.0%.

The purpose of these bonds is to refund the 2002 Series A Lease Revenue Bonds and to cover issuance costs of the 2021 Series A bonds.

The following events are Events of Default under the Indenture: (i) if the City fails; (A) to pay rental payment payable under the lease agreement when the same becomes due and payable, time being expressly declared to be of the essence in the lease agreement; or (B) to keep, observe or perform any other term, covenant or condition contained therein or in the indenture to be kept or performed by the City; or (ii) upon the happening of any of the events specified in the lease agreement, the City is deemed to be in default thereunder and it is lawful for the Authority to exercise any and all remedies available pursuant to law or granted pursuant thereto. The 2021 Bonds are not subject to acceleration in the event of payment default. The City completed the refunding to reduce its total service payments by $1,736,355 and to obtain an economic gain (difference between the present value of the old and new debt service payments) of $1,632,706.

Credit Risk
The Counterparty, JPMorgan Chase, has the following credit ratings of: (i) Standard & Poor's, AA+ and (ii) Moody's, Aa2.

Payments and Associated Debt
As of June 30, 2023, debt service requirements of the Bonds and the Counterparty's payments, assuming current interest rates remain the same for remainder of the term of the Agreement, are as follows:

June 30 Principal Interest
2024 $ 480,000 $ 232,600
2025 505,000 213,400
2026 530,000 193,200
2027 550,000 172,000
2028 580,000 150,000
2029-2033 3,170,000 383,000
Totals $ 5,815,000 $ 1,344,200
Governmental Activities
42 7.1.a
Packet Pg. 164

CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 6: LONG-TERM LIABILITIES (CONTINUED)
Compensated Absences
The City's policies relating to compensated absences are described in Note 1. This liability, amounting to $1,005,543 at June 30, 2023, is expected to be paid in future years from future resources, typically liquidated from the General Fund.

Balance at
June 30, 2022 Additions Deletions
Balance at
June 30, 2023
Due Within
One Year
Compensated absences 942,925 $ 461,862 $ 399,244$ $ 1,005,543 $ 300,000 NOTE 7: LIABILITY, PROPERTY AND WORKERS’ COMPENSATION PROTECTION The City of Diamond Bar is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 124 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

A. Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.

Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.

The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools/.

Primary Workers’ Compensation Program
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers. 43 7.1.a
Packet Pg. 165

CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 7: LIABILITY, PROPERTY AND WORKERS’ COMPENSATION PROTECTION (CONTINUED) For 2022-23 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

B. Purchased Insurance
Pollution Legal Liability Insurance
The City of Diamond Bar participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Diamond Bar. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.

Property Insurance
The City of Diamond Bar participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Diamond Bar property is currently insured according to a schedule of covered property submitted by the City of Diamond Bar to the Authority. City of Diamond Bar property currently has all-risk property insurance protection in the amount of $38,767,939. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

Earthquake and Flood Insurance
The City of Diamond Bar purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City of Diamond Bar property currently has earthquake protection in the amount of Non Participant. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.

Crime Insurance
The City of Diamond Bar purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority.

Special Event Tenant User Liability Insurance
The City of Diamond Bar further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of Diamond Bar according to a schedule. The City of Diamond Bar then pays for the insurance. The insurance is facilitated by the Authority.

C. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2022-23.
44 7.1.a
Packet Pg. 166

CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 8: PENSIONS
A. Rate Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of individual rate plans (benefit tiers) within a miscellaneous risk pool (all other.) Plan assets may be used to pay benefits for any employer rate plan of the miscellaneous pools.

Accordingly, rate plans miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the risk pools. The City sponsors two rate plans. Benefit provisions under the Plan are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

B. Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to rate plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: The Optional Settlement 2W Death Benefit or the Lump Sum Death Benefit. The cost of living adjustments for each rate plan are applied as specified by the Public Employees’ Retirement Law. The Rate Plans’ provisions and benefits in effect at June 30, 2023, are summarized as follows:

Miscellaneous* Misc. PEPRA
Hire dates
Prior to
January 1, 2013
January 1, 2013
and thereafter
Benefit formula 2% @55 2% @62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age Minumum 50 yrs Minumum 52 yrs
Monthly benefits, as a percentage of eligible
compensation

1.425% - 2.418%,
50 yrs - 63+ yrs,
respectively

1.000% - 2.500%,
52 yrs - 67+ yrs,
respectively
Required employee contribution rates 6.920% 6.750%
Required employer contribution rates 10.320% 7.470%
Payment towards UAL $ 579,146 $ 3,484
* Miscellaneous rate plan is closed to new entrants.

C. Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total rate plan contributions are determined through the CalPERS’ annual actuarial valuation process. The actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

The City’s contributions to the Plan for the year ended June 30, 2023, were $1,157,713. 45 7.1.a
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CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 8: PENSIONS (CONTINUED)
D. Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of June 30, 2023, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $7,903,769 and is expected to be paid in future years from future resources, typically liquidated from the General Fund.

The City’s net pension liability for the Plan is measured as the proportionate share of thenet pension liability. The net pension liability of the Plan is measured as of June 30, 2022, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021, rolled forward to June 30, 2023, using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to Plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for each Rate Plan as of June 30, 2021 and 2022, was as follows:

Miscellaneous
Proportion - June 30, 2021 0.05574%
Proportion - June 30, 2022 0.06843%
Change - Increase (Decrease) 0.01269%
For the year ended June 30, 2023, the City recognized pension expense of $1,471,233. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows of
Resources
Deferred Inflows of
Resources
Difference between expected and actual experience 158,723 $ ( $ 106,306) Net Difference between projected and acutal earnings
on pension plans investments 1,447,761 -
Adjustment due to difference in proportions 439,481 -
Change in assumptions 809,906 -
Change in employer's proportion and differences
between the employer's contributions and the
employer's proportionate share of contributions - ( 283,220) Current year contributions that occurred after the
measurement date of June 30, 2022 1,157,714 -
SubTotal $ ( 4,013,585 $ 389,526)
46 7.1.a
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CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 8: PENSIONS (CONTINUED)
$1,157,713 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended Deferred Outflows/
June 30, (Inflows) of Resources
2024 676,344 $
2025 581,299
2026 323,203
2027 885,500
Thereafter -
Total 2,466,346 $
E. Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2022 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2021 total pension liability. The June 30, 2022 total pension liability was based on the following actuarial methods and assumptions:

Actuarial Methods and Assumptions
Investment rate of return 6.90%
Inflation 2.30%
Salary increases Varies by Entry Age and Service
Mortality rate table 1 Derived using CalPERS' Membership Date for all Funds Post-retirement benefit increase Contract COLA up to 2.30% until Purchase Power Protection Allowance Floor on Purchasing Power applies.

The collective total pension liability for the June 30, 2022 measurement period was determinded by an actuarial valuation as of June 30, 2021, with update procedures used to roll forward the total pension liability to June 30, 2022. The collective total pension liability was based on the following assumptions:
1 The mortality table was used developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 80% of scale MP 2020. For more details on this table, please refer to the December 2021 experience study report (based on CalPERS demographic date from 2010 to 2019) that can be found on the CalPERS website.

All other actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period from 2010 to 2019, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website under Forms and Publications.

F. Change in Assumptions
Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes 47 7.1.a
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CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 8: PENSIONS (CONTINUED)
are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was

7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and

7.50% for measurement date 2014.

G. Discount Rate
The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

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

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term return expectations as well as the expected pension fund cash flows. Using historical returns and forecasted information of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns.

The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital assumptions applied to determine the discount rate and asset allocation.

Asset Class 1
Assumed
asset
allocation Real return
Global equity - Cap-weighted 30.00% 4.54%
Global equity - Non-Cap-weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
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CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 8: PENSIONS (CONTINUED)
H. Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability/(asset) of the Plan as of the measurement date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability/(asset) would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:

Discount Rate - 1%
(5.90%)
Current Discount Rate
(6.90%)
Discount Rate +1%
(7.90%)
Plan's Net Pension
Liability/(Assets) $ 7, 12,815,518 $ 3,862,619 903,769 $ I. Pension Plan Fiduciary Net Position
Detailed information about the Plan’s fiduciary net positions is available in the separately issued CalPERS financial reports.

NOTE 9: POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS
The City provides an agent multiple employer OPEB plan to retirees through the California Employers’ Retiree Benefit Trust (CERBT). Information on the plan is available from CalPERS on their website www.calpers.ca.gov.

A. Plan Description
Plan administration. Medical coverage is provided through CalPERS under the Public Employees' Medical and Hospital Care Act (PEMHCA), also referred to as PERS Health. Employees may choose from a variety of HMO and PPO medical and prescription drug options.

Benefits provided. The City sets its monthly contribution rates for health insurance on behalf of active employees according to the PEMHCA statutory minimum $136/month for calendar 2019 and $139/month for calendar 2020.) These amounts are indexed (increased) in all future years according to the rate of medical inflation. The City pays a 0.33% of premium administrative charge for all active employees. The City offers the same medical plans to its retirees as to its active employees, with the general exception that upon reaching age 65 and becoming eligible for Medicare, the retiree must join one of the Medicare Supplement coverages offered under PEMHCA.

Employees become eligible to retire and receive City-paid healthcare benefits upon attainment of age 50 and 5 years of covered PERS service (age 52 and 5 for hires after 1/1/13), or by attaining qualifying disability retirement status. The City's contribution on behalf of all eligible retirees is the same as for active employees $139/month for calendar 2020 and $219/month for calendar 2021, increased in all future years according to the rate of medical inflation.) The City pays a 0.33% of premium administrative charge on behalf of all retirees.

B. Plan membership
At June 30, 2023, membership consisted of the following:

Inactive plan members or beneficiaries currently receiving benefit payments 11 Active plan members 61
Total 72
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CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 9: POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) C. Contributions
The City currently contributes the full Actuarially Determined Contribution (ADC) to the CERBT OPEB trust, in addition to paying benefit payments outside the trust. For the measurement date ended June 30, 2023, the City’s total cash contributions were $106,000 in total payments, which were recognized as a reduction to the OPEB liability.

D. Investments
The CERBT was established for public agencies to pre-fund other post-employment benefit obligations. Employers may choose amount three different investment strategies. The City of Diamond Bar has selected Strategy 3.

Compared to strategies 1 and 2, this portfolio consists of a higher percentage of bonds and other assets and a lesser percentage of equities. The following was the investment committee approved asset allocation targets as of June 30, 2022 (CalPERS ACFR for fiscal year 2022-2023 was not available as of the issuance of the City’s ACFR):

Asset Class Target Allocation
Global Equity 22%
U.S. Fixed Income 49%
TIPS 16%
REITs 8%
Commodoties 5%
Total 100%
E. Net OPEB Liability
The City’s Net OPEB Liability was measured as of June 30, 2023 and the Total OPEB Liability used to calculate the Net OPEB Liability was determined by an actuarial valuation as of July 1, 2022 and is expected to be paid in future years from future resources, typically liquidated from the General Fund.

F. Actuarial assumptions
The total OPEB liability was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Actuarial Cost Method Entry Age Level Percent of Pay Cost Method Actuarial Assumptions
Discount Rate 5.75%
Salary increases 2.75%
Inflation rate 2.50%
Investment rate of return 5.75%, net of OPEB plan investment expense Healthcare cost trend rate 4.00%
Pre-retirement mortality rates were based on the RP-2014 Employee Mortality Table for Males or Females, as appropriate, without projection. Post-retirement mortality rates were based on the RP-2014 Health Annuitant Mortality Table for Males or Females, as appropriate, without projection.

Retirement and termination assumptions used were based on a review of plan experience and the actuary’s best estimate of future plan experience.
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CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 9: POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) G. Discount rate
The discount rate used to measure the total OPEB liability was 5.75%. The projection of cash flows used to determine the discount rate assumed that the City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

H. Changes in the Net OPEB Liability
The changes in the net OPEB liability are as follows:

Total OPEB
Liability (a)
Plan Fiduciary
Net Position (b)
Net OPEB
Liability/(Assets)
(c) = (a) - (b)
Balance at June 30, 2022 $ 1,278,930 $ 547,852 $ 731,078 Changes recognized for the measurement period:

Service Cost 76,892 - 76,892
Interest 74,864 - 74,864
Expected Investment Income 34,017 (34,017)
Changes of assumptions 23,517 - 23,517
Contributions - employer - 118,784 (118,784)
Experience Gains (162,768) - (162,768)
Net investment income - (23,947) 23,947
Benefit payments (30,784) (30,784) -
Administrative expense - (486) 486
Net changes (18,279) 97,584 (115,863)
Balance at June 30, 2023 $ 1,260,651 $ 645,436 $ 615,215 *Contributions-employer amount includes implicit subsidy associated with benefits paid.

I. Sensitivity of the Net OPEB liability to changes in the discount rate The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1 percentage-point lower (4.75 percent) or 1 percentage-point higher (6.75 percent) than the current discount rate:

Discount Rate - 1%
(4.75%)
Current Discount Rate
(5.75%)
Discount Rate +1%
(6.75%)
Net OPEB liability (asset) 462,538 $ 615,215 $ 798,976 $ 51 7.1.a
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CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 9: POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) J. Sensitivity of the Net OPEB liability to changes in the healthcare cost trend rates The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (5.00 percent decreasing to 4.00 percent) or 1-percentage-point higher (7.00 percent decreasing to 6.00 percent) than the current healthcare cost trend rates:

Trend Rate - 1%
(4.00% decreasing to

3.00%)
Trend Rate (5.00%
decreasing to 4.00%)
Trend Rate +1%
(6.00% decreasing to

5.00%)
Net OPEB liability (asset) 858,121 $ 615,215 $ 421,702 $ K. Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At June 30, 2023, the City’s deferred outflows of resources and deferred inflows of resources to OPEB from the following sources are:

Deferred Outflows
of Resources
Deferred Inflows
of Resources
Change in assumptions 160,886 $ - $
Difference between expected and actual experience 3,909 (187,440) Net differences between projected and actual return investments - 58,589 Total 223,384 $ (187,440) $
Amounts reported as deferred outflows and deferred inflows of resources will be recognized in OPEB expense as follows:

Year Ended
June 30,
Deferred Outflows/
(Inflows) of Resources
2024 17,184 $
2025 17,492
2026 24,412
2027 6,545
2028 (486)
Thereafter (29,203)
Total 35,944 $
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CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 10: LEASES
A. Leases Receivable and Deferred Inflows of Resources
The City leases of communication equipment and land for the installation of cellular towers. The terms range from 60 months to 360 months as of the contract commencement date. Some leases have extension options of ranging from 60 months to 25 years. An initial lease receivable was recorded in the amount of $2,742,364. As of June 30, 2023, the value of the lease receivable is $2,212,295. The value of the deferred inflow of resources as of June 30, 2023 was $2,212,295, and the City recognized lease revenue of $96,689 during the fiscal year.

The principal and interest payments that are expected to maturity are as follows:

Fiscal Year Principal Payments Interest Payments Total Payments 2024 118,790 $ 86,443 $ 205,233 $
2025 123,628 81,605 205,233
2026 129,342 76,586 205,928
2027 129,723 71,338 201,061
2028 130,714 66,174 196,888
2029 - 2033 725,155 247,288 972,443
2034 - 2038 717,095 92,800 809,895
2039 - 2041 137,848 8,572 146,420
Total $ 2,212,295 $ 730,806 $ 2,943,101
Principal and Interest Requirements to Maturity
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CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 11: CLASSIFICATION OF FUND BALANCE
Details of the fund balance classifications at June 30, 2023, are as follows:

Restricted for Community Development Projects:

Integrated Waste Management 1,973,610 $
Trails & Bikeways Fund 25,001
Beverage Center Recycling 107,482
Used Oil Block Grant 28,823
Park and Facility Development 1,567,641
CDBG 22
PEG Fees 706,893
CASP Fees (SB1186) 26,331
Total 4,435,803
Restricted for Public Safety:

COPS 353,280
CLEEP 8,351
Hazard Mitigation Grant 5,187
Total 366,818
Restricted for Highways and Streets:

State Gas Tax 776,638
Proposition A Transit 1,934,977
Proposition C Transit 3,293,153
Transportation Grant 1,072
Traffic Improvement 8,091,761
Sewer Mitigation 57,234
Road Maintenance & Rehab 4,081,076
Measure R Local Return 1,279,993
Waste Hauler 335,428
Street Beautification 336,939
Measure W Local Return 1,572,838
Total 21,761,109
Restricted for Capital Projects:

Air Quality Improvement 211,290
Measure M Local Return 2,079,201
Landscape Maintenance District 452,582
Total 2,743,073
Restricted for Debt Service:

Public Financing Authority 1,561
Committed for Emergency Contingencies:

General Fund 7,981,243
Assigned to Other Post Employment Benefits (OPEB):

General Fund 291,182
Assigned to Technology Reserve:

General Fund 591,346
Assigned for Capital Improvement Projects:

General Fund 1,308,920
Assigned for Tres Hermanos Conservancy:

General Fund (Tres Hermanos Fund 248) 6,910
Assigned for General Plan Update:

General Fund (General Plan Update Fund 103) 518,504
Assigned for Law Enforcement Reserve:

General Fund (Law Enforcement Reserve Fund 102) 941,362 Assigned for Community Organization Support:

General Fund (Community Organization Support Fund 101) 2,062 Unassigned Fund Balance:

General Fund (Fund 100) 22,959,067
Other Governmental Funds: (725,794)
Total Unassigned Funds $ 22,233,273
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CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
June 30, 2023
NOTE 12: TRES HERMANOS CONSERVATION AUTHORITY JOINT POWERS AUTHORITY

The Tres Hermanos Conservation Authority (Authority) is a joint powers agency created by a joint powers agreement between the cities of Chino Hills and Diamond Bar, California, dated January 19, 1999. It was created pursuant to Articles 1 through 4 of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, in accordance with the provisions of the Marks-Roos Local Bond Pooling Act of 1985. The purpose of the Authority is to create a public entity to coordinate the overall development and conservation of a large undeveloped area of real property known as the Tres Hermanos Ranch, by preparing studies, plans, environmental reviews and similar information and by making recommendations to its members to take such actions including, but not limited to, acquisition and eminent domain as are necessary to implement its recommendations.

On February 6, 2019, the Authority amended and restated its agreement with the City of Industry pursuant to a Settlement Agreement. The City of Industry purchased the Tres Hermanos Ranch from the Successor Agency to Industry’s Urban Development Agency. The City of Chino Hills and Diamond Bar contributed 10% of the purchase of the land. With the new agreement each City will contribute approximately $70,000 each year for ranch expenses and maintenance costs. The Board shall consist of seven voting directors and one alternate from each City, actions taken require at least four approval. Three must come from the City of Industry, two from City of Chino Hills and two from City of Diamond Bar.

The Authority is a public entity separate and apart from each of the Cities. The funds of the Authority have not been included within the scope of the basic financial statements of the Cities because the Authority has its own governing board that has responsibility over the operations of the Authority.

NOTE 13: CONSTRUCTION COMMITMENTS
The City had the following material construction commitments at June 30, 2023:

Residential & Collector Streets Rehabilitation (Area 2) $ 2,660,276 Total significant commitments 2,660,276 $
NOTE 14: SUBSEQUENT EVENTS
The City evaluated subsequent events for recognition and disclosure through December 8, 2023, the date on which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2023, that required recognition or disclosure in these financial statements. 55 7.1.a
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REQUIRED SUPPLEMENTARY

INFORMATION

57 7.1.a
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CITY OF DIAMOND BAR
Budgetary Comparison Schedule
General Fund
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated $ 30,226,704 $ 30,226,704 $ 30,226,704 $ - Resources (Inflows):

Taxes 15,045,869 15,428,869 16,445,551 1,016,682
Licenses and Permits 2,297,168 2,410,433 2,275,281 (135,152) Intergovernmental 10,709,172 10,709,172 10,712,016 2,844 Charges for Services 1,354,205 1,566,705 1,593,826 27,121 Use of Money and Property 630,000 630,000 498,274 (131,726) Fines and Forfeitures 370,000 370,000 383,058 13,058
Miscellaneous 288,580 288,580 184,345 (104,235)
Transfers In 1,246,825 1,309,925 1,261,764 (48,161)
Total Resources 31,941,819 32,713,684 33,354,115 640,431 Amounts Available for Appropriations 62,168,523 62,940,388 63,580,819 640,431 Charges to Appropriations (Outflow):

General Government
City Council 212,260 212,260 210,861 1,399
City Attorney 205,000 205,000 152,608 52,392
City Manager/Clerk 1,284,959 1,281,959 1,178,575 103,384 Finance 946,669 946,669 835,132 111,537
Human Resources 525,369 525,369 532,727 (7,358)
Information Systems 1,483,592 1,522,242 1,404,910 117,332 Public Information 847,148 854,364 686,820 167,544
Contribution to OPEB Trust 88,000 88,000 88,000 -
City Clerk's Office 491,956 491,956 445,104 46,852
Diamond Bar Center 1,486,548 1,522,548 1,485,591 36,957 Subtotal General Government 7,571,501 7,650,367 7,020,328 630,039 Public Safety
Law Enforcement 7,829,866 7,829,866 7,723,306 106,560
Volunteer Patrol 4,000 4,000 1,108 2,892
Fire Protection 7,500 7,500 7,359 141
Animal Control 391,700 391,700 373,879 17,821
Emergency Preparedness 47,100 47,100 39,173 7,927
Subtotal Public Safety 8,280,166 8,280,166 8,144,825 135,341 Community Development
Community Development & Planning Admin. 881,439 1,791,995 1,262,295 529,700 Economic Development 277,676 277,676 198,103 79,573
Building & Safety 997,599 1,100,623 964,868 135,755
Neighborhood Improvement 485,540 484,040 445,228 38,812 Subtotal Community Development 2,642,254 3,654,334 2,870,494 783,840 Parks and recreation
Parks and Recreation Admin. 2,419,632 2,560,632 1,941,947 618,685 Subtotal Parks and recreation 2,419,632 2,560,632 1,941,947 618,685 Public works
Public Works Administration 692,822 697,969 524,606 173,363 Engineering 665,333 698,643 458,709 239,934
Road Maintenance 1,882,089 2,103,664 1,703,884 399,780
Landscape Maintenance 393,270 393,270 283,241 110,029
Parks & Facilities Maintenance 1,598,585 1,713,039 1,524,736 188,303 Civic Center 642,594 694,044 652,844 41,200
Subtotal Public works 5,874,693 6,300,629 5,148,020 1,152,609 Transfers Out 4,613,828 5,269,990 3,854,609 1,415,381
Total Charges to Appropriations 31,402,074 33,716,118 28,980,223 4,735,895 Budgetary Fund Balance, June 30 $ 30,766,449 $ 29,224,270 $ 34,600,596 $ 5,376,326 See Notes to Required Supplementary Information.
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CITY OF DIAMOND BAR
Budgetary Comparison Schedule
Traffic Improvement Fund
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 7,144,649 $ 7,144,649 $ 7,144,649 $ - Resources (Inflows):

Intergovernmental 846,910 846,910 853,518 6,608
Use of money and property 81,600 81,600 93,594 11,994
Total Resources 928,510 928,510 947,112 18,602
Amounts Available for Appropriations 8,073,159 8,073,159 8,091,761 18,602 Budgetary Fund Balance, June 30 $ 8,073,159 $ 8,073,159 $ 8,091,761 $ 18,602 See Notes to Required Supplementary Information.
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CITY OF DIAMOND BAR
Miscellaneous Rate Plan
Schedule of Proportionate Share of the Net Pension Liability As of June30, for the Last Ten Fiscal Years (1)
2015 2016 2017 2018
Proportion of the Net Pension Liability 0.05155% 0.04862% 0.05325% 0.05584% Proportionate Share of the Net Pension Liability $ 3,207,669 $ 3,337,560 $ 4,607,967 $ 5,537,585 Covered Payroll $ 4,376,117 $ 4,650,369 $ 4,551,711 $ 4,680,371 Proportionate Share of the Net Pension Liability as
Percentage of Covered Payroll 73.30% 71.77% 101.24% 118.32% Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 79.82% 78.40% 74.06% 73.31%
Notes to Schedule:

Changes of Assumptions:

Benefit Changes:

The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred after the June 30, 2021 valuation. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2021 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
(1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only nine years are shown.

Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and

7.50% for measurement date 2014.

See Notes to Required Supplementary Information.
60 7.1.a
Packet Pg. 182
2019 2020 2021 2022 2023

0.05629% 0.05926% 0.06032% 0.05574% 0.06843%
$ 5,424,380 $ 6,072,351 $ 6,563,014 $ 3,014,631 $7,903,769 $ 5,088,134 $ 5,077,171 $ 5,227,663 $ 5,417,136 $ 5,433,199 106.61% 119.60% 125.54% 55.65% 145.47%

75.26% 75.26% 75.10% 88.29% 76.68%
See Notes to Required Supplementary Information.
61 7.1.a
Packet Pg. 183

CITY OF DIAMOND BAR
Miscellaneous Rate Plan
Schedule of Plan Contributions - Pension
As of June30, for the Last Ten Fiscal Years (1)
2015 2016 2017 2018
Actuarially Determined Contribution $ 403,553 $ 460,471 $ 386,806 $ 418,739 Contribution in Relation to the Actuarially Determined Contribution (403,553) (587,684) (542,557) (618,219) Contribution Deficiency (Excess) $ - $ (127,213) $ (155,751) $ (199,480) Covered Payroll $ 4,650,369 $ 4,551,711 $ 4,680,371 $ 5,088,134 Contributions as a Percentage of Covered Payroll 8.68% 12.91% 11.59% 12.15% Note to Schedule:

Valuation Date: June 30, 2021
Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry Age Normal Cost Method
Amortization method Level percentage of payroll, closed Asset valuation method Direct rate smoothing
Inflation
Payroll Growth
Projected Salary Increases
Investment Rate of Return 6.90% (net of administrative expenses) Retirement Age
Mortality The mortality table used was developed based on CalPERS' specific data. The table includes 15 years of mortality improvements using 80 percent of Society of Actuaries' Scale 2020. For more details on this table, please refer to the 2021 experience study report. (1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only nine years are shown.

2.300%

2.750%
Varies by Entry Age and Service
All other actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period from 2010 to 2019, including updates to salary increase, mortality and retirement rates. The Experience Study report may be accessed on the CalPERS website at www.calpers.ca.gov under Forms and Publications.

See Notes to Required Supplementary Information.
62 7.1.a
Packet Pg. 184
2019 2020 2021 2022 2023
$ 710,349 $ 1,005,631 $ 939,844 $ 1,243,813 $ 1,157,713 (710,349) (1,005,631) (939,844) (1,243,813) (1,157,713) $ - $ - $ - $ - $ -
$ 5,077,171 $ 5,227,663 $ 5,417,136 $ 5,433,199 $ 5,404,127

13.99% 19.24% 17.35% 22.89% 21.42%
See Notes to Required Supplementary Information.
63 7.1.a
Packet Pg. 185

CITY OF DIAMOND BAR
Schedule of Changes in the Net OPEB Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years (1)
2018 2019 2020
Total OPEB Liability
Service cost $ 55,838 $ 57,513 $ 41,976
Interest on the total OPEB liability 41,616 46,352 53,641 Actual and expected experience difference - - 7,817
Changes in assumptions - - 10,172
Benefit payments (17,988) (19,058) (28,427)
Net change in total OPEB liability 79,466 84,807 85,179 Total OPEB liability - beginning 702,459 781,925 866,732 Total OPEB liability - ending (a) 781,925 866,732 951,911 Plan Fiduciary Net Position
Contribution - employer 102,579 106,186 116,427
Net investment income 7,102 18,278 20,741
Actual and expected experience difference - - 1,529
Benefit payments (17,988) (19,058) (28,427)
Administrative expense (132) (209) (302)
Net change in plan fiduciary net position 91,561 105,197 109,968 Plan fiduciary net position - beginning 149,069 240,630 345,827 Plan fiduciary net position - ending (b) 240,630 345,827 455,795 Net OPEB Liability/(Assets) - ending (a) - (b) $ 541,295 $ 520,905 $ 496,116 Plan fiduciary net position as a percentage of the total OPEB liability 30.77% 39.90% 47.88% Covered-employee payroll $ 5,163,684 $ 5,077,171 $ 6,113,473 Net OPEB liability as a percentage of covered-employee payroll 10.48% 10.26% 8.12% Notes to Schedule:

Changes in assumptions:

There were no assumption changes since the prior measurement date. (1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.

See Notes to Required Supplementary Information.
64 7.1.a
Packet Pg. 186
2021 2022 2023
$ 43,235 $ 74,834 $ 76,892
57,448 67,934 74,864
(54,653) - (162,768)
186,125 - 23,517
(32,136) (15,768) (30,784)
200,019 127,000 (18,279)
951,911 1,151,930 1,278,930
1,151,930 1,278,930 1,260,651
32,136 103,768 118,784
27,335 32,264 34,017
34,612 (89,300) (23,947)
(32,136) (15,768) (30,784)
(414) (440) (486)
61,533 30,524 97,584
455,795 517,328 547,852
517,328 547,852 645,436
$ 634,602 $ 731,078 $ 615,215

44.91% 42.84% 51.20%
$ 5,417,136 $ 5,433,199 $ 5,404,127

11.71% 13.46% 11.38%
See Notes to Required Supplementary Information.
65 7.1.a
Packet Pg. 187

CITY OF DIAMOND BAR
Schedule of Contributions - OPEB
As of June 30, for the Last Ten Fiscal Years (1)
2018 2019 2020
$ 84,591 $ 87,129 $ 116,427
(102,579) (106,186) (116,427)
$ (17,988) $ (19,057) $ -
$ 5,163,684 $ 5,077,171 $ 6,113,473

1.64% 1.72% 1.90%
Notes to Schedule:

Methods and assumptions used to determine contributions:

Actuarial Cost Method Entry Age Level Percent of Pay Cost Method Discount rate 5.75%
Salary increases
Investment rate of return
Healthcare cost trend rates
PEMHCA Minimum Increase Rate
Retirement and termination
Mortality The mortality assumptions are based on the 2021 CalPERS Mortality for Miscellaneous and Schools Employees table created by CalPERS.

CalPERS periodically studies mortality for participating agencies and establishes mortality tables that are modified versions of commonly used tables. This table incorporates mortality projection as deemed appropriate based on CalPERS analysis.

Retirement and termination assumptions used were based on the 2021 CalPERS 2.0%@62 Rates for Miscellaneous Employees table created by CalPERS.

Actuarially Determined Contribution
Contribution in Relation to the Actuarially Determined Contributions Contribution Deficiency (Excess)
Covered-employee payroll
Contributions as a percentage of covered-employee payroll *Actuarial methods and assumptions used to set the actuarially determined contribution for Fiscal Year 2022 were from the June 30, 2023 actuarial valuation.
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.

4.10% for 2022 and later years

2.75%

4.00% for 2022-23 and after

5.75%
See Notes to Required Supplementary Information.
66 7.1.a
Packet Pg. 188
2021 2022 2023
$ 32,136 $ 103,768 $ 106,000
(32,136) (103,768) -
$ - $ - $ 106,000
$ 5,417,136 $ 5,433,199 $ 5,404,127

0.59% 1.91% 1.96%
See Notes to Required Supplementary Information.
67 7.1.a
Packet Pg. 189

THIS PAGE INTENTIONALLY LEFT BLANK
68 7.1.a
Packet Pg. 190

CITY OF DIAMOND BAR
Notes to Required Supplementary Information
Year Ended June 30, 2023
NOTE 1: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Data
General Budget Policies
The City adopts an annual budget prepared on the modified accrual basis of accounting for its governmental funds and on the accrual basis of accounting for its proprietary funds. The City Manager or his designee is authorized to transfer budgeted amounts between the accounts of any department or funds that are approved by City Council.

Prior year appropriations lapse unless they are approved for carryover into the following fiscal year. Expenditures may not legally exceed appropriations at the department level.

Budget Basis of Accounting
Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP).

Compliance with Budgetary Limitations
The General Fund Human Resources department exceeded appropriations by $7,358 for the year ended June 30, 2023. The General Fund did not exceed total budgeted appropriations.

The Transportation Grant and MTA Grant special revenue funds did not adopt budgets for the fiscal year ended June 30, 2023.
69 7.1.a
Packet Pg. 191

CITY OF DIAMOND BAR
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Assets:

Pooled cash and investments $ 655,991 $ 1,969,412 $ 3,336,641 $ 1,072 Receivables:

Accounts - - - -
Notes and loans - - - -
Due from other governments 120,647 - - -
Restricted assets:

Cash and investments with fiscal agents - - - -
Total Assets $ 776,638 $ 1,969,412 $ 3,336,641 $ 1,072
Liabilities and Fund Balances:

Liabilities:

Accounts payable $ - $ 26,069 $ 38,396 $ -
Accrued liabilities - 8,366 5,092 -
Unearned revenues - - - -
Due to other governments - - - -
Due to other funds - - - -
Total Liabilities - 34,435 43,488 -
Deferred Inflows of Resources:

Unavailable revenues - - - -
Total Deferred Inflows of Resources - - - -
Fund Balances:

Restricted for:

Community development projects - - - -
Public safety - - - -
Highways and streets 776,638 1,934,977 3,293,153 1,072
Capital Projects - - - -
Debt service - - - -
Unassigned - - - -
Total Fund Balances 776,638 1,934,977 3,293,153 1,072

Total Liabilities and Fund Balances $ 776,638 $ 1,969,412 $ 3,336,641 $ 1,072 Special Revenue Funds
State Gas Tax
Fund
Proposition A
Transit Fund
Proposition C
Transit Fund
Transportation
Grant Fund
70 7.1.a
Packet Pg. 192

CITY OF DIAMOND BAR
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Assets:

Pooled cash and investments
Receivables:

Accounts
Notes and loans
Due from other governments
Restricted assets:

Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:

Liabilities:

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

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Restricted for:

Community development projects
Public safety
Highways and streets
Capital Projects
Debt service
Unassigned
Total Fund Balances

Total Liabilities and Fund Balances

(Continued)
$ 1,901,179 $ 57,234 $ 193,212 $ 2,081,201
158,436 - - -
- - - -
- - 18,078 -
- - - -
$ 2,059,615 $ 57,234 $ 211,290 $ 2,081,201
$ 18,634 $ - $ - $ 2,000
13,590 - - -
53,781 - - -
- - - -
- - - -
86,005 - - 2,000
- - - -
- - - -
1,973,610 - - -
- - - -
- 57,234 - -
- - 211,290 2,079,201
- - - -
- - - -
1,973,610 57,234 211,290 2,079,201
$ 2,059,615 $ 57,234 $ 211,290 $ 2,081,201
Special Revenue Funds
Integrated
Waste
Management
Fund
Sewer Mitigation
Fund
Air Quality
Improvement
Fund
Measure M
Local Return
Fund
71 7.1.a
Packet Pg. 193

CITY OF DIAMOND BAR
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Assets:

Pooled cash and investments
Receivables:

Accounts
Notes and loans
Due from other governments
Restricted assets:

Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:

Liabilities:

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

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Restricted for:

Community development projects
Public safety
Highways and streets
Capital Projects
Debt service
Unassigned
Total Fund Balances

Total Liabilities and Fund Balances

$ 3,866,102 $ 25,001 $ - $ 107,482
- - - -
- - - -
214,974 - 56,599 -
- - - -
$ 4,081,076 $ 25,001 $ 56,599 $ 107,482
$ - $ - $ - $ -
- - - -
- - - -
- - - -
- - 56,599 -
- - 56,599 -
- - 56,599 -
- - 56,599 -
- 25,001 - 107,482
- - - -
4,081,076 - - -
- - - -
- - - -
- - (56,599) -
4,081,076 25,001 (56,599) 107,482
$ 4,081,076 $ 25,001 $ 56,599 $ 107,482
Special Revenue Funds
Road
Maintenance &
Rehab
Trails &
Bikeways Fund MTA Grant Fund
Beverage Center
Recycling Grant
Fund
72 7.1.a
Packet Pg. 194

CITY OF DIAMOND BAR
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Assets:

Pooled cash and investments
Receivables:

Accounts
Notes and loans
Due from other governments
Restricted assets:

Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:

Liabilities:

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

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Restricted for:

Community development projects
Public safety
Highways and streets
Capital Projects
Debt service
Unassigned
Total Fund Balances

Total Liabilities and Fund Balances
(Continued)
$ 28,823 $ 1,567,641 $ - $ 353,280
- - - -
- - 432,236 -
- - 78,188 -
- - - -
$ 28,823 $ 1,567,641 $ 510,424 $ 353,280
$ - $ - $ 39,858 $ -
- - 2,703 -
- - - -
- - 432,236 -
- - 35,605 -
- - 510,402 -
- - - -
- - - -
28,823 1,567,641 22 -
- - - 353,280
- - - -
- - - -
- - - -
- - - -
28,823 1,567,641 22 353,280
$ 28,823 $ 1,567,641 $ 510,424 $ 353,280
Special Revenue Funds
Used Oil Block
Grant Fund
Park and Facility
Development
Fund CDBG Fund COPS Fund
73 7.1.a
Packet Pg. 195

CITY OF DIAMOND BAR
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Assets:

Pooled cash and investments
Receivables:

Accounts
Notes and loans
Due from other governments
Restricted assets:

Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:

Liabilities:

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

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Restricted for:

Community development projects
Public safety
Highways and streets
Capital Projects
Debt service
Unassigned
Total Fund Balances

Total Liabilities and Fund Balances

$ 8,351 $ 659,197 $ 1,279,993 $ 687,720
- 17,111 - 19,173
- - - -
- - - -
- - - -
$ 8,351 $ 676,308 $ 1,279,993 $ 706,893
$ - $ 219,772 $ - $ -
- 3,954 - -
- - - -
- - - -
- - - -
- 223,726 - -
- - - -
- - - -
- - - 706,893
8,351 - - -
- - 1,279,993 -
- 452,582 - -
- - - -
- - - -
8,351 452,582 1,279,993 706,893
$ 8,351 $ 676,308 $ 1,279,993 $ 706,893
CLEEP Fund
Landscape
Maintenance
District Fund
Measure R Local
Return Fund PEG Fees Fund
Special Revenue Funds
74 7.1.a
Packet Pg. 196

CITY OF DIAMOND BAR
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Assets:

Pooled cash and investments
Receivables:

Accounts
Notes and loans
Due from other governments
Restricted assets:

Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:

Liabilities:

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

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Restricted for:

Community development projects
Public safety
Highways and streets
Capital Projects
Debt service
Unassigned
Total Fund Balances

Total Liabilities and Fund Balances

(Continued)
$ 298,085 $ 45,473 $ - $ 336,939
37,343 - - -
- - - -
- - 184,000 -
- - - -
$ 335,428 $ 45,473 $ 184,000 $ 336,939
$ - $ - $ - $ -
- - - -
- - 184,000 -
- 19,142 - -
- - 184,000 -
- 19,142 368,000 -
- - - -
- - - -
- 26,331 - -
- - - -
335,428 - - 336,939
- - - -
- - - -
- - (184,000) -
335,428 26,331 (184,000) 336,939
$ 335,428 $ 45,473 $ 184,000 $ 336,939
Special Revenue Funds
Waste Hauler
Fund
CASP Fees
(SB1186)
Measure A
Neighborhood
Park Acts Fund
Street
Beautification
75 7.1.a
Packet Pg. 197

CITY OF DIAMOND BAR
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Assets:

Pooled cash and investments
Receivables:

Accounts
Notes and loans
Due from other governments
Restricted assets:

Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:

Liabilities:

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

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Restricted for:

Community development projects
Public safety
Highways and streets
Capital Projects
Debt service
Unassigned
Total Fund Balances

Total Liabilities and Fund Balances

Debt Service
Fund
$ - $ 1,587,046 $ 5,187 $ -
- - - -
- - - -
- - - -
- - - 1,561
$ - $ 1,587,046 $ 5,187 $ 1,561
$ - $ 11,110 $ - $ -
- 3,098 - -
- - - -
- - - -
92 - - -
92 14,208 - -
- - - -
- - - -
- - - -
- - 5,187 -
- 1,572,838 - -
- - - -
- - - 1,561
(92) - - -
(92) 1,572,838 5,187 1,561
$ - $ 1,587,046 $ 5,187 $ 1,561
Special Revenue Funds
Local Roadway
Safety Plan Fund
Measure W
Local Return
Fund
Hazard
Mitigation Grant
Fund
Public
Financing
Authority
76 7.1.a
Packet Pg. 198

CITY OF DIAMOND BAR
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Assets:

Pooled cash and investments
Receivables:

Accounts
Notes and loans
Due from other governments
Restricted assets:

Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:

Liabilities:

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

Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:

Restricted for:

Community development projects
Public safety
Highways and streets
Capital Projects
Debt service
Unassigned
Total Fund Balances

Total Liabilities and Fund Balances
Total
Governmental
Funds
$ 21,052,262
232,063
432,236
672,486
1,561
$ 22,390,608
$ 355,839
36,803
237,781
451,378
276,296
1,358,097
56,599
56,599
4,435,803
366,818
13,669,348
2,743,073
1,561
(240,691)
20,975,912
$ 22,390,608
77 7.1.a
Packet Pg. 199