La Mesa City Council
February 28, 2023

LA MESA CITY COUNCIL
AGENDA

A Regular Meeting

Date: Tuesday, February 28, 2023, 6:00 p.m.

Location: City Council Chambers, 8130 Allison Avenue
La Mesa, California
Elected
Officials:

Mayor Mark Arapostathis
Vice Mayor Colin Parent
Councilmember Patricia N. Dillard
Councilmember Laura Lothian
Councilmember Jack Shu
City Treasurer Matthew Strabone
Staff: City Manager Greg Humora
City Attorney Glenn Sabine
City Clerk Megan Wiegelman
In-Person/Virtual Hybrid City Council Meeting Pursuant to AB 361 (Government Code Section 54953(e)(1)-(2))
The City Council meeting may be viewed in-person or live on Cox Cable Channel 24 (within La Mesa City limits), AT&T U-Verse Channel 99 (in the San Diego Region), the City’s website (www.cityoflamesa.us), Facebook Live (www.facebook.com/lamesaca) or using the following Zoom Webinar options:

The public may view the meeting live using the following remote options:

Teleconference Meeting Webinar
https://us06web.zoom.us/j/84472650722
Telephone (Audio only)
(669) 900-6833 or (253) 215-8782 Webinar ID: 844 7265 0722 Copy and paste the webinar link into your internet browser if the webinar link does not work directly from the agenda.

PUBLIC COMMENTS
In-Person comments during the meeting: Join us for the City Council meeting at the time and location specified on this agenda to make your comments. Please complete a “Request to Speak” card and submit it to the Council Hostess. When the Mayor calls your name, step to the podium and state your name for the record. Comments will be limited to three (3) minutes.
•
Zoom Audio Comments: To provide oral public comments during the meeting, join the Zoom meeting by computer, mobile phone, or dial in number. On Zoom video conference by computer or mobile phone, use the “Raise Hand” feature. This will notify the moderator that you wish to speak during a specific item on the agenda or during non-agenda Public Comment. Members of the public will not be shown on video but will be able to speak when called upon. If joining the meeting using the Zoom dial-in number, you may raise your hand by pressing *9. Comments will be limited to three (3) minutes. No further comments will be entertained after the Mayor closes public comment. •
How to submit eComments: eComments are available once an agenda is published.

Locate the meeting in "upcoming meetings" and click the comment bubble icon. Click on the item you wish to comment on. eComments can be submitted when the agenda is published and until 24 hours prior to the meeting. eComments are limited to 500 words. eComments may be viewed by the City Council and members of the public following the close of the eComment submission period (24 hours prior to the meeting). Email your comment to [email protected] if you have difficulty submitting an eComment. eComments will not be read aloud as a regular meeting item; however any member of the Council or member of the public may do so during their respective comment time. •
Citizens who wish to make an audio/visual presentation pertaining to an item on the agenda, or during Public Comments, should contact the City Clerk’s office at 619.667.1120, no later than 5:00 p.m., the Thursday prior to the meeting day. Advance notification will ensure compatibility with City equipment and allow Council meeting presentations to progress smoothly and in a consistent and equitable manner. Please note that all presentations/digital materials are considered part of the maximum time limit provided to speakers.

Agenda reports for items on this agenda are available for public review at the City Clerk's Office, 8130 Allison Avenue, during normal business hours.

Materials related to an item on this agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office, 8130 Allison Avenue, during normal business hours.

ACCESSIBILITY: The City of La Mesa encourages the participation of disabled individuals in the services, activities and programs provided by the City. Individuals with disabilities, who require reasonable accommodation in order to participate in the City Council meetings, should contact the City’s Americans with Disabilities Act (ADA) Coordinator, Rida Freeman, Director of Administrative Services, 48 hours prior to the meeting at 619.667.1175, fax 619.667.1163, or [email protected].

Hearing assisted devices are available for the hearing impaired. A City staff member is available to provide these devices upon entry to City Council meetings, commission meetings or public hearings held in the City Council Chambers. A photo i.d. or signature will be required to secure a device for the meeting.

Pages

1. CALL TO ORDER

1.1 INVOCATION - VICE MAYOR PARENT

1.2 PLEDGE OF ALLEGIANCE

2. CITY MANAGER COMMENTS

3. COMMUNITY BULLETIN REPORTS

4. ADDITIONS AND/OR DELETIONS TO THE AGENDA

5. PRESENTATIONS

5.1 CALTRANS PRESENTATION ON THE STATE ROUTE 94/STATE
ROUTE 125 INTERCHANGE PROJECT

5.2 2023 BOARDS AND COMMISSIONS WORK PLANS 1
• COMMUNITY POLICE OVERSIGHT BOARD
• ENVIRONMENTAL SUSTAINABILITY COMMISSION
• MOBILITY COMMISSION
• LA MESA COMMUNITY PARKING COMMISSION

5.3 BUDGET MONITORING REPORT 15

5.4 CITY TREASURER'S QUARTERLY REPORT 29

5.5 POLICE CHIEF’S QUARTERLY OPERATIONS REPORT 39

6. PUBLIC COMMENTS – (TOTAL TIME – 15 MINUTES)
NOTE: In accordance with state law, an item not scheduled on the agenda may be brought forward by the general public for comment; however, the City Council will not be able to discuss or take any action on the item at this meeting.

If appropriate, the item will be referred to Staff or placed on a future agenda.

7. CONFLICT DISCLOSURES

8. BOARD AND COMMISSION INTERVIEWS

8.1 INTERVIEW OF APPLICANT FOR AN UNSCHEDULED VACANCY ON

THE ENVIRONMENTAL SUSTAINABILITY COMMISSION
55 Staff Reference: Ms. Wiegelman

9. BOARD AND COMMISSION APPOINTMENTS

9.1 RESOLUTION APPOINTING MEMBERS TO FILL THE UNSCHEDULED

VACANCIES ON THE YOUTH ADVISORY COMMISSION
58 Staff Reference: Ms. Wiegelman
Recommended Motion:

The Mayor make the appointments to fill the vacancies, with the approval of the Council, and adopt Resolution confirming the appointments.

10. PUBLIC COMMENTS ON CONSENT CALENDAR
This is the time in which members of the Council or audience may pull items from the CONSENT CALENDAR for discussion. Public Comments are also invited on Consent Calendar items.

11. CONSENT CALENDAR
(Items 11.1 through 11.8)
The Consent Calendar includes items considered to be routine. Unless discussion is requested by members of the Council or audience, all Consent Calendar items may be approved by one motion.
*If a public hearing item is part of the Consent Calendar, the public hearing shall be deemed held if the item is not removed from the Consent Calendar for discussion and possible action (Item 11.7).

Recommended Motion:

Approve Consent Calendar Items 11.1 through 11.8.

11.1 APPROVAL OF MOTION TO WAIVE THE READING OF THE TEXT

OF ALL ORDINANCES AND RESOLUTIONS AT THIS MEETING
Recommended Motion:

Approve.

11.2 APPROVAL OF THE MINUTES FOR THE CITY COUNCIL REGULAR MEETINGS HELD TUESDAY, JANUARY 10 AND JANUARY 24, 2023
62 Recommended Motion:

Approve.

11.3 APPROVAL OF THE MINUTES FOR THE CITY COUNCIL SPECIAL MEETING HELD TUESDAY, JANUARY 24, 2023
85 Recommended Motion:

Approve.

11.4 RESOLUTION TO AWARD RFP 23-09 FOR CANNABIS TAX AUDIT

SERVICES TO THE PUN GROUP, LLP
87 Staff Reference: Ms. Royales
Recommended Motion:

Adopt Resolution.

11.5 RESOLUTION TO APPROPRIATE UNALLOCATED GENERAL FUND

RESERVES FOR THE PURCHASE OF IPADS, ACCESSORIES, AND

DATA AND TABLET COMMAND PLANS TO BE USED BY THE FIRE

DEPARTMENT
146
Staff Reference: Chief Koch
Recommended Motion:

Adopt Resolution.

11.6 RESOLUTION APPROVING THE INITIATION OF AN ANNEXATION

AND RELATED GENERAL PLAN AMENDMENT FOR THE
PROPERTY LOCATED AT 9365 CARMICHAEL DRIVE (APN 495-335- 05-00) (PROJECT 2022-0492)
152
Staff Reference: Mr. Kusiak
Recommended Motion:

Adopt Resolution.

11.7 *RESOLUTION ORDERING THE SUMMARY VACATION OF AN
EASEMENT FOR PUBLIC UTILITY PURPOSES AT 8135 EL PASO
STREET ENCUMBERING LOT H PER MAP NO. 4046 LAKE VIEW
ESTATES UNIT NO. 1
158
Staff Reference: Mr. Throne
Recommended Motion:

Adopt Resolution.

11.8 RESOLUTION AUTHORIZING TRANSFER AND APPROPRIATION OF

UNALLOCATED FUND RESERVES TO THE PUBLIC WORKS

STREET CLEANING ACCOUNT FOR STREET SWEEPING
164
Staff Reference: Mr. Throne
Recommended Motion:

Adopt Resolution.

12. STAFF REPORTS

12.1 REPORT AND RECOMMENDATIONS ON PERMITTING PROCESS

IMPROVEMENTS AND CONSIDERATION AND POSSIBLE

ADOPTION OF A RESOLUTION APPROPRIATING GENERAL FUND

RESERVES TO FUND AN ADDITIONAL ENGINEERING TECHNICIAN

POSITION AND PERMITTING PROCESS TECHNOLOGY

IMPROVEMENTS
170
Staff Reference: Mr. Kusiak
Recommended Motion:
(1) Receive the report and recommendations on permitting process improvements regarding the Community Development Department and Public Works Engineering Division; and (2) Adopt Resolution appropriating General Fund Reserves to fund an additional Engineering Technician position and permitting process technology improvements.

12.2 REPORT ON ASSEMBLY BILL 2449 (AB 2449) - TELECONFERENCE

MEETINGS PURSUANT TO THE BROWN ACT AFTER

TERMINATION OF CALIFORNIA EMERGENCY DECLARATION
223
Staff Reference: Ms. Wiegelman
Recommended Motion:

Receive a report on changes to state law regarding teleconference meetings and establish an ad hoc subcommittee for the purpose of reviewing AB 2449 and recommending teleconferencing policies and procedures for City Council and the City’s Boards and Commissions following the termination of California’s Emergency Declaration.

13. HEARING/ORDINANCES: FIRST READING

13.1 CONSIDERATION OF ORDINANCES FOR THE DEVELOPMENT OF

ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY

DWELLING UNITS
243
Staff Reference: Mr. Kusiak
Recommended Motion:

Approve the introduction and first reading of the Ordinances. a. ACCESSORY DWELLING UNITS ORDINANCE

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LA MESA ADOPTING AMENDMENTS TO TITLE 24 (ZONING)

OF THE LA MESA MUNICIPAL CODE FOR THE
DEVELOPMENT OF ACCESSORY DWELLING UNITS (ADUs)

IN ACCORDANCE WITH CALIFORNIA GOVERNMENT CODE
SECTIONS 65852.2, 65852.23, AND 65852.26 AND HEALTH
AND SAFETY CODE SECTION 17980.12
Recommended Motion:

Approve the introduction and first reading of the Ordinance. b. JUNIOR ACCESSORY DWELLING UNITS ORDINANCE

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LA MESA ADOPTING AMENDMENTS TO TITLE 24 (ZONING)

OF THE LA MESA MUNICIPAL CODE FOR THE

DEVELOPMENT OF JUNIOR ACCESSORY DWELLING
UNITS (JADUs) IN ACCORDANCE WITH CALIFORNIA
GOVERNMENT CODE SECTIONS 65852.2 AND 65852.22
AND HEALTH AND SAFETY CODE SECTION 17980.12
Recommended Motion:

Approve the introduction and first reading of the Ordinance.

14. COUNCIL INITIATED

14.1 CONSIDERATION OF REQUESTING STAFF TO CONDUCT A

REVIEW OF THE SALARIES OF THE MAYOR, CITY COUNCIL AND

CITY TREASURER FOR POSSIBLE ADJUSTMENTS WITHIN CITY

POLICIES AND BY AN INDEPENDENT GROUP - COUNCILMEMBER

DILLARD AND COUNCILMEMBER SHU
354

15. COUNCIL COMMITTEE REPORTS (3 MINUTE LIMIT)

16. AB 1234 REPORTS (GC 53232.3 (d))

17. CITY ATTORNEY REMARKS

18. ADJOURNMENT
DATE: February 28, 2023
TO: Mayor and Members of the City Council
FROM: Lyn Dedmon, Assistant to the City Manager
VIA: Greg Humora, City Manager
SUBJECT: 2023 Boards and Commissions Work Plans
______________________________________________________________________ At the start of each calendar year, the City’s Boards and Commissions meet to update their respective Work Plans. The Work Plans provide a roadmap for the major initiatives and projects each commission will work to achieve over the year.

During the last meeting in February and first meeting in March, each Chair will present their commission’s updated Work Plan to the City Council. Staff has attached the Work Plans that will be presented at the February 28, 2023, meeting.

Attachments:

A. Community Police Oversight Board
B. Environmental Sustainability Commission
C. Mobility Commission
D. Community Parking Commission

COMMUNITY POLICE OVERSIGHT BOARD
1 Work Plan
FY2023
Goals should be consistent with the City’s goals:
• Safe Community
• Maintain a Financially Sound and Affordable City Government • Continue to Improve High Quality Municipal Services
• Revitalize Neighborhoods and Corridors
• Enhanced Recreation and Quality of Life Opportunities • Effective and efficient traffic circulation and transportation • Ensure Safe and Affordable Homes for all current and future Residents • Foster community health by reducing greenhouse gas emissions and improving environmental quality
Staffing Department: City Manager’s Office

GOALS DUE
DATE

TRACKING MILESTONES STATUS
Work Plan Item 1: Continue to conduct data collection to gather information for the purpose of measuring change over time

1. Continue to conduct data
collection (i.e. arrests, stop data, etc.)
to gather information to measure
change over time.

Ongoing 1.1 Collect data from LMPD to achieve
baseline information to measure over time.

Ongoing

2. Work with the City, local
universities, and research institutions
to collect, review, and update data
regarding community sensing and
attitudes towards policies and
practices of the LMPD.

Ongoing 2.1 Create survey to achieve baseline
information to measure over time.

Ongoing
Work Plan Item 2: Receive ongoing training and continuing educational training for all new and current CPOB members

1. Receive confidentiality training
(from legal counsel) for the purpose
of reviewing personnel or other
documents that are protected by
privacy laws.

Ongoing 1.1 Continue receiving updated training by
December 31, 2022.

Ongoing

2. Receive training on LMPD policies
and procedures, including officer
training, vehicular stops, arrests, and
use of force including hands on
training opportunities.

Ongoing 2.1 Continue receiving updated training by
December 31, 2022.

Ongoing

3. Receive training on Communityoriented Policing.Ongoing 3.1 Continue receiving updated training by December 31, 2022.

Ongoing

COMMUNITY POLICE OVERSIGHT BOARD
2 4. Receive training on Emergency
Operations and Communications as
a part of the Incident Command
System ("ICS") and National Incident
Management ("NIMS") System.

Ongoing 4.1 Continue receiving updated training by
December 31, 2022.

Ongoing

5. Receive training on LMPD hiring
practices and employee wellness.

Ongoing 5.1 Continue receiving updated training by
December 31, 2022.

Ongoing

6. Receive training from other
qualified agencies, professional
organizations (i.e. National
Association for Civilian Oversight of
Law Enforcement "NACOLE"), etc.

Ongoing 6.1 Continue receiving updated training by
December 31, 2022.

Ongoing

7. Receive training from the IPA on
types of mediation programs in use
by law enforcement agencies.

Ongoing 7.1 Continue receiving updated training by
December 31, 2022.

Ongoing
Work Plan Item 3: Promote internship application and program for La Mesa residents currently enrolled in high school or college to serve as temporary, non-voting CPOB members

1. Distribute an internship
application/program for La Mesa
residents currently enrolled in high
school or college and between the
ages of 16 and 22 through which
students may serve as temporary,
non-voting CPOB members.

Ongoing 1.1 Advertise internship position.

1.2 Review applicants and select a youth
intern.

Ongoing
Work Plan Item 4: Develop a program for the accessibility and mediation of the complaint process

1. Develop a program for the
mediation of complaints, in
coordination with the Chief of Police
and with the assistance of other
qualified experts as needed.

Ongoing 1.1 Create Subcommittee and/or select
CPOB board members to develop draft
program.

1.2 Present draft program to CPOB for
comments and feedback.

1.3 Incorporate comments and feedback into
recommended program and bring back to
CPOB for approval (if necessary).

In-progress

2. Implement mediation program and
access mediation services such as
the National Conflict Resolution
Center ("NCRC") and NACOLE when
necessary.

2.1 Access mediation services when
necessary.

2.2 Explore collaborating with the NCRC to
provide services through their Community
Mediation Program.

2.3 Schedule item on CPOB agenda for
discussion and approval of program (motion).

In-progress

COMMUNITY POLICE OVERSIGHT BOARD
3 3. Determine effective outreach and
messaging regarding the complaint
process.

Ongoing 3.1 Identify strategies and platforms to utilize.

3.2 Work with City staff to implement
outreach and messaging strategies.

In-progress

4. Review and evaluate outreach and
messaging strategies as necessary.

Ongoing 4.1 Review and evaluate as necessary.

Work Plan Item 5: Develop and recommend community outreach programs regarding policing in La Mesa

1. Develop and recommend, in
conjunction with the LMPD and City,
community outreach programs
regarding policing in La Mesa and
community outreach events to
communicate information or events in
collaboration with or independent of
LMPD designed to encourage safety
and emergency preparedness.

Ongoing 1.1 Create Subcommittee and/or select
CPOB board members to develop and
recommend draft programs.

1.2 Present recommended programs to
CPOB for comments and feedback.

1.3 Incorporate comments and feedback into
recommended program and bring back to
CPOB for approval (if necessary).

Ongoing

2. Identify ideas for LMPD to
participate in activities that bridge the
gap and improve relationships with
people of color.

Ongoing 2.1 Identify strategies and special events.

2.2 Work with LMPD to implement activities.

Ongoing

3. Update and maintain webpage for
CPOB as necessary and develop
PSA and social media outreach.

Ongoing 3.1 Identify materials to be added or updated
on the webpage as necessary (handbook,
forms, bylaws, work plan, etc.).

Ongoing

4. Develop youth internship program
or explore cadet program to provide
youth access to firearm simulator
training and other related trainings.

Ongoing 4.1 Work with LMPD to develop program. Ongoing

5. Explore developing additional
community policing and outreach
programs.

Ongoing 5.1 Explore police officers on bicycles.

5.2 Explore police officers wearing plain
clothes at community events and while
working on school campuses.

5.3 Explore increasing police officer's
interaction at schools (letting the students
talk).

5.4 Explore safety classes for children
(bicycle safety classes, reaching out to help,
etc.).

5.5 Explore informing the community that
police officers are interested in attending
events.

5.6 Explore assisting LMPD training unit with
Implicit Bias training.

Ongoing

6. Work with Communications
Manager to explore additional interagency communications (Fire, Police, Medical).

Communications Manager position
recruitment in late 2022; will initiate once the
position is filled.

On-Hold 2023

COMMUNITY POLICE OVERSIGHT BOARD
4 Work Plan Item 6: Develop and recommend alternative social service and crime-prevention policies and strategies

1. Form a sub-group to study,
develop, and recommend alternative
social service and crime-prevention
policies and strategies to the Chief of
Police, Mayor, City Council, and City
Manager; assess and make
recommendations regarding the role
in public safety of social services,
including those related to mental
health, alcohol and substance abuse,
homelessness, juvenile justice, and
education.

Ongoing 1.1 Orient and educate CPOB regarding
which current social service and crime
prevention policies are currently in place
(Homeless Outreach and Mobile
Engagement "HOME" Program, Mobile Crisis
Response Team "MCRT" for example).

1.2 Create sub-group and/or select CPOB
board members to develop and recommend
policies and strategies.

1.3 Work with non-profit organizations for
referrals for information about general
services for the public.

1.4 Present recommended policies and
strategies to CPOB for comments and
feedback.

1.5 Incorporate comments and feedback into
recommended policies and strategies and
bring back to CPOB for approval (if
necessary).

Ongoing

2. Make recommendations to LMPD
regarding training, policies, and
strategies.

Ongoing 2.1 Schedule item on CPOB agenda for
discussion and approval of social service and
crime-prevention policies and strategies.

Ongoing
Work Plan Item 7: Provide semi-annual and annual reports to La Mesa City Council and City Manager

1. In conjunction with the
Independent Police Auditor, provide
semi-annual public reports to City
Council and City Manager on the
number and types of complaints
reviewed and the CPOB's response,
investigative findings, analysis, and
police progress on CPOB
recommendations.

Ongoing 1.1 Schedule item on CPOB agenda as
needed to discuss, review, and finalize each
six-month public report.

1.2 Determine which two months each fiscal
year to present public report to City Council.

Reports
submitted and
ongoing

2. Draft and issue public reports
regarding policies, procedures,
practices, and training as to regular
operations.

Ongoing 2.1 Reconvene subcommittee for report.

2.2 Schedule item on CPOB agenda as
needed to discuss, review, and finalize each
annual public report.

Ongoing

COMMUNITY POLICE OVERSIGHT BOARD
5 3. Draft and issue public reports
regarding policies, procedures, and
practices as to hiring and promotions.

Ongoing 3.1 Reconvene subcommittee for report.

3.2 Schedule item on CPOB agenda as
needed to discuss, review, and finalize each
annual public report.

Ongoing

4. Draft and issue public reports
regarding policies, procedures,
practices, and training as to internal
investigations of misconduct.

Ongoing 4.1 Reconvene subcommittee for report.

4.2 Schedule item on CPOB agenda as
needed to discuss, review, and finalize each
annual public report.

Ongoing

5. Draft and issue public reports
regarding initial and in-service
trainings in de-escalation techniques,
human relations instruction, and
implicit bias training.

Ongoing 5.1 Reconvene subcommittee for report.

5.2 Schedule item on CPOB agenda as
needed to discuss, review, and finalize each
annual public report.

Ongoing

6. Draft and issue public reports
regarding policies, procedures,
practices, and training as to
community-oriented policing.

Ongoing 6.1 Reconvene subcommittee for report.

6.2 Schedule item on CPOB agenda as
needed to discuss, review, and finalize each
annual public report.

Ongoing

7. Draft and issue public reports
regarding any and all other areas of
policing or LMPD policies,
procedures, practices, and training
that the CPOB finds appropriate to
review.

Ongoing 7.1 Reconvene subcommittee for report.

7.2 Schedule item on CPOB agenda as
needed to discuss, review, and finalize each
annual public report.

Ongoing

COMMUNITY POLICE OVERSIGHT BOARD
6 Work Plan Item 8: Work with the La Mesa Police Department to implement Hillard Heintze After Action Report recommendations

1. Continue to work with LMPD to
implement Hillard Heintze After
Action Report recommendations and
IPA and CPOB recommendations.

Ongoing 1.1 Reconvene ad-hoc group or
subcommittee.

1.2 Receive written information from LMPD
on implemented recommendations.

1.3 Review implemented recommendations
and work with LMPD to implement remaining
After Action Report recommendations.

1.4 Ad-hoc group or subcommittee and
LMPD to report periodically on progress to
CPOB as necessary.

Ongoing

2. Develop a flow chart of mutual aid
response that covers both small and
large scale requests.

Ongoing 2.1 Provide feedback on the
Communications Manager's efforts to
develop an emergency communications plan,
including incorporating a flow chart of mutual
aid support.

Ongoing
Work Plan Item 9: Continue to evaluate LMPD policies and provide ongoing recommendations

1. Evaluate and recommend policies
including use of force, officer training,
de-escalation, employee wellness,
compliance with health and safety
standards, and compliance with the
Racial and Identity Profiling Act
("RIPA").

2. Review recommendations from
the Independent Police Auditor
regarding investigations.

Ongoing 1.1 Reconvene ad-hoc group or
subcommittees.

1.2 Receive written information from LMPD
on implemented recommendations.

1.3 Review implemented recommendations
and work with LMPD to implement remaining
After Action Report recommendations.

Ongoing

2. Adopt policies that promote police
community relations and encourage
the use of new, less lethal
technologies.

Ongoing 2.1. Consider best practices and discuss
community relations initiatives and less lethal
technologies with the Chief of Police.

2.2 Receive presentations and updates from
LMPD regarding implementation of new
policies and community relations initiatives.

Ongoing

COMMUNITY POLICE OVERSIGHT BOARD
7 Work Plan Item 10: Continue working with the Chief of Police to engage in LMPD hiring process when possible and offer recommendations regarding the hiring process, exams, and the interview process

1. Continue working with the Chief of
Police to engage in LMPD hiring
process when possible and offer
recommendations regarding the
hiring process, exams, and the
interview process.

Ongoing 1.1 Invite CPOB members to participate in
the oral interviews for LMPD applicants.

1.2 Seek to obtain demographic data on
applicants that pass or fail various testing
elements: written exam, oral interview,
physical abilities test, background
investigation, psychological examination, and
medical examination.

1.3 Provide oral interview questions to the
CPOB for review and input.

1.4 Conduct full review of "automatic" and
"potentially disqualifying" background issues.

Consider adding automatic disqualifiers such
as posting hate speech on social media or
conducting themselves inappropriately or in a
manner that discredits the profession, on
social media or otherwise.

1.5 Research the various options available
that satisfy the P.O.S.T. requirements for the
psychological exam.

1.6 Research innovative ways to target a
diverse applicant pool.

1.7 Reach out to Administration of Justice
programs at Grossmont College and
Southwestern College to see if there are any
roles (instructor, guest lecturer, career fairs)
that LMPD personnel can assist with.

1.8 Research possibility of re-instituting an
Explorer/Cadet program.

CPOB
participated in
recruitments;
ongoing efforts
Work Plan Item 11: Collaborate with the IPA to review audits of LMPD investigations

1. Collaborate with the IPA to review
audits of LMPD investigations.

Ongoing 1.1 Begin review of audits of LMPD
investigations with the IPA only after policies
and procedures are approved by City
Council.

Completed;
audits ongoing

2.30.010 – Creation and purpose.
(a) There is hereby permanently created the community police oversight board (hereinafter referred to as the "CPOB"). The purpose of the CPOB is to advise the chief of police, mayor, city council, and city manager on the administration of the La Mesa Police Department and on matters of public safety within the city.

COMMUNITY POLICE OVERSIGHT BOARD
8 (b) The CPOB shall function as a means of community participation and oversight by directing and reviewing audits, and by reviewing and recommending policies, practices and programs designed to bring about community policing that is sensitive, effective, and responsive to the needs of the city and its residents.(c)The CPOB shall promote and encourage open communication and cooperation between the La Mesa Police Department and residents of the city, recognizing that policing the City of La Mesa is a shared responsibility. The CPOB shall also develop and make recommendations directed toward informing the community of its rights and responsibilities when coming into contact with police officers.

ENVIRONMENTAL SUSTAINABILITY COMMISSION
1 Work Plan
2023
Goals should be consistent with the City’s goals:
• Safe Community
• Maintain a Financially Sound and Affordable City Government • Continue to Improve High Quality Municipal Services
• Revitalize Neighborhoods and Corridors
• Enhanced Recreation and Quality of Life Opportunities • Ensure Safe and Affordable Homes for All Current and Future Residents • Foster community health by reducing greenhouse gas emissions and improving environmental quality
Staffing Department: Public Works Department – Environmental Services Division

GOALS DUE
DATE

TRACKING MILESTONES STATUS

1. Support City
staff on the
Climate Action
Plan (CAP)
Update
Ongoing 1.1. Support staff and assist facilitating community outreach activities (e.g., workshops, surveys, tabling) in support of the CAP Update.

1.2. Work with City staff and consultant to advise in the development of community feedback mechanisms
from diverse community groups.

1.3. Create and administer an ad-hoc subcommittee to
communicate community and ESC suggestions
throughout the development of the CAP Update.

In
progress

2. Support the
City’s
implementation
of CAP
Measures
Ongoing 2.1. In response to the City’s declared Climate Emergency, support City staff in the development and
implementation of new and urgent GHG reduction
actions that go beyond existing measures identified in
the CAP.

2.2. Support City staff in implementing the
recommendations identified in the Urban Forest
Management Plan (CAP Measures GI-1 and GI-2)

2.3. Support City staff with the development of waste
reduction programs, including:
a. Analyze data collected at Citywide Community
Litter Cleanup Program events to identify
common litter types, sources, and/or areas of
cleanup focus (CAP Measure SW-3).
b. Conduct a waste characterization study at
local schools and expand recycling programs
at local schools (CAP Measure SW-3).

2.4. Support City staff in the development and
implementation of transportation programs and
projects to increase active transportation modes and
reduce emissions, including;
a. Conduct outreach to inform residents of
bicycle infrastructure projects and gather
community input on facilities (CAP Measures
T-1 and T2)
In
progress

ENVIRONMENTAL SUSTAINABILITY COMMISSION
2 b. Advise City staff on the development of a
citywide mode share study (CAP Measures T3 and T-4)
c. Conduct outreach to gather community input
on electric vehicles (EVs) and infrastructure
and equipment, educate community members
about EVs, and support the pursuit of funding
to install new EV infrastructure and equipment
in the City (CAP Measure T-5)
d. Continue partnerships with local schools to
develop programs to reduce vehicle idling on
school grounds and surrounding businesses
and support City-staff exploration of program
expansion.

3. Lead
communityoriented
educational
efforts to
increase CAP
and
sustainability
awareness and
knowledge
Ongoing 3.1. Host an Energy-focused workshop in partnership with local energy providers (e.g., SDCP, SDG&E) to share
information on renewable energy, battery storage, and
incentive programs (CAP Measures E-9, E-5, E-6).

3.2. Host a Water and Wastewater—focused workshop to
share information on water efficient landscaping in
partnership with Helix Water District (CAP Measures
W-1 and W-2)

3.3. Host a Solid Waste—focused workshop on organics
recycling and edible food recovery outreach to
residents and businesses in partnership with EDCO
(SW-1 and SW-3).

3.4. Support continued outreach for the La Mesa Green
Business Network to encourage enrollment in the
certification program and host outreach events on
green business initiatives and best practices.

In
progress

4. Continue
advancement
of Building
Electrification
(BE)
Ongoing 4.1. As directed by City Council on July 26, 2022, support Staff to provide a recommendation of an ordinance
making all new dwellings in La Mesa be not only
energy efficient but carbon free (i.e., be completely
electric with no natural gas) and return to the Council with recommendations as soon as feasibly possible.

4.2. With the support of City staff, host virtual and in person public workshops to share information on building
electrification and gather public input on a
recommendation for a draft ordinance.

4.3. Subject to City Council direction, assist City staff with the process to get the ordinance approved by the
California Energy and Building Standards
Commissions.

4.4. Subject to approval of the proposed ordinance by City Council, continue to monitor results and provide
recommendations for updating the ordinance every 3
years (aligned with Title 24 and CEC). Explore the next phase: decarbonization of new nonresidential and
existing buildings.

In
progress

MOBILITY COMMISSION
1 Work Plan
2023
Goals should be consistent with the City’s goals:
• Safe Community
• Maintain a Financially Sound and Affordable City Government • Continue to Improve High Quality Municipal Services
• Revitalize Neighborhoods and Corridors
• Enhanced Recreation and Quality of Life Opportunities • Effective and Efficient Traffic Circulation and Transportation • Ensure Safe and Affordable Homes for All Current and Future Residents • Foster community health by reducing greenhouse gas emissions and improving environmental quality
Staffing Department: Public Works Department – Traffic Engineering Section

GOALS DUE DATE TRACKING MILESTONES STATUS

1. Continuation of the Neighborhood
Traffic Management Program
implementation and program
adjustments
Annual
a. Prepare and present draft annual
report to Mobility Commission for
approval prior to City Council.
b. Staff to recommend program
adjustments as needed
2a. Vision Zero policy
implementation and monitoring,
support with CAP measure T1
Annual
a. Work with staff to identify and
recommend potential Capital
Improvements Projects to City
Council for budgetary
consideration
2b. Climate Action Plan in support
of CAP Measure T1, E4A, and E4B Annual
a. Work with staff to identify and
recommend potential Capital
Improvements Projects to City
Council for budgetary
consideration
2c. Transportation Demand
Management and Parking Demand
Management in support of CAP
Measure T3 and T4
Annual
b. Work with staff to develop
transportation demand
management and parking
demand management policies for
city council consideration

3. Commissioners to attend mobility
related public meetings on a
rotating basis.

Ongoing

4. Commissioners to attend
continuing education as available
and/or provide updates at meetings.

Ongoing

COMMUNITY PARKING COMMISSION
1 Work Plan
2023
Goals should be consistent with the City’s goals:
• Safe Community
• Maintain a Financially Sound and Affordable City Government • Continue to Improve High Quality Municipal Services
• Revitalize Neighborhoods and Corridors
• Enhanced Recreation and Quality of Life Opportunities • Ensure Safe and Affordable Homes for All Current and Future Residents • Foster community health by reducing greenhouse gas emissions and improving environmental quality
Staffing Department: City Manager’s Office

GOALS DUE DATE

TRACKING

MILESTONES STATUS

1. Lemon Ave. Parking Lot
Improvement Project (including
installation of public EV charging
stations)
*Supports CAP Measure(s):

E-4: Public Lighting
T-1: Bicycle Infrastructure
Development
T-3: Transportation Demand
Management
T-5: Alternative Refueling
Infrastructure Development
GI-1: Urban Forest Master Plan
Near-term Design work on trash
enclosure complete; bid
documents being
prepared
Anticipated to go out to
bid in February/March
2023

2. Allison Ave. Parking Lot
Improvement Project
*Supports CAP Measure(s):

E-4: Public Lighting
T-1: Bicycle Infrastructure
Development
T-3: Transportation Demand
Management
T-5: Alternative Refueling
Infrastructure Development
GI-1: Urban Forest Master Plan
End of FY22-23 Make recommendation
to Council
Develop scope of work
Identify Fund 206
funding after ARPA
reimbursement

3. Parking survey
*Supports CAP Measure(s):

T-3: Transportation Demand
Management
Annual Field Counts Counts in May 2023
Present in July 2023

4. Repair & Maintenance of
Parking Lots
*Supports CAP Measure(s):

Near-term Complete assessment
of asphalt condition for
all municipal lots
Complete by June
2023

COMMUNITY PARKING COMMISSION
2 T-1: Bicycle Infrastructure
Development

5. Research new parking
management technology to
replace coin-only meters and
possibly smart meters on-street
and in municipal lots
*Supports CAP Measure(s):

T-3: Transportation Demand
Management
Near-term Research technology
options; make
recommendation to
Council

6. Review of Parking Meter and
Parking Permit Pricing
*Supports CAP Measure(s):

T-3 Transportation Demand
Management
Near-term Preliminary review
complete; formal
review 2023.

7. Research & Evaluation of EV
Charging Stations
*Supports CAP Measure(s):

T-3: Transportation Demand
Management
T-5: Alternative Refueling
Infrastructure Development
Near-term Site(s) Selection Onboard
Environmental
Program Manager to
assist
La Mesa Municipal Code

2.80.080 - Powers and duties.

The La Mesa community parking commission shall exercise the powers and duties as provided in this title. In addition, the commission may consider other parking issues as directed by the city council of the city of La Mesa and as set forth within the organization, rules, and procedures of the La Mesa Community Parking Commission.

DATE: February 28, 2023
TO: Mayor and Members of the City Council
FROM: Tammi Royales, Director of Finance
VIA: Greg Humora, City Manager
SUBJECT: Budget Monitoring Report Q2FY23
Please see the attached 2022-2023 Budget Monitoring Report for the quarter ending December 31, 2022.

2022-2023 Budget Monitoring Report
Quarter Ending December 31, 2022
E:\Budget Monitoring Reports-Presentations\2022-2023\2022-2023 Q2 BMR.docx

CITY OF LA MESA PAGE 1
BUDGET MONITORING REPORT QUARTER ENDING DECEMBER 31, 2022 The Finance Department produces the quarterly Budget Monitoring Report using month-end financial information from the City’s financial system, input from staff in City departments, and relevant information from local, regional, and national sources (e.g., newspapers, economists, League of California Cities, etc.).

If you are new to this report, we suggest that you start by first reviewing the Reader’s Guide located at the end of the document for information on the organization and layout of the report.

Please contact Tammi Royales at (619) 667-1122 if you have any questions, comments, or suggestions.

Table of Contents
Page
Executive Summary................................................................................................... 2 Resources .................................................................................................................. 7 Appropriations........................................................................................................... 8 Reserves..................................................................................................................... 9 Reader’s Guide .......................................................................................................... 10

CITY OF LA MESA PAGE 2
BUDGET MONITORING REPORT QUARTER ENDING DECEMBER 31, 2022

EXECUTIVE SUMMARY
This Budget Monitoring Report details and analyzes economic indicators and forecasts based on certain assumptions and published projections through the quarter ending December 31, 2022.

The overall economy remains uncertain. There are recessionary indicators but unemployment remains historically low. The following indicators help provide a picture in time.

NATIONAL ECONOMIC INDICATORS AND FORECASTS
U.S. Leading Economic Index
The Conference Board Leading Economic Index® (LEI) for the U.S. decreased by 1.0 percent in December 2022 to 110.5 (2016=100), following a decline of 1.1 percent in November. The LEI is now down 4.2 percent over the six-month period between June and December 2022—a much steeper rate of decline than its 1.9 percent contraction over the previous six-month period (December 2021–June 2022).
“The US LEI fell sharply again in December—continuing to signal recession for the US economy in the near term,” said Ataman Ozyildirim, Senior Director, Economics, at The Conference Board. “There was widespread weakness among leading indicators in December, indicating deteriorating conditions for labor markets, manufacturing, housing construction, and financial markets in the months ahead. Meanwhile, the coincident economic index (CEI) has not weakened in the same fashion as the LEI because labor market related indicators (employment and personal income) remain robust. Overall economic activity is likely to turn negative in the coming quarters before picking up again in the final quarter of 2023.”

CITY OF LA MESA PAGE 3
BUDGET MONITORING REPORT QUARTER ENDING DECEMBER 31, 2022 Consumer Price Index
The Consumer Price Index for All Urban
Consumers (CPI-U) declined 0.1 percent in
December on a seasonally adjusted basis,
after increasing 0.1 percent in November,
the U.S. Bureau of Labor Statistics
reported in January. Over the last 12
months, the all items index increased 6.5
percent before seasonal adjustment.

The index for gasoline was by far the
largest contributor to the monthly all items
decrease, more than offsetting increases in
shelter indexes. The food index increased

0.3 percent over the month with the food at home index rising 0.2 percent. The energy index decreased 4.5 percent over the month as the gasoline index declined; other major energy component indexes increased over the month.

The index for all items less food and energy rose 0.3 percent in December, after rising 0.2 percent in November. Indexes which increased in December include the shelter, household furnishings and operations, motor vehicle insurance, recreation, and apparel indexes. The indexes for used cars and trucks, and airline fares were among those that decreased over the month.

The all items index increased 6.5 percent for the 12 months ending December; this was the smallest 12-month increase since the period ending October 2021. The all items less food and energy index rose 5.7 percent over the last 12 months. The energy index increased 7.3 percent for the 12 months ending December, and the food index increased 10.4 percent over the last year; all of these increases were smaller than for the 12-month period ending November.

Municipal Cost Index
The Municipal Cost Index (MCI)
decreased 0.5 percent in December after
decreasing 0.1 percent in November and

0.2 percent in October. Overall, the MCI
has increased 6.5 percent over the past
twelve months. The MCI reflects the
impact of the costs of labor, materials
and contract services on the actual
inflation experienced by the City. These
costs are all factored into the composite
MCI. Major indicators of these items used
for the MCI include the Consumer Price
Index, the Producer Price Index and the
construction cost indexes published by
the U.S. Department of Commerce.

CITY OF LA MESA PAGE 4
BUDGET MONITORING REPORT QUARTER ENDING DECEMBER 31, 2022 U.S. Unemployment Rate
Total nonfarm payroll employment
increased by 223,000 in December, and
the unemployment rate edged down to 3.5
percent, the U.S. Bureau of Labor Statistics
reported today. Notable job gains occurred
in leisure and hospitality, health care,
construction, and social assistance. The
unemployment rate edged down to 3.5
percent in December and has remained in
a narrow range of 3.5 percent to 3.7
percent since March. The number of
unemployed persons edged down to 5.7
million in December. These measures
have shown little net change since early 2022. These measures are each 1.0 percentage point below their values in February 2020, prior to the coronavirus (COVID-19) pandemic. The number of long-term unemployed (those jobless for 27 weeks or more) declined by 146,000 to 1.1 million in December. This measure is down from 2.0 million a year earlier. The long-term unemployed accounted for 18.5 percent of all unemployed persons.

Federal Funds Rate (Discount Rate)
A recent statement issued by the Federal Open Market Committee (FOMC) indicators point to modest growth in spending and production. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures. Russia’s war against Ukraine is causing tremendous human and economic hardship.

The war and related events are creating additional upward pressure on inflation and are weighing on global economic activity. The Committee decided to raise the target range for the federal funds rate to 4-1/4 to 4-1/2 percent.

STATE AND LOCAL ECONOMIC INDICATORS AND FORECASTS
State and Local Unemployment
The state unemployment rate increased from

3.8 percent in October to 4.0 percent in
November before declining to 3.7 percent in
December. The County of San Diego and the
City of La Mesa unemployment rates increased
from 3.1 percent and 3.2 percent respectively
in October to 3.3 percent and 3.3 percent
respectively in November before each
decreasing to 2.9 percent and 2.9 percent
respectively in December.

CITY OF LA MESA PAGE 5
BUDGET MONITORING REPORT QUARTER ENDING DECEMBER 31, 2022 Total nonfarm employment in California
expanded modestly in the latest
numbers, with total nonfarm
employment in the state growing by just
16,200 positions during December,
according to an analysis released jointly
with the UCR School of Business
Center for Economic Forecasting and
Development. November’s gains were
also revised down to 19,900 in the latest
numbers, a 6,900 decrease from the
preliminary estimate of 26,800.
“During the year, California’s employers added jobs more quickly than was the case in the national economy, but labor shortages in the state dampened job growth towards the end of the year and will continue to be a drag on job growth in 2023,” said Taner Osman, Research Manager at Beacon Economics and the Center for Economic Forecasting.

Overall, California added jobs at a healthy pace in 2021 and 2022. As of December 2022, the state had recovered all of the jobs that were lost in March and April 2020 at the pandemic’s outset, and there are now 70,000 more people employed in California compared to February 2020. Over this time, total nonfarm employment in the state has grown 0.4% compared to a 0.8% increase nationally. California’s economy increased payrolls by 3.6% from December 2021 to December 2022, outpacing the 3.0% increase nationally over the same period.

Local Economic Outlook
The unemployment rate is projected to drop to around 2.8% in the first quarter of 2023 before experiencing a slight uptick to 3.1% by the end of 2023 as Federal Reserve interest rate hikes cool down economic growth. Adding to this, the unemployment rate is expected to increase slightly due to a greater number of residents joining the labor market, which changes the calculations. In fact, recent labor market gains portend this trend; in November, San Diego’s labor force grew by 3,600 (0.2%) according to San Diego Workforce Partnership.

The housing market is showing signs of weakness, driven by a slowdown in sales activity, which in turn is being led by higher long-term mortgage rates and rapidly rising short-term interest rates as the Federal Reserve tries to cool inflation. Accordingly, Beacon Economics is forecasting a modest housing price correction in its forecast as higher interest rates cool housing purchases.

Additionally, an already prohibitively high price level in San Diego is spurring many would-be buyers to search in more affordable markets in the inland parts of the state. Beacon Economics expects median year-over-year home price growth in the San Diego region of 2.7% in the fourth quarter of 2022, but then declining through 2023.

CITY OF LA MESA PAGE 6
BUDGET MONITORING REPORT QUARTER ENDING DECEMBER 31, 2022 Local Sales Tax Allocations
La Mesa’s receipts from July through
September were 10.7 percent above
the second sales period in 2022. The
regional economy continued to show
strength during the second three
months of the year. The City’s largest
sales tax group, general consumer
goods, jumped 7.8 percent. The
largest gain was in Building and
Construction, which grew 34.4 percent
from the same time period last year.

The City’s allocations from the
countywide use tax pool grew 2.2 percent. The pools remain a solid source of local revenue, bolstered by taxes on e-commerce.

Restaurants and hotels continue to see business growth as sales tax revenues grew by 5.2 percent. Cannabis revenues lifted the food-drug group; and higher local gas prices and increased travel pushed up receipts service station receipts, but not as significant as last quarter. We expect to see this category decrease in the coming months.

Voter approved Measure L also posted stellar results supported by building and construction, autos and transportation, food and drugs, and general consumer goods.

STATE BUDGET
As the State prepares its Fiscal Year 2023-2024 budget, the Governor announced earlier this month that due to shortfalls in tax revenue, significant cuts will be made to the Fiscal Year 2023- 2024 budget. While various cuts were made, the proposed budget does not include any mention of redirecting local agency funds to help address state budget shortfalls.

Some of the significant allocations include continued funding for homelessness, low-income housing, organic waste recycling programs, water and electricity relief, and wildfire response.

Some of the programs that will have funding reduced will affect parks and open space, library investment, zero emission vehicles, and transportation programs.

Staff will continue to closely monitor the State’s budget situation and review any actions by the legislature that might significantly impact the budget including any applicable grants in line with the City’s objectives.

CITY OF LA MESA PAGE 7
BUDGET MONITORING REPORT QUARTER ENDING DECEMBER 31, 2022

GENERAL FUND SUMMARY
General Fund Resources
General Fund revenues received through the first quarter of fiscal year 2022-2023 are in line with budget expectations at 27.3 percent. The General Fund’s major revenue sources, property tax and sales tax (both base sales & use tax and Proposition L transaction tax) are not received at regular intervals throughout the fiscal year, but rather towards the middle and end of the fiscal year with a final accrual received and recorded in mid-August. For this reason, revenue streams received from these sources through the first quarter of the fiscal year will not equate to 25 percent of the total annual revenues that are eventually received.  Property tax was received in January and will be reflected in the next quarter.  Overall, total general fund revenues are meeting budgetary expectations for the fiscal year but came in higher when compared to the same period last fiscal year.

General Fund Resources
Through 50% of Fiscal Year
2022 - 2023
Budget¹
YTD Collected
(unaudited)
% of
Budget
Collected
YTD Collected
(unaudited)
% of
Budget
Collected
Revenues:

Taxes
Property Tax $ 16,937,640.00 $ 814,000.00 4.8% $ 3,555,335.00 21.0% Former Tax Increment (RDA) 421,200.00 - 0.0% - 0.0%
Sales 17,000,000.00 5,567,335.00 32.7% 5,430,634.00 31.9% Proposition L 12,100,000.00 4,049,045.00 33.5% 3,890,028.00 32.1% Cannabis Business Tax 2,000,000.00 648,440.00 32.4% 629,612.00 31.5% Other 3,207,680.00 996,826.00 31.1% 963,863.00 30.0%
Subtotal Taxes $ 51,666,520.00 12,075,646.00 23.4% 14,469,472.00 28.0% Licenses & permits $ 1,608,400.00 $ 740,220.00 46.0% $ 972,584.00 60.5% Fines, forfeitures & penalties 433,000.00 92,430.00 21.3% 148,620.00 34.3% Use of money and property 1,766,140.00 550,970.00 31.2% 625,176.00 35.4% Revenue from other agencies 1,479,650.00 513,690.00 34.7% 750,382.00 50.7% Service charges 2,374,120.00 1,296,510.00 54.6% 1,017,750.00 42.9% Other revenue 3,280,000.00 (94,400.00) -2.9% 90,938.00 2.8% Total Revenues $ 62,607,830.00 15,175,066.00 24.2% 18,074,922.00 6.0% Other financing sources:

Interfund transfers in 3,090,200.00 888,410.00 28.7% 1,222,160.00 40% Interfund transfers out (2,448,450.00) (556,250.00) 22.7% (529,900.00) 22% Total other financing sources 641,750.00 332,160.00 51.8% 692,260.00 108% Plus: Fund Balance at July 1 36,598,856.00 39,777,922.00 92% 36,580,133.00 100% Total resources $ 99,848,436.00 $ 55,285,148.00 55% $ 55,347,315.00 55% ¹ Budget reflects any amendments approved by the City Council through end of the quarter Current Fiscal Tear Prior Year Comparison

CITY OF LA MESA PAGE 8
BUDGET MONITORING REPORT QUARTER ENDING DECEMBER 31, 2022  Sales tax revenues received through the first quarter FY23 are meeting budgetary expectations and are above when compared to the same time last year  Proposition L sales tax revenues are meeting budgetary expectations and, consistent with base sales tax, are above the same time last fiscal year. Proposition L sales tax collections have a somewhat different base than the base sales tax collections. These collections include point-of-sale transactions that occur within the City limits of La Mesa. Proposition L sales tax collections also include transactions that take place outside the City if the items are being delivered into the City (e.g., furniture or large appliances) and autos and other large vehicles purchased that are being registered in La Mesa.  Cannabis Tax continues to exceed expectations but forecasted to flatten as more cities allow sales of cannabis that will compete with local La Mesa shops.  Other General Fund revenues, including licenses and permits, mostly due to building permit fees; revenue from other agencies, and service charge revenue from recreation classes and engineering fees are within budgetary expectations.  Unrestricted Proposition L proceeds are being utilized to pay for ongoing vital City services that otherwise would have been reduced. As the economy recovers and ongoing revenues begin to stabilize, Proposition L proceeds are being used to preserve General Fund reserve levels.

General Fund Appropriations

CITY OF LA MESA PAGE 9
BUDGET MONITORING REPORT QUARTER ENDING DECEMBER 31, 2022  Most departments are slightly below expectations through 50 percent of the fiscal year.  Departments that are higher than budgeted are due to the carry forward and encumbrance of prior year obligations and the payment of full fiscal year appropriations for some specialized services such as street sweeping.

General Fund Reserves
The estimated available reserves for the current fiscal year 2022-2023 are $36,826,970.

The City Council’s reserve policies formally establish two General Fund reserve targets: a Rainy Day Reserve target of 15 percent and an additional Cash Flow Reserve target of 25 percent.

Because of the additional Proposition L Sales Tax revenues, a projected small but steady recovery of base sales and property taxes, and continued cost containment measures by departments, the General Fund reserves are projected to meet both the 15 percent Rainy Day Reserve target and the additional Cash Flow Reserve target of 25 percent in fiscal year 2022- 2023.

CONCLUSIONS
Talk of a recession continues. Data markers such as job gains, production and retail sales are still indicating growth. The Fed has hiked fund rates by 300 basis points and 10-year bond yields are at 4%, which is twice the level since the beginning of 2022. Vulnerabilities in Europe as the war in Ukraine continues, China’s housing market problems, and the continued impact on the global food supply chain may have a negative impact on the U.S. Only time will tell if we enter a recession as a soft landing or hard crash. For now, the overall General Fund expenditures continue to be within budgetary expectations as we assumed market increases. Finally, projected General Fund reserves remain consistent with the Council’s reserve policies.

CITY OF LA MESA PAGE 10
BUDGET MONITORING REPORT QUARTER ENDING DECEMBER 31, 2022 READER’S GUIDE
Managing a municipality the size of La Mesa is, in many ways, like managing a for profit corporation. Instead of focusing upon bottom-line profits, La Mesa managers must skillfully steward public dollars and ensure the effectiveness and efficiency of the City’s operations. They must live within legislatively approved budgets that are reviewed by residents, business leaders, and others interested in the City.

Like private corporations, public entities report their financial condition on a regular basis.

Corporations make reports to stockholders while public entities report to their “stakeholders” -- the individuals and organizations that have a “stake” in the entity’s operations.

In addition to an annual financial report and biennial budget document, the City of La Mesa publishes a quarterly Budget Monitoring Report to provide stakeholders with current information about the City’s financial condition and performance in the essential areas of the City’s operations.

This report is designed to give the reader a sense of how well La Mesa is doing fiscally and what its current successes or challenges might be. It includes a high level overview of the City’s financial condition followed by more detailed information on resources and expenditures for those readers who are interested in going beyond the bottom line.

This Reader’s Guide has been developed to assist you in reviewing the City of La Mesa’s quarterly Budget Monitoring Report. It highlights the type of information contained in each section and presents a glossary of commonly used budget terms.

Please contact Tammi Royales at 619.667.1122 if you have any questions, comments, or suggestions.

CITY OF LA MESA PAGE 11
BUDGET MONITORING REPORT QUARTER ENDING DECEMBER 31, 2022

QUARTERLY BUDGET MONITORING REPORT ORGANIZATION
Executive Summary – A broad level overview of the City of La Mesa’s current financial condition.

It begins with comments on the economy, followed by a summary financial table and graph along with any comments highlighting resources and expenditures.

Resources – A more detailed discussion of revenue collections and other resources supporting the City’s expenditures. Included in the discussion is a financial table showing the current year’s budget, year-to-date collections, and calculated percent of budget collected. The discussion also includes comments on the significant factors and conditions affecting these items.

Appropriations – A more detailed discussion of expenditures and reserves. Included in the discussion is a financial table showing the current year’s budget by department, year-to-date expenditures, and calculated percent of budget expended. The discussion also includes comments on the significant factors and conditions affecting these items.

Reserves - Commentary on estimated ending fund balance and its relationship to reserve targets.

Included is a table displaying historical ending fund balance related to reserve targets.

FUNDS NOT REPORTED ON
This report focuses on the General Fund which provides the majority of government services.

Other funds have been excluded from this report.

GLOSSARY
The following are definitions of some of the more common terms one may encounter in reviewing this document.

Accrual Basis – The basis of accounting under which revenues are recorded when they are earned and expenditures are recorded when they result in liabilities for benefits received.

Accrued Revenue – Revenue earned during the current accounting period but which is not collected until a subsequent accounting period.

Appropriation – Amount authorized for expenditure by the City Council.

Beginning Fund Balance – An account used to record resources available for expenditure in one fiscal year because of revenues collected in excess of the budget and/or expenditures less than the budget in the prior fiscal year.

Budget - A financial operating plan for a given period which displays the expenditures to provide services or to accomplish a purpose during that period together with the estimated sources of revenue (income) to pay for those expenditures. Once the fund totals shown in the budget are appropriated by the City Council, they become maximum spending limits.

CITY OF LA MESA PAGE 12
BUDGET MONITORING REPORT QUARTER ENDING DECEMBER 31, 2022 Ending Fund Balance - An account used to record resources available at year end as a result of revenues collected in excess of the budget and/or expenditures less than the budget during the fiscal year. The City’s operating reserves are budgeted in the General Fund ending fund balance.

Expenditure – The payment for City obligations, goods, and services.

Fiscal Year – A twelve-month period designated as the operating year for accounting and budgeting purposes. The City of La Mesa’s fiscal year is July 1 through June 30.

Fund - Governmental accounting systems are organized and operated on a fund basis. A fund is an independent financial and accounting entity with a self-balancing set of accounts in which financial transactions relating to revenues, expenditures, assets, and liabilities are recorded.

Funds are established to account for the use of restricted revenue sources and, normally, to carry on specific activities or pursue specific objectives.

General Fund – The financial and accounting entity that comprises typical operations of a municipality such as police, fire, public works, and other departments.

Grants – A contribution by a government or other organization to support a particular function.

Grants may be classified as either operational or capital, depending upon the grantor.

M&O (Maintenance and Operating) Costs – Expenditure category that represents amounts paid for supplies and other services and charges.

Proposition L – The La Mesa Vital City Services Measure which was passed by voters on November 4, 2008 authorizing a ¾ cent local transactions and use tax (commonly referred to as a sales tax). This general purpose tax became effective on April 1, 2009.

Reserve – An account used either to set aside budgeted revenues that are not required for expenditure in the current budget or to earmark revenues for a specific future purpose.

Resources - Total dollars available for appropriation, including estimated revenues, interfund transfers, and beginning fund balances.

Revenue - Sources of income received during the fiscal year, operating transfers from other funds, and other financing sources such as the proceeds derived from the sale of fixed assets.

Revenues from Other Agencies – Funds received from federal, state, and other local government sources in the form of grants, shared revenues, and payments in lieu of taxes.

Taxes – Compulsory charges levied by a government for financing services performed for the common benefit of the people. This term does not include specific charges made against particular persons or property for current or permanent benefit, such as special assessments.

Trust Funds – Funds used to account for assets held by a government in a trustee capacity for individuals, private organizations, other governments, and/or other funds. Examples are pension trust funds, nonexpendable trust funds, and expendable trust funds.

DATE: February 28, 2023
TO: Mayor and Members of the City Council
FROM: Matt Strabone, City Treasurer
VIA: Greg Humora, City Manager
SUBJECT: Treasurer’s Quarterly Report
See attached Treasurer’s Report.

REPORT to the MAYOR and MEMBERS of the CITY COUNCIL
From the CITY MANAGER
DATE: February 28, 2023
SUBJECT: Treasurer’s Report for the Quarter Ended
December 31, 2022
ISSUING DEPARTMENT: Finance Department – City Treasurer

SUMMARY
PORTFOLIO VALUE:

The City’s portfolio ended the quarter with a market value of $70,442,191.75. This represents a discount of $3,492,179.25 from par value, or purchase price. As the City maintains an Investment Policy that follows a strict “buy and hold” strategy, there is no economic gain or loss upon call or maturity. The City’s securities continue to earn interest at the stated rates through the dates of redemption.

LIQUIDITY:

Liquidity meets the statutory requirements with $23,592,501 in LAIF for immediate availability. “LAIF” stands for Local Agency Investment Fund, and is operated by the California State Treasurer to act as an immediate-access account for local governments and special districts in California.

EARNINGS:

Investment earnings for the fiscal year to date, from July 1, 2022, through December 31, 2022, total $492,048, and the per annum rate on investment earnings during that period is 1.38%.

Report to Mayor and Councilmembers
Date: February 28, 2023
Page: 2 of 5
City’s Strategic Goal
To maintain a financially sound and affordable
city government
SAFETY
Federal Agencies
• Carries the implied guarantee of the United States government Corporate Securities
• The City’s Investment Policy requires ratings of Double A (AA) or better Certificates of Deposit
• Guaranteed by the FDIC to $250,000
Local Agency Investment Fund (LAIF)
• Managed by the California State Treasurer; consists primarily of U.S. Treasuries, government agency bonds, and other short-term investments.

LIQUIDITY
LAIF balance of $23,592,501 represents the City’s immediate cash and is 31.9% of the portfolio. Additionally, as investments mature, they can be reinvested at then-current rates or redeemed to provide additional operating cash. The invested portfolio of government agency bonds, corporate securities, and certificates of deposit has an average maturity of 3.13 years with $4,959,000 maturing within one year for added liquidity.

EARNINGS
The earnings and yields over the last five quarters are as follows:
6 Months
Ended
9 Months
Ended
12 Months
Ended
3 Months
Ended
6 Months
Ended
12/31/2021 3/31/2022 6/30/2022 9/30/2022 12/30/2022
Avg YTD
Balance $58,629,022 $62,965,276 $67,750,836
New
$70,953,572 $71,451,088
Quarterly
Earnings $132,285 $143,366 $250,451
Fiscal
$365,378 $126,670
YTD
Earnings $315,131 $458,497 $688,948 Year $365,378 $492,048 YTD Yield 1.07% 0.97% 1.02% Begins2.06% 1.38%

Report to Mayor and Councilmembers
Date: February 28, 2023
Page: 3 of 5

PORTFOLIO PROFILE
To achieve the City’s strategic goal, the City’s primary investment objectives, in order of priority, are: Safety, Liquidity, and Earnings. Key to each of these objectives is a well-diversified portfolio that minimizes credit and interest rate risk and provides necessary liquidity. The City’s portfolio is designed to meet these objectives as summarized in the following table which is presented at par values. This table represents the City’s holdings as of December 31, 2022:

Maturity Gov. Corporate Certificates Total % of
(Years) Agencies Securities of Deposit LAIF 9/30/2022 Portfolio 0 – 1 $ 500,000 $ -0- $ 3,466,000 $ 23,592,501 $ 27,558,501 37.3 % 1 – 2 1,000,000 500,000 2,975,000 - 4,475,000 6.0 %
2 – 3 7,000,000 - 2,464,000 - 9,464,000 12.8 %
3 - 4 11,000,000 1,000,000 1,737,000 - 13,737,000 18.6 % 4 – 5 15,000,000 - 3,714,000 - 18,714,000 25.3 %
Totals $ 34,500,000 $ 1,500,000 $ 14,356,000 $ 23,592,501 $ 73,948,501 100.0 % Portfolio % 46.7 % 2.0 % 19.4 % 31.9 % 100.00 %
Earnings
Rate 2.15 % 1.92 % 2.29 % 2.07 % 2.15 %
Weighted
Average
Maturity 3.53 yrs. 2.84 yrs. 2.28 yrs. n/a 3.15 yrs.

Report to Mayor and Councilmembers
Date: February 28, 2023
Page: 4 of 5

PORTFOLIO ACTIVITY
During the quarter, the City purchased one government agency bond and two certificates of deposit. Four certificates of deposit matured. No other holdings in the City’s portfolio matured, were called, or were purchased.

Maturity Rate Par Value
Government Agency Bonds Purchased:

FHLMC (callable) 5 year 5.02 % $ 1,000,000
Certificates of Deposit Purchased:

Synchrony Bank 5 year 4.60 % $ 244,000
Direct Federal Credit Union 5 year 4.80 % $ 248,000
Certificates of Deposit Matured:

Mountain America Credit Union 5 year 2.30 % $ 249,000
Jefferson Financial Federal Credit Union 5 year 2.45 % $ 246,000 Knoxville Employees Cr Union 5 year 2.30 % $ 249,000
First Internet Bk of IN 5 year 2.40 % $ 249,000

Report to Mayor and Councilmembers
Date: February 28, 2023
Page: 5 of 5

PORTFOLIO COMPLIANCE
The portfolio complies with California code sections concerning safety and liquidity in the investment of public funds. Investment strategies are based on liquidity requirements and interest rate projections and have been collaboratively determined by the City Treasurer, City Manager, and Director of Finance. The City Treasurer executes trades in accordance with these strategies.

Required Contents of Investment Reports
California Government Code Section 53646(b) suggests that the quarterly investment report of a local agency contain certain items. These items include the type of investment, the issuer’s name, the date of maturity of the security, the par amount of the instrument, the market value, and the dollar amount invested in each security. The source of the market value also should be included in the report. The report also must reference all funds that are under the management of external investment providers, such as investment advisors and investment managers. A local government’s quarterly report, if submitted, must state the portfolio’s compliance with the agency’s investment policy or manner in which the portfolio is not in compliance. Finally, the investment report must include a statement regarding the local agency’s ability to meet its cash flow needs for the next six months.

Accordingly, I advise you of the following facts in compliance with Government Code Section 53646(b):

1. The source of the valuations included herein is U.S. Bank, Saint Paul, MN 55107.

2. No funds are under the management of external providers or managers.

Investment decisions are made by a consensus of the City Treasurer, City Manager, and Director of Finance.

3. The City’s portfolio remains in strict compliance with the Investment Policy of the City of La Mesa for FY 2022-2023.

4. The City of La Mesa’s investment portfolio more than adequately assures the City’s ability to meet its cash flow needs during the ensuing six months.

Reviewed by Respectfully submitted by
___________________________ ___________________________ Greg Humora Matt Strabone
City Manager City Treasurer
Attachments:

A - Treasurer's Report on Investment Earnings for the Quarter ended December 31, 2022 B - Schedule of Investments – Summary
C - Schedule of Investments – Detail

Date: February 28, 2023
To: Mayor and Members of the City Council
From: Matt Strabone, City Treasurer
Subj: TREASURER'S REPORT ON INVESTMENT EARNINGS
PERIOD ENDING: December 31, 2022
In accordance with Section 53646 (b) of the California Government Code, the following report of earnings yielded on investments is respectfully submitted. This report further specifies that investments have been made pursuant to subdivision (i) of Section 53601, Section 53601.1, and subdivision (i) of Section 53635.

INVESTMENT EARNINGS
PERIOD July 2022-December 2022

MONTHS TO DATE PRINCIPAL INVESTED
JULY 2022 $72,225,090
AUGUST 2022 $70,268,813
SEPTEMBER 2022 $70,366,813
OCTOBER 2022 $71,678,419
NOVEMBER 2022 $69,283,696
DECEMBER 2022 $74,883,696

TYPES OF EARNINGS EARNINGS
Investment Earnings Received $366,981
Accrued Interest:

Federal Agencies 71,000
Certificates of Deposit 42,801
Corporations 11,266
LAIF 101,064
--------------------------------
YEAR TO DATE INVESTMENT EARNINGS $492,048

PER ANNUM YIELD ON INVESTMENTS
Total of Monthly Principals Divided by $428,706,527
Total Months Invested 6
AVERAGE MONTHLY PRINCIPAL INVESTED $71,451,088
INVESTMENT EARNINGS TO DATE $492,048
PORTION OF YEAR COMPLETED 50%
PER ANNUM RATE ON INVESTMENT EARNINGS TO DATE 1.38%

City of La Mesa
Schedule of Investments-Summary
For the Month Ending DEC 2022
Issuer Type of Investment Maturity Date Par Value Book Value Market Value State of California LAIF 98-37-421 Demand 23,592,501 23,592,501 23,153,427 Federal Agencies Medium Term Notes 07/2022 - 04/2027 34,500,000 34,499,345 31,806,650 Financial/Banking Institutions Certificates of Deposits 06/2022 - 06/2027 14,854,000 15,309,045 13,681,691 Corporate Obligations Medium Term Notes 01/2022 - 02/2026 1,500,000 1,482,805 1,361,350 Totals 74,446,501 74,883,696 70,003,118
I certify that the investment of funds is in conformance with California Government Code section 53600. Those investments valued at below market cost will be held until maturity or until they can be sold without a loss. I also certify that the investment of funds provides the cash flow liquidity to meet the next six month's estimated expenditure requirements.

Matt Strabone, City Treasurer

City of La Mesa
Schedule of Investments
DEC 2022
CUSIP Issuer Type of Investment
Interest
Rate Beginning Date Due Date Par Value Book Value Market Value 3132X06C0 FEDERAL AGRIC MTG CO Medium Term - Fixed Rate 3.050% 11/13/18 09/19/23 500,000 530,245 494,290.00 3130ASPM5 FHLB Investment Type 3.5500% 07/29/22 10/28/24 1,000,000 1,000,000 977,370.00 3130ASQP7 FHLB Medium Term - Fixed Rate 3.6250% 07/28/22 01/28/25 1,000,000 1,000,000 976,280.00 3130ASF61 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 3.4500% 06/27/22 06/27/25 1,000,000 1,000,000 967,250.00 3134GXZY3 FEDERAL HOME LOAN MTG CO Medium Term - Fixed Rate 4.0000% 06/30/22 06/30/25 1,000,000 1,000,000 983,970.00 31422XB50 FAMCA Medium Term - Fixed Rate 3.6300% 07/28/22 07/28/25 1,000,000 1,000,000 977,560.00 3134GXF66 FHLMC Medium Term - Fixed Rate 4.0000% 08/01/22 08/01/25 1,000,000 1,000,000 983,910.00 3136G4G98 FEDERAL NATL MTG AS Medium Term - Fixed Rate 0.560% 08/12/20 08/12/25 1,000,000 993,060 901,950.00 3136G4C43 FEDERAL NATL MTG AS Medium Term - Fixed Rate 0.650% 08/14/20 08/14/25 1,000,000 995,020 904,010.00 3130ALD76 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 0.700% 02/25/21 02/25/26 1,000,000 988,700 888,980.00 3130ALGB4 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 0.800% 03/17/21 03/17/26 1,000,000 998,370 890,300.00 3130ALMM3 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 1.000% 03/30/21 03/30/26 1,000,000 999,610 895,230.00 3130AMDY5 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 1.000% 05/20/21 05/20/26 1,000,000 997,730 891,450.00 3133EMH21 FEDERAL FARM CR BKS Medium Term - Fixed Rate 0.900% 06/15/21 06/15/26 1,000,000 998,270 887,830.00 3130AMPT3 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 1.030% 06/30/21 06/23/26 1,000,000 997,480 889,830.00 3130AMWX6 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 1.020% 06/23/21 06/30/26 1,000,000 1,001,860 887,510.00 3130ANHW3 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 0.930% 08/25/21 08/25/26 1,000,000 1,000,000 882,010.00 3130ANSB7 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 1.000% 09/17/21 09/17/26 1,000,000 1,000,000 882,630.00 3130ANYR5 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 0.950% 09/30/21 09/30/26 1,000,000 1,000,000 880,070.00 3130AP6M2 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 1.020% 09/30/21 09/30/26 1,000,000 1,000,000 882,410.00 3130APB87 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 1.100% 10/13/21 10/13/26 1,000,000 1,000,000 884,150.00 3130AP6U4 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 1.000% 10/14/21 10/14/26 1,000,000 1,000,000 880,710.00 3130APDQ5 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 1.250% 10/28/21 10/28/26 1,000,000 1,000,000 888,200.00 3130APL78 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 1.375% 10/28/21 10/28/26 1,000,000 1,000,000 892,400.00 3130APQA6 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 1.400% 11/24/21 11/24/26 1,000,000 1,000,000 891,530.00 3130AQUD3 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 2.010% 02/25/22 02/25/27 1,000,000 1,000,000 906,810.00 3130AQZ55 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 2.500% 03/10/22 03/10/27 1,000,000 1,000,000 922,500.00 3130ARDY4 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 2.500% 03/29/22 03/29/27 1,000,000 1,000,000 921,680.00 3130ARAH4 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 2.382% 03/29/22 03/29/27 1,000,000 1,000,000 916,740.00 3130ARGE5 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 3.0000% 04/21/22 04/21/27 1,000,000 1,000,000 936,110.00 3130ARW56 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 3.6500% 05/12/22 05/12/27 1,000,000 1,000,000 954,010.00 3130ARYA3 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 4.0000% 05/26/22 05/26/27 1,000,000 1,000,000 962,460.00 3130AS7J2 FEDERAL HOME LOAN BA Medium Term - Fixed Rate 3.2000% 06/10/22 06/10/27 1,000,000 1,000,000 944,650.00 3134GXZN7 FHLMC Medium Term - Fixed Rate 4.2500% 07/12/22 07/12/27 1,000,000 1,000,000 982,220.00 3134GX5E0 FHLMC Medium Term - Fixed Rate 5.0000% 10/27/22 10/27/27 1,000,000 999,000 997,640.00 Total Federal Agencies 34,500,000.00 34,499,345.00 31,806,650.00 307811EM7 FARMERS & MERCHANTS Certificate Of Deposit--Fixed Rate 3.2000% 08/05/22 08/27/22 249,000 249,000.00 234,625.23 499724AA0 Knoxville Employees CU Certificate of Deposit--Fixed Rate 2.300% 12/07/17 12/07/22 249,000 256,674.18 0.00 32056GCV0 First Internet Bk of In Certificate of Deposit--Fixed Rate 2.400% 12/28/17 12/28/22 249,000 257,329.05 0.00 61747MF63 Morgan Stanley Bank NA Certificate of Deposit--Fixed Rate 2.650% 01/11/18 01/11/23 246,000 255,345.54 245,884.38 01748DBA3 Allegiance BK Tex Houston Certificate of Deposit--Fixed Rate 2.600% 02/07/18 02/07/23 249,000 258,668.67 248,626.50 22766ACS2 Crossfirst Bank Certificate of Deposit--Fixed Rate 2.700% 02/23/18 02/23/23 249,000 259,323.54 248,499.51 17312QJ26 Citibank N.A. Certificate of Deposit--Fixed Rate 2.900% 04/11/18 04/11/23 246,000 257,852.28 245,139.00 91435LAB3 Univ of Iowa Certificate of Deposit--Fixed Rate 3.000% 04/28/18 04/28/23 248,000 260,657.92 247,062.56 20033AZK5 Comenity Cap Bank Salt Lake CI Certificate of Deposit--Fixed Rate 3.300% 06/29/18 06/29/23 249,000 264,258.72 247,802.31 06426KAN8 Bank of New England Salem Certificate of Deposit--Fixed Rate 3.250% 07/31/18 07/31/23 249,000 264,634.71 247,386.48 75472RAD3 RAYMOND JAMES BK NAT Certificate of Deposit--Fixed Rate 1.950% 08/23/19 08/23/23 247,000 256,064.90 243,072.70 501798MG4 LCA Bank Corp Park City Certificate of Deposit--Fixed Rate 3.100% 09/07/18 09/07/23 246,000 261,362.70 243,702.36 59833LAF9 Midwest Independent Bank Certificate of Deposit--Fixed Rate 3.150% 09/18/18 09/18/23 249,000 264,995.76 246,579.72 64017AAH7 Neighbors Fed Credit Union Certificate of Deposit--Fixed Rate 3.300% 09/19/18 09/19/23 245,000 261,603.65 242,883.20 949763VK9 WELLS FARGO BANK NAT Certificate of Deposit--Fixed Rate 3.550% 11/20/18 11/28/23 249,000 268,683.45 246,649.44 635573AL2 NATIONAL COOP BK N Certificate of Deposit--Fixed Rate 3.400% 12/26/18 12/21/23 245,000 263,992.40 242,145.75 59013KAR7 MERRICK BK SOUTH JOR Certificate of Deposit--Fixed Rate 2.400% 06/10/19 12/28/23 249,000 262,199.49 243,589.23 61760AVJ5 MORGAN STANLEY PVT Certificate of Deposit--Fixed Rate 3.100% 02/07/19 02/07/24 246,000 264,014.58 241,965.60 58117WAD9 MCHENRY SVGS BK ILL Certificate of Deposit--Fixed Rate 2.800% 03/14/19 03/14/24 246,000 262,668.96 240,723.30 7954502D6 SALLIE MAE BK SLT LA Certificate of Deposit--Fixed Rate 2.750% 04/08/19 04/10/24 246,000 262,750.14 240,314.94 81407SBG1 SECURITY BK NEW AUBU Certificate of Deposit--Fixed Rate 2.500% 06/28/19 06/10/24 249,000 265,008.21 241,624.62 726547BK7 PLAINS ST BK TEXC/D Certificate of Deposit--Fixed Rate 2.300% 06/21/19 06/21/24 249,000 263,681.04 240,768.06

City of La Mesa
Schedule of Investments
DEC 2022
CUSIP Issuer Type of Investment
Interest
Rate Beginning Date Due Date Par Value Book Value Market Value 46256YBB4 IOWA ST BK ORANGE C/D Certificate of Deposit--Fixed Rate 2.100% 07/19/19 07/10/24 247,000 260,273.78 237,912.87 20143PDY3 COMMERCIAL BK C/D Certificate of Deposit--Fixed Rate 2.000% 07/10/19 07/15/24 249,000 261,681.57 239,306.43 43719LAB1 HOME LN INVT BK F S Certificate of Deposit--Fixed Rate 2.000% 07/15/19 07/19/24 249,000 261,716.43 239,241.69 29278TKJ8 ENERBANK USA UT Certificate of Deposit--Fixed Rate 2.150% 08/07/19 08/07/24 247,000 260,903.63 237,663.40 15118RRH2 CELTIC BK SALT LAKE Certificate of Deposit--Fixed Rate 1.850% 08/30/19 08/30/24 249,000 260,882.28 237,969.30 938828BM1 WASHINGTON FED SEATT Certificate of Deposit--Fixed Rate 2.000% 08/30/19 08/30/24 249,000 262,060.05 238,569.39 29367SJQ8 ENTERPRISE BK & C/D Certificate of Deposit--Fixed Rate 1.800% 11/08/19 11/08/24 249,000 260,914.65 236,582.37 32117WAN2 FIRST NATL BK Certificate of Deposit--Fixed Rate 1.600% 02/28/20 02/28/25 225,000 234,717.75 211,140.00 29260MAV7 ENCORE BK LITTLE C/D Certificate of Deposit--Fixed Rate 1.150% 03/25/20 03/25/25 249,000 255,720.51 230,785.65 73319FAK5 POPPY BK SANTA C/D Certificate of Deposit--Fixed Rate 1.100% 03/27/20 03/27/25 249,000 255,259.86 230,479.38 79772FAF3 SAN FRANCISCO CR C/D Certificate of Deposit--Fixed Rate 1.100% 03/27/20 03/27/25 249,000 255,259.86 230,479.38 020080BX4 ALMA BK ASTORIA NEW Certificate of Deposit--Fixed Rate 1.400% 03/30/20 03/28/25 249,000 258,028.74 232,085.43 51210SSD0 LAKESIDE BK CHICAGO Certificate of Deposit--Fixed Rate 1.400% 03/30/20 03/31/25 249,000 258,043.68 232,010.73 694231AC5 PACIFIC ENT C/D Certificate of Deposit--Fixed Rate 1.150% 03/31/20 03/31/25 249,000 255,725.49 230,681.07 856285TF8 STATE BK INDIA YC/D Certificate of Deposit--Fixed Rate 1.600% 04/29/20 04/29/25 248,000 258,966.56 231,753.52 33847E3F2 FLAGSTAR BK FSB TROY Certificate of Deposit--Fixed Rate 1.050% 05/05/20 04/30/25 248,000 253,783.36 228,747.76 06063HMS9 BANK BARODA NEW YORK Certificate of Deposit--Fixed Rate 0.700% 07/22/20 07/22/25 249,000 251,131.44 225,843.00 89235MKY6 TOYOTA FINL SVGS BK Certificate of Deposit--Fixed Rate 0.900% 04/22/21 04/22/26 248,000 249,205.28 220,238.88 02007GQQ9 Ally Bank Certificate Of Deposit--Fixed Rate 2.8500% 05/05/22 05/05/26 246,000 246,000.00 232,917.72 90348JQ29 UBS BK USA SALT LAKE Certificate of Deposit--Fixed Rate 0.900% 07/14/21 07/14/26 249,000 249,000.00 219,085.14 32022RSC2 1ST FINANCIAL BANK Certificate Of Deposit--Fixed Rate 3.2500% 08/01/22 08/03/26 249,000 249,000.00 238,026.57 70962LAE2 PENTAGON C D Certificate of Deposit--Fixed Rate 0.850% 09/01/21 09/01/26 249,000 249,000.00 217,638.45 14042RQB0 CAPITAL ONE NATL C D Certificate of Deposit--Fixed Rate 1.100% 11/17/21 11/17/26 248,000 248,000.00 217,565.44 14042TDW4 CAPITAL ONE BANK C D Certificate of Deposit--Fixed Rate 1.100% 11/17/21 11/17/26 248,000 248,000.00 217,565.44 07371CE88 BEAL BK USA C D Certificate of Deposit--Fixed Rate 1.900% 02/17/22 02/17/27 247,000 247,000.00 222,171.56 02589ABQ4 AMERICAN EXPR NATL BANK Certificate of Deposit--Fixed Rate 2.000% 03/09/22 03/09/27 247,000 247,000.00 222,855.75 06740KPK7 BARCLAYS BANK/DELAWARE (#57203) Certificate Of Deposit--Fixed Rate 2.6500% 04/13/22 04/13/27 246,000 246,000.00 227,594.28 58404DPC9 MEDALLION BANK UTAH Certificate Of Deposit--Fixed Rate 3.2000% 05/24/22 05/24/27 249,000 249,000.00 235,205.40 20825WAX8 Connexus Credit Union Certificate Of Deposit--Fixed Rate 3.1000% 05/26/22 05/26/27 249,000 249,000.00 234,196.95 90352RCN3 USAlliance Credit Union Certificate Of Deposit--Fixed Rate 3.3000% 05/31/22 05/28/27 249,000 249,000.00 236,166.54 50625LBN2 Lafayette Federal Credit Union Certificate Of Deposit--Fixed Rate 3.2500% 06/15/22 06/15/27 249,000 249,000.00 235,534.08 88413QDL9 Third Federal Savings and Loan Assicication of Cleveland Certificate Of Deposit--Fixed Rate 3.5000% 06/28/22 06/28/27 245,000 245,000.00 234,220.00 254673L38 Discover Bank Certificate Of Deposit--Fixed Rate 3.4000% 07/06/22 07/06/27 245,000 245,000.00 233,183.65 08016PEH8 BELMONT BANK Certificate Of Deposit--Fixed Rate 3.1500% 08/24/22 08/24/27 249,000 249,000.00 233,947.95 19075JAB4 Cobalt Credit Unio Certificate Of Deposit--Fixed Rate 3.6000% 09/15/22 09/15/27 249,000 249,000.00 238,509.63 052392BT3 Austin Telco Federal Credit Union Certificate Of Deposit--Fixed Rate 3.8000% 09/21/22 09/21/27 249,000 249,000.00 240,588.78 87164YT95 SYNCHRONY BANK Certificate Of Deposit--Fixed Rate 4.6000% 10/28/22 10/28/27 244,000 244,000.00 244,007.32 25460FDW3 DIRECT FEDERAL CREDIT UNION Certificate Of Deposit--Fixed Rate 4.8000% 11/07/22 11/08/27 248,000 248,000.00 250,174.96 48133DN55 JPMORGAN CHASE BK N Corporate Investments 4.0500% 07/29/22 07/29/24 500,000 500,000.00 489,570.00 46632FRU1 JPMORGAN CHASE BK N Corporate Investments 0.700% 01/22/21 01/22/26 500,000 488,640.00 427,990.00 037833EB2 APPLE INC SR GLBL Corporate Investments 0.700% 03/24/21 02/08/26 500,000 494,165.00 443,790.00 Total Corporate Investments 16,354,000.00 16,791,849.81 15,043,040.75 Corporate Investments
Drefus Cash & Cash Equivalents Money Market - - -
67,208,000.00 51,291,194.81 46,849,690.75
Custodian, Total
98-37-421 LAIF State of California Demand 2.070% 23,592,500.95 23,592,500.95 23,153,427.00 INVESTMENT GRAND TOTAL 74,883,695.76 90,800,500.95 70,003,117.75

DATE: February 28, 2023
TO: Mayor and Members of the City Council
FROM: Ray Sweeney, Chief of Police
VIA: Greg Humora, City Manager
SUBJECT: POLICE CHIEF’S QUARTERLY OPERATIONS REPORT
Please see the attached Police Department’s 2022 4
th Quarter Operations Report.

Quarterly Report
4th Quarter 2022
Ray Sweeney, Chief of Police
Prepared by Crime Analysis

1 Crime Trends and Statistics
The 4th quarter of 2022 concluded with 23.8 crimes per thousand residents compared to

21.7 crimes per thousand in the 4th quarter of 2021, which represents a 9.2% increase in the number of crimes. During this period violent crime increased 5.7% and property crime increased 9.7%.

FBI Part 1 Crimes 4th Quarter Year to Date
Historical Violent Crime Comparison, 4th Quarter Year to Date

2 While incidents of homicide, rape, and robbery remained relatively the same compared to last year, incidents of aggravated assault increased. This is due in part to an increase in domestic violence incidents.

Case Clearances
On 10/27/22, at approximately 3:43 PM, an unknown suspect entered the Walmart at Grossmont Center Mall and was seen concealing display items inside of his backpack. As the suspect was attempting to exit the store, he was stopped by Walmart Loss Prevention.

The suspect brandished a knife and threatened the employees attempting to retrieve the stolen property. The suspect fled the scene on a bicycle and rode to the nearby Chuze Fitness where he stole an electric scooter. La Mesa Police patrol officers arrived apprehended the suspect. The suspect was arrested for robbery and grand theft, as well as two outstanding felony warrants and possession of a controlled substance. The suspect was transported to San Diego Central Jail and the stolen property was recovered and returned.

On 12/6/22, at approximately 9:00 AM, an unknown suspect entered the Walmart at Grossmont Center mall and selected a backpack. The suspect was seen by Loss Prevention placing merchandise inside of the backpack. Upon exiting the store with the stolen merchandise, the suspect was contacted by loss prevention and the store manager.

Once contacted, the suspect told both individuals he would shoot them and placed his hand inside of his pocket. The suspect fled the store shortly after. La Mesa Police patrol officers arrived, and located and detained the suspect without incident. The suspect was placed under arrest for robbery and making criminal threats and booked at San Diego Central Jail.

On 12/21/22, at approximately 8:25 AM, an unknown suspect approached the driver’s side door of a driver occupied work truck idling in the 5200 block of Baltimore Drive. The suspect began to hit the victim through the open driver side window with her purse, and attempted to open the door and remove the victim from the cab of the truck. A witness observed the assault and call the La Mesa Police Department. Patrol officers arrived on scene and arrested the suspect for attempted carjacking and battery. The suspect was booked at Las Colinas Detention Facility.

3 Historical Property Crime Comparison, 4th Quarter Year to Date Compared to the previous year, residential burglary decreased 36.1%, commercial burglary increased 26.9%, theft increased 15.7% and auto theft increased 1.6%. Theft increased during 2022, in part, due to increases in the theft of motor vehicle parts and accessories such as catalytic converters and license plates, as well as an increase in reported shoplifting cases.

Case Clearances
On 10/25/22, at approximately 11:08 PM, a homeowner in the 9300 block of Loren Drive observed an unknown suspect in their backyard. The homeowner then observed the suspect open a mesh sliding screen door and attempt to open the adjacent sliding glass door. The homeowner confronted the suspect, who claimed to be a police officer who lived at the residence. La Mesa Police patrol officers responded and arrested the suspect for attempted residential burglary and prowling and was booked into San Diego Central Jail.

During the month of November there was a significant increase in motor vehicle thefts of Ford F series trucks and Econoline vans in the City of La Mesa. Over the course of a couple of days, La Mesa Police patrol officers developed leads, arrested a single suspect for two of the auto thefts, and recovered a stolen catalytic converter. The suspect was arrested on 11/29/22 and was booked into San Diego Central Jail for the La Mesa cases as well as for two outstanding auto theft related warrants out of northern California. The suspect remains in custody awaiting extradition. Since his arrest, zero Econoline Vans and one Ford F series truck has been reported stolen in the City.

On 12/15/22, at approximately 8:10 AM, a La Mesa Police parking service officer observed an unknown suspect kick open the street level glass door to two businesses located at 8241 La Mesa Boulevard. La Mesa Police patrol officers responded and detained the suspect who had made entry into both La Mesa Feldenkrais’ Studio and the Jeri Kish

4 School of Ballet. The suspect was arrested for burglary and vandalism and booked into San Diego Central Jail.

Supervised Persons in the City
Parolees and Probationers
Below is a graph representing the number of individuals on Parole that have resided in La Mesa over the last four years. Please note that the below graph does not include PostRelease Offenders (AB109).

Registered Sex Offenders
There are currently ninety-nine (99) active sex registrants in the city. Three are out of compliance. Throughout the year, patrol officers conduct compliance checks on the registrants living in La Mesa.

Traffic Unit
Traffic Collisions
2022
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Total Traffic Collisions 78 51 60 72 261
Collisions Involving Injury 45 35 40 40 160
Total Vehicle Occupants Reporting Injury 55 50 54 55 214 Occupants Reporting Serious Injury 3 4 2 5 14
Fatality 1 0 1 1 3

5 Top Three Collision Locations

1. Baltimore Drive and Fletcher Parkway

2. 70th and University Avenue

3. El Cajon Boulevard and Baltimore Drive
Traffic Enforcement Operations 4th Quarter
Date Enforcement Operations Focus Location Total Officers 10/1/2022 Know Your Limits DUI Education Campaign Citywide 2 11/4/2022 Traffic Enforcement Speed Enforcement Citywide 2 12/9/2022 DUI Saturation Patrol Enforcement for DUI drivers Citywide 2 12/23/2022 DUI Checkpoint Education and DUI Enforcement Beat 2 8 12/30/2022 DUI Saturation Patrol Enforcement for DUI drivers Citywide 2 12/31/2022 DUI Saturation Patrol Enforcement for DUI drivers Citywide 2 Community Engagement and Information Sharing
Social Media
During the 4th quarter, the Social Media Team shared information with the public related to driving under the influence of marijuana, the dangers of marijuana and other substance use on the adolescent brain, scam trends and vehicle burglary prevention.

Events and Presentations
On October 5th, the La Mesa Chamber of
Commerce honored men and women from
police, fire, and EMS that serve our community at
Social Media Platform Followers
Nextdoor 21,848 La Mesa Residents
Facebook 6,901
Twitter 5,222
Instagram 3,433
Crime Prevention and Outreach Services
Neighborhood Watch Meetings 3
Community Presentations 6
Residential Security Inspections 0
Commercial Security Inspection 5
14th Annual La Mesa Chamber of Commerce Salute
to Local Heroes. Pictured (l-r) Captain Runge,
Detective Bourque, RSVP Boatwright, Chief
Sweeney.

6 at the 14th Annual Salute to Local Heroes event. Detective Justin Bourque and Retired Senior Volunteer Mike Boatright were recognized as two of this year’s honorees.

Also, on October 5th, La Mesa Police Department hosted the 4th quarter Coffee with a Cop, on National Coffee with a Cop Day.

Between October 12th and November 16th, the Department hosted the 2022 Citizen’s Academy. La Mesa Police Department's Citizens’ Academy is a free six-week program, where attendees participate in discussions about patrol procedures, traffic investigations, community policing and many other topics. The Department hosted 15 attendees at this year’s academy.

On November 3rd, La Mesa Police Department hosted a Neighborhood Watch Captain’s meeting. Attendees met with Department staff to discuss any neighborhood issues, ask questions related to police operations, and connect with fellow La Mesa Captains. La Mesa’s Neighborhood Watch program empowers residents to look out for their neighbors by facilitating open communication with each other and La Mesa Police through a “see something, say something” format.

On December 3rd, La Mesa Police and San Diego Sheriff’s Departments hosted a Guns for Gift Cards event at the La Mesa Civic Center parking lot. Community members were able to turn in their unwanted firearms and received gift cards. The program is anonymous and aims to reduce the number of firearms on the streets. A total of 160 unwanted firearms were relinquished at this event.

Every year on the first Saturday in December, La Mesa
Police Department volunteers with law enforcement
agencies countywide to take local underprivileged kids on a holiday shopping trip for free. Nominated by their schools, the kids are taken to Sea World for breakfast and then to Target where they are given a $200 gift certificate to shop for the holidays. The 28th annual Shop with a Cop event was held December 3rd and sponsored 300 kids from
across the County. The region’s law enforcement agencies raise money for the event by holding sporting events,
barbeques, and raffles throughout the year.

School Resource Officers
The SRO has maintained strong working relationships with all of the school Principles, with Helix’ Executive Director, Helix’ newly hired Manager of School Safety, with the La Mesa Spring Valley School District Director of Public Safety, and with the Grossmont Union High School District Director of Public Safety.

Sergeant Gaytan with one participant and Santa.

7 At Helix Charter High School, the SRO:
● Worked in conjunction with the Manager of School Safety in regards to enhanced crime prevention on the campus
● Completed threat assessments and conducted student “home visits” In service to the middle and elementary schools, the SRO:
● Aided Northmont Elementary in their process of creating their own safety patrol ● Provided traffic extra patrols to the elementary and middle schools during drop off and pick up times
Staffing and Training
New Officers
The following officers completed phase training during the fourth quarter: Cade Calvert and Alma Villarreal
Police Academy Graduates
Police Officer Recruit Colton Calvert Graduated from the 131st Academy on November 18th, 2022.

Hiring Updates
No new officers were hired during this quarter.

Vacancies
The Department currently has five vacancies for police officer and one vacancy for police dispatcher. Applications are being accepted for the following positions: Police Officer Lateral/Academy Graduate, Police Officer Trainee, and Police Dispatcher. Please visit the City of La Mesa’s website for more information or to apply.

Promotions
Three officers were promoted to the position of Sergeant: Eric Knudson, Julie Jensen, and Marcus Patrick.

Position Authorized Filled Vacancies
Sworn Officers 70 65 5
Dispatchers 12 11 1

8 Officer Training
In November, all sworn personnel completed Perishable Skills training in the area of use of force and arrest procedures. During this quarter sworn personnel also completed training on best practices for first responders communicating with people with autism spectrum disorder.

Department Demographics
Department Wellness
The Department remains committed to the wellness of our staff and we offer a variety of resources to our police officers and professional staff. Our Peer Support Team responded to several call-outs during the past quarter to support staff who were impacted by critical incidents. Our Facility Dog, Declan, has also been called upon to provide his unconditional love and support to those team members impacted by trauma, stress, and the oftenchallenging realities of first responder work. The La Mesa Police Department contracts with a local mental health clinician who is culturally competent in assisting first responders with processing life and work trauma. This clinician is an invaluable asset and helps us protect our people so they can continue to protect you.

Race/Ethnicity Total Officers Percent of Officers
Asian 1 1.5%
Black or African American 4 6.2%
Hispanic or Latino 12 18.5%
Two or more races/ethnicities 2 3.1%
White 46 70.8%
Grand Total 65 100.0%

9 AB 481 – Military Equipment Use
In compliance with AB 481, the La Mesa Police Department has published an annual report regarding the use of any applicable military equipment during the 2022 calendar year. The full report can be found on the City’s website or by following the link below. In summary, the Department used military equipment 6 times during training exercises and 8 times during incidents in the field. The Department received zero (0) complaints regarding the use of military equipment during 2022.
https://www.cityoflamesa.us/DocumentCenter/View/20369/Annual-AB-481-Report-2022 Racial and Identity Profiling Act (RIPA) Reporting
The Racial and Identity Profiling Act of 2015 prohibits racial and identity profiling by law enforcement, and requires all agencies to annually report vehicle and pedestrian stop information, as well as citizen complaints of profiling, to the California Attorney General’s office. The La Mesa Police Department began collecting stop information in 2022 in compliance with the legislation. Data for 2022 will be reported to the Department of Justice at the end of the 1st Quarter in 2023.

La Mesa Police Department
Quarterly Crime Statistics - 4th Quarter 2022
2022 2021 YTD
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD YTD % Change Homicide 0 1 1 0 0 0 1 0 1 2 -50.0%
Cleared 0 0 1 0 0 0 0 1 1 1 0.0%
Rape 4 2 5 3 2 5 2 3 12 14 -14.3%
Cleared 1 0 1 0 1 0 0 0 1 2 -50.0%
Robbery 10 9 14 12 8 11 20 8 47 45 4.4%
Cleared 2 6 4 5 5 3 13 4 25 17 47.1%
Aggravated Assault 44 20 24 26 23 27 33 42 125 114 9.6% Cleared 19 9 8 13 9 8 16 20 53 49 8.2%
2022 2021 YTD
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD YTD % Change Residential 26 29 21 21 11 23 15 13 62 97 -36.1%
Commercial 17 19 20 22 18 26 31 24 99 78 26.9%
Burglary Total 43 48 41 43 29 49 46 37 161 175 -8.0%
Cleared 4 6 4 4 3 4 8 3 18 18 0.0%
Car Prowl (Included in Theft) 66 41 47 57 61 43 46 58 208 211 -1.4% Theft > $400 100 97 116 94 116 95 114 116 441 407 8.4%
Theft $400 or less 103 83 100 76 120 116 96 117 449 362 24.0% Theft Total 203 180 216 170 236 211 210 233 890 769 15.7% Cleared 13 20 19 9 16 17 16 22 71 61 16.4%
Auto Theft 35 52 46 53 56 38 43 52 189 186 1.6%
Cleared 1 1 6 3 2 1 0 5 8 11 -27.3%
2022 2021 YTD
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD YTD % Change Total Violent 58 32 44 41 33 43 56 53 185 175 5.7%
Cleared* 37.9% 46.9% 31.8% 43.9% 45.5% 25.6% 51.8% 47.2% 43.2% 39.4% 9.7% Total Property 281 280 303 266 321 298 299 322 1240 1130 9.7% Cleared* 6.4% 9.6% 9.6% 6.0% 6.5% 7.4% 8.0% 9.3% 7.8% 8.0% -1.8% FBI Index 339 312 347 307 354 341 355 375 1425 1305 9.2% Cleared* 11.8% 13.5% 12.4% 11.1% 10.2% 9.7% 14.9% 14.7% 12.4% 12.2% 1.9% Violent Rate per 1000 Pop. 3.1/K 2.9/K
Property Rate per 1000 Pop. 20.7/K 18.8/K
Index Rate per 1000 Pop. 23.8/K 21.7/K
2021
Violent Crime
Property Crime
Totals
2021
2021
2022
2022
2022
Prepared by LMPD Crime Analysis, 01/12/23
*Percentage change by number of crimes cleared.

N/A = Not Applicable

La Mesa Police Department
Robbery and Theft - 4th Quarter 2022
2022 2021 YTD
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD YTD % Change Street/Highway 6 5 2 4 1 2 6 2 11 17 -35.3%
Commercial 2 4 7 3 3 4 10 3 20 16 25.0%
Gas or Service Station 0 0 0 1 0 1 0 0 1 1 0.0%
Chain Store 2 0 3 4 0 1 2 1 4 9 -55.6%
Residential 0 0 2 0 0 0 0 1 1 2 -50.0%
Bank 0 0 0 0 4 0 0 0 4 0 N/C
Miscellaneous 0 0 0 0 0 3 2 1 6 0 N/C
Robbery Total 10 9 14 12 8 11 20 8 47 45 4.4%
Cleared 2 6 4 5 5 3 13 4 25 17 47.1%
YTD Clearance Rate 53%
2022 2021 YTD
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD YTD % Change Pocket-Picking 0 0 0 0 0 0 0 0 0 0 N/C
Purse Snatching 2 1 0 1 2 1 1 1 5 4 25.0%
Shoplifting 29 32 52 17 33 36 35 40 144 130 10.8%
From Motor Vehicles 108 68 76 76 98 86 76 76 336 328 2.4% Motor Vehicle Parts & Acc. 21 34 46 23 46 34 54 53 187 124 50.8% Bicycles 6 7 4 6 5 10 7 10 32 23 39.1%
From Buildings 20 26 25 30 30 27 20 34 111 101 9.9%
From Coin Operated Mach. 0 0 0 0 0 0 0 0 0 0 N/C
All Others 17 12 13 17 22 17 17 19 75 59 27.1%
Theft Total 203 180 216 170 236 211 210 233 890 769 15.7% Cleared 13 20 19 10 16 17 16 22 71 62 14.5%
YTD Clearance Rate 8%
2021
Robbery
Theft
2021 2022
2022
Prepared by LMPD Crime Analysis, 01/12/23 N/A = Not Applicable

La Mesa Police Department
Patrol Statistics - 4th Quarter 2022
2022 2021 YTD
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD YTD % Change Primary 5336 5756 6124 5631 5428 4770 4658 4562 19418 22847 -15.0% Officer Initiated 1678 1506 1630 1493 1627 1164 1128 1557 5476 6307 -13.2% Reports Taken 1054 1035 1106 874 1252 1193 1296 1426 5167 4069 27.0% Arrests Made 241 224 245 235 256 269 283 309 1117 945 18.2% 5150 Detentions 130 132 134 112 96 99 82 69 346 508 -31.9% Citations 347 248 346 392 390 214 157 194 955 1333 -28.4% Parking/ Muni Code Citations 149 156 112 108 103 75 77 71 326 525 -37.9% Field Interviews 110 106 99 94 147 137 128 251 663 409 62.1% 2021 2022
Prepared by LMPD Crime Analysis, 01/12/23 N/A = Not Applicable

La Mesa Police Department
Additional Detailed Statistics - 4th Quarter 2022
Robbery Location Type 2022 Solved % Solved
Street/Highway 11 4 36.4%
Commercial 20 13 65.0%
Gas or Service Station 1 0 0.0%
Chain Store 4 3 75.0%
Residential 1 1 100.0%
Bank 4 3 75.0%
Miscellaneous 6 1 16.7%
Total 47 25 53.2%
2022 2021 YTD
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD YTD % Change Ghost Gun(s) Recovered Incident 0 0 3 0 1 0 0 1 2 3 -33.3% Fentanyl Related Incident 3 5 6 2 6 7 5 8 26 16 62.5%
Naloxone Used Incident 2 6 3 3 6 2 2 2 8 14 0.0%
Reported Hate Crimes 3 2 1 0 0 0 0 0 0 6 -100.0%
A single incident may reflected in each appliable category, dependent on incident circumstances. 2022 2021 YTD
Crimes by Bias Motivation 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD YTD % Change Anti-Asian 0 1 0 0 0 0 0 0 0 1 -100.0%
Anti-Black or African American 2 1 1 0 0 0 0 0 0 4 -100.0% Anti-Lesbian 1 0 0 0 0 0 0 0 0 1 -100.0%
Crimes by Offensive Act
Damage to Vehicle 1 2 0 0 0 0 0 0 0 3 -100.0%
Threatening Letters/Flyers/Emails 1 0 0 0 0 0 0 0 0 1 -100.0% Verbal Slurs 0 0 1 0 0 0 0 0 0 1 -100.0%
Other 1 0 0 0 0 0 0 0 0 1 -100.0%
Each reported hate crime is listed twice, once under the relevant bias motivation and again under the category of offensive act.

Data are only available for incidents reported to the La Mesa Police Department.

Robbery Clearances
Year to Date Totals
2021
2021 2022
Details of Hate Crimes Reported to Law Enforcment
Incidents of Special Study and County Interest
2022
Prepared by LMPD Crime Analysis, 01/12/23 N/A = Not Applicable

La Mesa Police Department
Communications - 4th Quarter 2022
2022 2021 YTD
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD YTD % Change 9-1-1 6765 7540 7714 7610 7106 7024 7459 7164 28753 29629 -3.0% 9-1-1 Answer Time1 99% 100% 100% 100% 100% 99% 100% 100% 100% 100% N/A Total Calls For Service2 13637 14539 15404 14454 13828 13840 14439 14163 56270 58034 -3.0% Source:
9-1-1 6070 6696 6882 6842 6250 6234 6665 6342 25491 26490 -3.8% Text 9-1-14 33 7 8 6 5 10 10 12 37 54 -31.5%
Non-Emergency 5571 6053 6614 5912 5342 5656 5870 5458 22326 24150 -7.6% Officer Initiated 1860 1663 1780 1604 2060 1709 1583 2112 7464 6907 8.1% Walk Ins3 134 120 120 91 171 231 311 239 952 465 104.7% HOME5 187 355 134 81 617 657 549 417 2240 757 195.9%
5 The Homeless Outreach and Mobile Engagement (HOME) is an initiative of the City of La Mesa, in collaboration with the La Mesa Police Department.

The HOME program was officially relaunched on November 1, 2021 when City outreach workers became the sole service providers. As part of the relaunch, LMPD Dispatchers now route the HOME team as primary responders to non-emergency calls for service that do not require a police presence.
2021 2022
2 Calls for Service include all calls that generate agency response and officer initiated contact including, assisting citizens, traffic stops, pedestrian stops, front counter contacts, extra patrol, etc.
4 Capacity to accept texts via 9-1-1 began January 2021. 1 9-1-1 Answer Time indicates the average percentage of 9-1-1 calls answered by the State Ringtime Standard. The State Ringtime Standard is 95% answered within 15 seconds.
3 Due to the COVID-19 Pandemic, the lobby of the police station was closed in March of 2020. The lobby was reopened with limited access in October of 2020.

Prepared by LMPD Crime Analysis, 01/12/23 N/A = Not Available

DATE: February 28, 2023
TO: Mayor and Members of the City Council
FROM: Megan Wiegelman, CMC, City Clerk
VIA: Greg Humora, City Manager
SUBJECT: INTERVIEW OF APPLICANT FOR AN UNSCHEDULED VACANCY ON

THE ENVIRONMENTAL SUSTAINABILITY COMMISSION
Attached is an application from a citizen who wishes to be considered for appointment to fill the unscheduled vacancy on the Environmental Sustainability Commission. The applicant has been invited to attend the meeting and make a brief three-minute presentation describing their qualifications and interest in serving on the Commission.

The applicant will be called forward for their interview by the City Clerk. After their presentation you may ask questions of the applicant, if you wish.

The appointment will be made at the City Council meeting on March 14th.

Attachment

Environmental Sustainability Commission: 1 position – four-year term One appointee will fill the position vacated by Andrea Beth Damsky whose term expires June 30, 2023, and represents the older adult population.

Seven of the members shall be residents of the City of La Mesa and be comprised as follows: two members from the general populous; three members with professional experience related to environmental sustainability; one member representing the senior adult population (at time of appointment shall be not less than fifty-five years of age); and one member representing the youth population (at the time of appointment shall be not more than 21 years of age).

First Appointed Terms
David Harris

THE APPLICATION IS AVAILABLE FOR REVIEW IN THE CITY CLERK’S OFFICE

DATE: February 28, 2023
TO: Mayor and Members of the City Council
FROM: Megan Wiegelman, CMC, City Clerk
VIA: Greg Humora, City Manager
SUBJECT: RESOLUTION APPOINTING MEMBERS TO FILL THE UNSCHEDULED

VACANCIES ON THE YOUTH ADVISORY COMMISSION
On January 24th, the City Council interviewed applicants who were interested in being appointed to fill vacancies on the City’s Youth Advisory Commission. At the Council meeting on February 28th, the Mayor will make the appointments with the approval of the City Council.

Attached is a brief description of the requirements, the number of openings, and the names of each applicant seeking to be appointed.

Staff recommends the City Council appoint members to fill the vacancies and adopt the attached resolution confirming the appointments.

Attachments

Youth Advisory Commission: 3 positions – two-year term
Two appointees will fill the positions vacated by Hudson Lorenz and Sophia Saucedo whose terms expire September 30, 2023; and one appointee will fill the position vacated by Mustafa Dost whose term expires September 30, 2024.

Members must be between the ages of 13 and 20 years and reside within the City of La Mesa or attend school in the City.

First Appointed Number of Terms
Jackson Banthrum – incumbent 10/27/20 1
Adriana Flores
Kennedy Haytasingh

APPLICATIONS ARE AVAILABLE FOR REVIEW IN THE CITY CLERK’S OFFICE

RESOLUTION NO. 2023-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA MESA APPOINTING

MEMBERS TO THE YOUTH ADVISORY COMMISSION
___________________________________________________________________ WHEREAS, positions on the City of La Mesa Youth Advisory Commission have been vacated; and
WHEREAS, the list of persons below have been recommended to the City Council for appointment to said City of La Mesa Commission.

NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the City Council of the City of La Mesa, California, that the following are hereby appointed as members of the City of La Mesa Youth Advisory Commission, with their terms to commence after the oath or affirmation of allegiance for public officers or employees is executed as required by Article XX, Section 3 of the Constitution of the State of California, and to expire on the dates stated below, or until their successors are appointed and qualified:

Youth Advisory Commission: 3 appointments
Jackson Banthrum is appointed to fill the unscheduled vacancy created by Mustafa Dost whose term expires September 30, 2024
Adriana Flores is appointed to fill the unscheduled vacancy created by Hudson Lorenz whose term expires September 30, 2023
Kennedy Haytasingh is appointed to fill the unscheduled vacancy created by Sophia Saucedo whose term expires September 30, 2023
PASSED AND ADOPTED at a Regular meeting of the City Council of the City of La Mesa, California, held the 28th day of February 2023, by the following vote, to wit:

AYES:

NOES:

ABSENT:

CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be a true and exact copy of Resolution No. 2023- , duly passed and adopted by the City Council of said City on the date and by the vote therein recited.

MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)

1 La Mesa City Council
Minutes of a Regular Meeting
Date:

Location:

January 10, 2023, 6:00 pm
City Council Chambers, 8130 Allison Avenue
La Mesa, California

Present: Mayor Arapostathis
Vice Mayor Parent
Councilmember Dillard
Councilmember Lothian
Councilmember Shu
Staff: City Manager Humora
City Attorney Sabine
City Clerk Wiegelman
This meeting was conducted utilizing teleconferencing and electronic means consistent with Government Code Section 54953, as amended by Assembly Bill 361, in relation to the COVID-19 State of Emergency and recommended social distancing measures. _____________________________________________________________________

1. CALL TO ORDER
The City Council minutes are prepared and ordered to correspond to the City Council Agenda. Agenda Items can be taken out of order during the meeting.

The Agenda Items were considered in the order presented.

Mayor Arapostathis called the meeting to order at 6:00 p.m.

1.1 INVOCATION - COUNCILMEMBER LOTHIAN

1.2 PLEDGE OF ALLEGIANCE

2. CITY MANAGER COMMENTS
There were no comments.

2 3. COMMUNITY BULLETIN REPORTS
The Mayor, Council and staff made announcements and reported on various events taking place in the City. No action was taken.

4. ADDITIONS AND/OR DELETIONS TO THE AGENDA
Consent Calendar Item 10.6 was deleted from the agenda.

5. PRESENTATIONS

5.1 MAYOR'S STATE OF THE CITY REPORT
The City's first ever State of the City video was played which highlighted the City's many achievements in 2022 and the completed, ongoing and future projects and initiatives the City had undertaken.

5.2 SWEARING IN OF NEW FIRE CHIEF BENT KOCH
City Clerk Wiegelman administered the Oath of Office to Fire Chief Bent Koch.

6. PUBLIC COMMENTS – (TOTAL TIME – 15 MINUTES)
Barb Lorenz on behalf of the Legacy Coalition, spoke in opposition to Project 2021-40, a mixed-use development at 4757 Palm Avenue.

Wendy Mihalic spoke regarding the hiring of a Communications Manager and Assistant City Manager.

Dianne Osterling spoke regarding government transparency and the processes of the Community Development Department.

Gary Lorenz spoke in opposition to Project 2021-40, a mixed-use development at 4757 Palm Avenue.

Dana Stevens, Executive Director of Community Action Service Advocacy for Safe and Healthy Neighborhoods, spoke on prohibiting the sale of flavored tobacco products in the City.

Ray Abbott spoke regarding the letter Councilmember Parent wrote to Sharp Grossmont Hospital in support of workers deciding for themselves whether to join a union.

Mary Davis spoke regarding the letter Councilmember Parent wrote to Sharp Grossmont Hospital in support of workers deciding for themselves whether to join a union, the City's travel reimbursement policy, and the National Sanctity of Life flag.

3 Bonnie Baranoff spoke regarding the City's annual point in time count scheduled for Thursday, January 26, 2023, from 4:00 a.m. to 8:00 a.m.

7. CONFLICT DISCLOSURES
Councilmember Lothian recused herself for Item 10.9 because she had a potential conflict of interest under Government Code Section 87100 due to the proximity of her office to 4757 Palm Avenue.

8. BOARD AND COMMISSION INTERVIEWS

8.1 INTERVIEW OF APPLICANT FOR AN UNSCHEDULED VACANCY ON

THE ARTS AND CULTURE COMMISSION
City Clerk Wiegelman briefly explained the interview process.

Renee Bareno spoke regarding their qualifications and interest in being appointed to the Arts and Culture Commission.

City Clerk Wiegelman said the appointment would be made at the January 24th City Council meeting.

Following the interview, no action was taken.

8.2 INTERVIEW OF APPLICANTS FOR AN UNSCHEDULED VACANCY ON

THE PLANNING COMMISSION
City Clerk Wiegelman briefly explained the interview process. City Clerk Wiegelman stated that Grant Yamada was not able to attend the City Council meeting due to a prior commitment but had provided a written statement expressing their interest in being considered for appointment to the Planning Commission.

The following applicants spoke regarding their qualifications and interest in being appointed:

Blake Baylin
Kathleen Brand
Lauren M. Cazares
Jonathan Frankel
David Harris
David J. Telliard II

4 City Clerk Wiegelman said the appointment would be made at the January 24th City Council meeting.

Following the interviews, no action was taken.

8.3 ANNUAL INTERVIEW OF APPLICANTS FOR OPENINGS ON THE
CITY’S COMMUNITY POLICE OVERSIGHT BOARD
City Clerk Wiegelman briefly explained the interview process. City Clerk Wiegelman stated Gregg Ward and Caitlin Tiffany were not able to attend the City Council meeting due to prior commitments but had provided written statements expressing their interests in being considered for appointment or reappointment to the Community Police Oversight Board ("CPOB").

The following applicants spoke regarding their qualifications and interest in being appointed or reappointed to the CPOB:

Janet Castanos
Lauren M. Cazares
Christian DeMent
Robert Duff
Linda Hitt
Susan Wayne
City Clerk Wiegelman said the appointments would be made at the January 24th City Council meeting.

Following the interviews, no action was taken.

9. PUBLIC COMMENTS ON CONSENT CALENDAR
Dianne Osterling spoke on Consent Calendar Item 10.9.

10. CONSENT CALENDAR
(Items 10.1 through 10.9)
Consent Calendar Item 10.6 was deleted from the agenda.

Mayor Arapostathis pulled Consent Calendar Item 10.9 for separate consideration.

5 Moved By Vice Mayor Parent
Seconded By Mayor Arapostathis
Approve Consent Calendar Items 10.1 through 10.8, except for Item 10.6.

For (5): Mayor Arapostathis, Vice Mayor Parent, Councilmember Dillard, Councilmember Lothian, and Councilmember Shu
Approved (5 to 0)

10.1 APPROVAL OF MOTION TO WAIVE THE READING OF THE TEXT OF

ALL ORDINANCES AND RESOLUTIONS AT THIS MEETING
Approve.

10.2 APPROVAL OF THE MINUTES FOR THE CITY COUNCIL REGULAR MEETING HELD TUESDAY, NOVEMBER 22, 2022
Approve.

10.3 APPROVAL OF THE MINUTES FOR THE CITY COUNCIL REGULAR

MEETING AND CITY OF LA MESA SUCCESSOR AGENCY SPECIAL
MEETING HELD TUESDAY, DECEMBER 13, 2022
Approve.

10.4 APPROVAL OF THE 2023 LIST OF PROCLAMATIONS
Approve.

10.5 QUARTERLY COMMUNICATIONS REPORT: OCTOBER TO
DECEMBER 2022
Receive and file.

10.7 RESOLUTIONS APPROVING THE AMENDED CITY OF LA MESA

COMPENSATION PLANS
Adopt Resolutions.
a. FISCAL YEAR 2022-2023 COMPENSATION PLAN

RESOLUTION

RESOLUTION AUTHORIZING A CHANGE TO THE APPROVED

AMENDED CITY OF LA MESA COMPENSATION PLAN FOR
FISCAL YEAR 2022-2023 LISTING POSITIONS, SALARY

RANGES/BANDS, AND PAY STEPS, INCLUDING

REACTIVATING THE CLASSIFICATION FOR FIRE CHIEF AND

6 ESTABLISHING RELATED SALARY BAND, AND
APPROPRIATING FUNDS TO THE FISCAL YEAR 2022-2023
BUDGET
Resolution No. 2023-001
Adopt Resolution.
b. RESOLUTION AUTHORIZING A CHANGE TO THE APPROVED

AMENDED CITY OF LA MESA COMPENSATION PLAN FOR
FISCAL YEAR 2023-2024 LISTING POSITIONS, SALARY

RANGES/BANDS, AND PAY STEPS, INCLUDING THE

CLASSIFICATION AND RELATED SALARY BAND FOR FIRE
CHIEF
Resolution No. 2023-002
Adopt Resolution.
c. RESOLUTION AUTHORIZING A CHANGE TO THE APPROVED

AMENDED CITY OF LA MESA COMPENSATION PLAN FOR
FISCAL YEAR 2024-2025 LISTING POSITIONS, SALARY

RANGES/BANDS, AND PAY STEPS, INCLUDING THE

CLASSIFICATION AND RELATED SALARY BAND FOR FIRE
CHIEF
Resolution No. 2023-003
Adopt Resolution.

10.8 RESOLUTION AWARDING A PROFESSIONAL SERVICES CONTRACT TO CHEN RYAN ASSOCIATES INC., DBA CR ASSOCIATES FOR

TRANSPORTATION PLANNING SERVICES FOR THE LA MESA
BOULEVARD COMPLETE STREETS PLAN, SEGMENT 2
Resolution No. 2023-004
Adopt Resolution.

10.6 APPROVAL OF UPDATING THE BANK CONTRACTING OFFICER AND

DELEGATION OF AUTHORITY TO THE NEW CITY TREASURER
This item was deleted from the agenda.

7 10.9 CONTINUANCE OF THE RATIFICATION OF THE DESIGN REVIEW BOARD'S APPROVAL OF PROJECT 2021-40 (PALM STREET

VENTURES LLC)
A PROPOSED MIXED-USE DEVELOPMENT AT 4757 PALM AVENUE,
APN 494-410-24-00 IN THE CD-D (DOWNTOWN COMMERCIAL /

URBAN DESIGN OVERLAY ZONE)
Councilmember Lothian left the dais at 7:09 p.m.

Mary Davis spoke in opposition to the ratification of the Design Review Board's approval of Project 2021-40 (Palm Street Ventures LLC).

Lauren Cazares spoke in support of the ratification of the Design Review Board's approval of Project 2021-40 (Palm Street Ventures LLC).

Sandy Cajigas submitted a comment in opposition to the ratification of the Design Review Board's approval of Project 2021-40 (Palm Street Ventures LLC).

Karlene Akers submitted a comment stating their concerns with Project 2021-40 (Palm Street Ventures LLC).

City Attorney Sabine explained that the Council would only be voting on the design of the project, and the other components of the project, such as the entitlement, were already approved by the Planning Commission with no appeal filed during the appeal period.

Council questions and comments ensued.

ACTION: Motioned by Councilmember Shu to ratify the Design Review Board's approval of Project 2021-40 with the lighter color palette for the building. The motion failed due to a lack of a second.

Moved By Councilmember Dillard
Seconded By Vice Mayor Parent
To ratify the Design Review Board's approval of Project 2021-40 with the original darker color palette for the building.

For (4): Mayor Arapostathis, Vice Mayor Parent, Councilmember Dillard, and Councilmember Shu
Abstain (1): Councilmember Lothian
Approved (4 to 0)

8 11. STAFF REPORT

11.1 CONSIDERATION OF APPOINTING AND/OR REAPPOINTING

COUNCILMEMBERS TO OUTSIDE BOARDS, COMMISSIONS AND

COMMITTEES, AND TO THE COUNCIL AD HOC AND STANDING

SUBCOMMITTEES
Councilmember Lothian returned to the dais at 7:26 p.m.

Mayor Arapostathis explained the appointment process for the outside boards, commissions, and committees, and the Council ad hoc and standing subcommittees.

Carol Kim, Business Manager of the San Diego Building and Construction Trades Council, spoke in support of the appointment of Mayor Arapostathis as the primary representative, Councilmember Shu as the alternate representative and Councilmember Dillard as the second alternate representative on the San Diego Association of Governments Board of Directors.

Gretchen Newsom on behalf of the International Brotherhood of Electrical Workers ("IBEW") Local 569, spoke on ensuring the City's appointments to regional agencies be representatives with values that do right by La Mesa and the entire region.

Moved By Mayor Arapostathis
Seconded By Councilmember Dillard
Appoint Mayor Arapostathis as the primary representative, Councilmember Shu as the first alternate representative, and Councilmember Dillard as the second alternate representative on the San Diego Association of Governments Board of Directors.

For (5): Mayor Arapostathis, Vice Mayor Parent, Councilmember Dillard, Councilmember Lothian, and Councilmember Shu
Approved (5 to 0)

9 Moved By Councilmember Dillard
Seconded By Councilmember Shu
Appoint Councilmember Dillard as the primary representative and Mayor Arapostathis as the alternate representative on the San Diego Metropolitan Transit System Board of Directors.

For (4): Mayor Arapostathis, Vice Mayor Parent, Councilmember Dillard, and Councilmember Shu
Against (1): Councilmember Lothian
Approved (4 to 1)
Moved By Mayor Arapostathis
Seconded By Councilmember Shu
Appoint: (1) Councilmember Lothian as the primary representative on the East County Economic Development Council; (2) Councilmember Shu as the primary representative and Mayor Arapostathis as the alternate representative on the Harry Griffen Park JPA; (3) Vice Mayor Parent as the primary representative and Councilmember Shu as the alternate representative on the Heartland Communications Facility Authority; (4) Vice Mayor Parent as the primary representative and Councilmember Shu as the alternate representative on the Heartland Fire Training Facility Authority; (5) Mayor Arapostathis as the primary representative and Councilmember Lothian as the alternate representative on the La MesaSpring Valley School District/City of La Mesa Joint Steering Committee; (6) Councilmember Lothian as the primary representative on the League of California Cities San Diego County Division; (7) William Baber as the primary representative and Councilmember Shu as the alternate representative on the Metro Wastewater Joint Powers Authority; (8) Vice Mayor Parent as the primary representative on the Mission Trails Regional Task Force; (9) Councilmember Parent as the primary representative and Councilmember Shu as the alternate representative on the San Diego Community Power Board of Directors; and (10) Councilmember Dillard as the primary representative on the Sweetwater River Watershed Advisory Panel.

For (5): Mayor Arapostathis, Vice Mayor Parent, Councilmember Dillard, Councilmember Lothian, and Councilmember Shu
Approved (5 to 0)

10 Moved By Mayor Arapostathis
Seconded By Vice Mayor Parent
(1) Establish a standing subcommittee comprising of Councilmember Dillard and Councilmember Lothian for the purpose of acting as a liaison between residents and businesses applying for permits and the department that issues permits; (2) Establish an ad hoc subcommittee comprising of Mayor Arapostathis and Vice Mayor Parent for the purpose of reviewing the Accessory Dwelling Unit policies and process; (3) Establish an ad hoc subcommittee comprising of Vice Mayor Parent and Councilmember Shu for the purpose of reviewing parking related legislation and policies; (4) Appoint: (a) Mayor Arapostathis and Councilmember Shu to the Citizen Emergency Preparedness Ad Hoc Subcommittee; (b) Vice Mayor Parent and Councilmember Shu to the Civic Center Master Plan Ad Hoc Subcommittee; (c) Vice Mayor Parent and Councilmember Lothian to the Review of the Design Review Board Ad Hoc Subcommittee; (d) Vice Mayor Parent and Councilmember Shu to the Housing Affordability Ad Hoc Subcommittee; (e) Vice Mayor Parent and Councilmember Dillard to the Extension of Proposition L Ad Hoc Subcommittee; (f) Mayor Arapostathis and Vice Mayor Parent to the Review of City Streets for Greater Pedestrian Access Ad Hoc Subcommittee; (g) Vice Mayor Parent and Councilmember Lothian to the Business Rebound Ad Hoc Subcommittee; (h) Councilmember Dillard and Councilmember Shu to the Climate Action Plan Updates Ad Hoc Subcommittee; (i) Councilmember Dillard and Councilmember Shu to the Animal Welfare Standing Subcommittee; (j) Mayor Arapostathis and Councilmember Shu to the Audit Standing Subcommittee; (k) Councilmember Dillard and Councilmember Shu to the Future of MacArthur Park Standing Subcommittee; and (l) Councilmember Dillard and Councilmember Lothian to the Downtown Events Standing Subcommittee.

For (5): Mayor Arapostathis, Vice Mayor Parent, Councilmember Dillard, Councilmember Lothian, and Councilmember Shu
Approved (5 to 0)

11 12. COUNCIL INITIATED

12.1 CONSIDERATION OF APPROVING A CITY DONATION OF A TREE IN

MEMORY OF DEXTER LEVY - MAYOR ARAPOSTATHIS AND VICE

MAYOR PARENT
Mayor Arapostathis and Vice Mayor Parent explained the purpose for requesting a City donation of a tree in memory of Dexter Levy and shared their memories and expressed their gratitude and respect for Dexter Levy.

Anthony McIvor spoke in support of a City donation of a tree in memory of Dexter Levy.

Moved By Mayor Arapostathis
Seconded By Councilmember Shu
Approve a City donation of a tree in memory of Dexter Levy.

For (5): Mayor Arapostathis, Vice Mayor Parent, Councilmember Dillard, Councilmember Lothian, and Councilmember Shu
Approved (5 to 0)

12.2 CONSIDERATION OF DIRECTING STAFF TO PREPARE OR REVISE A

COMPREHENSIVE POLICY, SCHEDULE, AND CHECKLIST FOR

WHAT ACTIONS SHOULD BE TAKEN BY WHICH STAFF TO
ONBOARD NEW ELECTED OFFICIALS MOVING FORWARD – VICE

MAYOR PARENT AND COUNCILMEMBER DILLARD
Vice Mayor Parent and Councilmember Dillard explained the purpose for directing staff to prepare or revise a comprehensive policy, schedule, and checklist for what actions should be taken by which staff to onboard new elected officials moving forward.

Christopher Glenn submitted a comment in support of the item.

Moved By Vice Mayor Parent
Seconded By Councilmember Dillard
To direct staff to prepare or revise a comprehensive policy, schedule, and checklist for what actions should be take by which staff to onboard new elected officials moving forward.

For (5): Mayor Arapostathis, Vice Mayor Parent, Councilmember Dillard, Councilmember Lothian, and Councilmember Shu
Approved (5 to 0)

12 13. COUNCIL COMMITTEE REPORTS (3 MINUTE LIMIT)
The Mayor and Council reported on various outside boards, commissions and committee meetings they attended. No action was taken.

14. AB 1234 REPORTS (GC 53232.3 (d))
There were no reports.

15. CITY ATTORNEY REMARKS
There were no remarks.

16. ADJOURNMENT
Mayor Arapostathis adjourned the meeting at 8:06 p.m.
_________________________
City Clerk

1 La Mesa City Council
Minutes of a Regular Meeting
Date:

Location:

January 24, 2023, 6:00 pm
City Council Chambers, 8130 Allison Avenue
La Mesa, California

Present: Mayor Arapostathis
Vice Mayor Parent
Councilmember Dillard
Councilmember Lothian
Councilmember Shu
Staff: City Manager Humora
City Attorney Sabine
City Clerk Wiegelman
This meeting was conducted utilizing teleconferencing and electronic means consistent with Government Code Section 54953, as amended by Assembly Bill 361, in relation to the COVID-19 State of Emergency and recommended social distancing measures. _____________________________________________________________________

1. CALL TO ORDER
The City Council minutes are prepared and ordered to correspond to the City Council Agenda. Agenda Items can be taken out of order during the meeting.

The Agenda Items were considered in the order presented.

Mayor Arapostathis called the meeting to order at 6:00 p.m.

1.1 INVOCATION - COUNCILMEMBER LOTHIAN

1.2 PLEDGE OF ALLEGIANCE

2. REPORT FROM CLOSED SESSION
City Clerk Wiegelman on behalf of City Attorney Sabine, announced there were no reportable actions.

2 3. CITY MANAGER COMMENTS
There were no comments.

4. COMMUNITY BULLETIN REPORTS
The Mayor, Council and staff made announcements and reported on various events taking place in the City. No action was taken.

5. ADDITIONS AND/OR DELETIONS TO THE AGENDA
There were no additions or deletions to the agenda.

6. PRESENTATION

6.1 CITY OF LA MESA CLIMATE ACTION PLAN PROGRESS REPORT

PRESENTATION
Environmental Program Manager Ego provided a PowerPoint presentation on the progress of the City's Climate Action Plan ("CAP"), highlighting the CAP resolutions and implementation, projects in the areas of energy, transportation, solid waste, green infrastructure, and water, and the 2023 priority projects.

Council questions and comments ensued.

7. PUBLIC COMMENTS – (TOTAL TIME – 15 MINUTES)
Dianne Osterling spoke regarding solar energy and affordable housing.

Aaron Amerling spoke regarding the appointment to fill the unscheduled vacancy on the Planning Commission.

8. CONFLICT DISCLOSURES
There were no conflict of interest disclosures.

9. BOARD AND COMMISSION INTERVIEWS

9.1 INTERVIEW OF APPLICANTS FOR UNSCHEDULED VACANCIES ON

THE YOUTH ADVISORY COMMISSION
City Clerk Wiegelman briefly explained the interview process.

The following applicants spoke regarding their qualifications and interest in being appointed to the Youth Advisory Commission:

Jackson Banthrum
Adriana Flores

3 City Clerk Wiegelman said the appointments would be made at the next City Council meeting.

Following the interviews, no action was taken.

10. BOARD AND COMMISSION APPOINTMENTS

10.1 RESOLUTION APPOINTING A MEMBER TO FILL THE

UNSCHEDULED VACANCY ON THE ARTS AND CULTURE

COMMISSION
Mayor Arapostathis nominated Renee Bareno for appointment to the Arts and Culture Commission.

Resolution No. 2023-005
Moved By Mayor Arapostathis
Seconded By Vice Mayor Parent
Approve the appointment of Renee Bareno to the Arts and Culture Commission and adopt Resolution confirming the appointment.

For (5): Mayor Arapostathis, Vice Mayor Parent, Councilmember Dillard, Councilmember Lothian, and Councilmember Shu
Approved (5 to 0)

10.2 RESOLUTION APPOINTING AND/OR REAPPOINTING MEMBERS TO

THE COMMUNITY POLICE OVERSIGHT BOARD
Mayor Arapostathis nominated the following individuals for appointment and/or reappointment to the City’s Community Police Oversight Board:

Gregg Ward, Police Beat 1 Resident representative
Janet Castanos, Helix Charter High School representative Caitlin Tiffany, La Mesa-Spring Valley School District representative Christian DeMent, La Mesa Faith Based Community representative Lauren M. Cazares, Young Adult representative
Robert Duff, Older Adult representative

4 Resolution No. 2023-006
Moved By Mayor Arapostathis
Seconded By Vice Mayor Parent
Approve the appointment of Gregg Ward and Lauren Cazares and the reappointment of Janet Castanos, Christian DeMent, Caitlin Tiffany, and Robert Duff to the Community Police Oversight Board and adopt the Resolution confirming the appointments and reappointments.

For (5): Mayor Arapostathis, Vice Mayor Parent, Councilmember Dillard, Councilmember Lothian, and Councilmember Shu
Approved (5 to 0)

10.3 RESOLUTION APPOINTING A MEMBER TO FILL THE

UNSCHEDULED VACANCY ON THE PLANNING COMMISSION
City Clerk Wiegelman explained the nomination process for the Planning Commission.

The Council began the open nomination process for the unscheduled vacancy on the Planning Commission.

City Clerk Wiegelman announced the nominations as follows:

Round 1:

Mayor Arapostathis nominated Kathleen Brand.

Vice Mayor Parent nominated Jonathan Frankel.

Councilmember Dillard nominated Jonathan Frankel.

Councilmember Lothian nominated Blake Baylin.

Councilmember Shu nominated Jonathan Frankel.

City Clerk Wiegelman announced that Jonathan Frankel had received a majority nomination.

5 Resolution No. 2023-007
Moved By Vice Mayor Parent
Seconded By Councilmember Shu
Approve the appointment of Jonathan Frankel to the Planning Commission and adopt the Resolution confirming the appointment.

For (4): Mayor Arapostathis, Vice Mayor Parent, Councilmember Dillard, and Councilmember Shu
Against (1): Councilmember Lothian
Approved (4 to 1)

11. PUBLIC COMMENTS ON CONSENT CALENDAR
Bonnie Baranoff submitted a comment on Item 12.6.

Dianne Osterling spoke on Items 12.2 and 12.7.

City Treasurer Strabone spoke on Item 12.3.

12. CONSENT CALENDAR
(Items 12.1 through 12.7)
Vice Mayor Parent requested Item 12.3 be pulled for separate consideration.

Moved By Vice Mayor Parent
Seconded By Mayor Arapostathis
Approve Consent Calendar Items 12.1 through 12.7, except for Item 12.3.

For (5): Mayor Arapostathis, Vice Mayor Parent, Councilmember Dillard, Councilmember Lothian, and Councilmember Shu
Approved (5 to 0)

12.1 APPROVAL OF MOTION TO WAIVE THE READING OF THE TEXT OF

ALL ORDINANCES AND RESOLUTIONS AT THIS MEETING
Approve.

6 12.2 RESOLUTION MAKING FINDINGS PURSUANT TO GOVERNMENT CODE SECTION 54953, AS AMENDED BY ASSEMBLY BILL 361, AND

RE-AUTHORIZING THE CONTINUED USE OF VIRTUAL AND/OR

HYBRID MEETINGS OF THE LEGISLATIVE BODIES BEGINNING
FEBRUARY 1, 2023 THROUGH FEBRUARY 28, 2023
Resolution No. 2023-008
Adopt Resolution.

12.4 APPROVAL OF UPDATING THE BANK CONTRACTING OFFICER AND

DELEGATION OF AUTHORITY TO THE NEW CITY TREASURER
Approve.

12.5 INDEPENDENT POLICE AUDITOR REPORT FOR THE QUARTER
ENDING SEPTEMBER 30, 2022
Receive and file.

12.6 HOMELESS OUTREACH AND MOBILE ENGAGEMENT (HOME)
PROGRAM QUARTERLY REPORT (OCTOBER 2022 - DECEMBER
2022)
Receive and file.

12.7 RESOLUTION APPROVING AN ERRATA TO RESOLUTION NO. 2023- 004 CORRECTING THE CONTRACT AMOUNT FROM $270,195 TO
$362,460 TO CHEN RYAN ASSOCIATES FOR TRANSPORTATION

PLANNING OF LA MESA BOULEVARD COMPLETE STREET DESIGN
SEGMENT 2 PROJECT
Resolution No. 2023-009
Adopt Resolution.

12.3 APPROVAL OF THE POLICY AND CHECKLIST FOR NEW ELECTED

OFFICIALS ORIENTATION AND THE CHECKLIST FOR OUTGOING

ELECTED OFFICIALS
Vice Mayor Parent requested the following items be added to the La Mesa Newly Elected Official Incoming Office Checklist:
 Introduction with vendors, including the brokers with whom the City Treasurer conducts business with;
 Orientation appointment with appropriate staff, including the City Manager and Director of Finance, to explain the City Treasurer's

7 quarterly report, the City's investment committee and audit committee, and the necessary delegation of authority;
 An eScribe orientation with the City Clerk; and
 Provide a City lapel pin.

Councilmember Dillard requested the following item be added to the La Mesa Newly Elected Official Incoming Office Checklist:
 Provide written instructions on how to set up the voicemail on the City provided cell phone.

Moved By Mayor Arapostathis
Seconded By Vice Mayor Parent
Approve, as amended, to add the following items to the La Mesa Newly Elected Official Incoming Office Checklist: (1) introduction with vendors, including the brokers with whom the City Treasurer conducts business with; (2) orientation appointment with appropriate staff, including the City Manager and Director of Finance, to explain the City Treasurer's quarterly report, the City's investment committee and audit committee, and the necessary delegation of authority; (3) an eScribe orientation with the City Clerk; (4) provide a City lapel pin; (5) provide written instructions on how to set up the voicemail on the City provided cell phone.

For (5): Mayor Arapostathis, Vice Mayor Parent, Councilmember Dillard, Councilmember Lothian, and Councilmember Shu
Approved (5 to 0)

13. STAFF REPORT

13.1 WAITE PARK PRESENTATION

PRESENTATION OF WAITE PARK DRAFT MASTER PLAN AND
CONSIDERATION OF RESOLUTION APPROPRIATING $70,000 FOR

THE WAITE PARK MASTER PLAN ENVIRONMENTAL REVIEW FROM

GENERAL FUND UNALLOCATED RESERVES AND AWARDING A
TASK ORDER TO HELIX ENVIRONMENTAL PLANNING, INC. TO

PREPARE TECHNICAL STUDIES AND ENVIRONMENTAL

COMPLIANCE DOCUMENTATION PURSUANT TO THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA)

8 Director of Community Services Richardson gave a brief background on Waite Park and introduced Glen Schmidt, Principal at Schmidt Design Group, who provided a PowerPoint presentation on the Waite Park Draft Master Plan, highlighting the site and its history, the community outreach efforts, the community feedback, and the Master Plan design features.

Council questions and comments ensued.

Matt Bohan, Chair of the Community Services Commission, spoke in support of the item.

Parker Ross, Vice Chair Community Services Commission, spoke in support of the item.

Resolution No. 2023-010
Moved By Councilmember Shu
Seconded By Mayor Arapostathis
Adopt Resolution.

For (5): Mayor Arapostathis, Vice Mayor Parent, Councilmember Dillard, Councilmember Lothian, and Councilmember Shu
Approved (5 to 0)

14. HEARING

14.1 CONSIDERATION OF RESOLUTION ORDERING THE SUMMARY

VACATION OF AN EASEMENT ON TERRY LANE FOR PUBLIC
UTILITY PURPOSES ENCUMBERING LOTS 68 THROUGH 87 PER
MAP NO. 2608 FOR DENNSTEDT TERRACE
Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice.

Mayor Arapostathis opened the hearing for Item 14.1.

Director of Public Works/City Engineer Throne explained the purpose and process of the vacation and described the location of the property.

Council questions and comments ensued.

9 Moved By Mayor Arapostathis
Seconded By Vice Mayor Parent
Close the hearing.

For (5): Mayor Arapostathis, Vice Mayor Parent, Councilmember Dillard, Councilmember Lothian, and Councilmember Shu
Approved (5 to 0)
Resolution No. 2023-011
Moved By Mayor Arapostathis
Seconded By Vice Mayor Parent
Adopt Resolution.

For (5): Mayor Arapostathis, Vice Mayor Parent, Councilmember Dillard, Councilmember Lothian, and Councilmember Shu
Approved (5 to 0)

15. COUNCIL INITIATED

15.1 CONSIDERATION OF ADOPTING RESOLUTION IN SUPPORT OF

FREE AND FAIR UNION ELECTIONS FOR SHARP GROSSMONT

EMPLOYEES - VICE MAYOR PARENT AND COUNCILMEMBER SHU
Vice Mayor Parent and Councilmember Shu explained the intent and purpose for adopting a resolution in support of free and fair union elections for Sharp Grossmont employees.

The following members of the public spoke in support of adopting a resolution in support of free and fair union elections for Sharp Grossmont employees:

Kellen Latimer
Teresa Mariano
Joni Vargas
Fatima
Habacuc Serrano
Robert Yeider

10 Dianne Osterling spoke in opposition of adopting a resolution in support of free and fair union elections for Sharp Grossmont employees.

Council questions and comments ensued.

Resolution No. 2023-012
Moved By Councilmember Shu
Seconded By Councilmember Dillard
Adopt Resolution in support of free and fair union elections for Sharp Grossmont employees.

For (4): Mayor Arapostathis, Vice Mayor Parent, Councilmember Dillard, and Councilmember Shu
Against (1): Councilmember Lothian
Approved (4 to 1)

15.2 CONSIDERATION OF PROPOSAL TO CANCEL THE REGULAR
MEETING OF THE CITY COUNCIL SCHEDULED FOR FEBRUARY 14,
2023 - MAYOR ARAPOSTATHIS AND VICE MAYOR PARENT
Mayor Arapostathis and Vice Mayor Parent explained the purpose for cancelling the Regular meeting of the City Council scheduled for February 14, 2023 (Valentine's Day).

Council questions and comments ensued.

Moved By Vice Mayor Parent
Seconded By Councilmember Shu
Approve the cancellation of the Regular meeting of the City Council scheduled for February 14, 2023.

For (5): Mayor Arapostathis, Vice Mayor Parent, Councilmember Dillard, Councilmember Lothian, and Councilmember Shu
Approved (5 to 0)

16. COUNCIL COMMITTEE REPORTS (3 MINUTE LIMIT)
The Mayor and Council reported on various outside boards, commissions and committee meetings they attended. No action was taken.

11 17. AB 1234 REPORTS (GC 53232.3 (d))
There were no reports.

18. CITY ATTORNEY REMARKS
There were no remarks.

19. ADJOURNMENT
Mayor Arapostathis adjourned the meeting at 7:26 p.m.
_________________________
City Clerk

1 La Mesa City Council
Minutes of a Special Meeting
Date:

Location:

January 24, 2023, 5:30 p.m.

Council Chambers and City Manager's Conference Room
City Hall, 8130 Allison Avenue
La Mesa, California

Present: Vice Mayor Parent
Councilmember Dillard
Councilmember Lothian
Councilmember Shu

Absent: Mayor Arapostathis
Staff: City Manager Humora
City Attorney Sabine
City Clerk Wiegelman
This meeting was conducted utilizing teleconferencing and electronic means consistent with Government Code Section 54953, as amended by Assembly Bill 361, in relation to the COVID-19 State of Emergency and recommended social distancing measures. _____________________________________________________________________

1. CALL TO ORDER
Vice Mayor Parent called the meeting to order at 5:30 p.m.

2. PUBLIC COMMENTS
There were no public comments.

Vice Mayor Parent adjourned the meeting to Closed Session at 5:31 p.m.

2 3. CLOSED SESSION

3.1 CONFERENCE WITH LEGAL COUNSEL REGARDING PENDING

WORKERS COMPENSATION CLAIM PURSUANT TO GOVERNMENT
CODE SECTION 54956.9
Joseph Gaines vs. City of La Mesa
The meeting reconvened at 5:50 p.m. with Vice Mayor Parent, Councilmember Dillard, Councilmember Lothian, and Councilmember Shu present and Mayor Arapostathis absent.

4. REPORT FROM CLOSED SESSION - CITY ATTORNEY
City Attorney Sabine announced there were no reportable actions.

5. ADJOURNMENT
Vice Mayor Parent adjourned the meeting at 5:51 p.m.
_________________________
City Clerk

REPORT to the MAYOR and MEMBERS of the CITY COUNCIL
From the CITY MANAGER
DATE: February 28, 2023
SUBJECT: AWARD OF REQUEST FOR PROPOSALS 23-09 FOR

CANNABIS TAX AUDIT SERVICES TO THE PUN

GROUP, LLP
ISSUING DEPARTMENT: Finance
SUMMARY:

Issues:

Should the City Council adopt the resolution to award RFP 23-09 for Cannabis Tax Audit Services to The Pun Group, LLP?
Recommendation:

That City Council adopt the resolution to award RFP 23-09 for Cannabis Tax Audit Services to The Pun Group, LLP.

Fiscal Impact:

Annual costs are capped at $6,000 per business (“licensee”) using cannabis tax revenues. Funds are budgeted in account 101-64300-141-000000 for this service.

City’s Strategic Goals:
 Maintain a financially sound and affordable city government BACKGROUND:

On November 6, 2018, La Mesa voters approved a cannabis business tax (Measure V) by 73.4 percent, which authorized the establishment and implementation of a cannabis business tax on all cannabis businesses operating in the City of La Mesa. This is a

Report to Mayor and Councilmembers
Date: February 28, 2023
Page: 2 of 3
general tax and is used to fund general expenses such as police, fire, roads and recreation.

La Mesa Municipal Code Section 6.10.200 allows the City to examine all books and financial records of cannabis businesses for the purpose of determining taxes owed and verifying the returns submitted. In doing this, the City follows all standard auditing procedures as applied to any financial activity. In 2019 the City issued RFP (Request For Proposals) 19-15 and selected a firm for cannabis business tax auditing services during the initial period.

DISCUSSION:

Faced with increasing costs for the auditing services the City issued new RFP 23-09 in cooperation with the City of Chula Vista and the County of Imperial, both of which needed the same services. The RFP was published through the City’s online bid system and 1,291 firms were notified by email. Twenty-one prospective bidders accessed the RFP documents and five submitted proposals. Staff from all three agencies evaluated the proposals and determined that The Pun Group, LLP best fit the needs for these services.

Staff recommends entering into an agreement for these services for an initial term through June 30, 2024 with four one-year options to renew through fiscal year 2027/2028. The agreement would allow the renewals by mutual written consent of both parties with the City Manager having sole and exclusive right to exercise any options contained in the agreement on behalf of the City. The City of Chula Vista and the County of Imperial would be responsible for their own agreements with The Pun Group, LLP.

CONCLUSION:

Staff recommends that the City Council adopt the resolution to award RFP 23-09 for Cannabis Tax Audit Services to The Pun Group LLP.

Reviewed by: Respectfully submitted by:
____________________ ____________________________
Greg Humora Tammi Royales
City Manager Director of Finance

Report to Mayor and Councilmembers
Date: February 28, 2023
Page: 3 of 3
____________________________
Scott Munzenmaier
Purchasing Officer
Attachments: A. Resolution
B. Draft Agreement

RESOLUTION NO. 2023-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA MESA TO AWARD RFP 23-09 FOR CANNABIS TAX AUDIT SERVICES TO THE

PUN GROUP, LLP
________________________________________________________________ WHEREAS, on November 6, 2018, La Mesa voters approved a cannabis business tax (Measure V) by 73.4 percent, which authorized the establishment and implementation of a cannabis business tax on all cannabis businesses operating in the City of La Mesa; WHEREAS, the City issued RFP (Request For Proposals) 23-09 in cooperation with the City of Chula Vista and the County of Imperial, both of which needed the same services, and received five proposals; and
WHEREAS, staff from all three agencies evaluated the proposals and determined that The Pun Group, LLP best fit the needs for these services.

NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the City Council of the City of La Mesa, California, that the City Council intends to award RFP 23-09 for Cannabis Tax Audit Services for the Cities of La Mesa and Chula Vista and the County of Imperial to The Pun Group LLP.

PASSED AND ADOPTED at a Regular meeting of the City Council of the City of La Mesa, California, held the 28
th day of February 2023, by the following vote, to wit:

AYES:

NOES:

ABSENT:

CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be a true and exact copy of Resolution No. 2023- , duly passed and adopted by the City Council of said City on the date and by the vote therein recited.

MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)

City of La Mesa

SERVICES AGREEMENT
Cannabis Tax Audit Services

Services Agreement #2023‐SA‐012
Title: Cannabis Tax Audit Services
2 TABLE OF CONTENTS

1. STANDARD AGREEMENT FOR PROFESSIONAL SERVICES ...............................

2. ENGAGEMENT OF CONTRACTOR ............................................................................

3. SERVICES TO BE PERFORMED BY CONTRACTOR ..............................................

4. KEY PROJECT PERSONNEL .......................................................................................

5. CONTRACTORS ............................................................................................................

6. CITY REPRESENTATION ............................................................................................

7. RESPONSIBILITIES OF THE CITY .............................................................................

8. PERFORMANCE SCHEDULE ......................................................................................

9. COMPENSATION TO CONTRACTOR ........................................................................

10. RECORDS .......................................................................................................................

11. METHOD OF COMPENSATION ..................................................................................

12. ITEMS TO BE DELIVERED TO CITY .........................................................................

13. DESIGN CHANGES OR REVISIONS ..........................................................................

14. ADDITIONAL SERVICES OUTSIDE SCOPE .............................................................

15. HOLD HARMLESS ........................................................................................................

16. INSURANCE ...................................................................................................................

17. OWNERSHIP OF WORK ...............................................................................................

18. ASSIGNABILITY ...........................................................................................................

19. INTEGRATION; AMENDMENTS ................................................................................

20. NOTICES .........................................................................................................................

21. DISPUTE RESOLUTION ...............................................................................................

22. TERMINATION OF AGREEMENT FOR CAUSE OR CONVENIENCE ...................

23. BUSINESS LICENSE .....................................................................................................

24. INTEREST OF MEMBERS OF THE CITY ...................................................................

25. INTEREST OF CONTRACTOR AND EMPLOYEES; .................................................

26. FACILITIES AND EQUIPMENT ..................................................................................

27. INDEPENDENT CONTRACTOR ..................................................................................

28. PERS ELIGIBILITY INDEMNIFICATION .................................................................

29. TIME ................................................................................................................................

30. CONTRACTOR NOT AGENT .......................................................................................

31. NON-DISCLOSURE .......................................................................................................

32. SUBCONTRACTING .....................................................................................................

33. CHANGES .......................................................................................................................

34. JOB SITE SAFETY .........................................................................................................

35. PREVAILING WAGES FOR PUBLIC WORKS PROJECTS .......................................

36. CONFLICT BETWEEN AGREEMENT AND OTHER DOCUMENTS ......................

37. DATE OF AGREEMENT ...............................................................................................

38. SIGNATURES .................................................................................................................

Services Agreement #2023‐SA‐012
Title: Cannabis Tax Audit Services
3 1. STANDARD AGREEMENT FOR PROFESSIONAL SERVICES
Between the City of La Mesa and
The Pun Group LLP
for Cannabis Tax Audit Services
This Agreement is entered into by City of La Mesa as of ____________, by and between the City of La Mesa, a municipal corporation, hereinafter referred to as "the City", and The Pun Group LLP, hereinafter referred to as "Contractor."
WITNESSETH THAT:

WHEREAS, the City has adopted Resolution No. 2023- ;
WHEREAS, the City has need for professional services to perform cannabis tax audit services and is willing to compensate Contractor for such services;
WHEREAS, this agreement is based on Request for Proposals 23-09; WHEREAS, the City desires to engage Contractor to render certain technical and professional services in the providing of said professional services; and WHEREAS, Contractor is qualified to provide said professional services for cannabis tax audit service.

NOW THEREFORE, the parties do mutually agree as follows:

2. ENGAGEMENT OF CONTRACTOR
The City hereby agrees to engage Contractor and Contractor hereby agrees to perform the services set forth in this Agreement. This Agreement shall be for an initial term from the execution date of the Agreement through June 30, 2024 and may be renewed for an additional four one-year terms by mutual written consent of both parties. The City Manager shall have sole and exclusive right to exercise any options contained in this agreement on behalf of the City.

3. SERVICES TO BE PERFORMED BY CONTRACTOR
Contractor shall commence performance of the Project upon execution of this Agreement by both parties. The term "Project" as used in this Agreement shall include all of the tasks and items listed and described in Exhibit "A", attached hereto and incorporated herein as part of this Agreement.

4. KEY PROJECT PERSONNEL
Contractor agrees to provide the services of Kenneth H. Pun, CPA, CGMA, Engagement Partner; David Siris, CPA, Project Manager; and Masood Yousufzai, Revenue Analyst respectively for the full term of this contract. No substitutions will be made without prior written approval by the City.

The City reserves the right to request specific qualifications for personnel substituted under this section.

Services Agreement #2023‐SA‐012
Title: Cannabis Tax Audit Services
4 5. CONTRACTORS
Contractor will utilize the services of the following subcontractors during the course of this study:

None.

Payment for such services shall be the responsibility of the Contractor. No substitution of proposed subcontractors shall be made without prior written approval by the City.

6. CITY REPRESENTATION
The Director of Finance for the City of La Mesa, or its designated representative, shall represent the City in all matters pertaining to the services rendered pursuant to this Agreement and shall administer said Agreement on behalf of the City. This person shall hereinafter be referred to as the "City's Representative."

7. RESPONSIBILITIES OF THE CITY
The City will provide the Contractor, or cause to be provided with, the following documents, services and site information, at no charge to the Contractor.

A. See Exhibit "A"

8. PERFORMANCE SCHEDULE
Both Contractor and the City recognize that time is of the essence in the completion of this work and the following schedule is dependent upon timely actions by the Contractor and the City.

Accordingly, the Contractor shall complete all of the work outlined in Exhibit "A" and described in this Agreement in accordance with the following schedule:

TASK; TARGET DATE
A. See Exhibit "A"
The Contractor shall not be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, or acts of God, or failure of City to furnish timely information or to approve or disapprove Contractor's work promptly, or delay or faulty performance by City, or governmental agencies.

9. COMPENSATION TO CONTRACTOR
Final payment of fees shall be upon delivery of approved final documents. Progress payments shall be made based upon evidence that the work is progressing satisfactorily as determined by the City's Project Manager and substantiated with detailed invoices. The amount to be billed shall be based on the Contractor schedule of fees for professional services and the actual time required for each activity. The schedule of fees and estimated time for the project are as shown in Exhibit "B" attached hereto and incorporated herein as part of this Agreement.

Services Agreement #2023‐SA‐012
Title: Cannabis Tax Audit Services
5 The total fee for professional services shall be billed at the rates as described on page 6 of Exhibit "B".

10. RECORDS
Contractor shall maintain adequate records to permit inspection audit of Contractor's time-andmaterial charges under this Agreement. Contractor shall make such records available to the City and to other public agencies responsible for approval, funding or auditing the project, during normal business hours upon reasonable notice. Nothing herein shall convert such records into public records and they will be available only to the City or to public agencies involved with approval, funding or audit functions. Such records shall be maintained by the Contractor for three (3) years following completion of the work under this Agreement.

11. METHOD OF COMPENSATION
The City shall compensate Contractor for the services performed hereunder on a monthly basis within thirty (30) calendar days of receipt of Contractor's invoice for the services performed. The Contractor shall provide documentation regarding time-and-material charges sufficient to meet normal auditing practice. Copies of the invoices for materials in excess of $500 and subcontractor charges shall be submitted with the request for periodic payment.

The City shall promptly review invoicing and notify Contractor of any objection thereto in writing within fifteen (15) days of receipt of the invoice; absent such objection the invoice shall be deemed proper and acceptable.

In the event that any undisputed invoice is not paid within thirty (30) calendar days after receipt of the invoice by the City, it shall commence bearing interest on the date that the invoice was rendered at the rate of 1% per month and the City agrees to pay all accrued interest, together with the charges for services rendered.

12. ITEMS TO BE DELIVERED TO CITY
The following items shall be delivered by the Contractor to the City of La Mesa:

QUANTITY; TARGET DATE
A. See Exhibit "A"

13. DESIGN CHANGES OR REVISIONS
No design changes or revisions will be required and no payment therefor will be made except pursuant to the provisions of this Agreement. No extra compensation shall be paid the Contractor for revisions required by reason of omissions or errors by the Contractor in the preparation of the original document, plans, working drawings, or specifications. Changes to the scope of this Agreement shall be negotiated prior to commencement of extra work.

14. ADDITIONAL SERVICES OUTSIDE SCOPE

Services Agreement #2023‐SA‐012
Title: Cannabis Tax Audit Services
6 Only after written authorization from the City, additional services that Contractor could provide, or cause to be provided, include the following:

A. Additional work related to the Project but not included in the Scope of Work.

B. Additional work caused by changes unrelated to the Scope of Work described herein.

Contractor will be compensated for Contractor time and direct personnel expenses as approved by the City. Payment for such additional services shall include Contractor's time at the rates shown on Exhibit "A".

15. HOLD HARMLESS
To the furthest extent allowed by law, Contractor shall indemnify, hold harmless and defend City and each of its officers, officials, employees, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time and property damage), and from any and all claims, demands and actions in law or equity (including reasonable attorney's fees and litigation expenses) that arise out of, pertain to, or relate to the negligence, recklessness or willful misconduct of Contractor, its principals, officers, employees, agents or volunteers in the performance of this Agreement.

If Contractor should subcontract all or any portion of the services to be performed under this Agreement, Contractor shall require each subcontractor to indemnify, hold harmless and defend City and each of its officers, officials, employees, agents and volunteers in accordance with the terms of the preceding paragraph.

This section shall survive termination or expiration of this Agreement.

16. INSURANCE
Throughout the life of this Agreement, Contractor shall pay for and maintain in full force and effect all policies of insurance required hereunder with an insurance company(ies) either (i) admitted by the California Insurance Commissioner to do business in the State of California and rated not less than "A:VII" in Best's Insurance Rating Guide, or (ii) authorized by the City Manager or his/her designee at any time and in his/her sole discretion. The following policies of insurance are required:

A. COMMERCIAL GENERAL LIABILITY insurance which shall be at least as broad as the most current version of Insurance Services Office (ISO) Commercial General Liability Coverage Form CG 00 01 and include insurance for “bodily injury,” “property damage” and “personal and advertising injury” with coverage for premises and operations (including the use of owned and non-owned equipment), products and completed operations, and contractual liability (including, without limitation, indemnity obligations under the Agreement) with limits of liability of not less than the following:
o $1,000,000 per occurrence

Services Agreement #2023‐SA‐012
Title: Cannabis Tax Audit Services
7 o $2,000,000 general aggregate
B. COMMERCIAL AUTOMOBILE LIABILITY insurance which shall be at least as broad as the most current version of Insurance Service Office (ISO) Business Auto Coverage Form CA 00 01 covering, Code 1 (any auto), or if Contractor has no owned autos, Code 8 (hired) and 9 (non-owned), with limits of liability of not less than $1,000,000 per accident for bodily injury and property damage.

C. WORKERS' COMPENSATION insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.

D. PROFESSIONAL LIABILITY (Errors and Omissions) insurance appropriate to Contractor’s profession, with limits of liability of $2,000,000 per claim/occurrence and $2,000,000 policy aggregate.

Should Contractor maintain insurance with broader coverage and/or limits of liability greater than those shown above, City requires and shall be entitled to the broader coverage and/or the higher limits of liability maintained by Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City.

Contractor shall be responsible for payment of any deductibles contained in any insurance policies required hereunder and Contractor shall also be responsible for payment of any self-insured retentions. Any deductibles or self-insured retentions must be declared to, and approved by, the City Manager or his/her designee. At the option of the City Manager or his/her designee, either:
(i) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects to City, its elected officials, officers, officials, employees, agents and volunteers: or (ii) Contractor shall provide a financial guarantee, satisfactory to City Manager or his/her designee, guaranteeing payment of losses and related investigations, claim administration and defense expenses. At no time shall City be responsible for the payment of any deductibles or self-insured retentions.

All policies of insurance required hereunder shall be endorsed to provide that the coverage shall not be cancelled, non-renewed, reduced in coverage or in limits except after 30 calendar day written notice has been given to City. Upon issuance by the insurer, broker, or agent of a notice of cancellation, non-renewal, or reduction in coverage or in limits, Contractor shall furnish City with a new certificate and applicable endorsements for such policy(ies). In the event any policy is due to expire during the work to be performed for City, Contractor shall provide a new certificate, and applicable endorsements, evidencing renewal of such policy not less than 15 calendar days prior to the expiration date of the expiring policy.

The General Liability and Automobile Liability insurance policies shall be written on an occurrence form and shall name City, its elected officials, officers, officials, employees, agents and volunteers as an additional insured. Such policy(ies) of insurance shall be endorsed so Contractor’s insurance shall be primary and no contribution shall be required of City, its elected officials, officers, officials, employees, agents and volunteers. The coverage shall contain no

Services Agreement #2023‐SA‐012
Title: Cannabis Tax Audit Services
8 special limitations on the scope of protection afforded to City, its elected officials, officers, officials, employees, agents or volunteers. The Workers’ Compensation insurance policy shall contain a waiver of subrogation as to City, its elected officials, officers, officials, employees, agents and volunteers.

If the Professional Liability (Errors and Omissions) insurance policy is written on a claims-made coverage form:

A. The retroactive date must be shown, and must be before the effective date of this Agreement or the commencement of work by Contractor.

B. Insurance must be maintained and evidence of insurance must be provided for at least 5 years after completion of the work or termination of the Agreement, whichever first occurs.

C. (iii) If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the effective date of the Agreement, or work commencement date, Contractor must purchase extended reporting period coverage for a minimum of 5 years after completion of the work or termination of the Agreement, whichever first occurs.

D. A copy of the claims reporting requirements must be submitted to City for review.

E. These requirements shall survive expiration or termination of the Agreement.

Contractor shall furnish City with all certificate(s) and applicable endorsements effecting coverage required hereunder. All certificates and applicable endorsements are to be received by City and approved by City Manager or his/her designee prior to City’s execution of the Agreement and before work commences. Upon request of City, Contractor shall immediately furnish City with a complete copy of any insurance policy required under this Agreement, including all endorsements, with said copy certified by the underwriter to be a true and correct copy of the original policy. This requirement shall survive expiration or termination of this Agreement.

If at any time during the life of this Agreement or any extension, Contractor or any of its subcontractors fail to maintain any required insurance in full force and effect, all work under this Agreement shall be discontinued immediately, and all payments due or that become due to Contractor shall be withheld until notice is received by City that the required insurance has been restored to full force and effect and that the premiums therefore have been paid for a period satisfactory to City. Any failure to maintain the required insurance shall be sufficient cause for City to terminate this Agreement. No action taken by City hereunder shall in any way relieve Contractor of its responsibilities under this Agreement.

The fact that insurance is obtained by Contractor shall not be deemed to release or diminish the liability of Contractor, including, without limitation, liability under the indemnity provisions of this Agreement. The duty to indemnify City and its elected officials, officers, officials, employees,

Services Agreement #2023‐SA‐012
Title: Cannabis Tax Audit Services
9 agents and volunteers shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Contractor. Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of Contractor, its principals, officers, employees, agents, persons under the supervision of Contractor, vendors, suppliers, invitees, Contractors, subcontractors, or anyone employed directly or indirectly by any of them.

If Contractor should subcontract all or any portion of the services to be performed under this Agreement, Contractor shall require each subcontractor to provide insurance protection in favor of City, its elected officials, officers, officials, employees, agents and volunteers in accordance with the terms of each of the preceding paragraphs, except that the subcontractors' certificates and endorsements shall be on file with Contractor and City prior to the commencement of any work by the subcontractor.

17. OWNERSHIP OF WORK
All finished or unfinished documents, studies, reports, computer files and materials prepared by Contractor and subcontractors under this Agreement shall be considered the property of the City and will be turned over to the City upon demand, but in any event, upon completion of the Project.

The Contractor shall be allowed to retain copies of documents for his permanent records, if desired.

The City and the Contractor will agree to keep trade/business information of the cannabis businesses confidential.

18. ASSIGNABILITY
Contractor shall not assign, delegate, or transfer this Agreement or any work hereunder, nor assign any monies due or to become due hereunder, except as expressly stated herein. In no event shall any contractual relation be created between any third party and the City without prior written consent of the City. A consent to one assignment shall not be deemed to be consent to any subsequent assignment.

19. INTEGRATION; AMENDMENTS
This Agreement sets forth the entire understanding of the parties with respect to the subject matter herein. There are no other agreements, expressed or implied, oral or written, except as set forth herein. This Agreement may be amended upon written mutual consent of both parties hereto.

Amendment requiring changes in compensation shall be subject to the City's change order procedures.

20. NOTICES
Notices and requests to the City or Contractor shall be delivered at the following addresses, either served personally on the designated representative or by U.S. Postal Service at the following addresses:

City:

Services Agreement #2023‐SA‐012
Title: Cannabis Tax Audit Services
10  Director of Finance
 City of La Mesa
 8130 Allison Avenue, La Mesa, CA 91942, La Mesa, CA 91942  (619) 463-6611
Contractor:
 Engagement Partner
 The Pun Group LLP
 200 E. Sandpointe Ave., Suite 600, Santa Ana, CA 92707  (949) 777-8801

21. DISPUTE RESOLUTION
The City shall require that all Contractors agree to submit any unresolved claims, counterclaims, disputes, controversies and other matters between them and the City or the Contractor and/or any subcontractors of any tier arising out of or relating to their agreement with the City or the breach thereof (“disputes”) first to mediation and then if not resolved, to non-binding arbitration prior to initiating suit or judicial proceeding.

If applicable – As provided in Public Contract Code section 9204, any claim filed by the Contractor on a public works project shall be reviewed by the City with 45 days and a written statement will be provided to the Contractor identifying what portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, the City and the Contractor may, by mutual agreement, extend the time period or it may be extended to allow City Council approval. The Contractor shall include reasonable documentation to support the claim. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the City issues its written statement.

22. TERMINATION OF AGREEMENT FOR CAUSE OR CONVENIENCE
If, through any cause, the Contractor shall fail to fulfill in timely and proper manner his obligations under this Agreement, or if the Contractor shall violate any of the covenants, agreements, or stipulations of this Agreement, the City shall thereupon have the right to terminate this Agreement immediately by giving written notice to the Contractor of such termination and specifying the effective date thereof. In such event, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs and reports prepared by the Contractor under this Agreement shall, at the option of the City, become its property and the Contractor shall be entitled to receive just and equitable compensation for any work satisfactorily completed hereunder.

In addition to termination for cause, the City may terminate this Agreement for City’s convenience upon not less than fifteen (15) days written notice to Contractor. Upon receipt of said notice, the Contractor shall immediately cease all work under this Agreement unless said notice provides

Services Agreement #2023‐SA‐012
Title: Cannabis Tax Audit Services
11 otherwise. If this Agreement is terminated as provided in this paragraph for City’s convenience, the Contractor shall be required to provide to City all finished or unfinished documents, data, studies, services, etc., prepared by the Contractor as may be requested by City and such work shall become City’s property upon payment to Contractor for the value of the work performed, less payments of compensation previously made.

Notwithstanding the above, the Contractor shall not be relieved of liability to the City for damages sustained by the City by virtue of any breach of the Agreement by the Contractor, and the City may withhold any payments to the Contractor for the purpose of set-off until such time as the exact amount of damages due the City from the Contractor is determined.

23. BUSINESS LICENSE
The Contractor, including all subcontractors, shall obtain a business license for work within the City of La Mesa pursuant to La Mesa Municipal Code Sections 6.08.010 through 6.08.240.

No payments shall be made to any Contractor until such business license has been obtained, and all fees paid therefor, by the Contractor and all subcontractors. Business license applications and information may be obtained from the Finance Department, City Hall, 8130 Allison Avenue, La Mesa, CA 91942-5502, (619) 667-1118 or online at cityoflamesa.us/buslic.

24. INTEREST OF MEMBERS OF THE CITY
No member of the governing body of the City and no other officer, employee, or agent of the City who exercises any functions or responsibilities in connection with the planning and carrying out of the program, shall have any personal financial interest, direct or indirect, in this Agreement; and the Contractor shall take appropriate steps to assure compliance.

25. INTEREST OF CONTRACTOR AND EMPLOYEES;

STATEMENT OF ECONOMIC INTERESTS
The Contractor covenants that he presently has no interest and shall not acquire interest, direct or indirect, in the study area or any parcels therein or any other interest which would conflict in any manner or degree with the performance of his services hereunder. The Contractor further covenants that in the performance of this Agreement, no person having any such interest shall be employed. City may require Contractor to complete and submit a Form 700, Statement of Economic Interests, in accordance with applicable law, to City Clerk.

26. FACILITIES AND EQUIPMENT
Contractor shall, at its sole cost and expense, furnish all facilities and equipment which may be required for furnishing services pursuant to this Agreement.

27. INDEPENDENT CONTRACTOR
At all times during the term of this Agreement, Contractor shall be an independent contractor and shall not be an employee of City. City shall have the right to control Contractor only insofar as the

Services Agreement #2023‐SA‐012
Title: Cannabis Tax Audit Services
12 results of Contractor's services rendered pursuant to this Agreement; however, City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this Agreement.

28. PERS ELIGIBILITY INDEMNIFICATION
In the event that Contractor’s employee providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS of the City, Contractor shall indemnify, defend, and hold harmless City for the payment of any employer and employee contributions for PERS benefits on behalf of the employee as well as for payment of any penalties and interest on such contributions which would otherwise be the responsibility of the City.

Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Contractor’s employees providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation and benefit including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contributions to be paid by City for employer contributions and/or employee contributions for PERS benefits.

29. TIME
Contractor shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary for satisfactory performance of Contractor's obligations pursuant to this Agreement.

30. CONTRACTOR NOT AGENT
Except as City may specify in writing, Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Contractor shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.

31. NON-DISCLOSURE
The designs, plans, reports, investigations, materials and documents prepared or acquired by the Contractor pursuant to this Agreement (including any duplicate copies kept by the Contractor) shall not be shown to any other public or private person or entity, except as authorized by the City.

The Contractor shall not disclose to any other public or private person or entity any information regarding the activities of the City except as authorized by the City.

32. SUBCONTRACTING
None of the services covered by the Agreement shall be subcontracted without the prior consent of the City. The Contractor shall be as fully responsible to the City for the acts and omissions of his subcontractors, and of persons either directly or indirectly employed by them, as he is for the acts and omissions of persons directly employed by him. The Contractor shall insert in each

Services Agreement #2023‐SA‐012
Title: Cannabis Tax Audit Services
13 subcontract appropriate provisions requiring compliance with the labor standards provisions of this Agreement.

33. CHANGES
The City may, from time to time, request changes in the Scope of Services of the Contract to be performed hereunder. Such changes, including any increase or decrease in the amount of the Contractor's compensation, which are mutually agreed upon by and between the City and the Contractor shall be incorporated to this Contract.

34. JOB SITE SAFETY
The general or prime Contractor who is responsible for means, methods and procedures of the project shall be responsible for job site safety.

The prime contractor and all subcontractors of all tiers shall:

A. Be responsible for the safety of their respective employees as required by law.

B. Come under the jurisdiction and supervision of the general or prime contractor’s job site safety program.

C. Exercise reasonable care to avoid risk of injury to others as required by the professional standard of care.

35. PREVAILING WAGES FOR PUBLIC WORKS PROJECTS

IF APPLICABLE
A. No professional Contractor or subcontractor subject to the requirements of State of California’s prevailing wages may be awarded a contract, or contracted with, for a public works project (submitted on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].

B. This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.

36. CONFLICT BETWEEN AGREEMENT AND OTHER DOCUMENTS
In the event of a conflict between this Agreement and any documents incorporated by reference in this Agreement, the terms and conditions of this Agreement shall supersede those contained in any such document incorporated by reference.

37. DATE OF AGREEMENT
The date of this Agreement shall be the date it shall have been signed by a duly authorized representative of City.

Services Agreement #2023‐SA‐012
Title: Cannabis Tax Audit Services
14 38. SIGNATURES
IN WITNESS WHEREOF, City and Contractor have executed the Agreement.

The Pun Group LLP
By: _________________________________
Kenneth H. Pun, CPA, CGMA, ENgagement Partner
Date: _____________

CITY OF LA MESA,
A Municipal Corporation
By: _________________________________
Dr. Mark Arapostathis, Mayor
Date: _____________
By: _________________________________
Greg Humora, City Manager
Date: _____________
By: _________________________________
Tammi ROYALES, Director of Finance
Date: _____________

APPROVED AS TO FORM
By: _________________________________

CITY ATTORNEY

Services Agreement #2023‐SA‐012
Title: Cannabis Tax Audit Services
15 Attachment: Exhibit A – Technical Proposal
Exhibit B – Cost Proposal

Submitted By:

Kenneth H. Pun, CPA, CGMA
Managing Partner
200 E. Sandpointe Ave., Suite 600, Santa Ana, CA 92707
(949) 777-8801 I [email protected]
November 1, 2022

TECHNICAL PROPOSAL
Cannabis Tax Audit Services

CITY OF LA MESA, CITY OF CHULA VISTA,

AND COUNTY OF IMPERIAL

EXHIBIT A

The Pun Group LLP is recognized for its professionalism and integrity and for providing clients with practical solutions unique to their circumstances and issues.

You will receive a superior level of service and a quality audit.

Thank You!
Thank you for allowing us to submit our qualifications to provide you with Cannabis Tax Audit Services.

The Pun Group LLP
Certified Public Accountants and Business Advisors

WHY CHOOSE
THE PUN GROUP LLP?
 Big firm expertise, small firm values
 Personal attention meets technical expertise
 A unique firm culture
 Innovation embraced
 Achievable plans to move your organization forward
The Pun Group’s most
valuable asset is our
people, they and their
deep experience drive our
every interaction with
clients.
“
”
Kenneth H. Pun, CPA, CGMA
Founder & Managing Partner

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial Table of Contents
Table of Contents ............................................................................................ i Information Statement .................................................................................... 1 Statement of Interest ...................................................................................... 1 Statement of Company Background and Philosophy .................................... 3 Description of Approach to Scope of Work .................................................... 6 Statement of Qualifications .......................................................................... 10 Contract Experience - References .............................................................. 20 Let’s Get to Work. ........................................................................................ 22 Appendix A – Available Training ..................................................................... i Appendix B – Certificate of Insurance ........................................................... 2

EXHIBIT A

The Pun Group Wins
2022 “Best of Accounting” Award
The Pun Group is proud to have won 2022’s Best of
Accounting® award from ClearlyRated. ClearlyRated recognizes the best in staffing, accounting, and other professional services by recording Net Promoter Scores® (NPS) and reviews to
measure client satisfaction.

This award is unique in the U.S. and Canada because it is the only accolade that relies solely on ratings submitted from thirdparty validated survey responses. Firms that receive a ClearlyRated award are recognized as “leading their industry through their ongoing commitment to service excellence.” The Pun Group received a positive 88.9% NPS, reflecting an
exceptionally loyal and satisfied audience.
“Winners of the 2022 Best of Accounting award for client satisfaction have demonstrated their commitment to delivering exceptional client service, even as Covid-19 has forced them to reimagine and rebuild their approach to business," said ClearlyRated's CEO and Founder, Eric Gregg.

Our firm excelled in five key areas: Responsiveness, Quality, Value, Needs Understanding, and Proactive Approach.

About ClearlyRated
Rooted in satisfaction research for professional service firms, ClearlyRated utilizes a Net Promoter® Score survey program to help professional service firms measure their service experience, build an online reputation, and differentiate on service quality.
“The Pun Group is not there to judge if a
finance team is underperforming; they have
the attitude to partner with the client to
resolve issues and to streamline processes
for the next audit.”
Roger R.
“The firm's responsiveness and technical
knowledge during the audit. My staff likes
having Suralink (client's portal) whereby
prepared by client schedules and requests
for additional information can be easily
uploaded.”
State & Local Client
“The Pun Group provides exceptional
service on a consistent basis.”
David W.
“We've been working with The Pun Group
for years and they've always been
responsive. Their fees are also much more
reasonable than most.”
Graciela S.

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial Information Statement

EXHIBIT A

200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
November 1, 2022
City of La Mesa, City of Chula Vista, and the County of Imperial Finance Department
8130 Allison Ave.,
La Mesa, CA 91942
Re: RFP 23-09, for Cannabis Tax Audit Services
Dear Sir or Madam:

Please allow us to introduce our Firm and share our qualifications and proposed audit plan for the City of La Mesa, City of Chula Vista, and the County of Imperial (“Agencies”) according to your Request for Proposals for Cannabis Tax Audit Services for one fiscal year with the option to renew for four (4) additional fiscal years.

The Pun Group LLP (the “Firm”) has the knowledge and experience necessary to become the Agencies’ next public accounting firm and the work plan to ensure a smooth audit process.

This letter is an acknowledgment of the Firm’s understanding of the work to be performed. We are offering our commitment to deliver all of the required work, complete the audit, and issue the necessary auditor’s reports within the periods outlined by the Agencies.

The Pun Group is the right choice for the City of La Mesa, City of Chula Vista, and the County of Imperial because:

We Understand the Demographics and Your Needs. The Pun Group is reputable for its governmental practice. We have been selected to provide services such as compliance audit services, cannabis regulatory compliance inspections, tax audits, and implementation of tax collection and tax audit policies and procedures to several municipalities such as the City of Stockton, the City of Salinas, City of San Bernardino, and the City of Chula Vista.

Recognized Leader in the Governmental Industry. We are a small national Firm with licenses in the States of California, Arizona, and Nevada and a proven leader in professional services to the government sector. All key engagement team professionals are licensed to practice as Certified Public Accountants and meet the Continuing Professional Education requirements under US GAO’s Government Auditing Standards to perform the proposed audits. The partners and all employees proposed to perform the requested services do not have a record of substandard audit work nor have any outstanding claim of substandard practice or unsatisfactory performance pending with the State Board of Accountancy or other professional organizations. In addition, we are members of the national AICPA Audit Quality Center.

We strongly believe that part of our success is credited to our professionals’ participation in various industry-leading organizations. Such affiliations are critical to addressing emerging accounting and auditing issues within the industry environment.

The Firm is the recipient of several awards, including the SARC's Award for Excellence in Knowledge, Value, and Overall Client Satisfaction (2021). This particular award results from positive feedback from our clients in an independent survey, demonstrating our Firm’s highest commitment to Federal standards, quality, and client satisfaction.

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 2 | PUNGROUP.CPA
You’ll Work with a Team that Embraces Innovation and Continuous Improvement. Our Firm is committed to continuous improvement as it relates to service delivery. We embrace innovation and identify areas of technological enhancements in our audit and project management approaches. For example:

Secure Data File Transfer System. In order to improve audit efficiency, workflow management software plays an essential role between your organization and our engagement team. We employ a secure data file transfer system called Suralink. Suralink’s dynamic request list is integrated with our secure file hosting system for seamless documentrequest coordination, including the upload of large-size files. It means all our requests are in one place, updated in real-time, and accessible by everyone working on the engagement. Not only makes the operation more cost-efficient, but it also enables you and your team to spend your time getting the job done, not reconciling a messy list of outstanding items. In addition, Suralink’s dashboard allows you to visualize the process of document-request fulfillment.

AI Auditor. The Pun Group leverages the technology and research tools required to provide excellent services to its clients. With the usage of Artificial Intelligence (AI) technology, the Firm is capable of issuing all reports requested faster than other audit firms without exposing the Agencies to unnecessary risks.

Remote Auditing Capability. Remote working arrangements have suddenly become the “new normal” in these trying times. Our Firm has deployed top-notch technology and fully transitioned to “remote auditing,” offering our clients the quality services they deserve while being fully “remote” or operating in a “hybrid” schedule. “Onsite” audits are still the Firm’s preferred method, and we’ll continue to offer and promote those as well.

Knowledge is Shared with You. As part of our pledge to keep you updated on new technical accounting and financial issues, we implemented our 2022 Virtual Government Accounting Conference, which qualifies for up to 15 hours of CPE – nearly double what other firms offer. These online sessions are free of charge and part of the service package provided to you. More details and dates can be found on the “Client Training Webinars” topic under this proposal.

The Pun Group is proud of its inclusive values and is an avid promoter of equality and diversity. In addition, the Firm is an equal-opportunity employer and complies with all federal and state hiring requirements. We’re proud of supporting affirmative-action philosophies and work hard to provide opportunities for self-enhancement to members of disadvantaged groups.

This proposal is a firm and irrevocable offer valid for ninety (90) days following the closing date for the receipt of all proposals.

Finally, we would like to emphasize one additional point: We want to earn your trust and win your business! We are confident that the energetic and experienced team we have assembled is the right one for the Agencies.

Our commitment to serving the City of La Mesa, City of Chula Vista, and the County of Imperial cannot be adequately conveyed in a letter, and I look forward to continuing the discussion with you. I’m assigned as your primary contact for contract negotiations and stand steadfast to serve as your engagement/lead partner. I’m also authorized to legally bind the Firm.

Should you have any questions or wish to discuss this proposal, please do not hesitate to contact me at (949) 777- 8801 or by email at [email protected].

Sincerely,
Kenneth H. Pun, CPA, CGMA | Managing Partner | The Pun Group LLP 4660 La Jolla Village Drive, Suite 100, San Diego, CA 92122

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 3 | PUNGROUP.CPA
Statement of Company Background and Philosophy
About the Firm
The Pun Group LLP, Certified Public Accountants, and Business Advisors, founded in 2012, is a limited liability partnership. We are a full-service accounting firm comprised of fifty professionals providing auditing, accounting, and advisory services to our clients.

The Firm has become one of the “Top Accounting Firms” in Orange County according to the Orange County Business Journal and is also on the list of CalCPA Top 150 firms.

The combination of our hands-on experience and practical knowledge exercised by our audit professionals makes the Firm unique in our field. Our technical expertise and thorough understanding of current regulations and issues—along with the Firm’s commitment to hard work, integrity, and teamwork in every engagement—enable us to help our clients succeed.

Our Partners’ Group—which includes Kenneth Pun, Frances Kuo, Coley Delaney, Andrew Roth, Vanessa Burke, John Georger Jr., and Gary Caporicci — provides auditing, accounting, and advisory services to numerous governmental entities throughout the United States. With more than two hundred years of combined
experience in the industry, we have become a trusted business partner and are well-respected as leaders in the industry in one of the fastest-growing firms. With nearly 100 government and notfor-profit audit clients, our Partners have a real passion for the industry and believe we are unmatched in our municipal
experience. The firm also meets professional 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.

The Firm’s headquarters are located in Orange County, California, with four branches in San Diego, Walnut Creek/Sacramento (California), Las Vegas (Nevada), and Phoenix (Arizona).

Our San Diego office, located at 4660 La Jolla Village Drive, Suite 100, San Diego, CA 92122, will perform the requested services for the Agencies. However, we may assign additional staff from our other offices to the engagement at no extra cost to the Agencies. No subcontractors will be used in this engagement.

Global Capabilities
The Pun Group LLP is an independent member of Allinial Global, an association of over 100 independent accounting and consulting firms. Based in North America, Allinial Global offers international support by connecting its member firms to providers and global networks of accounting firms worldwide.

OUR

AFFILIATIONS

OUR FIRM

AT A GLANCE
50 full-time auditing,
accounting, tax and
advisory professionals
One of the fastest growing
firms serving California,
Nevada and Arizona
5 offices across
3 states
Client retention rate:
90 – 95%

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 4 | PUNGROUP.CPA
Full-Time Government Auditors
As full-time government auditors, we understand that governmental entities do not operate independently but in an increasingly complex web of local, state, and federal relationships. We know how these relationships work, what they mean at the local level, and how every public organization’s focus on resource management is critical to success.

Also, while many accounting Firms can provide services, not all can build an excellent working relationships with their clients. The Pun Group LLP prides itself on developing lasting, personal relationships with our clients. Our hands-on partner involvement and low personnel turnover are crucial tools to our success and are highly beneficial to the Agencies.

Local Office’s Information Technology (IT) Audit Capabilities The Pun Group LLP continues our efforts to invest in our IT system to enhance our security further and promote audit efficiency.

Top security for your data is the key to our success. When we have your data virtualized, our Firm takes all the preventive steps to avoid putting your information at risk. Our In-House IT administrator maintains our server to ensure our IT environment is continuously updated with the latest security fixes. Through VPN and Microsoft Remote Desktop, our In-House network administrator can lock down files and system access from a single point, limiting the ability of remote sites to take data from our server.

Access to systems from anywhere and anytime. With more mobility being the norm rather than the exception, our engagement team needs robust access to the engagement files when they are working in your office. Accounting and Auditing Software applications are installed in our “Private” server and can be securely accessed through VPN and Microsoft Remote Desktop. The Firm uses CCH ProSystem fx® Engagement for audit documentation, which allows real-time synchronization of the work papers and instant collaboration quality control review.

Secure Data File Transfer System. In order to improve audit efficiency, workflow management software plays an essential role between your organization and our engagement team. We employ a secure data file transfer system called Suralink.

Suralink’s dynamic request list is integrated with our secure file-hosting system for seamless document-request coordination. It means all our requests are in one place, updated in real-time, and accessible by everyone working on the engagement. As a client, you no longer have to manually maintain a spreadsheet amongst several people, only to repeat the process in a day or two. Not only makes the operation more cost-efficient, but it also enables you and your team to spend your time getting the job done, not reconciling a messy list of outstanding items.

The Suralink dashboard, as shown below, allows you to visualize the process of document-request fulfillment.

BIG FIRM EXPERTISE.

SMALL FIRM VALUES.

Our professional backgrounds at major national
firms showed us how to solve complicated
business and accounting challenges, but the
sense of personal connection was missing.

We launched The Pun Group because we believe
every client deserves to work with experienced
business advisors and CPAs who have the time –
and take the time – to create an authentic
connection. Every client is our top priority!
A UNIQUE CULTURE.
“Personalization” is not just a buzzword – it’s part
of our firm’s culture. We take a personal approach
to everything we do. We collaborate with our
clients, so they’re always part of the process. We
listen to our staff to make sure they have the right
support and resources to do a great job. Getting to
know others and discovering how we can serve
them better is not just a sign of good business
practices; it’s a sign of good people.

INNOVATION EMBRACED.

New ideas keep you ahead of the game. From
leveraging the value of emerging technologies to
further refining trusted processes, we adopt proven
solutions to meet your needs.

WHERE YOU GO, WE GO.

WHERE YOU GROW, WE GROW.

Our success is defined by how you achieve yours.

Partner with accomplished accounting and
financial professionals who are laser-focused on
taking your business to the next level.

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 5 | PUNGROUP.CPA
Our Services
Our partners and seasoned professionals are always available, guiding clients through their periods of rapid growth as well as difficult times. We are able to do that by offering a portfolio of accounting services that are as diverse as the jurisdictions and entities themselves. The Pun Group LLP has successfully provided professional auditing, accounting, financial reporting, and management advisory/consulting services to a broad spectrum of governmental entities.

ASSURANCE ADVISORY OTHER SERVICES
 Financial statements audits
 Compliance audits
 Performance audits
 Internal audits
 Service organization
controls audits
 Operational reviews/risk
advisory services
 Forensic investigation
 Financial condition
analysis
 Organizational structure
review
 Cash flow analysis
 Debt restructuring
consultation
 Litigation restructuring
consultation
 Assistance with the
preparation and review of the
Annual Comprehensive
Financial Report
 Government property lease
excise tax compliance review
 Sub-recipient monitoring
 Implementation of new GASB
pronouncements
 Audit readiness services
 Contract Finance
Director/Accountant services
Federal or State Desk Review
No federal or state desk reviews or field reviews have been undertaken of any audits performed by the Firm or any of its partners, managers, or professionals during the past three (3) years.

Disciplinary Action
State regulatory bodies or professional organizations have taken no disciplinary action against the Firm or any of its partners, managers, or professionals during the past three (3) years.

The Firm has no conditions such as bankruptcy, pending litigations, planned office closures, mergers, or any organizational conflict of interest that may affect the ability of the Firm to perform the required duties requested by the City of La Mesa, City of Chula Vista, and the County of Imperial.

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 6 | PUNGROUP.CPA
Description of Approach to Scope of Work
Scope of Work, Audit Approach, and Methodology
The City of La Mesa, City of Chula Vista, and the County of Imperial are requesting the Firm to perform Cannabis Tax Audit Services. The Firm will provide the requested services by:
 Obtaining an understanding of the Agencies’ request
 Utilizing our experience and background in the cannabis tax audit services  Obtaining an understanding of the Agencies’ cannabis tax ordinance and other industry regulations In addition, the Firm will:
1) Provide technical and policy expertise to the Agencies related to the operations and understanding of the Cannabis Industry to ensure compliance with state and local law. 2) Facilitate at least three stakeholder meetings (informational kick-off, workshop for input, and final draft or process review).
3) Recommend Agencies’ policies and procedures for tax collection and tax audits, including the development of recommended internal control standards and record-keeping/audit-related administrative policies and procedures to ensure optimal cannabis operator compliance with state and local laws. 4) Provide assistance with Track and Trace System Evaluation. 5) Monitor business tax reporting to ensure compliance with applicable laws. 6) Conduct audits annually or as recommended per industry standards or practice. a) Represent the Agencies for purposes of examining records related to cannabis tax to identify and confirm any errors/omissions leading to the deficit of payments to the Agencies. b) For each error/omission identified and confirmed, prepare the appropriate documentation to facilitate recovery of revenue due to the Agency, including any applicable penalties and interest. c) Prepare and provide to the appropriate parties requests for corrective action and revenue recovery. d) Meet with designated Agency staff as necessary to review findings and recommendations. e) Provide any additional assistance as necessary to support the Agency in recovering and preventing tax delinquencies.
f) Perform tax audits to industry best practice standards of quality and detail for basic cash businesses.

For City of Chula Vista – Inventory Audit Scope of Services The Firm will:

1. Provide assistance in cannabis on-site inventory audit, reporting, and analysis.

2. Provide assistance in the development of inventory audit policies and procedures.

Approach to Work
In order to deliver the services requested by the Agencies, the Firm will perform the following steps:

Cannabis Business
Gross Receipts and
Square Footage
Taxes
 Evaluate consistency between gross receipts and other information reported on financial statements to what was reported to the California Department of Tax and Fee Administration for sales and use tax, cannabis excise tax, and/or cultivation tax.  Evaluate consistency between gross receipts reported on financial statements to gross receipts reported to the Agencies.
 Verify the cultivation canopy as compared to the maximum canopy reported on the business license application. Cultivation canopy is measured by the aggregate area of vegetative growth of live marijuana plants on the premises, including the area occupied by vertically and horizontally stacked canopies, in compliance with the Agencies’ Code. This will be calculated by measuring the distance of all cultivation canopies in square feet.

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 7 | PUNGROUP.CPA
Collection and
Audit
of any Cannabis
Tax
Collection and
Audit of any
Cannabis Tax
(Continued)
 Ensure each cannabis facility is complying with applicable portions of the Agencies’ Code and is submitting the true amount of gross receipts and tax.  Review business license tax returns submitted by the business and collected by the Agencies and compare to each business’s records for the time period identified by the Agencies to determine the accuracy and timeliness of gross receipts returns filed with the Agencies:
a. Trace and verify the gross receipts reported on the quarterly gross receipts returns prepared by the business to gross receipts recorded in the business’s accounting records to verify that these were in accordance with the Agencies’ regulations; b. Verify compliance with Agencies’ Code.
c. Verify the reasonableness of reported revenues of the cannabis businesses by performing additional procedures necessary to reach a conclusion.  Following the completion of a business license tax audit of each cannabis facility, we will issue all reports to the Agencies in accordance with applicable standards from generally accepted auditing standards (GAAS).
 The report for each cannabis business license tax audit will include the following information:
a. The overall conclusion of whether or not the cannabis business paid all required business license taxes and fees for the time period specified. b. Any exceptions, errors, or areas of noncompliance were identified as a result of the procedures performed. This includes any significant deficiency in the design or operation of the internal control structure, including but not limited to the following areas: cash handling, inventory control, point of sale systems, and any other areas that the auditor deems necessary for purposes of accurately reporting business license taxes due to the Agencies.
c. Express an opinion regarding the taxes remitted to the Agencies by the cannabis business, or state that an opinion cannot be expressed in the auditor’s report. If the Firm concludes, it cannot express an overall opinion. The engagement team will state the reasons, therefore, in the auditor’s report.  Examine records and documentation that demonstrate that all cannabis goods have been obtained from, and are provided to, other licensed cannabis businesses and that details all the revenues and expenses, and assets and liabilities of the business.  Examine books of account, invoices, copies of orders and sales, shipping instructions, bills of lading, weigh bills, bank statements, including canceled checks and deposit slips, and all other records necessary to show all transactions of the cannabis business.

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 8 | PUNGROUP.CPA
Methodology and Segmentation of Engagement
Cannabis Tax Audit
Once an audit date has been confirmed with the Licensee, a pre-audit list of documentation we will need in order to perform our audit will be provided to the Licensee prior to the audit date. Firm dues dates for all documentation will be communicated through the letter.

Below is an example of what documents we will need in order to perform the business license audit:
 Copy of business license.
 Download from the Licensee P.O.S or other ERP for all sales transactions for the period under audit.  Obtain a copy of the business license tax remittance under audit.  Detailed general ledger for the period under audit for sales and purchase transactions.  Obtain federal and state tax returns.
 Obtain sales tax returns.
 Cash / safe log or bank statements for the period under audit.

We will conduct an interview with the Licensee to obtain an understanding of their internal controls over cash receipts, revenue, sales, purchases, or other identified significant transaction classes to determine what processes and procedures are in place to properly identify and record those transactions. Suppose inadequate controls are not in place; additional procedures or testing samples may be needed.

Our Firm will also use MindBridge AI Auditor to perform financial analysis of 100% of sales and purchase transactions, with zero scriptings, meaning we can provide greater assurance than ever before. With Ai Auditor, cumbersome CAAT tools are a thing of the past, and with them goes the associated risk of missing errors or fraud that may lurk in financial data. The AI platform is stacked with traditional tests based on domain expertise and business rules. The analysis is also greatly enhanced. Statistical methods like regression and Benford’s Law are applied, as are numerous machine learning algorithms and AI seeded with knowledge from the domain expertise of some of the world’s top CPAs.

We will then calculate the cost of goods sold and evaluate whether the amount is reported accurately to the tax returns and other reports.

In addition, we will:
 Compare sales data from the general ledger or P.O.S. to the sales tax returns and investigate any significant variances.
 Test sales, purchase, and cash log / safe transactions on a sample basis and obtain the necessary supporting documents related to the transaction to determine the accuracy and whether identified controls are being followed.
 For cultivation facilities, compare the total maximum canopy as indicated on the business license application with the auditor-measured maximum canopy.

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 9 | PUNGROUP.CPA
Tasks and Deliverables
 Initial meeting with the Agencies’ dedicated team to determine the competition schedule of the audits of business licenses and finalize the report template.
 We request the Agencies to initially communicate to all licensees that audits will be performed by a thirdparty auditor within an agreed-upon timeframe.  Our project team will reach out to licensees to confirm onsite audit dates.  Our project team will also facilitate and assist licensees in gaining access to the secured Suralink portal and walkthrough pre-audit request items to Licensee.
 Engagement team to review all the uploaded documentation prior to the onsite audit and run a detailed general ledger on the MindBridge Ai Auditor software. Also, our team will detail our audit work plan and make sample selections based on the risk analysis identified through the system.  Based on the analysis performed and sample selection, our audit team will perform a site visit and obtain audit evidence in order to complete our audit task.
 After completion of the audit task, a draft custom-tailored report and presented to the Agencies for review.  Upon completion and approval from Agencies officials, we will obtain Management Representation Letter from the Licensee and finalize the report.

Other Specific Tasks
All specific tasks that we will require are clearly communicated and agreed upon at the initial meeting with the Agencies. We request the Agencies staff to formally communicate a clear timeframe and completion schedule with the Licensee, and the audit task will be completed by the Firm. Our firm’s responsibility is to communicate with the Agencies on the progress and any challenges identified timely.

Our project team will obtain copies of all business license tax remittances for licensees for the period under audit and will perform testing surrounding the completeness of the sales transactions to report any differences between our audit and the tax remittances.

All findings will be communicated to the Agencies and the Licensee upon the completion of our analysis.

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 10 | PUNGROUP.CPA
Statement of Qualifications
Firm’s Experience with Municipalities
The Pun Group LLP has performed numerous audits of organizations subject to financial and compliance audits. These audits were performed under auditing standards generally accepted in the United States, Government Auditing Standards, Uniform Guidance (formerly known as OMB Circular A-133), and its Compliance Supplement (when applicable), Office of the State Controller’s Minimum Audit Requirements and Reporting Guidelines.

A representative list of our current clients is as follows:

Municipalities Dates Financial
Audit
Single
Audit
GFOA
Certificate
Total
Hours
City of Adelanto 2021 – Present Yes Yes Yes 700
City of Alameda 2019 – Present Accounting and Consulting Services 150 City of Arvin 2013 – Present Yes Yes N/A 400
City of Bell 2018 – Present Yes Yes Yes 520
City of Bradbury 2012 – Present Yes N/A N/A 150
City of Calexico 2007 – Present Yes Yes N/A 750
City of Clovis 2006 – Present Yes Yes Yes 500
City of Coachella 2017 – Present Yes Yes Yes 410
City of Cottonwood, AZ 2007 – Present Yes Yes Yes 400
City of Corona 2021 – Present Yes Yes Yes 640
Town of Corte Madera 2022 – Present Yes Yes N/A 400
Town of Danville 1999 – Present Yes Yes Yes 400
City of Douglas, AZ 2020 – Present Yes Yes Yes 300
City of Desert Hot Springs 2013 – Present Yes N/A N/A 700 City of Gardena 2007 – Present Yes Yes Yes 700
City of Gilroy 2020 – Present Yes Yes Yes 640
City of Glendora 2017 – Present Yes Yes Yes 430
City of Gustine 2017 – Present Yes N/A N/A 400
City of Hemet 2015 – Present Yes Yes N/A 380
City of Hercules 2020 – Present Yes Yes Yes 450
City of Lakewood 2013 – Present Yes Yes Yes 380
City of Lomita 2020 – Present Accounting and Consulting Services 150 City of Lodi 2018 – Present Yes Yes Yes 760

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 11 | PUNGROUP.CPA
Municipalities Dates Financial
Audit
Single
Audit
GFOA
Certificate
Total
Hours
City of Lynwood 2016 – Present Yes Yes Yes 585
City of Madera 2019 – Present Yes Yes Yes 470
City of Montebello 2022 – Present Yes Yes Yes 600
City of Napa 2019 – Present Yes Yes Yes 750
City of National City 2013 – Present Yes Yes Yes 600
City of Palm Springs 2020 – Present Yes Yes Yes 1,000
City of Patterson 2017 – Present Yes Yes Yes 450
City of Placerville 2008 – Present Yes Yes N/A 400
City of Redlands 2022 – Present Yes Yes Yes 650
City of Ridgecrest 2009 – Present Yes Yes Yes 300
City of Rohnert Park 2020 – Present Yes Yes Yes 700
City of San Mateo 2021 – Present Yes Yes Yes 900
City of Santa Clarita 2022 – Present Yes Yes Yes 1,216
City of Seal Beach 2017 – Present Yes Yes Yes 410
City of Shafter 2017 – Present Yes Yes Yes 400
City of Stockton 2012 – Present Yes Yes N/A 3,000
City of Tracy 2021 – Present Yes Yes Yes 960
City of Visalia 2021 – Present Yes Yes Yes 650
Imperial County Transportation
Commission 2020 – Present Yes Yes Yes 600
Nevada County Transportation
Commission 2021 – Present Compliance Services 450
San Diego Metropolitan Transit System 2005 – Present Yes Yes Yes 1,850 Shasta Regional Transportation Agency 2015 – Present Yes N/A N/A 400 Alameda County Water District 2018 – Present Yes Yes N/A 550 Carmel Area Wastewater District 2022 – Present Yes Yes N/A 150 CAWD/PBSCD Wastewater Reclamation
Project 2022 – Present Yes N/A N/A 150
Central Basin Water District 2018 – Present Yes Yes N/A 400 Las Virgenes Municipal Water District 2014 – Present Yes N/A N/A 400 Los Angeles County Law Library 2020 – Present Yes N/A N/A 180 Marina Coast Water District 2012 – Present Yes N/A Yes 240 Menlo Park Fire Protection District 2015 – Present Yes Yes Yes 240

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 12 | PUNGROUP.CPA
Municipalities Dates Financial
Audit
Single
Audit
GFOA
Certificate
Total
Hours
NALEO Educational Fund and NALEO 2020 – Present Yes N/A N/A 300 Olivenhain Municipal Water District 2019 – Present Yes Yes Yes 200 Padre Dam Municipal Water District 2020 – Present Yes Yes Yes 250 Rancho Murieta Community Services
District 2019 – Present Accounting and Consulting Services 800 Rancho Santa Fe Fire Protection District 2015 – Present Yes N/A N/A 120 San Bernardino County Emergency
Training Center 2020 – Present Yes N/A N/A 50
San Bernardino County Preschool
Services Department 2020 – Present Yes Yes N/A 150
San Bernardino County Fire Protection
District 2016 – Present Yes N/A N/A 200
San Elijo Joint Powers Authority 2016 – Present Yes N/A N/A 146 Santa Fe Irrigation District 2019 – Present Yes N/A N/A 250 Sweetwater Authority 2022 – Present Yes Yes Yes 270
South Bay Cities Council of
Governments 2020 – Present Yes N/A N/A 100
South Orange County Water Authority 2017 – Present Yes Yes Yes 240 South Bay Regional Public
Communications Authority 2015 – Present Yes N/A N/A 100 Southwestern Community College
District 2009 – Present Yes Yes N/A 720
Valley Sanitary District 2015 – Present Yes N/A Yes 140 West Valley Mosquito and Vector Control
District 2016 – Present Yes N/A N/A 100
Zone 7 Water Agency 2020 – Present Yes Yes Yes 400

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 13 | PUNGROUP.CPA
Who We Are
The engagement team was carefully selected to provide the Agencies with all the services needed to complete the audit successfully. Your assigned Engagement and Technical Partners will be personally involved in the project, leading a team that has significant experience in governmental auditing. You can be confident that our broad experience and technical capabilities will allow us to provide technical support, interpret findings, and offer practical solutions to any issues that may arise.

Because of the “familiarity threat” under the professional audit and independence standards that may exist in longterm relationships with audit firms, the Firm is committed and has sufficient resources to rotate engagement partners, managers, and or supervisors assigned to the Agencies’ audit with personnel with similar or higher qualifications and experience in order to overcome this threat.

If the Firm changes key personnel, we will provide the Agencies with a written notification. Engagement partners, managers, and specialists will only be changed with the express prior written permission from the Agencies.

Audit personnel may be replaced only by those with similar or better qualifications and experience.

About the Team Assigned to the Project
The engagement team was carefully selected to provide the Agencies with all the services needed to complete the scope of services successfully. They are fully qualified to perform financial accounting services for the Agencies, and their extensive experience will be critical to the process. You can be confident that our broad experience and technical capabilities will allow us to provide technical support, interpret findings, and offer practical solutions to any issues that may arise.

The Pun Group Engagement Team
Kenneth H. Pun, CPA, CGMA | Engagement Partner
With over twenty years of public accounting experience in the State and Local Government sector, Mr. Pun is the Managing Partner and an Assurance Partner at the Firm. Ken specializes in audits and management consulting for governmental organizations and has served as the Contract Deputy Finance Director for the City of San Marino in 2017. Mr. Pun also serves as the Chair of the California Society of CPAs Governmental Auditing Accounting Committee. He has been nominated for this year’s Innovative Practitioner of the Year 2020 award by AICPA’s CPA.com. He is a Certified Public Accountant and a Chartered Global Management Accountant.

David Siris, CPA | Project Manager
David Siris draws more than nine years of governmental accounting experience. Mr. Siris has successfully performed audits and other attestation services for several governmental and non-profit agencies. Working as an Engagement Manager, he will assist Mr. Pun in all issues related to cannabis tax policies, fiscal analysis, compliance reviews, tax audits/assessments, and providing best practices to ensure all state and local laws are followed. He is a Certified Public Accountant.

Masood Yousufzai | Revenue Analyst
Masood is a Supervisor within the Firm who draws more than six years of governmental accounting experience. As a Revenue Analyst, he will work directly with Mr. Siris, focused on financial reports, forecasts, ledgers and journals, and fiscal data analysis. Mr. Yousufzai will utilize his background in policy development related to the remittance of tax, as well as the City’s ability to collect taxes due, to provide the requested services to the City.

Continuing Education and Professional Development
Because of our commitment to providing the highest quality of services to the Agencies, we provide our professionals with technical training to ensure our people stay current on topics within the industry sectors and better equip themselves to serve our clients.

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 14 | PUNGROUP.CPA
All professionals are required to obtain continuing education that exceeds the requirements of the American Institute of Certified Public Accountants (AICPA) and, where applicable, Government Auditing Standards. Our professionals participate in continuing education programs through the following means:
 Governmental Accounting and Auditing Conference sponsored by AICPA.  Webinar sponsored by AICPA Government Audit Quality Center.  Annual Conference sponsored by California Society Municipal Finance Officers.  Governmental Accounting and Auditing Conference sponsored by CalCPA.  The Pun Group in-house training on government-specific topics, including but not limited to: GASB updates, Government Auditing Standards Revision, Fraud in State and Local Governments, COSO Internal ControlIntegrated Framework, Audit of State and Local Governments, Single Audit, and Mindbridge AI Auditors™.

In 2021, our government professionals received an average of 52 hours of continuing professional education, compared with the 40 hours of accounting industry requirement.

By expanding our knowledge through these seminars/conferences, we can provide the right solutions to our clients.

Staff Continuity
The Pun Group LLP is committed to maintaining staff continuity throughout audit engagements, and we can assure you that the partners assigned to this audit will be involved throughout the entire contract term.

While we cannot guarantee that our staff-level members will stay with the Firm, we encourage loyalty by paying competitive wages, offering opportunities for promotion, using state-of-the-art equipment, and providing excellent working conditions. Also, we offer benefits, including retirement plans, medical plans, profit-sharing programs, and continuing education.

Quality-Control System
Our Firm meticulously monitors the quality and contents of our reports. The Pun Group LLP is 100% committed to providing only the highest grade of work possible for our clients and for those who rely on our audits. The Firm strives to exceed professional industry standards because of the continuing respect for our clients and our emphasis on creating long-lasting relationships. The Pun Group LLP works exclusively with those who share the same moral integrity and values.

Our quality-control system has been crafted with excellence in mind. It not only meets AICPA standards but also matches our own elevated standards, which include following various professional development activities.

Engagement Team Resumes
The City of La Mesa, City of Chula Vista, and the County of Imperial deserve experienced professionals who work as a team. The Pun Group LLP will provide qualified professionals to perform the audit. No subcontractors will be utilized to perform the requested services. Resumes for key engagement team members are presented as follows:

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 15 | PUNGROUP.CPA

EXPERIENCE
Kenneth H. Pun is the Managing Partner and an Assurance Partner at The Pun Group LLP, which he founded in 2012 after serving in senior-level positions for well-established national and regional firms. Under his leadership, The Pun Group has become one of the “Top Accounting Firms” in Orange County, according to the Orange County Business Journal. The Pun Group is also on the list of CalCPA's Top 150 firms.

Prior to founding The Pun Group, Ken served clients in a variety of industries, including small to very large state and local governmental agencies, insurance companies, not-for-profits, healthcare, technology, and manufacturing and distribution clients. His career in public accounting was spent primarily with Regional firms and National firms.

Leveraging more than 21 years of public accounting experience, Ken has earned a reputation of being a trusted advisor to governmental and Healthcare organizations throughout California and neighboring states.

Municipalities and public agencies engage him because of his premier level of client service, commitment, and innovative methods of increasing operational efficiencies and reducing costs.

Ken maintains his deep commitment to professional education through his work as an instructor for the California Education Foundation. He has authored training materials in governmental accounting and auditing, such as Financial Reporting for State and Local Governments, 2018 Government Auditing Standards, and Single Audit Fundamentals for California Education Foundation. He is also the technical reviewer of the CCH Knowledge-Based Audits™ of State and Local Governments with Single Audits. He advises clients on those topics at influential industry forums. Internally, Ken mentors audit teams by providing direction and technical guidance to ensure adherence to the firm’s quality controls.

EDUCATION
University of California, Riverside
B.S. Degree – Business Administration, Emphasis in Accounting

LEADERSHIP & AFFILIATIONS
 Member, American Institute of Certified Public Accountants (AICPA)  Member, California Society of Certified Public Accountants (CalCPA)  Past Chair, CalCPA Governmental Accounting and Auditing Committee  Member, CalCPA California Committee on Municipal Accounting  Member, CalCPA Governmental Accounting and Auditing Conference Planning Committee  Member, Government Finance Officers Association (GFOA)  Member, California Society of Municipal Finance Officers (CSMFO)  Member, CSMFO Professional Standards Committee
 Speaker, CSMFO Conference (2014 and 2018)
 Instructor, CalCPA Education Foundation
 Technical Reviewer, CCH Knowledge-Based Audits™ of State and Local Governments with Single Audits

RELEVANT EXPERIENCE
 City of Stockton  City of San Bernardino
 City of Palm Springs  City of Desert Hot Springs
 City of Lakewood  City of National City
 City of Pomona  City of Redding
 City of Clovis  City of Shafter

CONTINUING PROFESSIONAL EDUCATION
Various courses are offered by the Firm online through Thompson Reuters, AICPA, and CalCPA Education Foundation, including:
 Governmental and Nonprofit Annual Update
 Government Auditing Standards
 GASB Basic Financial Statements for State and Local Governments  Single Audits: Uniform Guidance (formerly OMB Circular A-133)  Financial Accounting Standards Board Annual Updates
 Statement on Standards for Accounting and Review Services Updates Has met/exceeded the current CPE educational requirements to perform audits of governmental agencies.

Kenneth H. Pun

CPA, CGMA
Engagement
Partner
EMAIL
[email protected]
WEBSITE www.pungroup.cpa
Expertise:

CITIES

COUNTIES

TRANSPORTATION

AGENCIES

ENTERPRISE

OPERATIONS

CANNABIS AUDIT
& COMPLIANCE

NOT-FOR-PROFIT
Licensed to Practice in:

California

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 16 | PUNGROUP.CPA

EXPERIENCE
David Siris, CPA, is a Manager at The Pun Group LLP with more than ten (10) years of experience in providing accounting and audit services, internal control and risk evaluation, and business consulting to privately held and public companies. Mr. Siris has worked with clients in a variety of industries, including cannabis, manufacturing and distribution, large not-for-profits entities, and government entities.

David has been responsible for managing, planning, and performing financial and regulatory external and internal audits and for developing and conducting internal control procedures and risk assessment evaluations. He has evaluated key processes within companies to determine areas of operating inefficiencies or potential internal control weaknesses and developed findings into recommended courses of action and into report comments and recommendations for resolution.

Mr. Siris has also provided accounting support services to local not-for-profits and governments, including financial statement analysis and preparation.

EDUCATION
Cal State University Fullerton, California
B.S. Degree - Finance

LEADERSHIP & AFFILIATIONS
 Member, American Institute of Certified Public Accountants (AICPA)  Member, California Society of Certified Public Accountants (CalCPA)

RELEVANT EXPERIENCE
 City of Stockton – Cannabis Audit  City of Stockton – Cannabis Audit  Other Commercial Cannabis Audits City of Salinas – Cannabis Audit

CONTINUING PROFESSIONAL EDUCATION
Various courses are offered by the Firm online through Thompson Reuters, AICPA, and CalCPA Education Foundation, including:
 Governmental and Non-profit Annual Update
 Government Auditing Standards
 GASB Basic Financial Statements for State and Local Governments  Single Audits: Uniform Guidance (formerly OMB Circular A-133)  Financial Accounting Standards Board Annual Updates
 Statement on Standards for Accounting and Review Services Updates  Preparation of Tax Returns for Not-for-Profits
Has met/exceeded the current CPE educational requirements to perform audits of governmental agencies.

David Siris
CPA
Project Manager
EMAIL
[email protected]
WEBSITE www.pungroup.cpa
Expertise:

CITIES

COUNTIES

TRANSPORTATION

AGENCIES

ENTERPRISE

OPERATIONS

NOT-FOR-PROFIT

CANNABIS AUDIT
& COMPLIANCE
Licensed to Practice in:

California

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 17 | PUNGROUP.CPA

EXPERIENCE
Masood Yousufzai is a Supervisor at The Pun Group LLP with more than six years of experience in providing accounting and audit services, internal control and risk evaluation, and business consulting to privately held and public companies with clients in a variety of industries, including large not-for-profits entities, insurance carriers, manufacturing and distribution, and government entities. Mr. Yousufzai worked as an Internal Audit and Special Projects Manager prior to joining the Firm.

Masood has been responsible for managing, planning, and performing financial and regulatory external and internal audits and for developing and conducting internal control procedures and risk assessment evaluations. He has evaluated key processes within companies to determine areas of operating inefficiencies or potential internal control weaknesses and developed findings into recommended courses of action and into report comments and recommendations for resolution.

Mr. Yousufzai has provided accounting support services to local not-for-profits and governments, including financial statement analysis and preparation.

EDUCATION
California State University Bakersfield
B.A. Political Science
California State University Northridge
M.P.A. Degree – Public Administration
University of California Irvine
Applied Accounting Program

LEADERSHIP & AFFILIATIONS
 Member, California Society of Certified Public Accountants (CalCPA)

RELEVANT EXPERIENCE
 City of Bell  City of Gardena
 City of Desert Hot Springs  City of Palm Springs
 City of Seal Beach  City of Phoenix (Subrecipient Monitoring)  City of Corona  City of San Jose (Subrecipient Monitoring)  City of Perris  South Bay Cities Council of Governments

CONTINUING PROFESSIONAL EDUCATION
Various courses are offered by the Firm online through Thompson Reuters, AICPA, and CalCPA Education Foundation, including:
 Governmental and Nonprofit Annual Update
 Government Auditing Standards
 GASB Basic Financial Statements for State and Local Governments  Single Audits: Uniform Guidance (formerly OMB Circular A-133)  Financial Accounting Standards Board Annual Updates
 Statement on Standards for Accounting and Review Services Updates Has met/exceeded the current CPE educational requirements to perform audits of governmental agencies.

Masood Yousufzai
Revenue Analyst
EMAIL
[email protected]
WEBSITE www.pungroup.cpa
Expertise:

CITIES

TRANSPORTATION

AGENCIES

ENTERPRISE

OPERATIONS

NOT-FOR-PROFIT

CANNABIS AUDIT
& COMPLIANCE

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 18 | PUNGROUP.CPA
Peer Review
Being a member of the American Institute of Certified Public Accountants (AICPA), The Pun Group LLP is required to obtain an independent peer review of our audit and accounting practice every three (3) years. The peer reviewer assessed the Firm’s quality-control policies, reviewed administrative records, interviewed professional personnel, and inspected the Firm’s working papers and reports from a representative sample of accounting and auditing engagements, including governmental audits. The reviewer concluded that the Firm fully complied with the AICPA’s stringent standards for quality control and issued a peer review rating of “Pass.” Our Firm’s Peer Review is currently underway. A copy of our most recent peer review is presented.

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 19 | PUNGROUP.CPA
License to Practice in California
The Firm and all key professional staff are licensed by the State of California to practice as Certified Public Accountants and meet the Continuing Professional Education requirements under US GAO’s Government Auditing Standards to perform the proposed audits.

Firm Registration:

California State Board of Accountancy Number – PAR 7601 Federal Identification Number – 46-4016990
Business License
If selected, the Firm will obtain and maintain a valid City of La Mesa, City of Chula Vista, and the County of Imperial Business License while conducting any work under the contract.

Independence
The Pun Group LLP requires all employees to adhere to strict independence standards concerning the Firm’s clients.

These independence standards exceed, in many instances, the rules promulgated by the American Institute of Certified Public Accountants (AICPA).

The Pun Group LLP certifies that it is independent of the City of La Mesa, City of Chula Vista, and the County of Imperial. The Firm meets independence requirements defined by the United States Government Accountability Office’s (US GAO’s) Government Auditing Standards and the American Institute of Certified Public Accountants (AICPA). Based on that, we have not identified an instance that constitutes a conflict of interest relative to performing the services requested by the Agencies.

In addition, the Firm has no conditions such as bankruptcy, pending litigations, planned office closures, mergers, or any organizational conflict of interest that may affect the ability of the Firm to perform the required duties requested by the City of La Mesa, City of Chula Vista, and the County of Imperial.

Insurance
If selected, the Firm will maintain the minimum insurance requirements during the entire execution of the agreement with the City of La Mesa, City of Chula Vista, and the County of Imperial. Within ten days from the implementation of the contract, we will furnish the City of La Mesa, City of Chula Vista, and the County of Imperial with satisfactory evidence of the insurance requirements and proof that each carrier is required to give at least 30 days prior written notice of the cancellation of any policy during the entire period of the agreement. The City of La Mesa, City of Chula Vista, and the County of Imperial will be named as additional named insured under the Firm’s policies.

A sample of our current policy can be found in the appendices section of this proposal.

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 20 | PUNGROUP.CPA
Contract Experience - References
The Pun Group LLP has performed the following examples of some of the engagements with similar requirements as the City of La Mesa, City of Chula Vista, and the County of Imperial’s proposal. Additional references are available upon request. Please feel free to contact these agencies to learn more about their experiences working with us.

City of Stockton
City Hall, 425 N. El Dorado St.

Stockton, CA 95202
Mr. Matt Paulin, CFO
Phone: (209) 937-8460 | Email: [email protected] Services Provided: Agreed-upon procedures related to the payment of tax, operators, permit – audit/reporting requirement, and access to records and facilities of all licensed cannabis businesses located within the City for the period of January 1, 2018, through December 31, 2018, January 1, 2019 – December 31, 2019, and January 1, 2020 – December 31, 2020. Services included:
 Obtain and read the City’s Cannabis Business License Tax SMC.  Obtain from licensees all quarterly gross receipts reports submitted to the City for the years ended December 31, 2018, and 2019.
 Obtain from licensees all cannabis business license tax forms submitted to the City for the years ended December 31, 2018, and 2019.
 Compare the gross sales obtained from the Licensee's records to the amounts reported to the City for the years ended December 31, 2018, and 2019.
 Identify all revenues to be included in the tax calculation and recalculate taxes remitted to the City for the years ended December 31, 2018, and 2019.
 Determine whether the annual business license tax was calculated correctly and if any additional fees are owed to the City for the years ended December 31, 2018, and 2019.

City of San Bernardino
290 North D Street
San Bernardino, CA 92401
Ms. Elizabeth Mora-Rodriguez, Assistant Planner
Phone: (909) 384-7272 ext: 3075 | Email: [email protected] Services Provided: Agreed-upon procedures related to the payment of tax, operators, permit – audit/reporting requirement, and access to records and facilities of all licensed cannabis businesses located within the City for the period of January 1, 2020, through December 31, 2020. Services included:
 Obtain and read the City’s Cannabis Business License Tax Ordinance SMC.  Obtain from licensees all quarterly gross receipts reports submitted to the City for the year ended December 31, 2020.
 Obtain from licensees all cannabis business license tax forms submitted to the City for the year ended December 31, 2020.
 Compare the gross sales obtained from licensees' records to the amounts reported to the City for the year ended December 31, 2020.
 Identify all revenues to be included in the tax calculation and recalculate taxes remitted to the City for the year ending December 31, 2020.
 Determine whether the annual business license tax was calculated correctly and if any additional fees are owed to the City for the year ended December 31, 2020.

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 21 | PUNGROUP.CPA
City of Salinas
City Hall, 200 Lincoln Avenue
Salinas, CA 93901
Megan Hunter, Director of Community Development Department Phone: (831) 758-7387 | Email: [email protected]
Services Provided: Agreed-upon procedures related to the payment of tax, operators, permit – audit/reporting requirement, and access to records and facilities of all licensed cannabis businesses located within the City for the period of January 1, 2020, through December 31, 2020, and January 1, 2021 – December 31, 2021. Services included:
 Obtain and read the City’s Cannabis Business License Tax SMC.  Obtain from licensees all quarterly gross receipts reports submitted to the City for the years ended December 31, 2020, and 2021.
 Obtain from licensees all cannabis business license tax forms submitted to the City for the years ended December 31, 2020, and 2021.
 Compare the gross sales obtained from the Licensee's records to the amounts reported to the City for the years ended December 31, 2020, and 2021.
 Identify all revenues to be included in the tax calculation and recalculate taxes remitted to the City for the years ended December 31, 2020, and 2021.
 Determine whether the annual business license tax was calculated correctly and if any additional fees are owed to the City for the years ended December 31, 2020, and 2021.

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial 22 | PUNGROUP.CPA
Let’s Get to Work.

Benefits of Choosing The Pun Group LLP
The Pun Group LLP is recognized for its professionalism and integrity and for providing clients with practical solutions unique to their circumstances and issues. Our Firm prides itself on being able to provide personalized client services, and with that sentiment in mind, we have carefully chosen our engagement teams. The Pun Group’s primary objective is to give the City of La Mesa, City of Chula Vista, and the County of Imperial solutions and directions led by highly experienced and capable partners who can successfully implement the work and produce the results you expect.

This philosophy and mindset allow us to provide a superior level of service and a quality audit.

We trust that this proposal has given you the information needed about the Firm, the engagement team members, the overall audit approach, cost-saving measures, and audit fees. We are committed to exceeding your expectations, and we look forward to bringing our experience and expertise to the City of La Mesa, City of Chula Vista, and the County of Imperial while providing you with the excellent level of service that you expect and deserve.

Thank You
Thank you for allowing us to submit our qualifications to provide you with Cannabis Tax Audit Services. Please direct inquiries to:

Kenneth H. Pun, CPA, CGMA
Managing Partner
Email: [email protected]
Phone: (949) 777-8801 | Fax: (949) 777-8850
Sincerely,
The Pun Group LLP
Certified Public Accountants and Business Advisors

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial i | PUNGROUP.CPA
Appendix A – Available Training
Strengthen Your Accounting Knowledge: TPG Client Training Webinars We pride ourselves in leading the governmental auditing profession nationwide and statewide. Members of our team have been assigned to the AICPA and State Government Accounting and Audit committees. Our membership with these two levels of government keeps us current, and such involvement helps our Firm with the constant changes in accounting and auditing standards, laws and regulations, and compliance provisions, which have created an unprecedented complexity in public accounting for state and local governments.

Every year, the Firm hosts a conference to update governmental clients on new technical accounting and financial issues. Since last year, by implementing “Webinars,” we’ve been expanding our horizons and offering our clients 15 hours of Continuing Professional Education (CPE). These sessions are free of charge and part of the service package provided to our clients.

CPE courses we offer:

EXHIBIT A

City of La Mesa, City of Chula Vista, and the County of Imperial Appendix B – Certificate of Insurance
ii | PUNGROUP.CPA

EXHIBIT A

ORANGE COUNTY SAN DIEGO BAY AREA LAS VEGAS PHOENIX
www.pungroup.cpa

EXHIBIT A

Submitted By:

Kenneth H. Pun, CPA, CGMA
Managing Partner
200 E. Sandpointe Ave., Suite 600, Santa Ana, CA 92707
(949) 777-8801 I [email protected]
November 1, 2022

COST PROPOSAL
Cannabis Tax Audit Services

CITY OF LA MESA, CITY OF CHULA VISTA,

AND COUNTY OF IMPERIAL

EXHIBIT B

The Pun Group LLP is recognized for its professionalism and integrity and for providing clients with practical solutions unique to their circumstances and issues. You will receive a superior level of service and a quality audit.

Thank You!
Thank you for allowing us to submit our qualifications to provide you with Cannabis Tax Audit Services.

The Pun Group LLP
Certified Public Accountants and Business Advisors

WHY CHOOSE
THE PUN GROUP LLP?
 Big firm expertise, small firm values
 Personal attention meets technical expertise
 A unique firm culture
 Innovation embraced
 Achievable plans to move your organization forward
The Pun Group’s most
valuable asset is our
people, they and their
deep experience drive our
every interaction with
clients.
“
”
Kenneth H. Pun, CPA, CGMA
Founder & Managing Partner

EXHIBIT B

Cities of La Mesa and Chula Vista, and the County of Imperial Table of Contents
Table of Contents ......................................................................................................... i Total All-Inclusive Maximum Price .............................................................................. 1 Other Information ........................................................................................................ 2

EXHIBIT B

1 | PUNGROUP.CPA
The Pun Group Wins
2022 "Best of Accounting" Award
The Pun Group is proud to have won 2022's Best of
Accounting® award from ClearlyRated. ClearlyRated recognizes the best in staffing, accounting, and other professional services by recording Net Promoter Scores® (NPS) and reviews to measure client satisfaction.

This award is unique in the U.S. and Canada because it is the only accolade that relies solely on ratings submitted from third-party validated survey responses. Firms that receive a ClearlyRated award are recognized as "leading their industry through their ongoing commitment to service excellence." The Pun Group received a positive 88.9% NPS, reflecting an exceptionally loyal and satisfied audience.
"Winners of the 2022 Best of Accounting award for client satisfaction have demonstrated their commitment to delivering exceptional client service, even as Covid-19 has forced them to reimagine and rebuild their approach to business," said ClearlyRated's CEO and Founder, Eric Gregg.

Our Firm excelled in five key areas: Responsiveness, Quality, Value, Needs Understanding, and Proactive Approach.

About ClearlyRated
Rooted in satisfaction research for professional service firms, ClearlyRated utilizes a Net Promoter® Score survey program to help professional service firms measure their service experience, build an online reputation, and differentiate on service quality.
“The Pun Group is not there to judge if a
finance team is underperforming; they have
the attitude to partner with the client to
resolve issues and to streamline processes
for the next audit.”
Roger R.
“The firm's responsiveness and technical
knowledge during the audit. My staff likes
having Suralink (client's portal) whereby
prepared by client schedules and requests
for additional information can be easily
uploaded.”
State & Local Client
“The Pun Group provides exceptional
service on a consistent basis.”
David W.
“We've been working with The Pun Group
for years and they've always been
responsive. Their fees are also much more
reasonable than most.”
Graciela S.

EXHIBIT B

Cities of La Mesa and Chula Vista, and the County of Imperial 1 | PUNGROUP.CPA
Total All-Inclusive Maximum Price
Certification
We are committed to the performance of a high-quality audit at the most reasonable fee level possible, both initially and throughout the engagement. Also, our partners will provide advice and consultation as needed at no additional cost to the Cities of La Mesa and Chula Vista, and the County of Imperial.

Name of Firm: The Pun Group LLP – Certified Public Accountants and Business Advisors Contact Name: Kenneth H. Pun, CPA, CGMA
Contact Email Address: [email protected]
Authorization to Represent the Firm
I, the undersigned, certify I am duly authorized to represent The Pun Group LLP and am empowered to submit this bid. In addition, I certify I am authorized to contract with the Cities of La Mesa and Chula Vista, and the County of Imperial on behalf of the Firm.

November 1, 2022
_________________________________________ _______________________________ Kenneth H. Pun, CPA, CGMA | Managing Partner Date
The Pun Group LLP

EXHIBIT B

Cities of La Mesa and Chula Vista, and the County of Imperial 1 | PUNGROUP.CPA
Total All-Inclusive Maximum Price
Our proposed fees or Cannabis Tax Audit Services for one fiscal year with the option to renew for four (4) additional fiscal years, are as follows:

TOTAL
$6,000/Licensee
Included
Included
Included
Included
Included
Total all-inclusive maximum price - Year 1 $6,000/Licensee (*) (**) Conduct audits annually or as recommended per industry standards or practice.

City of La Mesa Services:

Provide technical and policy expertise to the Agencies related to the operations and understanding of the Cannabis Industry to ensure compliance with state and local law.

Facilitate at least three stakeholder meetings (informational kick-off, workshop for input, and final draft or process review).

Recommend Agencies’ policies and procedures for tax collection and tax audits including the development of recommended internal control standards and record keeping/audit related administrative policies and procedures to ensure optimal cannabis operator compliance with state and local laws.

Provide assistance with Track and Trace System Evaluation.

Monitor business tax reporting to ensure compliance with applicable laws. * Price quoted per Licensee. The total amount will depend on the number of licensees being audited each fiscal year. ** There will be an increase of 2%/year for each subsequent fiscal year (Fiscal Years 2 through 5).

EXHIBIT B

Cities of La Mesa and Chula Vista, and the County of Imperial 1 | PUNGROUP.CPA
TOTAL
$6,000/Licensee *
Included
Included
Included
Included
Included
$3,500 - $5,000
$250/hour
Total all-inclusive maximum price - Year 1 (*) (**) See Below Conduct audits annually or as recommended per industry standards or practice.

Additional Services For Chula Vista Only:

Provide assistance in cannabis on-site inventory audit, reporting and analysis. (1) Provide assistance in the development of inventory audit policies and procedures. (2) City of Chula Vista Services:

Provide technical and policy expertise to the Agencies related to the operations and understanding of the Cannabis Industry to ensure compliance with state and local law.

Facilitate at least three stakeholder meetings (informational kick-off, workshop for input, and final draft or process review).

Recommend Agencies’ policies and procedures for tax collection and tax audits including the development of recommended internal control standards and record keeping/audit related administrative policies and procedures to ensure optimal cannabis operator compliance with state and local laws.

Provide assistance with Track and Trace System Evaluation.

Monitor business tax reporting to ensure compliance with applicable laws. * Price quoted per Licensee. The total amount will depend on the number of licensees being audited each fiscal year. ** There will be an increase of 2%/year for each subsequent fiscal year (Fiscal Years 2 through 5). (1) Cannabis on-site inventory and report analysis will range from $3,500 - $5,000, depending on the scope/size of work. The team will discuss with the Agencies and obtain approval before starting any related work. (2) Development of inventory audit policies and procedures is quoted as $250/hr. Based on our experience, the price range is $15,000 - $25,000. The team will discuss with the Agencies and obtain approval before starting any workrelated.

EXHIBIT B

Cities of La Mesa and Chula Vista, and the County of Imperial 1 | PUNGROUP.CPA
TOTAL
$6,000/Licensee
Included
Included
Included
Included
Included
Total all-inclusive maximum price - Year 1 $6,000/Licensee (*) (**) Conduct audits annually or as recommended per industry standards or practice.

County of Imperial Services:

Provide technical and policy expertise to the Agencies related to the operations and understanding of the Cannabis Industry to ensure compliance with state and local law.

Facilitate at least three stakeholder meetings (informational kick-off, workshop for input, and final draft or process review).

Recommend Agencies’ policies and procedures for tax collection and tax audits including the development of recommended internal control standards and record keeping/audit related administrative policies and procedures to ensure optimal cannabis operator compliance with state and local laws.

Provide assistance with Track and Trace System Evaluation.

Monitor business tax reporting to ensure compliance with applicable laws. * Price quoted per Licensee. The total amount will depend on the number of licensees being audited each fiscal year. ** There will be an increase of 2%/year for each subsequent fiscal year (Fiscal Years 2 through 5).

EXHIBIT B

Cities of La Mesa and Chula Vista, and the County of Imperial 2 | PUNGROUP.CPA
Other Information
Out of Pocket Expenses in the Total Maximum Price and Reimbursement Rates The Firm's policy is to maintain flexible billing rates to meet the needs of clients and help them control costs. In the interest of starting our long-term relationship, we will absorb expenses such as travel and printing costs. Additionally, our Partners will be available to provide advice and consultation as necessary to the Cities of La Mesa and Chula Vista, and the County of Imperial. The Firm will also absorb these costs.

Rates for Additional Professional Services
Below are the Firm's hourly billing rates, delineated by staffing levels:

Partner(s) $ 275
Director(s) $ 250
Senior Manager(s) $ 225
Manager(s) $ 200
Supervisor(s) $ 175
Senior Accountant(s) $ 150
Staff Accountant(s) $ 125
Clerical $ 100
Hourly Billing Rates
Any supplemental reports, audits, or agreed-upon procedures not covered by this proposal may be added to a written agreement prior to commencing audit work. The Firm and the Agencies will discuss and approve the scope and associated costs of these tasks. Any additional work will be performed at the above-quoted hourly rates.

Manner of Payment
Engagement Team members are required to maintain timesheets detailing the date, number of hours, and work performed for every audit task. The Firm will collect these timesheets and bill the Cities of La Mesa and Chula Vista, and the County of Imperial at the rates outlined in the Total All-Inclusive Maximum Price section in four stages: (1) at the conclusion of the planning phase, (2) at the conclusion of the interim phase, (3) at the conclusion of the Year-End phase, (4) and after presentation and acceptance of the final audit reports. Interim billings will cover a period not less than a calendar month. The billing amounts generally break down as follows:

Work Performed % of Proposal Amount
Planning 10%
Interim 40%
Fieldwork 40%
Presentation and Acceptance of Reports 10%

EXHIBIT B

ORANGE COUNTY SAN DIEGO BAY AREA LAS VEGAS PHOENIX
www.pungroup.cpa

EXHIBIT B

REPORT to the MAYOR and MEMBERS of the CITY COUNCIL
From the CITY MANAGER
DATE: February 28, 2023
SUBJECT: APPROVAL OF THE APPROPRIATION OF

UNALLOCATED GENERAL FUND RESERVES FOR

THE PURCHASE OF SEVEN IPADS, ACCESSORIES,

AND SERVICE TO REPLACE MOBILE DATA

COMPUTERS (MDCS) IN FIRE APPARATUS TO MEET

THE CURRENT OPERATIONAL NEEDS OF THE

DISPATCH COMMUNICATIONS SYSTEM
ISSUING DEPARTMENT: Fire
SUMMARY:

Issues:

Should the City Council adopt a resolution to appropriate unallocated General Fund reserves for the purchase of seven iPads, accessories and service to replace mobile data computers (MDCs) in Fire apparatus to meet the current operational needs of the dispatch communications system? Recommendation:

That the City Council adopt a resolution to appropriate unallocated General Funds reserves for the purchase of seven iPads and data plans from Verizon Wireless for $11,774, necessary accessories from various vendors for $5,000, and tablet command costs of $2,800 for a rounded total amount of $19,570.

Fiscal Impact: The total cost of iPads, accessories, and data and tablet command service is $19,570. Funds are requested from unappropriated General Funds reserves to be transferred into the communications account 101-64230- 222-000000.

City’s Strategic Goals:
 Safe community

Report to Mayor and Councilmembers
Date: February 28, 2023
Page: 2 of 3
 Maintain a financially sound and affordable city government BACKGROUND:

The La Mesa Fire Department, along with many area fire departments, is contracted with Heartland Communications Facility Authority (HCFA) for fire dispatch services. A recent HCFA computer-aided dispatch (CAD) upgrade exposed a vulnerability in our MDC resilience. Our current MDCs are no longer compatible with the new software requirements used for CAD. The software and compatibility issues have elevated this to a mission critical need.

Because of the CAD upgrade and changes, we are working towards all vehicles and units in our Heartland Fire & Rescue three-city fleets upgrading to the new model; iPads and Tablet Command. We have already implemented this change for the Chief Officer vehicles and need to do the same for our Suppression Fleet now. In an effort to remain compatible with the operational zone’s CAD system, and the Tablet Command program used in the vehicles and units throughout Heartland Fire & Rescue, we need to spend $19,570 to replace the no longer supported equipment in our Engines and Ladder Truck. The $19,570 is to get us through the emergent need and to the end of FY23. Any recurring or replacement costs will be budgeted in the appropriate accounts moving forward.

DISCUSSION:

Any updates or replacement to equipment would normally be requested and budgeted during the City budget process. Unfortunately, this need for new equipment was not anticipated and we were unable to go through the regular processes.

Although we are having to make the transition from MDCs to iPads quicker than we would like, the change will ultimately present a significant cost savings to the City. For comparison, if we were able to replace the seven MDCs, the cost for the equipment, hardware, and data service would be approximately $55,440 for laptop computers compared to the $19,570 for iPads. While MDCs have an estimated four-year service life, and iPads a shorter three-year service life, there is still a substantial savings. In addition, it will be much easier to replace iPads as needed than it was to order and receive MDCs.

We are requesting the transfer of $19,570 from unappropriated General Fund reserves to cover the cost.

Report to Mayor and Councilmembers
Date: February 28, 2023
Page: 3 of 3
CONCLUSION:

Staff recommends that the City Council adopt a resolution to appropriate unallocated General Fund reserves for the purchase of seven iPads and data plans from Verizon Wireless for $11,774, necessary accessories from various vendors for $5,000, and tablet command costs of $2,800 for a total rounded amount of $19,570.

Reviewed by: Respectfully submitted by:
____________________ ____________________________
Greg Humora Bent Koch
City Manager Fire Chief
_ _________
Tammi Royales
Director of Finance
Attachments: A. Resolution
B. Cost Comparison Worksheet

RESOLUTION NO. 2023-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA MESA TO

APPROPRIATE UNALLOCATED GENERAL FUND RESERVES FOR THE

PURCHASE OF IPADS, ACCESSORIES, AND DATA AND TABLET

COMMAND PLANS TO BE USED BY THE FIRE DEPARTMENT
________________________________________________________________ WHEREAS, the Fire Department previously used mobile data computers (MDCs) in the fire apparatus to receive dispatch information;
WHEREAS, the dispatch center, Heartland Communications Facility Authority (HCFA), recently updated their computer-aided dispatch (CAD) system; WHEREAS, MDCs are no longer compatible with the new CAD system; WHEREAS, new equipment must be purchased to retain functionality with the dispatch center;
WHEREAS, funds are requested from the unappropriated General Fund reserves for this purchase; and
WHEREAS, the transition from MDCs to tablets will ultimately be more cost-efficient.

NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the City Council of the City of La Mesa, California, that the City Council approves the allocation of General Fund reserves for the purchase of iPads, accessories, and data and tablet command plans in an amount not to exceed $19,570.

PASSED AND ADOPTED at a Regular meeting of the City Council of the City of La Mesa, California, held the 28th day of February, 2023, by the following vote, to wit:

AYES:

NOES:

ABSENT:

CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be a true and exact copy of Resolution No. 2023- , duly passed and adopted by the City Council of said City on the date and by the vote therein recited.

MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)

iPad Pro (12.5' 256G) (7) $10,653.41
Data Service (4 months @$40.01 each) $1,120.28
Cases and Mounts $5,000.00
Tablet Command - Prorated $2,800.00
Grand Total $19,573.69
Mobile Data Computers (7) $37,975.00
Docks and Mounts $11,392.00
Wi-Fi Hotspot and Data Service $6,076.00
Grand Total $55,443.00
Mobile Data Computer Replacement with iPads
Mobile Data Computer Costs (not an option after 7/1/23) iPad vs Mobile Data Computer Cost Comparison

REPORT to the MAYOR and MEMBERS of the CITY COUNCIL
From the CITY MANAGER
DATE: February 28, 2023
SUBJECT: APPROVAL OF INITIATION OF AN ANNEXATION AND

RELATED GENERAL PLAN AMENDMENT FOR THE
PROPERTY LOCATED AT 9365 CARMICHAEL DRIVE,
APN 495-335-05-00 (PROJECT 2022-0492)
ISSUING DEPARTMENT: Community Development/Public Works
SUMMARY:

Issues:

Should the City Council initiate the annexation of the property located at 9365 Carmichael Drive, in the County of San Diego, and initiate a related General Plan Amendment?
Recommendation:

Adopt the draft resolution approving the initiation of an annexation and related General Plan Amendment (Attachment A).

Fiscal Impact:

There would be no impact to the General Fund related to this project. City of La Mesa policy is to recover 100% of the cost of staff time through application processing fees. The City would collect increased property tax revenue from the existing single-family development.

City’s Strategic Goals:
 Revitalize neighborhoods and corridors
 Ensure safe and affordable homes for all current and future residents

Report to Mayor and Councilmembers
Date: February 28, 2023
Page: 2 of 3
Environmental Review:

This project is categorially exempt under the California Environmental Quality Guidelines Section 15319. In addition, the project is exempt in accordance with Title 14 Cal. Code Regs. 15061(b)(3).

BACKGROUND:

The subject property is located in San Diego
County, surrounded on two sides by parcels
located in the City of La Mesa (Attachment A).

The lot is currently developed with a singlefamily residence and single-car garage.

Driveway access is taken from Carmichael
Drive, which is located in the County of San
Diego, similar to several neighboring properties
that are within the City limits. The lot also has
frontage on Golondrina Drive, which is located
in the City of La Mesa.

The applicant has requested to connect to City
sewer facilities due to their septic system
failing, and a formal jurisdictional change to
annex the subject parcel. The annexation
process would result in the property being officially incorporated into the City of La Mesa jurisdictional boundary and certain service providers would be reorganized from County to City service. A General Plan amendment is required to assign a land use designation to the subject property. Project review will be coordinated with the Local Agency Formation Commission (LAFCO). The proposal would be shared with the Casa De Oro planning group, which is a citizen advisory board to the County.

DISCUSSION:

This proposal is to initiate the annexation of the property addressed 9365 Carmichael Drive, currently located in the County of San Diego, and initiate a related General Plan amendment. Currently, there is no assigned La Mesa land use designation because the subject property is located outside of the City jurisdictional boundary and is included in the County’s General Plan. The County General Plan land use designation is “SemiRural Residential (SR-0.5)” (1 – 2 du/acre). As part of the review process, an appropriate land use designation will be recommended by staff to the Planning Commission, with their final recommendations forwarded to City Council at noticed public hearings.

Report to Mayor and Councilmembers
Date: February 28, 2023
Page: 3 of 3
The subject property is “pre-zoned” on the City’s official zoning map for Semi-Rural Estate land use at a density of one to two dwelling units per acre, and would also be subject to the provisions of the Scenic Preservation Overlay Zone. The zoning classification would become R1E-P (Semi-Rural Estate – Scenic Preservation Overlay).

CONCLUSION:

Adopt a resolution (Attachment A) to initiate an annexation and related General Plan Amendment for the property addressed 9365 Carmichael Drive.

Reviewed by: Respectfully submitted by:
____________________ ____________________________
Greg Humora Kerry Kusiak
City Manager Director of Community Development
____________________________
Michael Throne
Director of Public Works
Attachments:

A. Draft City Council Resolution
B. Vicinity Map

RESOLUTION NO. 2023 -

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA MESA

APPROVING THE INITIATION OF AN ANNEXATION AND RELATED
GENERAL PLAN AMENDMENT FOR THE PROPERTY LOCATED AT 9365 CARMICHAEL DRIVE (APN 495-335-05-00) (PROJECT 2022-0492) WHEREAS, the applicant has requested sewer service and a jurisdictional reorganization to annex the property located at 9365 Carmichael Drive (APN 495-335-05- 00) to the City of La Mesa;
WHEREAS, the subject property is located in San Diego County, surrounded on two sides by parcels located in the City of La Mesa;
WHEREAS, the City of La Mesa Sphere of Influence is coterminous with the City boundary, and would be amended to include the subject property; WHEREAS, upon annexation the property would be incorporated into the City of La Mesa jurisdictional boundary;
WHEREAS, a General Plan amendment is required to assign a land use designation to the subject property;
WHEREAS, the project is subject to the provisions of the California Environmental Quality Act (CEQA); and
WHEREAS, the City Council has duly considered the request to initiate an annexation and General Plan amendment.

THE CITY COUNCIL FINDS AND DETERMINES AS FOLLOWS:

1. That the proposed annexation conforms to the policies of the La Mesa General Plan which promote the general public health, safety and welfare, and with Land Use Policy LU-7.1.3 which states: “Work with the Local Area Formation Commission (LAFCO) when residents outside the City request annexation or connection to City sanitary sewer facilities”.

NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA MESA AS FOLLOWS:

1. The foregoing findings of fact and determinations are true and hereby made a part hereof.

2. The City Manager or his designee is directed to prepare all application materials with assistance of the property owner that are necessary for General Plan amendment and the Local Agency Formation Commission of the County of San Diego to undertake proceedings for the annexation and sphere amendment proposed herein.

3. The City Clerk is hereby authorized and directed to file a certified copy of this Resolution with the Executive Officer of the Local Agency Formation Commission of the County of San Diego.

PASSED AND ADOPTED at a Regular meeting of the City Council of the City of La Mesa, California, held the 28th day of February 2023, by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be true and exact copy of Resolution No. 2023- , duly passed and adopted by the City Council of said City on the date and by the vote therein recited.

MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)

9 365CarmichaelDrive
PropertyAnnexation
ProjectNo.2022-0492
LAVELL
ST

CARMICHAEL DR
EL
TEJADO
RD

LA CUESTA DR
G
O
L
O
N
D
R
I
N
A
D
R

LOBRANOST

PRIVATE RD
SAN
JUAN
PL
E:\cp2022\Projects\2022-0492 9365 Carmichael Dr\2022-0492 GIS\2022-0492 Vicinity Map.mxd 16 February 2023 0120240360480
FEET
DATASOURCES:

CityofLaMesa2019,SanGIS2019

PROPERTYINFORMATION
SiteAddress
APN
LotSize
GeneralPlan
Pre-Zoning
Applicant
R1E-P
Semi-RuralEstate/
ScenicPreservationOverlay
VicinityMap
¹
N/A
JesseTrujillo
9365CarmichaelDrive
LaMesa,CA91941
495-335-05-00
11,968.11sq.ft./0.27AC
ProjectSite

REPORT to the MAYOR and MEMBERS of the CITY COUNCIL
From the CITY MANAGER
DATE: February 28, 2023
SUBJECT: APPROVAL OF SUMMARY VACATION OF AN

EXISTING PUBLIC UTILITY EASEMENT LOCATED AT
8135 EL PASO STREET AND ENCUMBERING LOT H
PER MAP NO. 4046 LAKE VIEW ESTATES UNIT NO. 1
ISSUING DEPARTMENT: Public Works
SUMMARY:

Issues:

Should the City of La Mesa vacate an existing Public Utility Easement encumbering located at 8135 El Paso Street and encumbering Lot H per Map No. 4046 Lake View Estates Unit No. 1?
Recommendation:

Vacate the City of La Mesa Public Utility Easement encumbering Lot H per Map No. 4046 Lake View Estates Unit No. 1.

Fiscal Impact:

None.

City’s Strategic Goals:
 Revitalize neighborhoods and corridors
Environmental Review:

This project is categorically exempt from the environmental review process under Section 15301 Class 1(c) of Title 14 of the California Code of Regulations.

Report to Mayor and Councilmembers
Date: February 28, 2023
Page: 2 of 3
BACKGROUND:

When Map No. 4046 was originally filed for the Lake View Estates Unit No. 1 subdivision it reserved an easement for public utilities bordering the east, south and west property lines of the parcel. With the formation of the Public Utilities Commission, utility agencies acquired the right to place franchise utilities within the public right of way reducing the need for utility easements on private property. The easement dedicated on the map has never been used, nor is there any desire by any agency to ever use it for its intended purpose. All public utility agencies have been contacted and none of the agencies has any existing utilities within this easement or any objections with its vacation.

DISCUSSION:

Zigman Properties, LP, is the owner of Lot H and proposes to construct a new, 21 container battery energy storage system (BESS) on the parcel in order to increase the functionality of the lot. The City’s policy prohibits construction within City easements.

Zigman Properties, LP has researched the easement history and requests that the City vacate that portion across their property citing that vacating that portion of the public utility easement across their property would allow them to proceed with construction. The City has reviewed the easement and supporting documents from other utility agencies and has determined that the vacation request is reasonable. San Diego Gas & Electric, Helix Water District, Cox Cable and AT&T have been contacted and each agency has submitted a letter indicating they have no objection to the vacation.

California Streets and Highways Code, Section 8330, et seq., provides the criteria for summary vacation of public service easements in any of the following cases:
(a) The easement has not been used for the purpose for which it was dedicated or acquired for five consecutive years immediately preceding the proposed vacation; (b) The date of dedication or acquisition is less than five years, and more than one year, immediately preceding the proposed vacation, and the easement was not used continuously since that date; or
(c) The easement has been superseded by relocation, or determined to be excess by the easement holder, and there are no other public facilities located within the easement.

Conditions a) and c) apply to this request for vacation therefore the City Council may authorize the vacation.

Report to Mayor and Councilmembers
Date: February 28, 2023
Page: 3 of 3
CONCLUSION:

Staff recommends that the City of La Mesa vacate the Public Utility Easement encumbering Lot H per Map No. 4046 Lake View Estates Unit No. 1.

Reviewed by: Respectfully submitted by:
____________________ ____________________________
Greg Humora Michael Throne, PE
City Manager Director of Public Works
____________________________
Dann Marquardt
Associate Engineer
Attachments: A. Resolution
B. Vacation Exhibit

RESOLUTION NO. 2023-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA MESA ORDERING

THE SUMMARY VACATION OF AN EASEMENT FOR PUBLIC UTILITY
PURPOSES AT 8135 EL PASO STREET ENCUMBERING LOT H PER MAP NO. 4046 LAKE VIEW ESTATES UNIT NO. 1
WHEREAS, an easement for public utility purposes was dedicated to the City of La Mesa on Map 4046, Lake View Estates Unit No. 1, recorded December 22, 1958; WHEREAS, the property owner of Lot H, Zigman Properties L.P., a California limited partnership, has requested the vacation of said easement to unencumber their property and facilitate the use of the property;
WHEREAS, Section 8330, et seq., of the California Streets and Highways Code provides the criteria for summary vacation of public service easements in any of the following cases:
a. The easement has not been used for the purpose for which it was dedicated or acquired for five consecutive years immediately preceding the proposed vacation; b. The date of dedication or acquisition is less than five years, and more than one year, immediately preceding the proposed vacation, and the easement was not used continuously since that date; or
c. The easement has been superseded by relocation, or determined to be excess by the easement holder, and there are no other public facilities located within the easement.

WHEREAS, the City Council finds that:
a. The Notice of Public Hearing on said resolution ordering the summary vacation of the easement, was published in the Daily Transcript on February 14, 2023, and February 21, 2023, in the manner prescribed by law for the publication of resolutions in and for said City;
b. Notices of said hearing were posted conspicuously along the easement proposed to be vacated, at least fourteen days before the date set by this resolution for the hearing.

Said notices were posted not more than three hundred (300) feet apart and at least three (3) such notices were posted.
c. No persons presented evidence that said easement is necessary for present or future public purposes;
d. There is no present or prospective use for the easement for which it was originally acquired or for any other public use of a like nature that can be anticipated; e. The easement for public utility purposes has been superseded by relocation and there are no other public facilities located within the easement considered to be vacated; f. The property owner will benefit from the vacation through improved utilization of the land; and

g. The vacation is consistent with the general plan or an approved community plan.

NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the Council of the City of La Mesa, as follows:

1. That the easement for public utility purposes dedicated on Map 4046, Lake View Estates Unit No. 1, recorded December 22, 1958 encumbering Lot H and as described in Attachment B be ordered vacated.

2. That the City Clerk of the City of La Mesa, California shall cause a certified copy of this resolution, attested to under the seal of the City of La Mesa, with exhibits, to be recorded in the office of the County Recorder of San Diego County, State of California.

PASSED AND ADOPTED at a Regular meeting of the City Council of the City of La Mesa, California, held the 28th day of February 2023, by the following vote, to wit:

AYES:

NOES:

ABSENT:

CERTIFICATE OF THE CITY CLERK
I, MAGAN WIEGLEMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be a true and exact copy of Resolution No. 2023- , duly passed and adopted by the City Council of said City on the date and by the vote therein recited.

MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)