Los Alamitos City Council
March 20, 2023

City of Los Alamitos
33 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) The funds designated as major funds are determined by a mathematical calculation consistent with GASB Statement No. 34 or are elected by Management of the City based on Management’s belief that the presentation of the funds are particularly important to financial statement users for reasons including public interest or consistency of reporting. The City reports the following major governmental funds:
 The General Fund is used to account for all of the general operations and other financial transactions of the City, which are not accounted for by another fund.

Additionally, the City reports the following fund types:
 The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than for debt service or capital projects) that are restricted by law or administrative action or committed to expenditures for specified purposes.
 The Capital Projects Funds are used to account for and report financial resources that are restricted, committed, or assigned for the acquisition or construction of major capital facilities, other than those financed by Internal Service Funds.
 The Debt Service Fund is used to account for and report financial resources that are restricted, committed, or assigned for the payment of, long-term debt principal, interest, and related costs for the 2006 Certificates of Participation (Laurel Park Acquisition).

Proprietary Funds
Proprietary funds are used to account for ongoing organizations and activities, which are operated and financed in a manner similar to those found in the private sector. The reporting focus on the determination of operating income, changes in net position, financial position, and cash flows. The City’s proprietary funds are classified as internal service funds.
 The Internal Service Funds are used to account for interdepartmental operations where it is the stated intent that costs of providing services to the departments of the City on a continuing basis be financed or recovered primarily by charges to the user departments. The City’s internal service funds are used to account for its self-insured insurance programs, fleet of vehicles, equipment, technology upgrades, and replacements and other capital related activities.

Government-Wide Financial Statements
The government-wide financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, including capital assets, infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. All internal balances and transactions have been eliminated from their respective statements to avoid over reporting relating assets, liabilities, revenues and expenses, except for internal service fund charges provided and used.

City of Los Alamitos
34 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Fund Financial Statements
All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures, and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current position. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

Like the government-wide statements, all proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses, and Changes in Net Position present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Basis of Accounting
Basis of accounting determines when transactions are recorded in the financial records and reported on the financial statements. Government-wide financial statements are prepared using the accrual basis of accounting. At the fund reporting level, the governmental funds use the modified accrual basis of accounting. Proprietary funds use the accrual basis of accounting at both reporting levels. Differences in the accrual and the modified accrual basis of accounting arise in the recognition of revenue, the recording of deferred inflows of resources, and in the presentation of expenses versus expenditures.

Revenue – Exchange Transactions
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On the modified accrual basis, revenue is recorded when the exchange takes place and in the fiscal year in which the resources are measurable and become available. Available means that the resources will be collected within the current fiscal year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current fiscal year. For the City, the availability is defined within 60 days of year-end.

Revenue – Non-Exchange Transactions
Non-exchange transactions in which the City receives value without directly giving equal value in return, includes sales taxes, property taxes, grants and donations. On an accrual basis, revenue from sales taxes is recognized in the period in which the taxable sale takes place. Revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. Major revenue sources susceptible to accrual include property tax, sales tax, utility users tax, franchise Tax, and licenses. On a modified accrual basis, revenue from non-exchange transaction also must be available (generally 60 days after year-end) before it can be recognized in the governmental funds. However, the City has adopted a 12-month recognition period for grant revenues.

City of Los Alamitos
35 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Unavailable Revenue
Unavailable revenue, presented under deferred inflows of resources, arise when potential revenues do not meet both the measurable and available criteria for recognition in the current period. In subsequent periods when both revenue recognition criteria are met, the deferred inflow is removed from the balance sheet and revenue is recognized.

Unearned Revenue
Unearned revenue arises when assets are recognized before revenue recognition criteria listed above have been satisfied. In subsequent periods when the government has a legal claim to the resources, the unearned revenue is removed from the balance sheet and revenue is recognized.

Expenses/Expenditures
On the accrual basis of accounting, expenses are recognized at the time they are incurred. On the modified accrual basis, expenditures generally are recognized in the accounting period in which the related fund liability is incurred and due, if measurable.

Proprietary Funds Operating and Non-Operating Revenues and Expenses Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. Operating expenses for internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

C. Cash, Cash Equivalents and Investments
Cash Management
The City pools cash resources of its various funds to facilitate cash management. Cash in excess of current requirements is invested and reported as investments. It is the City’s intent to hold investments until maturity.

However, the City may, in response to market conditions, sell investments prior to maturity in order to improve the quality, liquidity or yield of the portfolio. Interest earnings are apportioned among funds based on ending accounting period cash and investment balances.

Investments Valuation
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available.

State Investment Pool
The City participates in the Local Agency Investment Fund (LAIF), an investment pool managed by the State of California. LAIF has invested a portion of the pool funds in structured notes and asset-backed securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these structured notes and asset-backed securities are subject to market risk as a result of changes in interest rates.

City of Los Alamitos
36 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) C. Cash, Cash Equivalents and Investments (Continued)
Cash Equivalents and Cash Flows
For purposes of the statement of cash flows, the City considered all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All cash and investments of the proprietary fund types are pooled with the City's pooled cash and investments.

D. Internal Receivable and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e. the current portion of interfund loans) or “interfund advances receivable/payable” (i.e. the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Advances between funds, as reported in the fund financial statements, are presented as nonspendable in fund balances to indicate that they are not in a spendable form.

E. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items.

The cost of prepaid items is recorded as an expenditure/ expense when consumed.

F. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable governmental activities column in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years, except for computer software and hardware and infrastructure assets which have a capitalization threshold of $20,000. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed (except for intangible right-to-use assts), the measurement of which is discussed thereafter. Donated capital assets are recorded at acquisition value at the date of acquisition.

As permitted under GASB Statement No. 34 for small governmental entities, the City has elected to report infrastructure assets prospectively beginning July 1, 2003.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.

Property, plant, and equipment of the primary government, as well as the component unit, are depreciated using the straight-line method over the following estimated useful lives:

Equipment 5 - 10 years
Vehicles 4 - 15 years
Furniture 7 years
Buildings 50 years
Improvements 5 - 20 years
Infrastructure 50 years

City of Los Alamitos
37 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) G. Compensated Absences Payable
Under certain circumstances and according to the negotiated labor agreements, employees of the City are allowed to accumulate annual leave. This amount is accrued in the government-wide and proprietary fund statements. Refer to Note 6 for additional information.

H. Long-Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities.

In accordance with GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, debt issuance costs except for any portion related to prepaid insurance were recognized as expense in the period incurred.

I. Claims and Judgments
The City records a liability for claims, judgments, and litigation when it is probable that an asset has been impaired, or a liability has been incurred prior to fiscal year-end and the probable amount of loss (net of any insurance coverage) can be reasonably estimated.

The City is exposed to various risks of losses related to torts; theft of, damages to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City currently reports all of its risk management activities in its General Fund. Claims expenditures and liabilities are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. These losses include an estimate of claims that have been incurred, but not reported.

It is the City’s policy to liquidate claims and judgments existing at June 30, with future resources. Accordingly, the liabilities are recorded in the Statement of Net Position. These noncurrent amounts will be recorded as fund expenditures in the fiscal year in which they are paid or become due on demand.

J. Deferred Outflows and Inflows of Resources
In addition to assets, the statements of net position and the governmental funds balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has two items which qualify for reporting in this category.

Deferred pension related items relate to the net pension obligation reported in the statement of net position.

These outflows are the results of contributions made after the measurement date, which are recognized in the following year, and consist of adjustments due to differences in proportions, changes in assumptions, and differences between expected and actual experiences, which are deferred and amortized over the expected average remaining life time. Additionally, the net difference between projected and actual earnings on pension plan investments is reported and amortized over 5 years. Deferred outflows from changes in net pension liability arise only under a full accrual basis of accounting and are reported in the government-wide Statement of Net Position and proprietary funds Statement of Net Position.

The City also reports a deferred charge on refunding which results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunded or refunding debt.

City of Los Alamitos
38 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) J. Deferred Outflows and Inflows of Resources (Continued) In addition to liabilities, the statements of net position and the governmental funds’ balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has two items which qualifies for reporting in this category. The first item is in relation to the net pension obligation reported in the statement of net position.

These inflows are the results of changes of assumptions, differences between expected and actual experiences, adjustments due to differences in proportions, and differences between proportionate share of contributions and actual contributions. Inflows from changes in net pension liability arise only under a full accrual basis of accounting and are reported in the government-wide Statement of Net Position and proprietary funds Statement of Net Position
The City also reports one type of item, which arises only under the modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds’ balance sheet. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

K. Net Position
Net position is the excess of all the City’s assets over all its liabilities, regardless of fund. Net position is divided into three captions under GASB Statement No. 34. These captions apply only to net position, which is determined only at the government-wide level, and are described below:
 Net Investment in Capital Assets – the portion of net position that is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.  Restricted – the portion of net position that is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws or other restrictions, which the City cannot unilaterally alter. These principally include funds restricted to community development projects purposes and funds for use in building improvements and governmental grants.  Unrestricted – the portion of net position that is not restricted as to use.

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

City of Los Alamitos
39 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) M. Fund Balance
In the fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed, assigned, or unassigned based primarily on the extent to which the City is bound to honor constraints on how specific amounts can be spent.
 Nonspendable – the portion of a fund balance that includes amounts that cannot be spent because they are either not in a spendable form, such as prepaid items, inventories, or loans receivable.  Restricted – the portion of a fund balance that reflects constraints placed on the use of resources (other than non-spendable items) that are either (a) externally imposed by creditors (such as through debt covenants, grantors, contributors, or laws or regulations of other governments); or (b) imposed by law through constitutional provisions or enabling legislation. Examples of restricted fund balances include State Gas Tax, Asset Seizure, and Measure M funds.
 Committed – the portion of a fund balance that included amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision- making authority and remain binding unless removed in the same manner. a. The City Council, as the City’s highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken, such as a resolution. b. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. c. City Council action to commit fund balance needs to occur within the fiscal reporting periods; however, the amount can be determined subsequently.
 Assigned – amounts that are constrained by the City’s intent to be used for specific purposes, but are neither Restricted nor Committed, should be reported as Assigned fund balance. This policy hereby delegated the authority to assign amounts to be used for specific purposes to the City Manager for the purpose of reporting these amounts in the City’s annual financial statements. Examples of assigned fund balance are funds intended for Capital Improvement Projects and Equipment Replacement.  Unassigned – residual net resources in excess of what can properly be classified in one of the other four categories and do not have any specific spending limitations. The General Fund is the only fund that reports a positive unassigned fund balance amount. In governmental funds, other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, the City reports a negative unassigned fund balance in that fund.

In July 2017, City Council established a Reserve for Emergencies to be maintained at 25% of General Fund appropriations. The reserve is only to be used, with council approval, in the case of a declared natural disaster or financial emergency. A financial emergency is considered when annual revenues decrease by 5% or more or when annual expenditures increase by 5% or more.

City of Los Alamitos
40 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) N. Fund Balance Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

O. Pensions
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the pension plans fiduciary net positions and additions to/deductions from the pension plans fiduciary net positions have been determined on the same basis as they are reported by the CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

GASB 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used.

Valuation Date (VD) June 30, 2020
Measurement Date (MD) June 30, 2021
Measurement Period (MP) June 30, 2021 to June 30, 2022
P. Other Post-Employment Benefits (OPEB)
For purposes of measuring the other post-employment benefits (OPEB) liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

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

Valuation Date (VD) June 30, 2022
Measurement Date (MD) June 30, 2022
Measurement Period (MP) July 1, 2021 to June 30, 2022
Q. New Accounting Pronouncements
The City adopted Statement on Governmental Accounting Standards (GASB Statements) No. 87-Leases; No 89- Accounting for Interest Cost Incurred Before the End of a Construction Period; No. 90-Majority Equity Interest; No. 93-Replacement of Interbank Offered Rates; and No. 97-Certain Component Unit Criteria for Internal Revenue Code 457 Deferred Compensation Plans. The City implemented GASB No. 87 during fiscal year June 30, 2022. The adoption of the GASB Nos. 89, 90, 93, and 97 did not significantly impact the City.

City of Los Alamitos
41 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) R. Leases
Lessee: The City is a lessee for a noncancellable lease of equipment. The City recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the Statement of Net Position.

Lessor: At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of the lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key elements and judgement include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The City uses it estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included In the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. The City currently does not have any leases receivable.

City of Los Alamitos
42 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) S. Property Taxes
Under California law, property taxes are assessed and collected by the counties at up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool and are then allocated to the cities based on complex formulas.

Property taxes are assessed, collected and allocated by Orange County throughout the fiscal year according to the following property tax calendar.

Lien Date January 1
Levy Date July 1 to June 30
Due Dates November 1, 1st installment, February 1, 2nd installment Delinquent Dates December 11, 1st installment, April 11, 2nd installment Property taxes receivable for the governmental fund types, which have been remitted within 60 days subsequent to year end, are considered measurable and available and recognized as revenues. All other property taxes are offset by deferred property tax inflows of resources and, accordingly, have not been recorded as revenue. Taxes are considered past due on the above delinquent dates, at which time the applicable property is subject to lien, and penalties and interest are assessed.

T. Functional Classifications
Expenditures of the Governmental Funds are classified by function. Functional classifications are defined as follows:
 General government – includes legislative activities, which have a primary objective of providing legal and policy guidelines for the City. Also included in this classification are those activities that provide management or support services across more than one functional area.  Public safety – includes those activities that involve the protection of people and property.  Community development – includes those activities such as planning, code enforcement, and building and safety inspections.
 Recreation and community services – includes those activities that involve the community cultural and leisure activities.
 Public works – includes those activities that involve the maintenance and improvement of City streets, roads, and park development and maintenance.
 Capital outlay – includes purchases of property, plant and equipment which are expensed in the governmental funds because governmental funds use the current financial resources measurement focus.  Principal retirement – includes principal payments for long-term liabilities.  Interest and fiscal charges – includes current payments for interest on the City’s long-term debt.

City of Los Alamitos
43 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) U. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Note 2 – Stewardship, Compliance, and Accountability
A. Violations of Legal or Contractual Provisions
Note 2 to Required Supplementary Information, on the Excess of Expenditures over Appropriations, describes budgetary violations that occurred in the General Fund for the year ended June 30, 2022.

B. Deficit Fund Balance
At June 30, 2022, the Community Development Block Grant (CDBG) nonmajor special revenue fund reported a deficit fund balance of $114,182. The deficit is due to the timing of the receipt of CDBG program reimbursements for expenditures incurred. The deficit will be eliminated as the program reimbursements are received from the grantor agency.

Note 3 – Cash and Investments
A. Summary of Cash and Investments
At June 30, 2022, the City reported $21,302,076 in unrestricted cash and investments and $249 in restricted cash and investments held with fiscal agents for a total cash and investment balance of $21,302,325. Total cash and investments consisted of the following:

Cash on hand $ 3,500
Demand deposits 796,570
Investments 20,502,255
Total Cash and Investments $ 21,302,325
The City follows the practice of pooling cash and investments of all funds except for funds required to be held by fiscal agents under provisions of bond indentures. Interest income earned on pooled cash and investments is allocated monthly to the various funds based on monthly cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

City of Los Alamitos
44 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 3 – Cash and Investments (Continued)
B. Cash Deposits
The carrying amounts of the City’s cash deposits were $796,570 at June 30, 2022. Bank balances before reconciling items were $549,966 at that date. The difference of $246,604 represents outstanding checks, cash deposits in transit, and other reconciling items.

All City’s cash and investments as of June 30, 2022, were collateralized or insured with securities held by pledging financial institutions in the City’s name. The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City’s name.

C. Investments
The following table identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of bond indentures of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio* One Issuer United States (U.S.)Treasury Obligations 5 years None None Federal Agency Securities 5 years None None
Certificates of Deposit 5 years None $250,000
Negotiable Certificates of Deposit 5 years 30% 30%
Local Agency Investment Fund (LAIF) N/A None $50 million * Excludes amounts held by bond trustees that are not subject to California Government Code restrictions.

Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio One Issuer U.S. Treasury Obligations 30 years None None
U.S. Agency Securities None None None
Banker's Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 10%
Money Market Mutual Funds None None None
Investment Agreements None None None
Local Agency Bonds None None None
Medium Tern Notes 5 years 30% None
Negotiable Certificates for Deposits None 30% None
Local Agency Investment Fund (LAIF) None None None

City of Los Alamitos
45 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 3 – Cash and Investments (Continued)
C. Investments (Continued)
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawals is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. LAIF does not impose limits or restrictions on participant withdrawals, and the entire balance of the City’s investment in the portfolio is available for withdrawal at any time. LAIF is not registered with the Securities and Exchange Commission and is not rated.

Deposits and withdrawals in LAIF are made on the basis of $1 and not fair value. Accordingly, the City’s investment in this pool is measured on uncategorized inputs not defined as Level 1, 2, or 3.

D. Risk Disclosures
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.

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

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

Remaining Investment Maturities
Less than 1 to 3 4 to 5
Investment Type 1 Year Years Years Total
U.S. Treasury Obligations $ - 938,242 226,983 1,165,225 U.S. Agency Securities - 3,177,967 4,949,937 8,127,904
Certificates of Deposit 743,167 732,413 1,373,104 2,848,684 Agency Investment Fund (LAIF) 8,360,193 - - 8,360,193
Investment held by Bond Trustee:

Money Market Mutual Funds 249 - - 249

Total $ 9,103,609 4,848,622 6,550,024 20,502,255

City of Los Alamitos
46 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 3 – Cash and Investments (Continued)
D. Risk Disclosures (Continued)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating, by Standards and Poor, as of fiscal year end for each investment type:

Ratings at End of Year
Minimum
Legal
Investment Type Totals Rating Not Rated AAA AA+
U.S. Treasury Obligations $ 1,165,225 N/A $ - $ 1,165,225 $ - U.S. Agency Securities 8,127,904 N/A - 8,127,904 -
Certificates of Deposit 2,848,684 N/A 2,848,684 - -
Local Agency Investment Fund
(LAIF) 8,360,193 Not Rated 8,360,193 - -
Investments held by Bond Trustee:

Money Market Mutual Funds 249 N/A - - 249
Totals $ 20,502,255 $ 11,208,877 $ 9,293,129 $ 249
N/A - Not Applicable
Concentration of Credit Risk
The City’s investment policy imposes restrictions on the percentage that the City can invest in certain types of investments. As of June 30, 2022, in accordance with GASB Statement No. 40 requirements, the City is exposed to concentration of credit risk whenever they have invested more than 5% of their total investments in any one issuer.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. The City’s investment policy does not contain any additional provisions that would limit the exposure to custodial credit risk for deposits. However, the policy does stipulate that mortgage collateral cannot be used to secure deposits, and that the use of a third-party bank trust department is to act as the City’s safekeeping agent for investments. At June 30, 2022, City deposits (bank balances) were insured by the Federal Depository Insurance Corporation or collateralized as required under California Law.

City of Los Alamitos
47 Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 3 – Cash and Investments (Continued)
D. Risk Disclosures (Continued)
Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.

Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

The City has the following recurring fair value measurements as of June 30, 2022:

Level
Investments Totals 1 2 Uncategorized
U.S. Treasury Obligations $ 1,165,225 $ 1,165,225 $ - $ - U.S. Agency Securities 8,127,904 8,127,904 - -
Certificates of Deposit 2,848,684 - 2,848,684 -
Local Agency Investment Fund (LAIF)
Investment Held by Fiscal Agent
8,360,193 - - 8,360,193
Money Market Funds 249 249 - -
Totals $ 20,502,255 $ 9,293,378 $ 2,848,684 $ 8,360,193 Deposits and securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Federal Agency Securities classified in Level 2 of the fair value hierarchy are valued using institutional bond quotes.

Note 4 – Interfund Transactions
A. Receivables/Payables
The purpose of the interfund transactions is to make short-term interfund loans from the General Fund to nonmajor governmental funds. These interfund loans are to provide for negative cash balances at year-end and/or operating cash flow. Due to/from amounts are short-term financing, which are paid within one year. There were no such balances as of June 30, 2022.

B. Transfers In/Out
Transfers Out
Nonmajor
Governmental
Transfers In General Fund Funds Total
General Fund $ - $ 375,000 $ 375,000
Nonmajor Governmental Funds 453,500 - 453,500
Internal Service Funds 850,000 - 850,000
Total $ 1,303,500 $ 375,000 $ 1,678,500

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
48 Note 4 – Interfund Transactions (Continued)
B. Transfers In/Out (Continued)
Transfers to the General Fund from the Nonmajor Governmental Funds were made to fund street maintenance, partially offset the cost of police services, and to partially offset the cost of the Police Department motor officer program and other costs pertaining to traffic safety programs. Transfers to the Other Governmental Funds from the General Fund were made to make principal and interest payments of debt issued for the Laurel Park purchase.

Transfers to the Internal Services Funds from the General Fund were made to set aside fund for claim reserves, in case of any future incidents.

Note 5 – Capital Assets
A summary of changes in the Governmental Activities capital assets for the fiscal year ended June 30, 2022 are as follows:

Beginning Ending
Description Balance Additions Deletions Balance
Non-depreciable:

Land $ 5,917,715 - - 5,917,715
Construction in process 624,720 1,056,915 (500,216) 1,181,419 Total non-depreciable 6,542,435 1,056,915 (500,216) 7,099,134 Depreciable:

Buildings and improvements 2,295,266 - - 2,295,266
Equipment 1,266,120 126,031 (56,015) 1,336,136
Right-to-use – leased vehicles 50,263 25,518 - 75,781
Vehicles 1,173,866 103,744 - 1,277,610
Infrastructure- road system 14,109,191 500,215 - 14,609,406 Total depreciable
capital assets 18,894,706 755,508 (56,015) 19,594,199
Less accumulated depreciation for:

Buildings and improvements 1,536,574 42,393 - 1,578,967 Equipment 1,011,510 58,910 (56,015) 1,014,405
Right-to-use – leased vehicles - 16,780 - 16,780
Vehicles 1,056,337 56,260 - 1,112,597
Infrastructure- road system 2,816,199 282,992 - 3,099,191 Total accumulated
depreciation 6,420,620 457,335 (56,015) 6,821,940
Total depreciable
capital assets, net 12,474,086 298,173 - 12,772,259
Total capital assets, net $ 19,016,521 1,355,088 (500,216) 19,871,393 Depreciation expense was charged to governmental activities as follows:

General
Internal
Service Total
General Government $ 18,280 $ - $ 18,280
Public Safety 22,851 - 22,851
Recreation and Community Services 54,840 - 54,840
Public Works 255,920 - 255,920
Internal Service Fund - 105,444 105,444
Totals $ 351,891 $ 105,444 $ 457,335

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
49 Note 5 – Capital Assets (Continued)
Expenditures
Spent-to-date
Remaining
Commitment
Construction commitments:

Government activities – street projects:

Year 1 Residential Street Improvements $ 70,650 $ 1,177,965 Howard Street from Noel to Lexington 100,957 30,043
Bloomfield from Farquhar to Katella 119,589 40,411
Suburbia Rehabilitation 157,715 29,269
Woodcrest and Carrier Row 19,398 209,685
Storm Drain Management Plan 64,860 10,140
Suburbia Street Project 49,124 73,822
Note 6 – Compensated Absences
The following is a summary of changes in compensated absences for the year ended June 30, 2022 is as follows:

Balance Balance Due within
July 1, 2021 Additions Deletions June 30, 2022 One Year Compensated absences $ 481,842 $ 229,747 $ 223,557 $ 488,032 $ 181,844 There is no repayment schedule for compensated absences. Employee leave benefits are payable to employees upon usage or termination. The City’s policies relating to the payment of these benefits are discussed in Note 1. The liability for compensated absences is typically liquidated through the General Fund.

Note 7 – Long-Term Debt
The following is a summary of changes in Governmental Activities long-term debt for the year ended June 30, 2022:

Balance Balance Due within
July 1, 2021 Additions Deletions June 30, 2022 One Year 2015 Certificates of Participation $ 3,325,000 $ - $ 80,000 $ 3,245,000 $ 85,000 Unamortized bond premium 109,555 - 4,434 105,121 4,434
$ 3,434,555 $ - $ 84,434 $ 3,350,121 $ 89,434 Other Long-term Liabilities:

Lease payable – Police Vehicles $ 68,008 $ - $ 5,770 $ 62,238 $ 12,967

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
50 Note 7 – Long-Term Debt (Continued)
A. 2015 Certificates of Participation
On September 1, 2015, the City issued the 2015 Certificates of Participation in the amount of $3,685,000, as a public offering, to refund the outstanding balance of the 2006 (Laurel Park Acquisition) Certificates of Participation in an advanced refunding transaction, and to finance the design, acquisition, and construction of certain capital improvement projects. There are no finance-related consequences related to significant events of default or termination, and there are no acceleration clauses. There are no assets pledged as collateral, no required reserve, and no unused lines of credit. Interest on the bonds is payable semiannually on October 1 and April 1, commencing April 1, 2016, at rates which range from 2.00% to 5.00%. Principal payments begin October 1, 2017 and continue October 1 of each year through October 1, 2045. The outstanding balance as of June 30, 2022 is $3,245,000. The annual debt service requirements on these bonds are as follows:

Year ending
June 30, Principal Interest Total
2023 $ 85,000 $ 125,444 $ 210,444
2024 85,000 121,194 206,194
2025 90,000 116,819 206,819
2026 95,000 112,194 207,194
2027 100,000 107,319 207,319
2028-2032 560,000 482,144 1,042,144
2033-2037 655,000 379,147 1,034,147
2038-2042 805,000 236,900 1,041,900
2043-2046 770,000 63,200 833,200
$ 3,245,000 $ 1,744,361 $ 4,989,361

B. Lease Payable – Police Vehicles
In December 2020, the City entered into two five-year lease agreements as lessee for the acquisition and use of two vehicles. Initial lease liabilities were recorded in the amounts of $31,142 and 42,533 during the current fiscal year as a result of implementation of GASB 87. As of June 30, 2022, the value of the lease liabilities were $16,254 and $22,204. The City is required to make monthly principal and interest payments of $519 and $708 for the vehicles. The leases both have an interest rate of 16.2%.

The vehicles both have a five-year estimated useful life. The value of the right-to-use asset as of June 30, 2022 was $21,244 and $29,019 less accumulated amortization of $6,373 and $8,706, respectively.

In March 2022, the City entered into a five-year lease agreement as lessee for the acquisition and use of a vehicle. An initial lease liability was recorded in the amount of $25,518 during the current fiscal year as a result of implementation of GASB 87. As of June 30, 2022, the value of the lease liability was $23,780. The City is required to make monthly principal and interest payments of $623 for the vehicle.

The lease has an interest rate of 16.2%. The equipment has a five-year estimated useful life. The value of the right-to-use asset as of June 30, 2022 was $25,518 less accumulated amortization of $1,701.

The following future principal and interest payments on the leases payable for June 30 are as follows:

Year ending
June 30, Principal Interest Total
2023 $ 12,967 $ 9,248 $ 22,215
2024 15,226 6,989 22,215
2025 17,888 4,327 22,215
2026 12,060 1,561 13,621
2027 4,097 292 4,389
$ 62,238 $ 22,417 $ 85,255

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
51 Note 8 – Defined Contribution Plans
The City provides pension benefits for all of its part time employees through a defined contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. The plan is administered as part of the City’s 457 plan. Federal legislation requires contributions of at least 7.5% of the employees’ salary. For the fiscal year ended June 30, 2022, the City contributed $35,121. City employees are invested immediately. City Council has the authority to establish and amend the provisions of this plan.

Note 9 – Defined Benefit Pension Plans
A. Plan Description
The City contributes to the California Public Employees' Retirement System (CaIPERS), a cost-sharing multipleemployer public employee defined benefit pension plan for full-time safety and miscellaneous employees.

CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CaIPERS acts as a common investment and administrative agent for participating public entities within the State of California. CaIPERS issues a publicly available financial report that includes financial statements and required supplementary information for the cost-sharing plans that are administered by CaIPERS. Copies of CalPERS' annual financial report may be obtained from their executive office at: 400 P Street, Sacramento, California 95814.

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

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
52 Note 9 – Defined Benefit Pension Plans (Continued)
B. Benefits Provided (Continued)
The City has a multiple tier retirement plan with benefits varying by plan for both miscellaneous and safety employees hired on or before specific dates as follows:

Safety Employees
 Legacy POA Employees – The retirement formula is 3% at age 50 for safety employees covered under the Los Alamitos Police Officers’ Association (POA) that were hired on or before December 31, 2012.

The employee is responsible for the employee share (9%).  Non-Represented Safety Employees – The retirement formula for Non-Represented Safety Employees hired on or before December 31, 2012 is 3% at age 50. The employee is responsible for the employee share (9%).
 Safety PEPRA Employees – The retirement formula is 2.7% at age 57 for new members hired on or after January 1, 2013. The employee must pay one-half (1/2) of the normal cost of the benefit. The normal cost is currently 23.49% - one-half of which is 11.745%, which is paid by the employee.

Classic members (CalPERS members prior to 12/31/12) hired on or after January 1, 2013 may be placed in a different tier.

Miscellaneous Employees
 Legacy CEA Employees – The retirement formula is 2.7% at age 55 for miscellaneous employees covered under the Los Alamitos City Employees Association (CEA) hired on or before December 31, 2012. The employee is responsible for the employee share (8%).
 Non-Represented Miscellaneous Employees – The retirement formula for Non-Represented Miscellaneous Employees hired on or before December 31, 2012 is 2.7% at age 55. The employee is responsible for the employee share (8%) with the exception of the City Manager whereby the City pays the employee share (8%).
 Miscellaneous PEPRA Employees – The retirement formula is 2% at age 62 for new members hired on or after January 1, 2013. The employee must pay one-half (1/2) of the normal cost of the benefit. The normal cost is currently 12.783% - one-half of which is 6.3915%, which is paid by the employee.

Classic members (CalPERS members prior to 12/31/12) hired on or after January 1, 2013 may be placed in a different tier.

Additionally, the City is required to contribute the actuarially determined amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration. The required employer contribution rates for fiscal year 2021-2022 are as follows:

Employer
Rates
Classic Miscellaneous Members 14.02%
PEPRA Miscellaneous Members 7.59%
Classic Safety Members 23.71%
PEPRA Safety Members 13.13%
The employer rate for each plan does not include the additional City payment made towards the unfunded pension liability. Payment towards the unfunded liability for the fiscal year ended June 30, 2022 was $1,677,621.

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
53 Note 9 – Defined Benefit Pension Plans (Continued)
C. Contribution Description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

For the year ended June 30, 2022, the contributions recognized as a reduction to the net pension liability for the miscellaneous and safety plans was $772,765 and $848,052, respectively.

D. Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2020 valuations were rolled forward to determine the June 30, 2021 total pension liabilities, based on the following actuarial methods and assumptions:
1 The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using the Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.

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

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

Actuarial Cost Method
Actuarial Assumptions
Discount Rate
Inflation
Salary Increases
Mortality Rate Table1
Post Retirement Benefit Increase
Entry Age Normal in accordance with the requirements of GASB 68

7.15%

2.50%
Varies by Entry Age and Service
Derived using CalPERS' Membership Data for all Funds
Contract COLA up to 2.0% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.5% thereafter

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
54 Note 9 – Defined Benefit Pension Plans (Continued)
E. Long-term Expected Rate of Return
Assumed
Asset
Asset Class Allocation
Public equity 50.0%
Global fixed income 28.0%
Real assets 13.0%
Private equity 8.0%
Inflation sensitive assets 0.0%
Liquidity 1.0%
F. Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

G. Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.

H. Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

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

The EARSL for PERF C (the CalPERS pool) for the measurement date ending June 30, 2021 is 3.7 years, which was obtained by dividing the total service years of 559,502 (the sum of remaining service lifetimes of the active employees) by 150,958 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

Net difference between projected and actual earnings on pension 5 year straight-line amortization plan investments
All other amounts Straight-line amortization over the expected average remaining service lifetime (EARSL) of all members that
are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
55 Note 9 – Defined Benefit Pension Plans (Continued)
I. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension
Net Pension Liability
As of June 30, 2022, the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows:

Proportionate Share of Net Pension Liability
Miscellaneous $ 7,053,182
Safety 7,487,386
Total Net Pension Liability $ 14,540,568
The City’s net pension liability for each plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the plans is measured as of June 30, 2020, and the total pension liability for each plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for each plan as of June 30, 2020 and 2021, were as follows:

Miscellaneous Safety
Proportion - June 30, 2020 0.2450% 0.1772%
Proportion - June 30, 2021 0.3738% 0.2140%
Change - Increase (Decrease) 0.1288% 0.0368%
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City, calculated using the discount rate of 7.15%, as well as what the Plan’s net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.15%) or 1 percentage point higher (8.15%) than the current rate:

Discount Rate Current Discount Rate
- 1% Discount Rate + 1%
(6.15%) (7.15%) (8.15%)
Miscellaneous $ 11,611,367 $ 7,075,681 $ 3,326,094
Safety 13,283,412 7,487,386 2,726,666
$ 24,894,779 $ 14,563,067 $ 6,052,760
Pension Expense and Pension Deferrals
For the year ended June 30, 2022, the City recognized a total pension expense of $491,685 for the Miscellaneous plan and $436,776 for the Safety plan, totaling $928,461 for all plans. At June 30, 2022, the City reported deferred outflows and deferred inflows of resources related to pensions as follows:

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
56 Note 9 – Defined Benefit Pension Plans (Continued)
I. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension
Deferred Outflows Deferred Inflows
Miscellaneous Plan of Resources of Resources
Contributions subsequent to measurement date $ 1,043,161 $ - Changes in assumptions - -
Difference between expected and actual experience 793,464 2,523 Net difference between projected and actual
earnings on pension plan investments 19,639 6,176,695
Adjustment due to differences in proportions
Difference between actual and proportionate share
3,063,933 262,567
of contributions 49,624 321,455
Subtotal Miscellaneous Plan 4,969,821 6,763,240
Safety Plan

Contributions subsequent to measurement date 1,280,078 - Changes in assumptions - -
Difference between expected and actual experience 1,281,287 2,073 Net difference between projected and actual
earnings on pension plan investments 7,222 4,463,655
Adjustment due to differences in proportions
Difference between actual and proportionate share
1,336,895 33,405
of contributions 105,479 950,373
Subtotal Safety Plan 4,010,961 5,449,506
Total All Plans $ 8,980,782 $ 12,212,746
The $2,323,239 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Deferred Outflows/(Inflows) of Resources
Fiscal Year
Ending June 30, Miscellaneous Safety Total
2023 $ (284,108) $ (326,250) $ ( 610,358)
2024 (238,549) (436,791) (675,340)
2025 (612,429) (729,233) (1,341,662)
2026 (1,701,494) (1,126,349) (2,827,843)

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
57 Note 10 – Other Post-Employment Benefit (OPEB) Plan
A. Plan Description
In addition to providing pension benefits, the City provides certain health care benefits, through a single- employer OPEB Plan (the Plan), for retired employees in accordance with a City Council resolution. Substantially, all the City’s employees become eligible for those benefits if they reach normal retirement age while working for the City. Those and similar benefits for active employees are provided through PERS whose premiums are based on the benefits paid during the year.

Retiree health care coverage is segregated into two tiers as follows:

Tier 1 – Employees Hired Before August 1, 1994(1) receive one of the following:
 Miscellaneous and Safety Employees with 10 years of service with the City, with a regular service retirement, shall be eligible to receive 100% of the monthly benefit applicable towards the employee and one dependent, provided that employee plus one dependent coverage was in effect upon the date of retirement, up to Medicare age, and up to $300 per month thereafter for life.  Employees age fifty (50) or over received up to $300 per month for life.

Tier 2 – Employees Hired on or After August 1, 1994(1) receive one of the following:
 Miscellaneous Employees with at least 15 years of continuous service with the City, and have reached the age of fifty-five (55) shall be eligible to receive 100% of the monthly benefit applicable towards the employee and one dependent, provided that employee plus one dependent coverage was in effect upon the date of retirement, up to Medicare age, and up to $300 per month thereafter for life.  Safety Employees with 10 years of service with the City shall be eligible to receive 50% of the monthly benefit applicable towards the employee and one dependent, if employee plus one dependent coverage was in effect upon the date of retirement. The percentage increases by 5% per year to 100% at 20 years of service up to Medicare age, and up to $300 per month thereafter for life. (1) Applies to police employees hired after January 1, 1995.

B. Employees Covered
As of the June 30, 2022 actuarial valuation, the following current and former employees were covered by the benefit terms under the Plan:

Active 50
Inactive employees or beneficiaries currently receiving benefits 47 Inactive employees entitled to, but not yet receiving benefits 0 Total 97
C. Contributions
The contribution requirements of plan members and the City are established and may be amended by the City Council, and/or the employee associations The City is currently funding this OPEB obligation based on a pay-asyou-go basis. For the measurement date ended June 30, 2022, the City made no contributions to the plan, which would be recognized as a reduction of the total OPEB liability.

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
58 Note 10 – Other Post-Employment Benefit (OPEB) Plan (Continued) D. Actuarial Methods and Assumptions
The City’s total OPEB liability was measured as of June 30, 2022 and was determined by an actuarial valuation dated June 30, 2022, based on the following actuarial methods and assumptions:

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Discount Rate 3.54%
Inflation 2.50%
Salary Increases 2.75% per year
Investment Rate of Return 2.20%, net of expenses
Mortality Rate 2014 CalPERS Active Mortality for Miscellaneous Pre-Retirement Turnover According to the CalPERS Turnover rate table Healthcare Trend Rate 4.0% per year
The actuary applied section 3.7.7(c)4 Actuarial Standards of Practice No. 6, as revised, and determined ageadjusted rates are not necessary and therefore, the Implicit Rate Subsidy is not applicable in calculating the total projection of benefit payments.

E. Discount Rate
The discount rate used to measure the total OPEB liability was 3.54 percent. The discount rate is based on the Bond Buyer 20 Bond Index. The City does not participate in a trust fiduciary fund.

F. Changes in the Total OPEB Liability
The changes in the Total OPEB liability for the Plan are as follows:

Increase
(Decrease)

Total
OPEB
Liability/(Assets)
Balance at June 30, 2021 (valuation date 6/30/19) $ 6,694,357 Changes recognized over the measurement period:

Service Cost 345,491
Interest 144,055
Changes of assumptions (973,560)
Actual and expected experience difference 542,385
Benefit Payments (395,761)
Net Changes (337,390)
Balance at June 30, 2022 (measurement date 6/30/22) $ 6,356,967 G. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the Total OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022:
1% Decrease
Current
Discount Rate 1% Increase
(2.54%) (3.54%) (4.54%)
$7,038,345 $6,356,967 $5,781,635

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
59 Note 10 – Other Post-Employment Benefit (OPEB) Plan (Continued) H. Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the Total OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022:

Current Healthcare Cost
1% Decrease Trent Rates 1% Increase

3.00% 4.00% 5.00%
$5,879,754 $6,356,967 $6,925,807
I. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2022, the City recognized OPEB expense of $677,562. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows
of resources
Deferred Inflows
of resources
Change in assumptions $ 1,828,269 $ (865,386)
Difference between expected and
actual experience 482,120 (674,262)
$ 2,310,389 $ (1,539,648)
Amounts reported as deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:

Year
Ending
June 30 Amount
2022 $ 188,016
2023 188,016
2024 188,016
2025 188,016
2026 158,826
Thereafter (140,149)
Total $ 770,741
Note 11 – Joint Ventures
A. Orange County Fire Authority
In January 1995, the City of Los Alamitos entered into a joint powers agreement with 17 other cities within the County of Orange to create the Orange County Fire Authority (Authority). The purpose of the Authority is to provide for mutual fire protection, prevention and suppression services, and related and incidental services including, but not limited to emergency medical and transport services, as well as providing facilities and personnel for such services. The effective date of formation was March 1, 1995. Since the creation of the Authority, five additional cities have joined the Authority as members. The Authority’s governing board consists of one representative from each city and two from the County.

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
60 Note 11 – Joint Ventures (Continued)
A. Orange County Fire Authority (Continued)
The operations of the Authority are funded with structural fire fees collected by the County through the property tax roll for the unincorporated area and on behalf of all member cities except for eight cities. The County pays all structural fire fees it collects to the Authority. The eight cities for which the County does not collect structural fire fees are considered “cash contract cities” and, accordingly, make cash contributions based on the Authority’s annual budget.

Upon dissolution of the Authority, all surplus money and property of the Authority will be conveyed or distributed to each member in proportion to all funds provided to the Authority by that member or by the County on behalf of that member during its membership. The City has a financial interest in the Authority; however, it does not have an equity interest. Also, the City does not have an ongoing financial responsibility. Financial statements of the Authority may be obtained from its office at Post Office Box 57115, Irvine, California 92619.

B. West Communications Financing Authority
The West Communications Financing Authority was established December 23, 1996, pursuant to a Joint Exercise of Powers Agreement by the Cities of Los Alamitos, Seal Beach and Cypress for the purpose of operating a public safety communications center.

The Board of Directors is comprised of three elected officials, one designated by each participating City. Each Director has one vote over budgeting and financial matters. The Authority is a public entity separate from the Cities and is not included in the financial statements of those entities.

Each City pays a contractual fee to the Authority which consists of personal costs, capital expenditures and reserves to fund accrued employee leave and equipment purchases. The contractual fee remains stable from year to year. In 2021-2022, the City of Los Alamitos paid $703,953 to the Authority. Financial information for the Authority may be obtained from the City of Cypress.

C. Integrated Law and Justice Agency for Orange County
In May 2006, the City of Los Alamitos entered into a joint powers agreement with 22 other agencies within the County of Orange to create the Integrated Law and Justice Agency for Orange County. The purpose of the Agency is to facilitate the integration and sharing of criminal justice information for the benefit of the lands and inhabitants within their respective boundaries. The Agency’s governing board consists of six Municipal Police Chiefs, each elected for a three-year term by the Orange County Chiefs & Sheriff’s Association. The operations of the Agency are funded by grant awards and annual budget appropriations from each member agency.

Upon dissolution of the Agency, all surplus money and property of the Agency will be conveyed or distributed to each member in proportion to all funds provided to the Agency by that member. The City has a financial interest in the Authority; however, it does not have an equity interest. Also, the City has an ongoing financial responsibility to the Agency for approximately $3,000 per year.

Financial information for this arrangement may be obtained from the City of Los Alamitos.

Note 12 – Self-Insurance Program
Effective July 1, 2016, the City rescinded its participation in the California Joint Power Insurance Authority (CJPIA) and joined the California State Association of Counties Excess Insurance Authority (EIA). Beginning July 1, 2016, excess insurance coverage for General Liability and Workers’ Compensation was provided through the EIA with self-insured retentions of $100,000 and $125,000 per occurrence for each respective program. The EIA provides coverage up to $25 million per occurrence for General Liability and up to the statutory limit for Workers’ Compensation.

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
61 Note 12 – Self-Insurance Program (Continued)
The City established a Self-Insurance Fund (an internal service fund) to account for and finance its uninsured risk of loss when it became a member of EIA for liability, master crime, and workers’ compensation coverage. All funds of the City participate in the program and make payments to the Self-Insurance Fund based on estimates of the amounts needed to pay prior and current year claims and to establish a reserve for catastrophe losses. The estimated claims liability of $222,973 reported at June 30, 2022, is based on the requirements of Governmental Accounting Standards Board Statement 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. The above amount includes an estimate for incurred but not reported claims.

During the last three fiscal years none of the above programs of protection have had settlements or judgments that exceeded the insured coverage amount. There have been no significant reductions in insured liability coverage from the prior year.

Changes in the reported liability for the last two fiscal years are as follows:

Claims and changes in estimates during
Claims payments during the fiscal year
Claims and changes in estimates during
Note 13 – Commitments and Contingencies
The City is subject to litigation arising in the normal course of business.

The City has received various state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances under terms of the grants, it is believed that any required reimbursements will not be material.

The City’s operations may be affected by the recent and ongoing outbreak of COVID-19, which was declared a pandemic by the World Health Organization in March 2020. The ultimate disruption which may be caused by the outbreak is uncertain; however, possible effects may include, but are not limited to, a reduction in certain tax revenues and a decline in the value of investments, which could have an impact on the City’s financial position and operating results. There is significant uncertainty as to the severity and longevity of the outbreak and City management is in the process of evaluating the impact on the City and its financial statements.

Workers'
Compensation
General
Liability Total
Liability balance as of June 30, 2020 $ 59,868 $ 215,605 $ 275,473 the fiscal year ended June 30, 2021 198,587 (177,484) 21,103 ended June 30, 2021 (196,473) 50,560 (145,913)
Liability balance as of June 30, 2021 61,982 88,681 150,663 the fiscal year ended June 30, 2022 (27,848) (72,962) (100,810) Claims payments during the fiscal year
ended June 30, 2022 37,741 135,379 173,120
Liability balance as of June 30, 2022 $ 71,875 $ 151,098 $ 222,973

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
62 Note 14 – Classification of Fund Balances
At June 30, 2022, fund balances are classified in the governmental funds as follows:

General
Fund
Nonmajor
Governmental
Funds Total
Nonspendable
Prepaid expenditures $ 2,659 - 2,659
Due from employees 1,531 - 1,531
Total Nonspendable 4,190 - 4,190
Restricted
Transportation - 1,099,189 1,099,189
Cable television - 73,947 73,947
Public safety - 323,343 323,343
Air quality - 123,361 123,361
Parks - 733,371 733,371
Total Restricted - 2,353,211 2,353,211
Committed
Capital projects 2,620 119 2,739
Total Committed 2,620 119 2,739
Assigned
Other POST-employment benefits 500,000 - 500,000
PERS reserves 3,400,000 - 3,400,000
Capital projects 295,979 243,462 539,441
Total Assigned 4,195,979 243,462 4,439,441
Unassigned 12,570,232 (114,182) 12,456,050
Totals $16,773,021 2,482,610 19,255,631
Note 15 – Restatement of Beginning Net Position/Fund Balance

Governmental
Activities
Governmental
Funds
General Fund
Net position/fund balance at July 1, 2021,
as originally reported

$ 8,168,084

$13,615,603
Adjustment for understatement of
unearned revenue.

(1,015,926)

(1,015,926)
Net position/fund Balance at July 1, 2021,
as restated

$ 7,152,158

$12,599,677
Note 16 – Subsequent Events
Management has evaluated subsequent events through February 6, 2023 which is the date the financial statements were available to be issued, and has determined that there are no transactions that will have a significant impact on the City.

63 REQUIRED SUPPLEMENTARY

INFORMATION (UNAUDITED)

Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2021 $ 12,599,677 12,599,677 $ 12,599,677 $ - $ Revenues (inflows):

Taxes 15,684,074 15,684,074 18,828,358 3,144,284
Licenses and permits 1,142,382 1,142,283 1,034,975 (107,308) Intergovernmental 20,200 20,200 263,721 243,521
Charges for services 631,924 631,924 904,437 272,513
Investment earnings (loss) 229,280 229,280 (684,765) (914,045) Fines and forfeitures 738,309 738,309 382,498 (355,811) Miscellaneous 68,000 68,000 40,826 (27,174)
Transfers in 375,000 375,000 375,000 -
Amount available for appropriations 18,889,169 18,889,070 21,145,050 2,255,980 Charges to appropriations (outflows):

General government:

City Council 66,895 66,895 70,021 (3,126)
City Manager / City Clerk 1,051,340 1,051,340 917,014 134,326 Administrative Services 725,906 725,906 662,261 63,645
City Attorney 176,000 176,000 210,871 (34,871)
Non-departmental 584,721 584,721 1,111,970 (527,249)
Public safety 7,394,611 7,394,611 6,617,305 777,306
Community development 1,329,924 1,329,924 1,292,094 37,830 Recreation and community services 1,775,322 1,775,322 1,911,542 (136,220) Public works 2,259,400 2,259,400 2,801,366 (541,966)
Capital outlay 1,264,615 1,264,615 73,762 1,190,853
Transfers out 1,303,500 1,303,500 1,303,500 -
Total charges to appropriations 17,932,234 17,932,234 16,971,706 960,528 Fund balance, June 30, 2022 13,556,612 $ 13,556,513 $ 16,773,021 $ 1,295,452 $

CITY OF LOS ALAMITOS
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2022
Budgeted Amounts
64

65 City of Los Alamitos
Required Supplementary Information (Continued) Notes to the Budgetary Comparison Schedule For the Year Ended June 30, 2022
Note 1 – Budgets and Budgetary Accounting Data
The City follows these procedures in establishing the budgetary data reflected in the financial statements:

1. The annual budget is adopted by the City Council and provides for the general operation of the City. The operating budget includes proposed expenditures and the means of financing them.

2. The City Council approves total budgeted appropriations and any amendments to appropriations throughout the year. This “appropriated budget” covers substantially all City expenditures. Actual expenditures may not exceed budgeted appropriations at the department level. The City’s fund structure includes the following departments: City Council, City Manager/City Clerk, Administrative Services, City Attorney, Public Safety, Community Development, Recreation and Community Services, and Public Works. The City Manager is authorized to transfer budgeted amounts between the accounts of any department. Budgets are controlled at the department level. Budget figures used in the financial statements are the final adjusted amounts, including any amendments to the budget during the fiscal year.

3. Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the Governmental Fund types during the fiscal year. Unexpended appropriations of the governmental funds automatically lapse at the end of the fiscal year.

4. Budgets for the General, Special Revenue, Debt Service, Traffic Improvement Capital Projects Fund, Building Improvement Capital Project Fund, and Residential Street/Alley Capital Project Fund are adopted on a basis substantially consistent with accounting principles generally accepted in the United States of America (USGAAP). Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant reconciling items. No budgetary comparisons are presented for the proprietary funds, as the City is not legally required to adopt a budget for this type of fund.

5. Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in the following year. For the fiscal year ended June 30, 2021, based on calculations by City management, proceeds of taxes did not exceed appropriations.

Note 2 – Excess of Expenditures over Appropriations
The following departments had expenditures that exceeded the adopted budget:

Budget Actual Variance
City Council $ 66,895 $ 70,021 $ (3,126)
City attorney 176,000 210,871 (34,871)
Non-departmental 584,721 1,111,970 (527,249)
Recreation and community services 1,775,322 1,911,542 (136,220) Public works 2,259,400 2,801,366 (541,966)

June 30, 2021 1 June 30, 2020 1 June 30, 2019 1 June 30, 2018 1 June 30, 2017 1 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2021-22 2020-21 2019-20 2018-19 2017-18
City's Proportion of the Net
Pension Liability/(Asset) 0.1740% 0.1791% 0.1662% 0.0953% 0.0920% City's Proportionate
share of the Net Pension
Liability/(Asset) $ 7,053,182 $ 10,333,777 $ 9,688,016 $ 8,999,874 $ 9,127,183 City's Covered payroll $ 1,802,686 $ 1,853,222 $ 1,883,036 $ 1,882,670 $ 2,067,777 City's Proportionate Share
of the Net Pension (Asset)
as a Percentage of its
covered payroll 391.3% 557.6% 514.5% 478.0% 441.4%
Plan's Proportionate Share
of the Fiduciary Net
Position as a Percentage of
the Total Pension Liability 79.4% 69.3% 70.4% 75.3% 73.3% June 30, 2016 1 June 30, 2015 1 June 30, 2014 1
Fiscal Year Fiscal Year Fiscal Year
2016-17 2015-16 2014-15
City's Proportion of the Net
Pension Liability/(Asset) 0.0922% 0.0901% 0.0726%
City's Proportionate
share of the Net Pension
Liability/(Asset) $ 7,975,904 $ 6,181,642 $ 4,518,604
City's Covered payroll $ 2,139,951 $ 2,067,219 $ 2,042,142 City's Proportionate Share
of the Net Pension (Asset)
as a Percentage of its
covered payroll 372.7% 299.0% 221.3%
Plan's Proportionate Share
of the Fiduciary Net
Position as a Percentage of
the Total Pension Liability 74.1% 78.4% 79.8%
1 Historical information is presented only for measurement periods for which GASB 68 is applicable. The Measurement date 2014 was the first year of implementation, therefore only eight years are presented.

CITY OF LOS ALAMITOS
Schedule of City's Proportionate Share of the Net Pension Liability and Related Ratios For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan Required Supplementary Information (Continued)
66

June 30, 2021 1 June 30, 2020 1 June 30, 2019 1 June 30, 2018 1 June 30, 2017 1 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2021-22 2020-21 2019-20 2018-19 2017-18
City's Proportion of the Net
Pension Liability/(Asset) 0.1643% 0.1695% 0.1710% 0.1047% 0.0980% City's Proportionate
share of the Net Pension
Liability/(Asset) $ 7,487,386 $ 11,805,982 $ 10,731,155 $ 9,853,739 $ 9,719,511 City's Covered payroll $ 2,184,348 $ 1,935,386 $ 2,287,551 $ 2,498,046 $ 2,655,464 City's Proportionate Share
of the Net Pension (Asset)
as a Percentage of its
covered payroll 342.8% 610.0% 469.1% 394.5% 366.0%
Plan's Proportionate Share
of the Fiduciary Net
Position as a Percentage of
the Total Pension Liability 82.4% 71.8% 73.1% 75.3% 73.3% June 30, 2016 1 June 30, 2015 1 June 30, 2014 1
Fiscal Year Fiscal Year Fiscal Year
2016-17 2015-16 2014-15
City's Proportion of the Net
Pension Liability/(Asset) 0.0965% 0.0922% 0.0891%
City's Proportionate
share of the Net Pension
Liability/(Asset) $ 8,351,809 $ 6,328,706 $ 5,542,493
City's Covered payroll $ 2,534,307 $ 2,402,592 $ 2,385,017 City's Proportionate Share
of the Net Pension (Asset)
as a Percentage of its
covered payroll 329.6% 263.4% 232.4%
Plan's Proportionate Share
of the Fiduciary Net
Position as a Percentage of
the Total Pension Liability 74.1% 78.4% 79.8%
1 Historical information is presented only for measurement periods for which GASB 68 is applicable. The Measurement date 2014 was the first year of implementation, therefore only eight years are presented.

CITY OF LOS ALAMITOS
Required Supplementary Information (Continued)
Schedule of City's Proportionate Share of the Net Pension Liability and Related Ratios For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Safety Plan 67

2021-22 2020-21 2019-20 2018-19 2017-18
Actuarially determined contribution 2 $ 902,971 1,043,161 $ 878,063 $ 706,647 $ 607,715 $ Contributions in relation to the actuarially determined contributions 2 $ (902,971) (1,043,161) $ (878,063) $ (706,647) $ (607,715) $ Contribution deficiency (excess) -$ - $ - $ - $ - $
Covered payroll 2 $ 1,802,686 2,174,409 $ 1,853,222 $ 1,883,036 $ 1,882,670 $ Contributions as a percentage of covered employee payroll 48.0% 50.1% 47.4% 37.5% 32.3% 2016-17 2015-16 2014-15
Actuarially determined contribution 2 $ 478,168 575,534 $ 228,140 $ Contributions in relation to the actuarially determined contributions 2 $ (478,168) (575,534) $ (228,140) $
Contribution deficiency (excess) -$ - $ - $
Covered payroll 2 $ 2,139,951 2,067,777 $ 2,067,219 $
Contributions as a percentage of covered employee payroll 27.8% 22.3% 11.0% 2021-22 2020-21 2019-20 2018-19 2017-18
Actuarially determined contribution 2 $ 1,163,513 1,280,078 $ 1,075,926 $ 927,772 $ 847,090 $ Contributions in relation to the actuarially determined contributions 2 $ (1,163,513) (1,280,078) $ (1,075,926) $ (927,772) $ (847,090) $ Contribution deficiency (excess) -$ - $ - $ - $ - $
Covered payroll 2 $ 2,184,348 2,103,050 $ 1,935,386 $ 2,287,551 $ 2,498,046 $ Contributions as a percentage of covered employee payroll 60.9% 53.3% 55.6% 40.6% 33.9% 2016-17 2015-16 2014-15
Actuarially determined contribution 2 $ 748,750 797,034 $ 605,370 $ Contributions in relation to the actuarially determined contributions 2 $ (748,750) (797,034) $ (605,370) $
Contribution deficiency (excess) -$ - $ - $
Covered payroll 2 $ 2,534,307 2,655,464 $ 2,402,592 $
Contributions as a percentage of covered employee payroll 30.0% 29.5% 25.2% 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. The fiscal year 2014 was the first year of implementation, therefore only eight years are presented. 2 Covered Payroll represented above is based on pensionable earnings provided by the employer.

Notes to Schedule
None.

California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan California Public Employees' Retirement System ("CalPERS") Safety Plan

CITY OF LOS ALAMITOS
Required Supplementary Information (Continued)
Schedule of City's Contributions - Pensions
For the Year Ended June 30, 2022
Last Ten Fiscal Years
68

For the Measurement Period: 2021-22 2020-21 2019-20 2018-19 2017-18 Total OPEB Liability
Service cost 345,491$ 333,552$ 192,736$ 175,452$ 170,756$ Interest on the total OPEB Liability 144,055 143,962 164,133 157,013 166,352 Actual and expected
experience difference 542,385 - (1,087,077) - -
Changes in assumptions (973,560) 31,397 2,824,825 100,644 - Changes in benefit terms - - - - -
Benefit payments (383,006) (395,761) (238,645) (237,974) (228,821) Net change in total OPEB liability (337,390) 125,905 1,855,972 195,135 108,287 Total OPEB liability - beginning 6,694,357 6,568,452 4,712,480 4,517,345 4,409,058 Total OPEB liability - ending (a) 6,356,967$ 6,694,357 $ 6,568,452 $ 4,712,480 $ 4,517,345 $ Fiduciary net position as a % of
total OPEB liability 1 0.00% 0.00% 0.00% 0.00% 0.00%
Covered-employee payroll 4,277,459 4,700,996 4,502,169 4,380,716 4,380,716 Net OPEB liability as a
percentage of payroll 148.6% 142.4% 145.9% 107.6% 103.1% * 2018 is the first year of implementation, therefore only five years are available for the required 10-year schedule.
1 The City does not hold any assets in a qualifying irrevocable trust or equivalent avengement. As such, there is no fiduciary net position of the plan, and the total amount of the OPEB liability is reported.

CITY OF LOS ALAMITOS
Schedule of Changes in the Net OPEB Liability and Related Ratios For the Year Ended June 30, 2022
Required Supplementary Information (Continued)
Last Ten Fiscal Years
69

SUPPLEMENTARY INFORMATION
70

Community
Development Los Office
Block Alamitos of Traffic
Grant Measure M Television Safety
Cash and investments $ 574,752$ 89,930 $ 71,940 82,603$ Accounts receivable - - 4,407 1,269
Due from other governments - 49,588 - -
Restricted cash and investments with fiscal agent - - - - Total assets $ 624,340 89,930 $ 76,347 $ 83,872 $
Liabilities:

Accounts payable 204,112 $ 25,750$ $ 2,400 -$
Unearned revenues - - - -
Deposits payable - - - -
Total liabilities 25,750 204,112 2,400 -
Deferred inflows of resources:

Unavailable revenue - - - -
Total deferred inflows of resources - - - -
Fund Balances:

Restricted - 598,590 73,947 83,872
Committed - - - -
Assigned - - - -
Unassigned - (114,182) - -
Total fund balances 598,590 (114,182) 73,947 83,872
Total liabilities, deferred inflows
and fund balances $ 624,340 89,930 $ 76,347 $ 83,872 $

CITY OF LOS ALAMITOS
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
ASSETS

RESOURCES, AND FUND BALANCES

LIABILITIES, DEFERRED INFLOWS OF
Special Revenue Funds
71

Public State Law
Asset Safety Enforcement Air
Seizure Augmentation Service Quality
Cash and investments 34,179$ $ 15,399 188,848$ $ 123,361 Accounts receivable - - - -
Due from other governments - 13,601 - -
Restricted cash and investments with fiscal agent - - - - Total assets 34,179$ 29,000 $ 188,848 $ 123,361 $
Liabilities:

Accounts payable -$ -$ -$ -$
Unearned revenues - - - -
Deposits payable 12,556 - - -
Total liabilities 12,556 - - -
Deferred inflows of resources:

Unavailable revenue - - - -
Total deferred inflows of resources - - - -
Fund Balances:

Restricted 21,623 188,848 29,000 123,361
Committed - - - -
Assigned - - - -
Unassigned - - - -
Total fund balances 21,623 29,000 188,848 123,361
Total liabilities, deferred inflows
and fund balances 34,179$ 29,000 $ 188,848 $ 123,361 $

CITY OF LOS ALAMITOS
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
Special Revenue Funds
ASSETS

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
72

Special
Revenue
Funds
State Residential
Gas Park Building Streets/
Tax Development Improvement Alleys
Cash and investments $ 235,797 $ 733,371 $ 233,598 $ 6,804 Accounts receivable - - - -
Due from other governments 4,617 - - -
Restricted cash and investments with fiscal agent - - - - Total assets $ 733,371 240,414 $ 233,598 $ 6,804 $
Liabilities:

Accounts payable 14,798 $ -$ $ 195 -$
Unearned revenues - - - -
Deposits payable - - - -
Total liabilities - 14,798 195 -
Deferred inflows of resources:

Unavailable revenue - - - -
Total deferred inflows of resources - - - -
Fund Balances:

Restricted 225,616 733,371 - -
Committed - - - -
Assigned - - 233,403 6,804
Unassigned - - - -
Total fund balances 733,371 225,616 233,403 6,804
Total liabilities, deferred inflows
and fund balances $ 733,371 240,414 $ 233,598 $ 6,804 $ Capital Projects Funds

CITY OF LOS ALAMITOS
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
ASSETS

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
73

Debt
Service
Fund
Total
Nonmajor
Traffic Capital Debt Governmental
Improvement Outlay Service Funds
Cash and investments $ 411,762 119$ $ 2,805,469 3,006 $ Accounts receivable - - - 5,676
Due from other governments - - - 67,806
Restricted cash and investments with fiscal agent - - 249 249 Total assets $ 119 411,762 $ 3,255 $ 2,879,200 $
Liabilities:

Accounts payable -$ -$ -$ 247,255 $
Unearned revenues 136,779 - - 136,779
Deposits payable - - - 12,556
Total liabilities - 136,779 - 396,590
Deferred inflows of resources:

Unavailable revenue - - - -
Total deferred inflows of resources - - - -
Fund Balances:

Restricted 274,983 - - 2,353,211
Committed - 119 - 119
Assigned - - 3,255 243,462
Unassigned - - - (114,182)
Total fund balances 119 274,983 3,255 2,482,610
Total liabilities, deferred inflows
and fund balances $ 119 411,762 $ 3,255 $ 2,879,200 $

CITY OF LOS ALAMITOS
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
Capital Projects Funds
ASSETS

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
74

Community
Development Los Office
Block Alamitos of Traffic
Grant Measure M Television Safety
REVENUES:

Taxes -$ -$ 18,438 $ -$
Intergovernmental 214,046 - - -
Charges for services - - - -
Investment earnings 342 4,052 541 602
Fines and forfeitures - - - 18,214
Program revenues - 284,090 - -
Miscellaneous - - - -
Total revenues 288,142 214,388 18,979 18,816
EXPENDITURES:

Current:

General government - - 20,580 -
Public works - - - -
Capital outlay 318,120 197,730 - -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 197,730 318,120 20,580 -

REVENUES OVER
(UNDER) EXPENDITURES 90,412 (103,732) (1,601) 18,816
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out - - - (5,000)
Total other financing sources (uses) - - - (5,000)
CHANGE IN FUND BALANCES 90,412 (103,732) (1,601) 13,816 Fund balances (deficits), beginning of year (10,450) 508,178 75,548 70,056 Fund balances (deficits), end of year (114,182) $ 598,590 $ 73,947 $ 83,872 $ Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Combining Statement of Revenues, Expenditures and Changes in Fund Balances

CITY OF LOS ALAMITOS
Special Revenue Funds
75

Public State Law
Asset Safety Enforcement Air
Seizure Augmentation Service Quality
REVENUES:

Taxes -$ 125,711 $ -$ -$
Intergovernmental - - 184,778 10,817
Charges for services - - - -
Investment earnings 415 1,801 387 864
Fines and forfeitures - - - -
Program revenues - - - -
Miscellaneous - 448 - -
Total revenues 126,098 863 186,579 11,681
EXPENDITURES:

Current:

General government - - - -
Public works - - - -
Capital outlay - - - -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures - - - -

REVENUES OVER
(UNDER) EXPENDITURES 126,098 863 186,579 11,681
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out (110,000) - (140,000) -
Total other financing sources (uses) (110,000) - (140,000) - CHANGE IN FUND BALANCES 863 16,098 46,579 11,681
Fund balances (deficits), beginning of year 12,902 20,760 142,269 111,680 Fund balances (deficits), end of year 21,623$ 29,000 $ 188,848 $ 123,361 $

CITY OF LOS ALAMITOS
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Special Revenue Funds
76

Special
Revenue
Funds
State Residential
Gas Park Building Streets/
Tax Development Improvement Alleys
REVENUES:

Taxes 514,172 $ -$ -$ $ -
Intergovernmental - 26,134 - -
Charges for services - - - -
Investment earnings 1,644 5,268 449 50
Fines and forfeitures - - - -
Program revenues - - - -
Miscellaneous - - - -
Total revenues 31,402 515,816 449 50
EXPENDITURES:

Current:

General government - - - -
Public works 148,648 - - -
Capital outlay 257,731 - 109,188 -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures - 406,379 109,188 -

REVENUES OVER
(UNDER) EXPENDITURES 31,402 109,437 (108,739) 50
OTHER FINANCING SOURCES (USES):

Transfers in - - 240,000 -
Transfers out (120,000) - - -
Total other financing sources (uses) - (120,000) 240,000 - CHANGE IN FUND BALANCES 31,402 (10,563) 131,261 50
Fund balances (deficits), beginning of year 236,179 701,969 102,142 6,754 Fund balances (deficits), end of year 225,616 $ 733,371 $ 233,403 $ 6,804 $ Capital Projects Funds

CITY OF LOS ALAMITOS
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2022
77

Debt
Service
Fund
Total
Nonmajor
Traffic Capital Debt Governmental
Improvement Outlay Service Funds
REVENUES:

Taxes -$ -$ -$ 658,321 $
Intergovernmental - - - 435,775
Charges for services 156 - - 156
Investment earnings 3,050 1 - 19,466
Fines and forfeitures - - - 18,214
Program revenues - - - 284,090
Miscellaneous - - - 448
Total revenues 1 3,206 - 1,416,470
EXPENDITURES:

Current:

General government - - - 20,580
Public works 1,598 - - 150,246
Capital outlay - - - 882,769
Debt service:

Principal - - 80,000 80,000
Interest and fiscal charges - - 130,494 130,494
Total expenditures - 1,598 210,494 1,264,089

REVENUES OVER
(UNDER) EXPENDITURES 1 1,608 (210,494) 152,381
OTHER FINANCING SOURCES (USES):

Transfers in - - 213,500 453,500
Transfers out - - - (375,000)
Total other financing sources (uses) - - 213,500 78,500 CHANGE IN FUND BALANCES 1 3,006 1,608 230,881
Fund balances (deficits), beginning of year 118 273,375 249 2,251,729 Fund balances (deficits), end of year 274,983 $ 119 $ 3,255 $ 2,482,610 $ Capital Projects Funds

CITY OF LOS ALAMITOS
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2022
78

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance (deficit), July 1, 2021 $ (10,450) (10,450) $ - $ Revenues (inflows):

Intergovernmental 291,000 214,046 (76,954)
Investment earnings - 342 342
Amount available for appropriations 214,388 291,000 (76,612) Charges to appropriations (outflows):

Capital outlay 291,000 318,120 (27,120)
Total charges to appropriations 291,000 318,120 (27,120) Fund balance (deficit), June 30, 2022 (10,450) $ (114,182) $ (49,492) $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Community Development Block Grant Special Revenue Fund
For the Year Ended June 30, 2022
79

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 508,178 508,178 $ - $
Revenues (inflows):

Investment earnings 2,500 4,052 1,552
Program revenues 219,988 284,090 64,102
Amount available for appropriations 222,488 288,142 65,654 Charges to appropriations (outflows):

Capital outlay 466,056 197,730 268,326
Total charges to appropriations 466,056 197,730 268,326 Fund balance, June 30, 2022 264,610 $ 598,590 $ (202,672) $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Measure M Special Revenue Fund
For the Year Ended June 30, 2022
80

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 75,548 75,548 $ - $
Revenues (inflows):

Taxes 24,900 18,438 (6,462)
Investment earnings 1,300 541 (759)
Amount available for appropriations 18,979 26,200 (7,221) Charges to appropriations (outflows):

General government 45,990 20,580 25,410
Total charges to appropriations 20,580 45,990 25,410
Fund balance, June 30, 2022 55,758 $ 73,947 $ (32,631) $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Los Alamitos Television Special Revenue Fund
For the Year Ended June 30, 2022
81

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 70,056 70,056 $ - $
Revenues (inflows):

Investment earnings 1,000 602 (398)
Fines and forfeitures 15,000 18,214 3,214
Amount available for appropriations 18,816 16,000 2,816 Charges to appropriations (outflows):

Transfers out 5,000 5,000 -
Total charges to appropriations 5,000 5,000 -
Fund balance, June 30, 2022 81,056 $ 83,872 $ 2,816 $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Office of Traffic Safety Special Revenue Fund
For the Year Ended June 30, 2022
82

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 20,760 20,760 $ - $
Revenues (inflows):

Investment earnings 500 415 (85)
Miscellaneous - 448 448
Amount available for appropriations 863 500 363
Fund balance, June 30, 2022 21,260 $ 21,623 $ 363 $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Asset Seizure Special Revenue Fund
For the Year Ended June 30, 2022
83

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 12,902 12,902 $ - $
Revenues (inflows):

Taxes 110,783 125,711 14,928
Investment earnings 300 387 87
Amount available for appropriations 126,098 111,083 15,015 Charges to appropriations (outflows):

Transfers out 110,000 110,000 -
Total charges to appropriations 110,000 110,000 -
Fund balance, June 30, 2022 13,985 $ 29,000 $ 15,015 $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Public Safety Augmentation Special Revenue Fund
For the Year Ended June 30, 2022
84

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 142,269 142,269 $ - $
Revenues (inflows):

Intergovernmental 160,000 184,778 24,778
Investment earnings 2,500 1,801 (699)
Amount available for appropriations 186,579 162,500 24,079 Charges to appropriations (outflows):

Transfers out 140,000 140,000 -
Total charges to appropriations 140,000 140,000 -
Fund balance, June 30, 2022 164,769 $ 188,848 $ 24,079 $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual State Law Enforcement Service Special Revenue Fund
For the Year Ended June 30, 2022
85

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 111,680 111,680 $ - $
Revenues (inflows):

Intergovernmental 15,000 10,817 (4,183)
Investment earnings 15,000 864 (14,136)
Amount available for appropriations 11,681 30,000 (18,319) Charges to appropriations (outflows):

Public works 61,865 - 61,865
Total charges to appropriations - 61,865 61,865
Fund balance, June 30, 2022 79,815 $ 123,361 $ (80,184) $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Air Quality Special Revenue Fund
For the Year Ended June 30, 2022
86

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 236,179 236,179 $ - $
Revenues (inflows):

Taxes 507,531 514,172 6,641
Investment earnings 6,000 1,644 (4,356)
Amount available for appropriations 515,816 513,531 2,285 Charges to appropriations (outflows):

Public works - 148,648 (148,648)
Capital outlay 641,067 257,731 383,336
Transfers out 12,000 120,000 (108,000)
Total charges to appropriations 653,067 526,379 126,688 Fund balance, June 30, 2022 96,643 $ 225,616 $ (124,403) $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual State Gas Tax Special Revenue Fund
For the Year Ended June 30, 2022
87

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 701,969 701,969 $ - $
Revenues (inflows):

Intergovernmental - 26,134 26,134
Investment earnings 8,600 5,268 (3,332)
Amount available for appropriations 31,402 8,600 22,802 Fund balance, June 30, 2022 710,569 $ 733,371 $ 22,802 $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Park Development Capital Project Fund
For the Year Ended June 30, 2022
88

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 102,142 102,142 $ - $
Revenues (inflows):

Investment earnings 2,900 449 (2,451)
Transfers in 240,000 240,000 -
Amount available for appropriations 240,449 242,900 (2,451) Charges to appropriations (outflows):

Capital outlay 227,000 109,188 117,812
Total charges to appropriations 109,188 227,000 117,812 Fund balance, June 30, 2022 118,042 $ 233,403 $ (120,263) $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Building Improvement Capital Project Fund
For the Year Ended June 30, 2022
89

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 6,754 6,754 $ - $
Revenues (inflows):

Investment earnings 100 50 (50)
Amount available for appropriations 50 100 (50)
Fund balance, June 30, 2022 6,854 $ 6,804 $ (50) $

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Residential Streets/Alleys Capital Project Fund
For the Year Ended June 30, 2022
90

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 273,375 273,375 $ - $
Revenues (inflows):

Charges for services 15,000 156 (14,844)
Investment earnings 2,500 3,050 550
Amount available for appropriations 17,500 3,206 (14,294) Charges to appropriations (outflows):

Public works - 1,598 (1,598)
Total charges to appropriations - 1,598 (1,598)
Fund balance, June 30, 2022 290,875 $ 274,983 $ (12,696) $

CITY OF LOS ALAMITOS
Required Supplementary Information
Budgetary Comparison Schedule - Traffic Improvement Capital Project Fund For the Year Ended June 30, 2022
91

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2021 $ 249 $ - 249 $
Revenues (inflows):

Investment earnings 200 - (200)
Transfers in 213,500 - 213,500
Amount available for appropriations 213,700 213,500 (200) Charges to appropriations (outflows):

Debt service:

Principal 80,000 80,000 -
Interest and fiscal charges 133,594 130,494 3,100
Total charges to appropriations 213,594 210,494 3,100
Fund balance, June 30, 2022 355 $ $ 3,255 $ (3,300)

CITY OF LOS ALAMITOS
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Debt Service Fund
For the Year Ended June 30, 2022
92

Police
Technology Capital
Garage Replacement Expenditures
ASSETS
Current assets:

Cash and investments 585,731 $ 397,083 $ 164,927 $
Account receivables - - -
Total current assets 397,083 585,731 164,927
Noncurrent assets:

Capital assets - net of accumulated depreciation 8,382 370,666 - Total noncurrent assets 8,382 370,666 -
Total assets 405,465 956,397 164,927

LIABILITIES
Current liabilities:

Accounts payable 19,512 70,911 3,294
Accrued interest 1,279 - -
Accrued claims and judgements - - -
Capital leases 12,967 - -
Total current liabilities 70,911 33,758 3,294
Long-term liabilities:

Accrued claims and judgements - - -
Capital leases 49,271 - -
Total long-term liabilities - 49,271 -
Total liabilities 70,911 83,029 3,294

NET POSITION
Net investment in capital assets 357,699 8,382 -
Unrestricted 515,669 326,172 161,633
Total net position $ 334,554 873,368 $ 161,633 $

CITY OF LOS ALAMITOS
Combining Statement of Net Position
All Internal Service Funds
June 30, 2022
93

Facilities,
Streets, Parks, Selfand Pool Capital Insurance
Expenditures Trust Total
ASSETS
Current assets:

Cash and investments 293,558 $ 667,948 $ 2,109,247 $
Account receivables - 12,102 12,102
Total current assets 680,050 293,558 2,121,349
Noncurrent assets:

Capital assets - net of accumulated depreciation - 339,997 719,045 Total noncurrent assets - 339,997 719,045
Total assets 680,050 633,555 2,840,394

LIABILITIES
Current liabilities:

Accounts payable 634 26,066 120,417
Accrued interest - - 1,279
Accrued claims and judgements - 71,875 71,875
Capital leases - - 12,967
Total current liabilities 97,941 634 206,538
Long-term liabilities:

Accrued claims and judgements - 151,098 151,098
Capital leases - - 49,271
Total long-term liabilities - 151,098 200,369
Total liabilities 249,039 634 406,907

NET POSITION
Net investment in capital assets 339,997 - 706,078
Unrestricted 292,924 431,011 1,727,409
Total net position $ 431,011 632,921 $ 2,433,487 $

CITY OF LOS ALAMITOS
Combining Statement of Net Position
All Internal Service Funds
June 30, 2022
94

Police
Technology Capital
Garage Replacement Expenditures
OPERATING REVENUES:

Charges for services:

Garage 316,840 $ - $ - $
Police capital - - 40,000
Technology replacement - 190,000 -
Miscellaneous - - -
Total operating revenues 190,000 316,840 40,000
OPERATING EXPENSES:

Supplies and materials 101,553 181,698 56,969
Outside services 39,645 130,328 -
Claims expense - - -
Depreciation 89,726 8,380 -
Total operating expenses 320,406 230,924 56,969
OPERATING INCOME (130,406) 85,916 (16,969)
NON-OPERATING REVENUES (EXPENSES):

Interest expense (8,343) - -
Total non-operating revenues (expenses) - (8,343) -
INCOME BEFORE TRANSFERS (130,406) 77,573 (16,969)
Transfers in - 190,000 -
Total transfers 190,000 - -
Change in net position 59,594 77,573 (16,969)
Net position, beginning of year 795,795 274,960 178,602 Net position, end of year 873,368 $ 334,554 $ 161,633 $

CITY OF LOS ALAMITOS
Combining Statement of Revenues, Expenses, and Changes in Net Position All Internal Service Funds
For the year ended June 30, 2022
95

Facilities,
Streets, Parks, Selfand Pool Capital Insurance
Expenditures Trust Total
OPERATING REVENUES:

Charges for services:

Garage - $ - $ 316,840 $
Police capital - - 40,000
Technology replacement - - 190,000
Miscellaneous - 41,940 41,940
Total operating revenues 41,940 - 588,780
OPERATING EXPENSES:

Supplies and materials - - 340,220
Outside services 544 - 170,517
Claims expense - 563,308 563,308
Depreciation 7,340 - 105,446
Total operating expenses 563,308 7,884 1,179,491
OPERATING INCOME (521,368) (7,884) (590,711)
NON-OPERATING REVENUES (EXPENSES):

Interest expense - - (8,343)
Total non-operating revenues (expenses) - - (8,343)
INCOME BEFORE TRANSFERS (521,368) (7,884) (599,054)
Transfers in - 660,000 850,000
Total transfers 660,000 - 850,000
Change in net position 138,632 (7,884) 250,946
Net position, beginning of year 640,805 292,379 2,182,541 Net position, end of year 632,921 $ 431,011 $ 2,433,487 $

CITY OF LOS ALAMITOS
Combining Statement of Revenues, Expenses, and Changes in Net Position All Internal Service Funds
For the year ended June 30, 2022
96

Police
Technology Capital
Garage Replacement Expenditures
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from interfund charges for garage services 316,840 $ -$ -$ Receipts from interfund charges for police capital services - - 40,000 Receipts from interfund charges for technology replacement services - 190,000 - Payments to suppliers and service providers (134,854) (244,969) (53,675) Cash received from (payments to) others - - -
Net cash provided (used by) operating activities (54,969) 181,986 (13,675) CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES:

Transfers in - 190,000 -
Net cash provided (used by) non-capital financing activities 190,000 - - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets (305,559) - - Principal paid on capital debt (5,570) - -
Interest paid on capital debt - (8,572) -
Net cash provided (used by) capital and related financing activities - (319,701) - Net increase (decrease) in cash and cash equivalents (137,715) 135,031 (13,675) Cash and equivalents, beginning of year 723,446 262,052 178,602 Cash and equivalents, end of year $ 397,083 585,731 $ 164,927 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH (USED BY) OPERATING ACTIVITIES:

Operating income (loss) 85,916 $ (130,406) $ (16,969) $ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 89,726 8,380 -
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable - - -
Increase (decrease) in accounts payable 6,344 67,057 3,294 Increase (decrease) in claims and judgements - - -
Total adjustments 96,070 75,437 3,294
Net cash provided (used) by operating activities $ (54,969) 181,986 $ (13,675) $

CITY OF LOS ALAMITOS
Combining Statement of Cash Flows
All Internal Service Funds
For the year ended June 30, 2022
97

Facilities,
Streets, Parks, Selfand Pool Capital Insurance
Expenditures Trust Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from interfund charges for garage services - $ -$ 316,840 $ Receipts from interfund charges for police capital services - - 40,000 Receipts from interfund charges for technology replacement services - - 190,000 Payments to suppliers and service providers (502,007) - (935,505) Cash received from (payments to) others 41,940 - 41,940 Net cash provided (used by) operating activities (460,067) - (346,725) CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES:

Transfers in - 660,000 850,000
Net cash provided (used by) non-capital financing activities 660,000 - 850,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets - - (305,559) Principal paid on capital debt - - (5,570)
Interest paid on capital debt - - (8,572)
Net cash provided (used by) capital and related financing activities - - (319,701) Net increase (decrease) in cash and cash equivalents - 199,933 183,574 Cash and equivalents, beginning of year 468,015 293,558 1,925,673 Cash and equivalents, end of year $ 667,948 293,558 $ 2,109,247 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH (USED BY) OPERATING ACTIVITIES:

Operating income (loss) (7,884) $ (521,368) $ (590,711) $ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 7,340 - 105,446
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable - (4,146) (4,146) Increase (decrease) in accounts payable 544 (6,863) 70,376 Increase (decrease) in claims and judgements - 72,310 72,310 Total adjustments 7,884 61,301 243,986
Net cash provided (used) by operating activities $ (460,067) - $ (346,725) $

CITY OF LOS ALAMITOS
Combining Statement of Cash Flows
All Internal Service Funds
For the year ended June 30, 2022
98

STATISTICAL SECTION
99

100

STATISTICAL SECTION
This part of the City of Los Alamitos’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government’s overall financial health.

CONTENTS:

Page(s)
Financial Trends: these schedules contain trend information to help the reader understands how the City’s financial performance and well-being has changed over time .................................................................................................. 101 Revenue Capacity: these schedules contain trend information to help the reader assesses the factors affecting the City’s most significant revenue source, property tax .................................................................................................................................... 108 Debt Capacity: these schedules present information to help the reader assesses the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future ................................. 115 Demographic and Economic Information: these schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place .............................................................................. 118 Operating Information: these schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs ................................ 120

2013 2014 2015* 2016 2017
Governmental activities
Net investment in capital assets $ 13,138 $ 13,585 $ 13,519 $ 12,658 14,156 Restricted 841 878 713 1,334 764
Unrestricted 8,034 8,393 (4,126) (3,828) (5,506)
Total governmental activities net position $ 22,013 $ 22,856 $ 10,106 $ 10,164 9,414 2018 2019 2020 2021 2022
Governmental activities
Net investment in capital assets $ 15,281 15,315 15,776 15,623 16,607 Restricted 761 1,350 1,453 2,153 1853
Unrestricted (10,679) (10,746) (11,287) (9,608) (4,759) Total governmental activities net position $ 5,363 5,919 5,942 8,168 13,701 Source: City of Los Alamitos, Finance Department
* In Fiscal Year 2014-15 the City implemented GASB Statement No. 68, which resulted in a $12.8 million decrease to the City's net position in relation to accounting for the City's net pension liability and related deferrals.
** In Fiscal Year 2017-18 the City implemented GASB Statement No. 75, which resulted in a $3.6 million decrease to the City's net position in relation to accounting for the City's total OPEB liability.

CITY OF LOS ALAMITOS
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
(15)
(10)
(5)
‐
5 10
15 20
25 2012 2013 2014 2015 2016 2017 2018 2019 2020
Millions
Net investment in capital assets Restricted Unrestricted 101

2013 2014 2015 2016 2017
Expenses
Governmental activities:

General government $ 1,377 $ 2,223 $ 2,646 $ 2,976 2,830 Public safety 5,393 5,691 5,463 5,732 6,922
Community development 745 843 714 685 775
Recreation and community services 1,957 1,700 1,772 1,834 1,783 Public works 2,709 2,839 2,592 2,339 2,306
Interest and fiscal charges 168 140 138 302 148
Total governmental activites expenses 12,349 13,436 13,325 13,868 14,764 Program Revenues
Governmental activities:

Charges for services
General government - 385 205 225 272
Public safety 637 735 752 808 825
Community development 435 113 141 80 100
Recreation and community services 1,295 1,242 1,301 1,225 1,087 Public works - 18 2 139 -
Operating grants 119 323 293 398 453
Capital grants and contributions 349 1,739 629 530 369
Total governmental activites program revenues 2,835 4,555 3,323 3,405 3,106 Net (expense)/revenue
Governmental activities (9,514) (8,881) (10,002) (10,463) (11,658) General Revenues and Other Changes in Net Position
Governmental activities:

Taxes
Property 3,734 2,733 2,954 3,118 3,603
Utility users tax 2,160 2,188 2,210 2,092 2,037
Transient occupancy 104 113 132 156 159
Sales 2,117 2,836 3,064 3,357 3,160
Franchise 653 689 712 709 669
Business license 694 551 563 566 609
Other 284 334 348 251 339
9,444 9,746 9,983 10,249 10,576
Motor vehicle in lieu 5 - - - -
Investment income 27 13 30 86 63
Gain on Sale of property 37 - - - -
Other 36 267 146 185 269
Total governmental activities 9,851 9,724 10,159 10,520 10,908 Changes in Net Position
Governmental activities $ 337 $ 843 $ 157 $ 57 (750)
Source: City of Los Alamitos, Finance Department
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)

CITY OF LOS ALAMITOS
Changes in Net Position
102

2018 2019 2020 2021 2022
Expenses
Governmental activities:

General government $ 3,517 $ 3,135 $ 3,586 $ 3,493 2,548 $ Public safety 6,311 6,556 6,912 7,135 6,382
Community development 1,104 986 1,091 957 1,344
Recreation and community services 1,811 1,746 1,758 1,471 2,043 Public works 2,314 2,415 2,572 2,907 3,226
Interest and fiscal charges 141 142 58 331 138
Total governmental activites expenses 15,198 14,980 15,977 16,294 15,681 Program Revenues
Governmental activities:

Charges for services
General government 814 831 1,335 914 1,035
Public safety 859 916 711 478 411
Community development 198 3 3 2 1
Recreation and community services 956 937 781 527 892
Public works - 167 508 353 1
Operating grants 151 442 628 1,872 677
Capital grants and contributions 391 254 249 241 308
Total governmental activites program revenues 3,369 3,550 4,215 4,387 3,325 Net (expense)/revenue
Governmental activities (11,829) (11,430) (11,762) (11,907) (12,356) General Revenues and Other Changes in Net Position
Governmental activities:

Taxes
Property 3,773 3,946 4,169 4,455 4,732
Utility users tax 2,034 1,968 1,988 1,834 2,123
Transient occupancy 167 160 132 223 522
Sales 3,336 3,597 3,227 4,855 9,671
Franchise 691 688 611 725 1,071
Business license 647 684 730 886 728
Other 429 557 564 548 640
11,600 11,077 11,421 13,526 19,487
Motor vehicle in lieu - - - -
Investment income 102 271 254 78 (665)
Gain on Sale of property 19 - - -
Other 182 115 110 528 83
Total governmental activities 11,380 11,986 11,785 14,132 18,905 Changes in Net Position
Governmental activities (449) $ 556 $ 23 $ 2,225 $ 6,549 Source: City of Los Alamitos, Finance Department

CITY OF LOS ALAMITOS
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
103

2013 2014 2015 2016 2017
General Fund
Nonspendable $ 6 $ 8 $ 684 $ 59 $ 17
Committed - - - - -
Restricted - - - - -
Assigned 3,770 7,049 7,484 7,347 7,481
Unassigned 4,085 1,218 (644) 3 56
Reserved - - - - -
Unreserved, designated - - - - -
Unreserved, undesignated - - - - -
Total General Fund 7,861 8,275 7,524 7,409 7,554
All Other Governmental Funds
Nonspendable - - - - -
Restricted 888 829 1,063 1,333 1,334
Committed
Assigned 898 677 390 1,001 345
Unassigned (223) (1,240) - - -
Reserved
Unreserved, designated reported in:

Special revenue funds
Unreserved, reported in:

Special revenue funds
Debt service funds
Capital projects funds
Total All Other Governmental Funds 1,563 266 1,453 2,334 1,679 Total All Governmental Funds $ 9,424 $ 8,541 $ 8,97 $ 9,74 7 $ 9,23 3 3 *Note: The City adopted GASB 54 starting in fiscal year 2011 which changed how fund balance is presented in the CAFR
Source: City of Los Alamitos, Finance Department
Fund Balances of Governmental Funds

CITY OF LOS ALAMITOS
(amounts expressed in thousands)
(modified accrual basis of accounting)
Last Ten Fiscal Years
104

CITY OF LOS ALAMITOS
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
2018 2019 2020 2021 2022
General Fund
Nonspendable $ 18 $ 56 $ 14 $ 7 $ 4
Committed - 3,607 3,286 3 3
Restricted - - - -
Assigned 7,662 4,589 4,196 4,203 4,196
Unassigned 49 588 2,785 9,403 12,570
Reserved -
Unreserved, designated -
Unreserved, undesignated -
Total General Fund 7,729 8,840 10,281 13,616 16,773
All Other Governmental Funds
Nonspendable - - - - -
Restricted 1,334 1,180 1,453 2,153 2,353
Committed -
Assigned 129 99 200 109 243
Unassigned - (4) (9) (10) (114)
Reserved
Unreserved, designated reported in:

Special revenue funds
Unreserved, reported in:

Special revenue funds
Debt service funds
Capital projects funds
Total All Other Governmental Funds 1,463 1,275 1,644 2,252 2,482 Total All Governmental Funds $ 9,192 $ 10,11 $ 11,92 5 $ 15,86 5 $ 19,25 8 5 *Note: The City adopted GASB 54 starting in fiscal year 2011 which changed how fund balance is presented in the CAFR
Source: City of Los Alamitos, Finance Department
105

CITY OF LOS ALAMITOS
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
2013 2014 2015 2016 2017
Revenues
Taxes $ 9,042 $ 9,420 $ 10,337 $ 10,559 $ 10,724
Licenses and permits 694 937 205 225 272
Intergovernmental 531 150 1,609 245 609
Charges for services 1,752 1,396 1,403 1,459 1,202
Investment earnings 9 2 30 86 63
Fines and forfeitures 615 710 737 781 810
Other 36 581 454 460 476
Total Revenues 12,679 13,196 14,775 13,815 14,156
Expenditures
General government 1,900 2,097 2,379 2,735 2,029
Public safety 5,280 5,874 5,513 5,711 5,777
Community development 737 830 694 657 715
Recreation and community services 1,889 1,620 1,730 1,739 1,646 Public works 1,831 1,686 1,771 1,963 1,963
Capital outlay 806 1,744 830 213 1,972
Debt service:

Principal retirement 72 70 76 75 70
Payment to refunded bond escrow agent - - - 220 -
Interest and fiscal charges 144 141 138 311 142
Total Expenditures 12,659 14,062 13,131 13,624 14,314
Excess of revenues over/(under) expenditures 20 (866) 1,644 191 (158) Other Financing Sources (Uses)
Transfers in 588 606 684 681 1,280
Transfers out (588) (621) (1,892) (1,203) (2,201)
Refunding bonds issued - - - 3,685
Bond premium - - - 133
Payment to refunded bond escrow agent - - - (2,722)
Total other financing sources - (15) (1,208) 574 (921)
Net change in fund balances $ 20 $ (881) $ 436 $ 765 $ (1,079) Debt service as a percentage of noncapital expenditures 1.765% 1.598% 1.813% 2.865% 1.713% (1)
(1) Increase in debt service related to issuance of 2015 Certificates of Participation Source: City of Los Alamitos, Administrative Services Department 106

CITY OF LOS ALAMITOS
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
2018 2019 2020 2021 2022
Revenues
Taxes $ 11,078 $ 11,600 $ 11,422 $ 13,526 $ 19,487
Licenses and permits 814 831 1,462 914 1,035
Intergovernmental 323 294 684 1,888 699
Charges for services 1,169 1,121 1,310 890 905
Investment earnings 106 271 254 78 (665)
Fines and forfeitures 844 900 694 468 401
Other 398 349 301 610 324
Total Revenues 14,732 15,366 16,127 18,374 22,186
Expenditures
General government 2,243 2,299 2,405 2,240 2,993
Public safety 5,751 5,886 5,585 5,938 6,617
Community development 1,044 928 1,052 1,185 1,292
Recreation and community services 1,598 1,590 1,615 1,391 1,911 Public works 1,943 2,064 1,983 2,379 2,952
Capital outlay 1,068 332 865 490 957
Debt service:

Principal retirement 70 70 75 75 80
Payment to refunded bond escrow agent - - - -
Interest and fiscal charges 140 139 136 134 130
Total Expenditures 13,857 13,308 13,716 13,832 16,932
Excess of revenues over/(under) expenditures 875 2,058 2,411 4,542 5,254 Other Financing Sources (Uses)
Transfers in 832 597 808 733 828
Transfers out (1,752) (1,157) (1,409) (1,334) (1,678)
Refunding bonds issued -
Bond premium -
Payment to refunded bond escrow agent -
Total other financing sources (920) (560) (601) (601) (850) Net change in fund balances $ (45) $ 1,498 $ 1,810 $ 3,941 $ 4,404 Debt service as a percentage of noncapital expenditures 1.640% 1.611% 1.642% 1.566% 1.315% (1) Increase in debt service related to issuance of 2015 Certificates of Participation Source: City of Los Alamitos, Administrative Services Department 107

CITY OF LOS ALAMITOS
2021/22 Use Category Summary-Basic Property Value Table Last Ten Fiscal Years
(amounts expressed in thousands)
2013 2014 2015 2016 2017
Category
Residential 936,234 $ 968,878 $ 1,031,002 $ 1,091,854 $ 1,143,395 $ Commercial 288,665 296,984 318,001 359,002 365,544
Industrial 266,381 270,936 271,390 278,399 292,535
Institutional - - - - -
Miscellaneous - - - - -
Recreational - - - - -
Vacant land 8,530 8,917 8,449 9,710 9,905
SBE Nonunitary 222 222 222 222 222
Cross Reference 4,326 3,453 3,265 3,083 3,998
Unsecured 134,342 119,933 143,801 138,386 154,478
Other - - - - -
Totals 1,638,700 $ 1,669,323 $ 1,776,130 $ 1,880,656 $ 1,970,077 $ Direct rate 0.10067% 0.11558% 0.11568% 0.11571% 0.11578% Note:

Source: HdL Coren and Cone, Orange County Assessor Tax Rate Table In 1978, the voters of the State of California passed
Proposition 13 which limited property taxes to a total
maximum rate of 1% based upon the assessed value of
the property being taxed. Each year the assessed value
of property may be increased by an inflation factor
(limited to a maximum increase of 2%). With few
exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new
assessed value is reassessed at the purchase price of
the property sold. The assessed valuation data shown
above represents the only data currently available with respect to the actual market value of taxable property
108

CITY OF LOS ALAMITOS
2021/22 Use Category Summary-Basic Property Value Table Last Ten Fiscal Years
(amounts expressed in thousands)
2018 2019 2020 2021 2022
Category
Residential 1,200,335 $ 1,266,083 $ 1,332,806 $ 1,408,761 $ 1,479,534 $ Commercial 393,211 405,241 427,330 459,279 506,538
Industrial 292,689 308,001 315,346 382,149 417,895
Institutional - - - - -
Miscellaneous - 1,793 608 555 -
Recreational - - - - -
Vacant land 11,648 10,088 19,185 14,902 10,998
SBE Nonunitary 222 970 970 970 401
Cross Reference 4,139 4,109 4,177 3,976 4,002
Unsecured 163,741 161,257 164,509 158,443 189,648
Other - - - - -
Totals 2,065,985 $ 2,157,542 $ 2,264,931 $ 2,429,035 $ 2,609,016 $ Direct rate 0.11578% 0.11821% 0.11848% 0.11751% 0.11703% Source: HdL Coren and Cone, Orange County Assessor Tax Rate Table 109

Fiscal Year
Ended
June 30
2013 1,504,137 134,342 - 1,638,479 -
2014 1,549,169 119,933 - 1,788,647 -
2015 1,632,107 143,801 - 1,775,908 -
2016 1,742,048 138,386 - 1,880,434 0.116
2017 1,806,377 154,478 - 1,960,855 0.116
2018 1,902,022 163,742 - 2,065,764 0.116
2019 1,995,314 161,257 - 2,156,571 0.116
2020 2,099,452 164,509 - 2,263,961 0.116
2021 2,269,621 158,443 - 2,428,064 0.116
2022 2,418,967 189,648 2,609,016 0.117
(2) Total includes Nonunitary Taxable Assessed Values.

Note:

Source: HdL Coren and Cone, Orange County Assessor Combined Tax Rolls

CITY OF LOS ALAMITOS
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
(amounts expressed in thousands)
(1) Exemptions are netted against the individual property categories.

Secured Unsecured Exemptions (1) Value (2)
Less: Assessed
Taxable Direct
Tax
Rate
Total
In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year the assessed value of property may be increased by an inflation factor (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. 110

CITY OF LOS ALAMITOS
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Ten Fiscal Years
2013 2014 2015 2016 2017
City Direct Rate 0.117 0.117 0.117 0.116 0.116
Overlapping Rates:

Los Alamitos City General Fund 0.101 0.101 0.101 0.101 0.101 Los Alamitos City Lighting Reorganization 0.016 0.016 0.016 0.016 0.016 Educational Revenue Augmentation Fund 0.144 0.144 0.144 0.145 0.145 Los Alamitos Unified General Fund 0.412 0.412 0.411 0.412 0.412 North Orange Co. Community College District 0.059 0.059 0.059 0.059 0.059 Orange County Department of Education 0.031 0.031 0.031 0.031 0.031 Orange County Fire Authority 0.095 0.095 0.095 0.095 0.095 Orange County Flood Control District General 0.017 0.017 0.017 0.017 0.017 Orange County General Fund 0.052 0.052 0.052 0.052 0.052 Orange County Harbors Beaches & Parks Csa 26 0.013 0.013 0.013 0.013 0.013 Orange County Public Library 0.014 0.014 0.014 0.014 0.014 Orange County Sanitation District 3 Operating 0.027 0.027 0.027 0.027 0.027 Orange County Transit Authority 0.002 0.002 0.002 0.002 0.002 Orange County Vector Control 0.001 0.001 0.001 0.001 0.001 Orange County Water District 0.006 0.006 0.006 0.006 0.006 Orange County Water District reserve 0.000 0.000 0.001 0.000 0.000 Rossmoor/Los Alamitos Sewer District 0.010 0.010 0.010 0.010 0.010 Total Prop 13 Rate 1.000 1.000 1.000 1.000 1.000
Anaheim High School District 0.029 0.026 0.024 0.049 0.043 Cypress Elementary 0.025 0.027 0.023 0.025 0.024
Garden Grove Unified School District 0.031 0.037 0.041 0.047 0.045 Los Alamitos Sfid 0.042 0.056 0.048 0.052 0.048
Metropolitan Water District 0.004 0.003 0.004 0.004 0.004 N. Orange County Community College 0.019 0.017 0.017 0.030 0.029 Total Voter Approved tax Rate 0.150 0.166 0.157 0.207 0.192 Total Tax Rate 1.150 1.166 1.157 1.207 1.192
Source: HdL Coren and Cone, Orange County Assessor 2011/2012 - 2020/2021 Tax Rate Table 111

CITY OF LOS ALAMITOS
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Ten Fiscal Years
2018 2019 2020 2021 2022
City Direct Rate 0.116 0.116 0.116 0.116 0.117
Overlapping Rates:

Los Alamitos City General Fund 0.101 0.101 0.101 0.101 0.101 Los Alamitos City Lighting Reorganization 0.016 0.016 0.016 0.016 0.016 Educational Revenue Augmentation Fund 0.145 0.145 0.145 0.145 0.145 Los Alamitos Unified General Fund 0.412 0.412 0.412 0.412 0.412 North Orange Co. Community College District 0.059 0.059 0.059 0.059 0.059 Orange County Department of Education 0.031 0.031 0.031 0.031 0.031 Orange County Fire Authority 0.095 0.095 0.095 0.095 0.095 Orange County Flood Control District General 0.017 0.017 0.017 0.017 0.017 Orange County General Fund 0.052 0.052 0.052 0.052 0.052 Orange County Harbors Beaches & Parks Csa 26 0.013 0.013 0.013 0.013 0.013 Orange County Public Library 0.014 0.014 0.014 0.014 0.014 Orange County Sanitation District 3 Operating 0.027 0.027 0.027 0.027 0.027 Orange County Transit Authority 0.002 0.002 0.002 0.002 0.002 Orange County Vector Control 0.001 0.001 0.001 0.001 0.001 Orange County Water District 0.006 0.006 0.006 0.006 0.006 Orange County Water District Reserve 0.000 0.000 0.000 0.000 0.000 Rossmoor/Los Alamitos Sewer District 0.010 0.010 0.010 0.010 0.010 Total Prop 13 Rate 1.000 1.000 1.000 1.000 1.000
Anaheim High School District 0.022 0.042 0.040 0.040 0.038 Cypress Elementary 0.031 0.030 0.030 0.033 0.030
Garden Grove Unified School District 0.075 0.068 0.069 0.070 0.074 Los Alamitos Sfid 0.047 0.049 0.080 0.093 0.079
Metropolitan Water District 0.004 0.004 0.004 0.004 0.004 N. Orange County Community College 0.029 0.028 0.024 0.032 0.029 Total Voter Approved tax Rate 0.207 0.221 0.247 0.271 0.253 Total Tax Rate 1.207 1.220 1.247 1.271 1.253
Source: HdL Coren and Cone, Orange County Assessor 2010/2011 - 2019/2020 Tax Rate Table 112

Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Value Value Value Value
Los Alamitos Medical Center $ 138,698 5.316% $ 67,539 4.121% Los Alamitos APG LLC 129,851 4.977%
Fine US Long Beach LLC 59,000
JCB Merger Sub LLC 43,248
Trend Offset Printing Inc. 41,169 1.578% 40,574 2.476%
Los Alamitos Corporation Center JV 54,495 3.325%
Don Wilson Staples LLC 39,207 1.503% 30,193 1.842%
Epson America USA 33,750
Bar Bakers LLC 25,361 0.972%
CGM Katella LLC 20,244 0.776%
Ganahl Lumber Company 18,781 0.720% 15,148 0.924%
JCB Inc Tinicum Corporation 0.000% 16,963 1.035%
Bayport Los Alamitos Associates LP 0.000% 12,355 0.754% Fine US Long Beach LLC 0.000%
Davenport KCC Partners LLC 14,059 0.858%
Arrowhead Products Corporation 11,088 0.677%
Los Altos LLC 0.659% 10,798
ESS WCOT Owner LLC 0.000%
Top Ten Totals $ 549,309 15.842% $ 273,212 16.672%
City Totals $ 2,609,01 $ 1,638,701 6
Source: HdL Coren and Cone, Orange County Assessor 2011/12 and 2020/21 Tax Rolls

CITY OF LOS ALAMITOS
Principal Property Tax Payers
Current Year and Ten Years Ago
2022 2013
(amounts expressed in thousands)
113

Fiscal
Year
Ended
June 30
2013 2,013,958 1,959,000 97.271% 24,090 1,983,090 98.467% 2014 2,010,346 1,981,110 98.546% 24,524 2,005,634 99.766% 2015 2,130,906 2,081,181 97.666% 19,659 2,100,840 98.589% 2016 2,261,032 2,220,841 98.222% 18,519 2,239,360 99.041% 2017 2,347,295 2,314,148 98.588% 17,812 2,331,960 99.347% 2018 2,457,342 2,440,391 99.310% 16,019 2,456,410 99.962% 2019 2,679,049 2,629,318 98.144% 16,951 2,646,269 98.776% 2020 2,786,377 2,742,208 98.415% 21,973 2,764,181 99.203% 2021 2,903,005 2,761,268 95.118% 18,858 2,780,126 95.767% 2022 2,950,445 2,737,154 92.771% 18,843 2,755,997 93.410% (1) Total amount of delinquent taxes collected in each fiscal year; information regarding levy year to which delinquent tax collections pertain is not provided by the Orange County Auditor- Controller.

Source: Orange County Auditor - Controller
Taxes Levied
for the Percent
Fiscal Year
Fiscal Year of Levy Collections
Amount of Levy
Total Collections to Date
Percent
Years (1) Amount of Levy
for Prior
Collected within the

CITY OF LOS ALAMITOS
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
114

Debt as a
Percentage Debt
Fiscal Capital of Personal Per
Year Lease Income1 Capita1
2012 $ 3,110 0 $ 3,110 0.743% 269.10 $
2013 $ 3,055 - $ 3,055 0.693% $262.77
2014 $ 2,970 - $ 2,970 0.668% $253.22
2015 $ 2,895 - $ 2,895 0.662% $246.91
2016 $ 3,685 - $ 3,685 0.874% $313.94
2017 $ 3,615 270 $ 3,885 0.912% $330.95
2018 $ 3,545 204 $ 3,749 0.871% $316.02
2019 $ 3,475 137 $ 3,612 0.869% $308.16
2020 $ 3,400 69 $ 3,469 0.782% $299.90
2021 $ 3,325 68 $ 3,469 0.720% $307.51
1 Ratio is calculated using personal income and population data for the prior calendar year.

Source: City of Los Alamitos, Finance Department
(amounts expressed in thousands, except per capita)

CITY OF LOS ALAMITOS
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Government
Primary
Total
Participation
Certificates
of
115

(amounts expressed in thousands)
2021-2022 Taxable Assessed Valuation: $ 2,608,517
City's
Total Percent Share
Debt Applicable of Debt
6/30/2022 to City (1) 6/30/2022

DIRECT DEBT
Vehicle Lease Debt $ 62 100.000% 62
Bonded Debt 3,245 100.000% 3,350
TOTAL DIRECT DEBT $ 3,412
OVERLAPPING DEBT:

Anaheim High 2002 Bond Series 2003 $ 15,504 0.070% $ 11 N.OC Community College 2002 Bond Series #2003B 29,293 1.773% 519 Anaheim High 2002 Bond Series 2002A 28,245 0.071% 20
N.OC Community College 2002 Bond 2005 Refunding 27,702 1.773% 491 Los Alamitos SFID #1 2008 Series 2009 23,065 23.810% 5,492 Cypress Elementary 2008 Bond Series A 15,884 0.477% 76
Los Alamitos SFID #1 2008 Series 2010 2,000 23.810% 476 Los Alamitos SFID #1 2008 Series 2010C 2,000 23.810% 476 Garden Grove USD 2010 Series B 114,445 0.006% 7
Los Alamitos SFID #1 208 Series D 19,000 23.810% 4,524
Cypress Elementary 2008 Bond, Series B1 & B2 24,674 0.477% 118 Los Alamitos SFID #1 208 Series E 58,705 23.810% 13,978 Garden Grove USD 2010 Series C 129,585 0.006% 8
Anaheim High 2014 Bond Series 2015 47,045 0.071% 33
N.OC Community College 2014 Bond Series A 34,025 1.773% 603 Garden Grove USD 2016 Series 2017 69,900 0.006% 4
Anaheim High 2018 Bond Series 2014 69,015 0.071% 49
Garden Grove USD 2016 Series 2019 72,510 0.006% 4
Los Alamitos SFID #1 2008 Series A 33,085 23.810% 7,878 Los Alamitos SFID #1 2008 Series F 11,980 23.810% 2,852 N.OC Community College 2014 Bond Series B 112,416 1.773% 1,993 Anaheim High 2014 Bond Series 2019 96,460 0.071% 68
Los Alamitos SFID #1 2008 Series 2020G 8,500 23.810% 2,024 Los Alamitos SFID #1 2008 Series 2020B 39,500 23.810% 9,405 Grden Grove USD 2016 Series 2021 146,000 0.006% 9
Metropolitan Water District 4,052 0.383% $ 16
TOTAL OVERLAPPING DEBT 51,134
TOTAL DIRECT & OVERLAPPING DEBT $ 54,546
(1) Percentage of overlapping agency's assessed valuation located within the boundaries of the City. (2)
Ratios to Assessed Valuation:

Total Direct Debt…………………………………………….. 0.14%
Overlapping Debt……………………………………………. 1.96%
Net Combined Total Debt……………………………………2.10%
Source - HdL Coren & Cone, Orange County Assossor and Auditor Combined 2020/21 Lien Date Tax Rolls

CITY OF LOS ALAMITOS
Direct and Overlapping Governmental Activity Debt
As of June 30, 2022
Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.
116

Legal Debt Margin Calculation for the Current Year
Assessed value $ 2,609,016,274
Debt limit (15% of assessed value) 391,352,441
Debt applicable to limit 0
Legal debt margin - Current Year $ 391,352,441
Fiscal
Year
2013 245,805,113 0 245,805,113 0
2014 250,398,597 0 250,398,597 0
2015 266,419,511 0 266,419,511 0
2016 282,098,369 0 282,098,369 0
2017 294,161,529 0 294,161,529 0
2018 309,897,790 0 309,897,790 0
2019 323,585,613 3,612,467 319,973,146 1.12%
2020 343,305,168 3,565,517 339,739,651 1.04%
2021 367,857,100 3,325,000 364,532,100 0.90%
2022 394,702,562 3,350,121 391,352,441 0.85%
Source: City of Los Alamitos, Finance Department

CITY OF LOS ALAMITOS
Legal Debt Margin Information
Last Ten Fiscal Years
Limit to Limit
Debt as
Percentage
Margin of Limit
Debt
Debt
Applicable Debt
Legal
117

Personal Per Capita
Calendar Income Personal Unemployment
Year Population (in thousands) Income Rate
2013 11,729 444,811 37,924 2.70%
2014 11,725 437,214 37,289 5.50%
2015 11,738 421,786 35,933 4.50%
2016 11,739 425,943 36,284 4.00%
2017 11,863 430,396 36,280 4.00%
2018 11,721 415,852 35,479 3.20%
2019 11,567 443,756 38,363 2.90%
2020 11,538 481,688 41,747 8.90%
2021 11,873 480,337 40,456 8.30%
2022 11,780 580,872 49,310 4.90%
Sources: Population: California State Department of Finance Unemployment Rate: California Employment Development Department Personal Income and Per Capita Income: ESRI

CITY OF LOS ALAMITOS
Demographic and Economic Statistics
Last Ten Calendar Years

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%
$30,000
$35,000
$40,000
$45,000
$50,000
$55,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Per Capita Personal Income and Unemployment
Per Capita Personal Income Unemployment
118

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Program
General Government
City Council 5555555555
Administration 8888888667
Community Development
Administration 111111111
Planning 1111111111
Code Enforcement 1111111111
Police
Administration 4444444445
Patrol 19 19 19 19 19 18 18 13 13 15
Investigation 3333333323
Records 2222222233
Crossing Guards 3333111111
Other PD Support 2222222233
Public Works
Admin/Engineering 1111111114
Maintenance 10 10 10 10 10 99776
Recreation & Community Services
Administration 5555544427
Recreation/Cultural 15 15 15 15 14 11 11 11 9 11
Source: City of Los Alamitos, Finance Department

CITY OF LOS ALAMITOS
Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
119

CITY OF LOS ALAMITOS
Operating Indicators by Function/Program
Last Ten Fiscal Years
2013 2014 2015 2016 2017
Function/Program
Community Development
Number of:

Business licenses 1,964 2,089 2,227 2,169 2,068
Plan checks 141 110 95 96 93
NPDES inspections 126 57 104 60 60
Code violations 97 147 121 267 267
Police
Number of:

Part 1 crimes 433 330 299 252 268
Parking violations 1,532 1,766 3,283 3,963 2,997
Traffic (moving) violations 2,177 2,354 1,786 1,473 2,885 Incident & crime reports 1,361 1,293 1,381 1,167 1,254
Public Works
Square yd of street resurfacing/repair 38,800 20,000 15,000 - - Miles of street sweeping 33 33 33 33 33
Number of:

Street signal maintained 24 25 25 25 25
Trees pruned per year 632 620 615 991 991
Square feet graffiti removal 1,650 1,550 1,245 1,205 1,205 Recreation & Community Services
Total in attendance:

Aquatics 230,000 232,000 235,000 163,000 0
Community Services/Seniors 9,800 10,500 10,500 13,180 14,000 Day Camp 2,600 2,800 2,900 2,800 3,000
Park Program 1,400 2,600 4,385 4,262 4,140
Sports N/A N/A N/A 35,500 30,000
Classes 6,400 6,300 6,900 8,900 8,900
Special Events 40,000 41,470 34,200 30,475 34,820
NA - Not Available
Source: City of Los Alamitos, Finance Department
120

CITY OF LOS ALAMITOS
Operating Indicators by Function/Program
Last Ten Fiscal Years
2018 2019 2020 2021 2022
Function/Program
Community Development
Number of:

Business licenses 2,153 1,806 2,046 2,630 2,413
Plan checks 108 98 74 81 338
NPDES inspections 157 85 79 9 55
Code violations 483 420 451 946 1,892
Police
Number of:

Part 1 crimes 209 193 189 330 157
Parking violations 4,043 4,221 1,471 1,470 3,835
Traffic (moving) violations 1,430 1,114 342 636 677
Incident & crime reports 896 752 729 1,046 1,044
Public Works
Square yd of street resurfacing/repair - - - - 62,445
Miles of street sweeping 33 33 33 33 858
Number of:

Street signal maintained 25 25 21 22 28
Trees pruned per year 991 991 995 1,375 1,529
Square feet graffiti removal 1,205 1,205 900 1,100 1,836 Recreation & Community Services
Total in attendance:

Aquatics - - - - -
Community Services/Seniors 14,100 18,390 17,040 16,000 21,600 Day Camp 4,040 3,500 3,200 4,500 4,400
Park Program 4,040 3,000 2,400 2,250 1,800
Sports 30,500 28,234 14,970 13,000 15,500
Classes 8,800 10,300 9,960 8,000 11,000
Special Events 35,000 38,225 31,600 20,000 35,020
NA - Not Available
Source: City of Los Alamitos, Finance Department
121

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Program
Community Develoment
Code enforcement vehicles 1111111122
Police
Stations 1111111111
Patrol Vehicles 7 7 7 7 8 8 8 8 10 13
Other Vehicles 8 9 9 9 9 9 9 9 11 11
Public Works
Streets (Miles) 32.9 32.9 32.9 32.9 32.9 32.9 32.9 32.9 32.9 32.9 Street lights 910 911 911 911 911 911 911 911 911 911
Traffic signals 24 25 25 25 25 25 25 25 25 25
Public works vehicles 13 13 13 13 13 11 11 11 11 11
Recreation & Community Services
Youth centers 1111111111
Community centers 1111111111
Parks 9999999999
Community service vehicles 2222233333
Source: City of Los Alamitos, Administrative Services Department

CITY OF LOS ALAMITOS
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
122

CITY OF LOS ALAMITOS
Top 10 Businesses for Fiscal Year 2021-22
Ranking Firm Name
1 Ganahl Lumber
2 Shell
3 Grating Pacific
4 Gemini Forrest Products
5 Siteone Landscape Supply
6 Trend Offset Printing
7 Mamas Comfort Food
8 Katella Bakery & Deli
9 Adamson Police Products
10 Chevron
Source: HdL Coren and Cone, Sales Tax Trends and Economic Drivers 123

CITY OF LOS ALAMITOS
Principal Employers
Current Year and Ten Years Ago
FY2021-22 FY2012-13
EMPLOYER Employees Rank
% of
Total
City
Employm
ent Employees Rank
% of
Total
City
Employm
ent
Los Alamitos Medical Center 1,100 1 7.56% 1,035 1 7.33% Arrowhead Products 780 2 5.36% 578 2 4.09%
Trend Offset Printing 700 3 4.81% 468 3 3.31%
Epson America 693 4 4.76%
Super Media Sales, Inc. 4 1.79% 253
Mittera California, Inc. 238 5 1.64%
Discovery Practice Management, Inc. 205 6 1.41%
Bar Bakers, LLC 200 7 1.37%
Resare Marketing, Inc. 191 8 1.31%
Alamitos West Health & Rehabilitation 6 1.07% 151
Evergreen Pharmaceutical of California, Inc. 150 7 1.06% Katella Delicatessen-Restaurant-Bakery, Inc. 145 9 0.99% 187 5 1.32% Alliance Spacesystems, LLC 144 10 0.98% 107 10 0.76%
Bloomfield Bakers 8 0.99% 141
Bearing Inspection, Inc. 9 0.87% 123
Total 4,396 30.19% 3,193 22.59%
Source: HdL Companies, City Planning Department, and State of California Employment Development Department 124

438 Old Newport Blvd, Newport Beach, CA 92663
Phone (949) 346-2900 –www.gruberlopezinc.com
Honorable Mayor and City Council
City of Los Alamitos
Los Alamitos, California
Independent Accountants’ Report on Applying Agreed-Upon Procedures Appropriations Limit Worksheets
We have performed the procedures enumerated below on the appropriations limit calculation worksheets of the City of Los Alamitos, California (City) for the year ended June 30, 2022. The City’s management is responsible for the appropriations limit calculation worksheets.

The City has agreed to and acknowledged that the procedures performed are appropriate for the intended purpose of meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution (Constitution) and the League of California Cities as presented in the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines (Guidelines). This report may not be suitable for any other purpose.

The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are as follows:

1. We obtained the worksheets referred to above and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote.

Results: No exceptions were noted as a result of our procedures.

City Council
City of Los Alamitos, California
Page Two

2. We recalculated the mathematical computations reflected in the City worksheets.

Results: No exceptions were noted as a result of our procedures.

3. We compared the current year information used to determine the current year limit and found that it agreed to worksheets prepared by the City and to information provided by the State Department of Finance.

Results: No exceptions were noted as a result of our procedures.

4. We compared the amount of the prior year appropriations limit presented in the worksheets to the amount adopted by the City Council for the prior year.

Results: No exceptions were noted as a result of our procedures.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on meeting the requirements of the Constitution and Guidelines. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City and is not intended to be and should not be used by anyone other than those specified parties. However, this report is a matter of public record and its distribution is not limited.

Gruber and Lopez, Inc.

Newport Beach, California
February 6, 2023
Gruber and Lopez, Inc.

City of Los Alamitos

CITY COUNCIL AGENDA REPORT
MEETING DATE: March 20, 2023 ITEM NUMBER: 10F
To: Mayor Tanya Doby & Members of the City Council
Presented By: Ron Noda, Development Services Director
Subject: Award of Professional Services Agreement (PSA) to Charles Abbott & Associates, Inc. for Building & Safety Services

SUMMARY
On Thursday, January 19, 2023, staff received and reviewed bids for Request for Proposal (RFP) 2022-04 Building & Safety Services, which is inclusive of building division administration, permit issuance, plan check, inspection, enforcement of building codes, and public counter services. This item seeks to award the bid for RFP 2022-04 to Charles Abbott & Associates, Inc., for a three-year term with two possible 2-year extensions and in accordance with the fee schedule noted herein.

RECOMMENDATION
Award the bid for RFP 2022-04 and authorize the Mayor to execute the Professional Services Agreement with Charles Abbott Associates Inc. (CAA), for Building & Safety services for a three-year term with two possible 2-year extensions in accordance with the fee schedule not to exceed the sum of:
• 80% of permit and plan check fees up to $15,000
• 65% of permit and plan check fees from $15,001 to $30,000 • 55% of permit and plan check fees from $30,001 to $75,000 • 50% of permit and plan check fees greater than $75,000 • $20,000 annual cost for the permitting tracking system, CityTech

BACKGROUND
The Building & Safety Division is responsible for the administration and enforcement of the uniform building codes and related federal, state, and City adopted laws and ordinances. This responsibility includes meeting state mandates to ensure all structures meet or exceed the minimum life safety standards. This division assures that these standards are in compliance by providing organized procedures for the review of plans and specifications, field checking construction projects, and investigation of substandard structures for abatement.

The City’s current Building & Safety services are provided by Charles Abbott Associates Inc. (CAA). The City’s current agreement with CAA has utilized its final allowable contract extension, which is set to expire on June 30, 2023. If this item is approved by Council, the current agreement will be terminated on March 21, 2023 with the new agreement taking effect

on the same date.

Since July 2010, CAA has provided comprehensive building services for the City. Subsequent to the end of the 2010 agreement term, the City released a Request for Proposals (RFP) in 2015, which once again sought competitive bid responses from qualified firms to provide comprehensive Building & Safety services.

At the November 2022 meeting, Council approved RFP 2022-04, which sought bids from qualified firms to provide all encompassing Building & Safety services including building division administration, permit issuance, plan check, inspection, enforcement of building codes, and public counter services. RFP 2022-04 solicited a firm to provide contract services, which would augment City staff as it relates to Building & Safety Division services. Under the direction of the Development Services Department, the selected firm provided services in a cost-effective, efficient and professional manner, and to provided labor, tools, equipment materials and supplies necessary to complete work in a manner that will meet the City’s requirements.

Staff noticed this solicitation for bids on the City's website and the Event News Enterprise on Wednesday, November 23, 2022 and Wednesday, November 30, 2022.

DISCUSSION
In response to RFP 2022-04, the City received three (3) bid responses, two (2) of which were deemed disqualified for not meeting the submittal requirements stipulated in the RFP. The three (3) responding firms included 4Leaf,Inc., Charles Abbott Associates, Inc. (CAA), and Transtech.

Of the three, CAA provided a fully responsive bid, outlining the following costs:

Fee for Consulting Services Based on Project Valuations Valuation Percentag
e
$1 to $15,000 80%
$15,000 to
$30,000
65%
$30,001 to
$75,000
55%
$75,001 and
greater
50%
Fee for Building Permitting Software via CityTech Solutions System Name Annual Cost
CityTech
Solutions
$20,000
Fees for Expedited Plan Check
Time Hourly
Rate

1 hour $160
2 hours $160
3 or more
hours
$160
As proposed, additional plan check review fees will not be charged for expedited requests, as the cost is included in the percentage of fees for services.

Supplemental Hourly Rate Schedule for As-Needed Services Job Description Hourly Rate
Assistant Planner $105
Interim Development Services
Director
$160
Consultant for the Development
Services Department
$160
Landscape Architect $160
Permit Technician $73
Plan Checker $107
Planning Aide $90
Rate and Services Structure for Sub-Consultant(s)
SubConsultant(s)Hourly Rate
Assistant
Planner
$105
Planning Aide $90
Term of the Agreement
Under the terms of this PSA, this Agreement will expire on March 20, 2026, unless extended for a maximum of two (2) possible – 2-year contract extensions, which would extend the City’s contractual relationship with CAA through March 20, 2030.

FISCAL IMPACT
All work to be performed under the proposed PSA is programmed and appropriated into the budget for the current fiscal year via Account No. 10-534-5260 and 10-534-5267. Since this will be a multi-year PSA, it is anticipated that future fiscal budgets will provide sufficient funding for this service.

Attachment: 1. Professional Services Agreement - Charles Abbott & Associates, Inc.

2. Exhibit A - Scope of Services

3. RFP 2022-04 Building Safety Services

1757507.1

PROFESSIONAL SERVICES AGREEMENT
Building & Safety Services (RFP) 2022-04
[Charles Abbott Associates, Inc.]
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into, to be effective this day of July 1, 2023 (“Effective Date”), by and between the CITY OF LOS ALAMITOS, a California charter city and municipal corporation, (“City”) and CHARLES ABBOTT ASSOCIATES, INC. (“Contractor”) a, California Corporation. City and Contractor are sometimes hereinafter individually referred to as “Party” and are hereinafter collectively referred to as the “Parties.”

RECITALS
A. City has determined that it requires the services of a qualified contractor to provide Building & Safety services including Building Division administration, permit issuance, plan check, inspection, enforcement of building codes, public counter services, and Building Permitting Software via CityTech Solutions.

B. In response to City’s formal Request for Proposals No. 2022-04 (RFP), dated November 14, 2022, Contractor submitted to City a written proposal, dated January 19, 2023, to provide the desired services.

C. City desires to engage Contractor to provide such services subject to the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the promises and mutual obligations, covenants, and conditions contained herein, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

AGREEMENT

1. SERVICES OF CONTRACTOR

1.1 Scope of Services and Standard of Performance. Contractor shall provide those services set forth in the Building & Safety Services for Development Services Department Proposal, dated January 19, 2023, attached hereto as Exhibit “A” (“Scope of Services” and/or “Project Services”). Contractor shall provide the Project Services in compliance with all terms and conditions of this Agreement. Contractor warrants that all Project Services shall be performed in a skillful, competent, professional and satisfactory manner in accordance with all standards prevalent in the same profession in the State of California. Contractor represents and warrants that it and all employees, subcontractors and subconsultants providing any services pursuant to this Agreement shall have sufficient skill and experience to perform the Project Services. All Project Services shall be completed to the reasonable satisfaction of City.

1.1.1 Contract Documents. This Agreement shall consist of the following: (1) the main body of this Agreement; (2) RPF No. 2022-04, dated November 14, 2022; and (3)

1757507.1
Contractor’s Proposal, Exhibit “A”. Should any conflict or inconsistency exist in the Contract Documents, the conflict or inconsistency shall be resolved by applying the provisions in the highest priority document, which shall be determined in the following order of priority: (1st) the main body of this Agreement; (2rd) the RFP, and (3rd) Contractor’s Proposal.

1.2 Compliance with Law. All Project Services shall be provided in accordance with all laws, ordinances, resolutions, statutes, rules, and regulations of City and any federal, state or local governmental agency of competent jurisdiction. Contractor shall be liable for all violations of such laws, ordinances, resolutions, statutes, rules and regulations in connection with performance of the Project Services. If Contractor performs any Project Services in violation of such laws, ordinances, resolutions, statutes, rules or regulations, Contractor shall be solely responsible for all penalties and costs arising therefrom. Contractor shall defend, indemnify, and hold City, its officials, officers, employees, agents and volunteers, free and harmless from and against any claim or liability arising out of any failure or alleged failure to comply with such laws, ordinances, resolutions, statutes, rules or regulations.

1.3 Licenses and Permits. Prior to performing any Project Services, Contractor shall obtain all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession and perform the Project Services. Contractor represents and warrants to City that Contractor shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement and any extension, any license, permit, qualification, or approval that is legally required for Contractor to perform the Project Services. Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Contractor's performance of the Project Services, and shall defend, indemnify, and hold the City, its officials, officers, employees, agents and volunteers, free and harmless from and against any claim or liability arising out of any failure or alleged failure to obtain such license, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession and perform the Project Services.

1.4 Familiarity with Work. By executing this Agreement, Contractor warrants that Contractor (a) has thoroughly investigated and considered the Project Services to be performed, (b) has carefully considered how the Project Services should be performed, and (c) fully understands the facilities, difficulties and restrictions attending performance of the Project Services under this Agreement.

1.5 Care in Performance of Project Services. Contractor shall adopt reasonable methods during the term of the Agreement to prevent losses or damage to materials, papers or other components of the Project Services, and shall be responsible for all such damages, to persons or property, until acceptance of the Project Services by the City, except such losses or damages as may be caused by City's own negligence.

1.6 Non-Exclusive Agreement. Contractor acknowledges that City may enter into agreements with other Contractors, consultants, individuals, or vendors for services similar to the services that are the subject of this Agreement. Contractor further acknowledges that City may have its own employees perform services similar to the services that are the subject of this Agreement.

1757507.1

2. COMPENSATION

2.1 Maximum Contract Amount. Contractor shall be compensated for the Project Services performed, including authorized reimbursements, if any, in accordance with the hourly rates and charges set forth in the Scope of Services. In no event shall the total compensation and costs payable to Contractor under this Agreement exceed the sum of 80% for permit and plan check fees up to $15,000, 65% of permit and plan check fees from $15,001 to $30,000 and 55% of permit and plan check fees over $30,001 up to $75,000, 50% of permit and plan check fees greater than $75,000 including counter, inspection, plan check, and Building Official oversight and an the annual cost of $20,000 for the Building Permitting Software via CityTech Solutions. The maximum amount of City’s payment obligation under this Agreement is the amount specified in this section.

2.2 Method of Payment. In any month in which Contractor wishes to receive payment, Contractor shall no later than first working day of such month, submit to the City, in a form approved by the City Manager or his designee, an invoice for services rendered prior to the date of the invoice. Such requests shall be based upon the amount and value of the services performed by Contractor and accompanied by such reporting data including an itemized breakdown of all costs incurred and tasks performed during the period covered by the invoice, as may be required by the City. Within thirty (30) calendar days of receipt of invoice, City shall pay all undisputed amounts included on the invoice.

2.3 Changes in Scope. In the event any change or changes in the Scope of Services is requested by the City, the Parties shall execute a written amendment to this Agreement, signed by an individual authorized to formally bind the Party for which he/she is signing, setting forth with particularity all terms of such amendment, including, but not limited to, any additional professional fees. An amendment may be entered into: (a) to provide for revisions or modifications to documents or other work product when documents or other work product or work is required by the enactment or revision of law subsequent to the preparation of any documents, other work product, or work; and/or, (b) to provide for additional services not included in this Agreement or not customarily furnished in accordance with generally accepted practice in Contractor’s profession.

2.4 Appropriations. This Agreement is subject to and contingent upon funds being appropriated therefore by the Los Alamitos City Council for each fiscal year covered by the term of this Agreement. If such appropriations are not made, this Agreement shall automatically terminate without penalty to the City.

3. SCHEDULE OF PERFORMANCE

3.1 Time of Essence. Time is of the essence in the performance of this Agreement.

The time for completion of the Project Services to be performed by Contractor is an essential condition of this Agreement.

3.2 Schedule of Performance. Contractor shall prosecute regularly and diligently the Project Services according to the periods specified in the Scope of Services. When requested by Contractor, extensions of the time period(s) specified in the Scope of Services may be approved

1757507.1
in writing by the Contract Officer; however, the City shall not be obligated to grant any such extension.

3.3 Force Majeure. The time for performance of the Project Services may be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Contractor (financial inability excepted), including, but not limited to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, and/or acts of any governmental agency, including the City, if Contractor, within ten (10) calendar days of the commencement of such delay, notifies the City Manager in writing of the causes of the delay. The City Manager shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the enforced delay when and if in the judgment of the City Manager such delay is justified. The City Manager's determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Contractor be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Contractor's sole remedy being extension of the Agreement pursuant to this section.

3.4 Term. Unless earlier terminated as provided elsewhere in this Agreement, this Agreement shall commence upon the Effective Date and shall continue in full force and effect for an initial period of three (3) years, ending on July 1, 2026, with two (2) possible - two (2) year extensions at the sole discretion for renewal by the City, ending on March 20, 2030.

4. COORDINATION OF PROJECT SERVICES

4.1 Contractor’s Representative. The following principal of Contractor is hereby designated as being the principal and representative of Contractor authorized to act on its behalf with respect to the Project Services and to make all decisions in connection therewith: Mark Abbott It is expressly understood that the experience, knowledge, education, capability, expertise, and reputation of the foregoing principal is a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principal shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the Project Services performed hereunder. The foregoing principal may not be changed by Contractor without prior written approval of the Contract Officer.

4.2 City’s Contract Officer. The City’s Contract Officer shall be such person as may be designated by the City Manager, and is subject to change by the City Manager. It shall be the Contractor's responsibility to ensure that the Contract Officer is kept fully informed of the progress of the performance of the Project Services, and the Contractor shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement.

4.3 Prohibition Against Subcontracting or Assignments. The experience, knowledge, capability, expertise, and reputation of Contractor, its principals and employees, were a substantial inducement for City to enter into this Agreement. Therefore, Contractor shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder,

1757507.1
voluntarily or by operation of law, without the prior written consent of City. Contractor shall not contract with any other entity to perform the Project Services without prior written consent of City.

If Contractor is permitted by City to subcontract any part of this Agreement, Contractor shall be responsible to City for the acts and omissions of its subcontractor(s) in the same manner as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City. All persons engaged in the performance of Project Services will be considered employees of Contractor. City will deal directly with and will make all payments to Contractor. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated, or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written consent of City.

Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release Contractor or any surety of Contractor from any liability hereunder without the express written consent of City.

4.4 Independent Contractor.

4.4.1 The legal relationship between the Parties is that of an independent contractor; nothing herein shall be deemed to make Contractor a City employee. During the performance of this Agreement, Contractor and its officers, employees, and agents shall act in an independent capacity and shall not act as City officers or employees. Contractor will determine the means, methods and details of performing the Project Services subject to the requirements of this Agreement. The personnel performing the Project Services on behalf of Contractor shall at all times be under Contractor’s exclusive direction and control. Neither City nor any of its officials, officers, employees, agents or volunteers shall have control over the conduct of Contractor or any of its officers, employees, or agents, except as set forth in this Agreement. Contractor, its officers, employees or agents, shall not maintain a permanent office or fixed business location at City’s offices. City shall have no voice in the selection, discharge, supervision, or control of Contractor’s officers, employees, or agents or in fixing their number, compensation, or hours of service.

Contractor shall pay all wages, salaries, and other amounts due its employees in connection with the performance of Project Services and shall be responsible for all reports and obligations respecting them, including but not limited to social security income tax withholding, unemployment compensation, workers’ compensation, and other similar matters. City shall not in any way or for any purpose be deemed to be a partner of Contractor in its business or otherwise a joint venturer or a member of any joint enterprise with Contractor.

4.4.2 Contractor shall not incur or have the power to incur any debt, obligation, or liability against City, or bind City in any manner.

4.4.3 No City benefits shall be available to Contractor, its officers, employees, representatives, agents, subconsultants or subcontractors in connection with the performance of any Project Services. Except for fees paid to Contractor as provided for in this Agreement, City shall not pay salaries, wages, or other compensation to Contractor for the performance of any Project Services. City shall not be liable for compensation or indemnification to Contractor, its

1757507.1
officers, employees, representatives, agents, subconsultants or subcontractors, for injury or sickness arising out of the performance of any Project Services. If for any reason any court or governmental agency determines that the City has financial obligations, other than pursuant to Section 2 herein, of any nature relating to salary, taxes, or benefits of Contractor’s officers, employees, representatives, agents, or subconsultants or subcontractors, Contractor shall defend, indemnify, and hold harmless City from and against all such financial obligations.

4.5 PERS Eligibility Indemnification.

4.5.1 In the event that Contractor or any officer, employee, representative, agent, subconsultant or subcontractor of Contractor providing any Project Services claims or is determined by a court of competent jurisdiction or the California Public Employee Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Contractor shall indemnify, defend, and hold harmless City against (1) all such claims and determinations, (2) for the payment of any employee and/or employer contributions for PERS benefits on behalf of Contractor or its officers, employees, representatives, agents, subconsultants or subcontractors, and (3) the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the City.

4.5.2 Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Contractor and any of its officers, employees, representatives, agents, subconsultants or subcontractors providing any Project Services shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.

5. INSURANCE

5.1 Compliance with Insurance Requirements. Contractor shall obtain, maintain, and keep in full force and effect during the term of this Agreement, at its sole cost and expense, and in a form and content satisfactory to City, all insurance required under this section. Contractor shall not commence any Project Services unless and until it has provided evidence satisfactory to City that it has secured all insurance required under this section. If Contractor’s existing insurance policies do not meet the insurance requirements set forth herein, Contractor agrees to amend, supplement or endorse the policies to do so.

5.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement, and without limiting the indemnity provisions set forth in this Agreement, Contractor shall obtain and maintain in full force and effect during the term of this Agreement, including any extension thereof, the following policies of insurance:

5.2.1 Professional Liability/Errors and Omissions Insurance ("PLI").

Contractor shall obtain and maintain a policy of Professional Liability or Errors and Omissions Insurance appropriate to Contractor’s profession with per-claim and aggregate limits of no less than Two Million Dollars ($2,000,000.00). Covered professional services shall specifically include all Project Services to be performed under the Agreement and the policy shall be endorsed to delete

1757507.1
any exclusions that may exclude coverage for claims within the minimum PLI limits set forth herein for the Project Services to be performed under this Agreement.

5.2.1.1 The PLI policy shall be endorsed to delete any Contractual Liability Exclusion. The PLI shall include contractual liability coverage applicable to this Agreement. The policy must “pay on behalf of” the insured, and include a provision establishing the insurer’s duty to defend the insured.

5.2.1.2 If the PLI policy is written on a “claims-made” basis, the policy shall be continued in full force and effect at all times during the term of this Agreement, and for a period of three (3) years from the date of the completion of all Project Services provided hereunder (the "PLI Coverage Period"). If any PLI policy is replaced, cancelled, non-renewed, discontinued, or otherwise terminated, or if the limits of a PLI policy are reduced or the available coverage depleted below the required minimum coverage amounts for any reason during the PLI Coverage Period, Contractor shall immediately obtain replacement PLI coverage meeting the requirements of this Section 5.2.1. Such replacement coverage shall satisfy all requirements herein, and shall include coverage for the prior acts or omissions of Contractor during the time period during which any Project Services were performed. The coverage shall be evidenced by either a new policy evidencing no gap in coverage, or by obtaining separate extended “tail” coverage with the present or new carrier or other insurance arrangements providing for complete coverage, either of which shall be subject to the written approval by West-Comm.

5.2.1.3 If the PLI policy is written on an “occurrence” basis, the policy shall be continued in full force and effect during the term of this Agreement, or until completion of the Project Services provided for in this Agreement, whichever is later. In the event of termination of the PLI policy during this period, new coverage shall immediately be obtained, and written evidence of the policy shall be immediately provided to West-Comm, to ensure PLI coverage during the entire course of performing the Project services.

5.2.1.4 Contractor shall not perform any Project Services at any time during which required types or amounts of PLI insurance are not in effect, and West-Comm shall have no obligation to pay Contractor for Project Services performed while required PLI insurance is not in effect.

5.2.2 Commercial General Liability Insurance. Contractor shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of Commercial General Liability Insurance (CGL). Coverage shall be at least as broad as ISO Form CG 00 01 written on a per occurrence basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits of no less than One Million Dollars ($1,000,000.00) per occurrence and Two Million Dollars ($2,000.000.00) in the general aggregate.

The policy shall not contain any endorsements or provisions limiting coverage for (1) contractual liability, (2) cross liability exclusion for claims or suits by one insured against another, or (3) contain any other exclusion contrary to the Agreement.

5.2.3 Automobile Liability Insurance. Contractor shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of Automobile Liability Insurance. Coverage shall be at least as broad as ISO Form CA 00 01 written on a per occurrence basis, covering Code 1 (any auto), or if the Contractor has no owned autos, Code 8 (hired) and

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Code 9 (non-owned), with limits of no less than One Million Dollars ($1,000,000.00) for each occurrence covering bodily injury and property damage.

5.2.4 Workers’ Compensation Insurance. Contractor shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of Workers’ Compensation Insurance in at least the minimum statutory amounts, and in compliance with all other statutory requirements, as required by the State of California. Contractor agrees to waive and obtain endorsements from its workers’ compensation insurer waiving all subrogation rights under its workers’ compensation insurance policy against the City, its officials, officers, employees, agents and volunteers, and to require each of its subconsultants and subcontractors, if any, to do likewise under their workers’ compensation insurance policies. Contractor shall also obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of Employer’s Liability Insurance written on a per occurrence basis with limits of at least One Million Dollars ($1,000,000.00) per accident for bodily injury or disease. Notwithstanding the foregoing, Contractor shall not be required to procure either Worker’s Compensation Insurance or Employer’s Liability Insurance if Contractor provides written verification to the City that Contractor does not have any employees.

5.3 Acceptability of Insurers. Insurance required by this section shall be issued by a licensed company authorized to transact business in the state by the Department of Insurance for the State of California with a current rating of A-:VII or better (if an admitted carrier), or a current rating of A:X or better (if offered by a non-admitted insurer listed on the State of California List of Approved Surplus Lines Insurers (LASLI)), by the latest edition of A.M. Best’s Key Rating Guide, except that the City will accept workers’ compensation insurance from the State Compensation Fund. In the event the City determines that the work or Project Services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Contractor agrees that the minimum limits of the insurance policies may be changed accordingly upon receipt of written notice from the City. Contractor shall immediately substitute any insurer whose A.M. Best rating drops below the levels specified herein.

5.4 Specific Insurance Provisions and Endorsements. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for written approval. Required insurance policies shall contain the following provisions, or Contractor shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:

5.4.1 CGL and Auto Liability Endorsements. The policy or policies of insurance required by this section for CGL and Automobile Liability Insurance shall be endorsed as follows:

5.4.1.1 Additional Insured. The City, its officials, officers, employees, agents and volunteers, shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement; and

5.4.1.1.1 Additional Insured Endorsements. Additional insured endorsements shall not (1) be restricted to “ongoing operations”, (2) exclude “contractual liability”, (3) restrict coverage to “sole” liability of Contractor, or (4) contain any other exclusions contrary to the Agreement; and, the coverage shall contain no special limitations on the scope of

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protection afforded to additional insureds.

5.4.1.2 Primary and Non-Contributing Insurance. Each CGL and Automobile Liability Insurance policy shall be endorsed to be primary, and any other insurance, deductible, or self-insurance maintained by the City, its officials, officers, employees, agents or volunteers, shall not contribute with this primary insurance.

5.4.1.3 Waiver of Subrogation. Each CGL and Automobile Liability Insurance policy shall contain or be endorsed to waive subrogation against the City, its officials, officers, employees, agents and volunteers, or shall specifically allow Contractor or others providing insurance evidence in compliance with the requirements set forth in this section to waive their right to recovery prior to a loss. Contractor hereby agrees to waive its own right of recovery against the City, its officials, officers, employees, agents and volunteers, and Contractor hereby agrees to require similar written express waivers and insurance clauses from each of its subconsultants or subcontractors.

5.4.2 Notice of Cancellation. Each policy of any type shall be endorsed to provide that coverage shall not be suspended, voided, cancelled, or modified, or reduced in coverage or in limits, except after thirty (30) calendar days prior written notice has been provided to the City. Notwithstanding the foregoing, if coverage is to be suspended, voided, or cancelled because of Contractor’s failure to pay the insurance premium, the notice provided by the insurer to City shall be by not less than ten (10) calendar days prior written notice. (A statement that notice will be provided "in accordance with the policy terms" or words to that effect is inadequate to meet the requirements of this section.)
Deductibles and Self-Insured Retentions. Any deductible or self-insured retention must be approved in writing by the City in advance. The decision whether to approve or withhold approval of a deductible or self-insured retention shall be made by the City in the City's sole and absolute discretion.

5.6 Evidence of Coverage. Concurrently with the execution of the Agreement, Contractor shall deliver certificates of insurance together with original endorsements affecting each of the insurance policies required by this section. Contractor shall promptly furnish, at City’s request, copies of actual policies including all declaration pages, endorsements, exclusions and any other policy documents City may require to verify coverage.

5.6.1 Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for written approval.

5.6.2 Authorized Signatures. The certificates of insurance and original endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf.

5.6.3 Renewal/Replacement Policies. At least fifteen (15) calendar days prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Contractor shall, within

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ten (10) calendar days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies meeting all requirements of this Agreement.

5.7 Requirements Not Limiting. Requirement of specific coverage or minimum limits contained in this section are not intended as a limitation on coverage, limits, or other requirements, or a waiver of any coverage normally provided by any insurance. Nothing in this section shall be construed as limiting in any way the indemnification provision contained in this Agreement, or the extent to which Contractor may be held responsible for payments of damages to persons or property.

5.8 Enforcement of Agreement (Non-Estoppel). Contractor acknowledges and agrees that actual or alleged failure on the part of the City to inform Contractor of any noncompliance with any of the insurance requirements set forth in this section imposes no additional obligation on the City nor does it waive any rights hereunder.

5.9 Insurance for Subconsultants. Contractor shall either: (1) include all subconsultants or subcontractors engaged in the performance of Project Services on behalf of Contractor as additional named insureds under the Contractor’s insurance policies; or (2) Contractor shall be responsible for causing its subconsultants or subcontractors to procure and maintain the appropriate insurance in compliance with the terms of the insurance requirements set forth in this section, including adding the City, its officials, officers, employees, agents and volunteers, as additional insureds to their respective policies. Contractor shall not allow any subconsultant or subcontractor to commence any work or services relating to this Agreement unless and until it has provided evidence satisfactory to City that the subconsultant or subcontractor has secured all insurance required under this section.

5.10 Other Insurance Requirements. The following terms and conditions shall apply to the insurance policies required of Contractor and its subconsultants and subcontractors, if any, pursuant to this Agreement:

5.10.1 Contractor shall provide immediate written notice to City if (1) any of the insurance policies required herein are terminated, cancelled or suspended, (2) the limits of any of the insurance coverages required herein are reduced, or (3) the deductible or self-insured retention is increased.

5.10.2 All insurance coverage and limits provided by Contractor and available or applicable to this Agreement are intended to apply to each insured, including additional insureds, against whom a claim is made or suit is brought to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations shall limit the application of such insurance coverage.

5.10.3 None of the insurance coverages required herein will be in compliance with the requirements of this section if they include any limiting endorsement which substantially impairs the coverages set forth herein (e.g., elimination of contractual liability or reduction of discovery period), unless the endorsement has first been submitted to the City and approved in

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writing.

5.10.4 Certificates of insurance will not be accepted in lieu of required endorsements, and submittal of certificates without required endorsements may delay commencement of the Project. It is Contractor’s obligation to ensure timely compliance with all insurance submittal requirements as provided herein.

5.10.5 Contractor agrees to ensure that subconsultants and subcontractors, if any, and any other parties involved with the Project who are brought onto or involved in the Project by Contractor, provide the same minimum insurance coverage required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with subcontractors and others engaged in the provision of Project Services will be submitted to the City for review.

5.10.6 Contractor agrees to provide immediate written notice to City of any claim, demand or loss against Contractor arising out of the work or Project Services performed under this Agreement and for any other claim, demand or loss which may reduce the insurance available to pay claims, demands or losses arising out of this Agreement.

6. INDEMNIFICATION
To the fullest extent permitted by law, Contractor shall defend (at Contractor’s sole cost and expense with legal counsel reasonably acceptable to City), indemnify and hold the City, its officials, officers, employees, agents and volunteers, free and harmless from any and all claims, demands, orders, causes of action, costs, expenses, liabilities, losses, penalties, judgments, arbitration awards, settlements, damages or injuries of any kind, in law or in equity, including but not limited to property or persons, including wrongful death, (collectively “Claims”) in any manner arising out of, pertaining to, related to, or incident to any alleged acts, errors or omissions, or willful misconduct of Contractor, its officers, directors, employees, subconsultants, subcontractors, agents or invitees in connection with performance under this Agreement, or in any manner arising out of, pertaining to, related to, or incident to an alleged breach of this Agreement, including without limitation the payment of all consequential damages, expert witness fees and attorneys’ fees and other related costs and expenses.

Notwithstanding the foregoing, and only to the extent that the Project Services performed by Contractor are subject to California Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor.

Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit Contractor’s indemnification obligation or other liability hereunder. Notwithstanding the foregoing, such obligation to defend, hold harmless and indemnify the City, its officials, officers, employees, agents and volunteers, shall not apply to the extent that such Claims are caused by the sole negligence or willful misconduct of that indemnified party.

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7. REPORTS AND RECORDS

7.1 Records. Contractor shall keep complete, accurate, and detailed accounts of all time, costs, expenses, and expenditures pertaining in any way to this Agreement. Contractor shall keep such books and records as shall be necessary to properly perform the Project Services required by this Agreement and to enable the Contract Officer to evaluate the performance of such Project Services. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.

7.2 Reports. Contractor shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the Project Services as the Contract Officer shall require.

7.3 Ownership of Documents. All drawings, specifications, reports, records, documents, memoranda, correspondence, computations, and other materials prepared by Contractor, its employees, subconsultants, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be promptly delivered to City upon request of the Contract Officer or upon the termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder. Contractor may retain copies of such documents for its own use. Contractor shall have an unrestricted right to use the concepts embodied therein. Contractor shall ensure that all of its subconsultants and subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom.

7.4 Release of Documents. Except to the extent otherwise required by law, no drawing, specification, report, record, document, or other material prepared by Contractor, its employees, subconsultants, subcontractors and agents in the performance of Project Services shall not be released publicly without the prior written approval of the Contract Officer.

8. ENFORCEMENT OF AGREEMENT

8.1 California Law and Venue. This Agreement shall be construed and interpreted both as to validity and as to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Orange, State of California, or any other appropriate court in such County, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.

8.2 Waiver. No delay or omission in the exercise of any right or remedy of a nondefaulting Party on any default shall impair such right or remedy or be construed as a waiver. No consent or approval of City shall be deemed to waiver or render unnecessary City’s consent to or approval of any subsequent act of Contractor. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

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8.3 Rights and Remedies Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

8.4 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.

8.5 Termination Prior to Expiration of Term. City reserves the right to terminate this Agreement, at any time, with or without cause, upon thirty (30) calendar days written notice to Contractor, except that where the continuation of services would constitute a danger to health, safety or general welfare, the period of notice shall be such shorter time as may be appropriate.

Upon receipt of the notice of termination, Contractor shall immediately cease all Project Services, except as may be specifically approved by the Contract Officer. Contractor shall be entitled to compensation for all Project Services rendered prior to receipt of the notice of termination and for any Project Services authorized by the Contract Officer thereafter.

8.6 Termination for Default of Contractor.

8.6.1 Contractor’s failure to comply with any provision of this Agreement shall constitute a default.

8.6.2 If the Contract Officer determines that Contractor is in default in the performance of any of the terms or conditions of this Agreement, he/she shall notify Contractor in writing of such default. If such default is capable of being cured, Contractor shall have ten (10) calendar days, or such longer period as City may designate, to cure the default by rendering satisfactory performance. In the event Contractor fails to cure its default within such period of time, or if such default is not capable of being cured, City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice of any remedy to which City may be entitled at law, in equity, or under this Agreement. Contractor shall be liable for any and all reasonable costs incurred by City as a result of such default. Compliance with the provisions of this section shall not constitute a waiver of any City right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City’s right to terminate this Agreement without cause pursuant to Section 8.5.

8.6.3 If termination is due to the failure of Contractor to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 8.6.2, take over the Project Services and prosecute the same to completion by contract or otherwise, and Contractor shall be liable to the extent that the total direct and indirect costs for completion of the Project Services required hereunder exceeds the Maximum Contract Amount, and City may withhold any payments to Contractor for the purpose of set-off toward the cost of completion of the Project Services. The withholding or failure to withhold payments to Contractor shall not limit Contractor’s liability for completion of the Project Services as provided herein.

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8.7 Attorneys’ Fees. In the event any dispute between the Parties with respect to this Agreement results in litigation or any non-judicial proceeding, the prevailing Party shall be entitled, in addition to such other relief as may be granted, to recover from the non-prevailing Party all reasonable costs and expenses, including but not limited to reasonable attorneys’ fees, expert witness fees, court costs and all fees, costs, and expenses incurred in any appeal or in collection of any judgment entered in such proceeding. To the extent authorized by law, in the event of a dismissal by the plaintiff or petitioner of the litigation or non-judicial proceeding within thirty (30) calendar days of the date set for trial or hearing, the other Party shall be deemed to be the prevailing Party in such litigation or proceeding. For purposes of this section, "Reasonable attorney fees" shall be calculated by multiplying the actual number of hours reasonably expended by the attorney(s) handling the dispute on behalf of the prevailing Party by the hourly rate actually paid by the prevailing Party, but in no case shall the hourly rate exceed Two Hundred and Fifty Dollars ($250.00) per hour.

9. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

9.1 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Contractor, or any successor-in-interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.

9.2 Covenant Against Discrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns, subcontractors, subconsultants and all persons claiming under or through them, that there shall be no discrimination or segregation in the performance of or in connection with this Agreement regarding any person or group of persons on account of race, disability, medical condition, color, creed, religion, sex, sexual orientation, marital status, age, national origin, or ancestry. Contractor shall take affirmative action to insure that applicants and employees are treated without regard to their race, disability, medical condition, color, creed, religion, sex, sexual orientation, marital status, national origin, or ancestry.

10. MISCELLANEOUS PROVISIONS

10.1 Notices. Any notice, demand, request, consent, approval, or communication either Party desires or is required to give to the other Party or any other person shall be in writing and either served personally during normal hours of operation of the Party receiving the notice, or sent by pre-paid, first-class mail to the address set forth below. Either Party may change its address by notifying the other Party of the change of address in writing. Notice shall be deemed communicated on the day personally served, or two (2) business days from the date of mailing if mailed as provided in this section. Additionally, notices by email will be considered legal notice if such communications include the following text in the Subject field: FORMAL LEGAL NOTICE – Charles Abbott Associates, Inc.

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To City: Chet Simmons, City Manager
City of Los Alamitos
3191 Katella Ave.

Los Alamitos, CA 90720
[email protected]
With copy to:

Michael S. Daudt,
City Attorney
Woodruff, Spradlin & Smart
555 Anton Blvd., Suite 1200
Costa Mesa, CA 92626
[email protected]
To Contractor: Mark Abbott, CBO
27201 Puerta Real, #200
Mission Viejo, CA92691
[email protected]

10.2 Entire Agreement; Amendments in Writing. This Agreement constitutes the entire agreement between the Parties and is intended as an integrated agreement, superseding all prior negotiations, arrangements, agreements, representations, and understandings, if any, made by or among the Parties with respect to the subject matter hereof. No amendments or other modifications of this Agreement shall be binding unless executed in writing by both Parties hereto, or their respective successors, assigns, or grantees.

10.3 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement, which shall be interpreted to carry out the intent of the Parties hereunder.

10.4 Successors in Interest. This Agreement shall be binding upon and inure to the benefit of the Parties’ successors and assignees.

10.5 Third Party Beneficiary. Except as expressly provided herein, nothing contained in this Agreement is intended to confer, nor shall this Agreement be construed as conferring, any rights, including, without limitation, any rights as a third-party beneficiary or otherwise, upon any entity or person not a party hereto.

10.6 Recitals. The above-stated Recitals are hereby incorporated into the Agreement as though fully set forth herein and each Party acknowledges and agrees that such Party is bound, for purposes of this Agreement, by the same.

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10.7 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”). Contractor agrees to fully comply with all applicable federal and state labor laws (including, without limitation, if applicable, the Prevailing Wage Laws). It is agreed by the Parties that, in connection with the work or Project Services provided pursuant to this Agreement, Contractor shall bear all risks of payment or non-payment of prevailing wages under California law, and Contractor hereby agrees to defend, indemnify, and hold the City, its officials, officers, employees, agents and volunteers, free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. The foregoing indemnity shall survive termination of this Agreement.

10.8 Corporate Authority. Each of the undersigned represents and warrants that (i) the Party for which he/she is executing this Agreement is duly authorized and existing, (ii) he/she is duly authorized to execute and deliver this Agreement on behalf of the Party for which he/she is signing, (iii) by so executing this Agreement, the Party for which he/she is signing is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other agreement to which the Party for which he/she is signing is bound.
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IN WITNESS WHEREOF, the Parties have executed and entered into this Agreement as of the date first written above.
“City”
City of Los Alamitos
By:

Tanya Doby
Mayor
APPROVED AS TO FORM.

Woodruff, Spradlin & Smart, APC
By:

Michael S. Daudt
City Attorney
ATTEST:

By:

Windmera Quintanar, MMC
City Clerk
“Contractor”
Name of Contractor
By:

Mark Abbott
CBO
[email protected]
By:

Rusty R. Reed
President
[email protected]

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EXHIBIT “A”
1277023.1

Request For Proposal 2022-04
Building & Safety Services
City of Los Alamitos
2 | P a g e
City of Los Alamitos
Request for Proposal (RFP) 2022-04
Building & Safety Services
FOR
Development Services Department
Attn: Ron Noda
Development Services Director
3191 Katella Avenue
Los Alamitos, California 90720
(562) 431-3538, Extension 500
(562) 493-1255 Fax
Email: [email protected]
DATED: November 14, 2022
Deadline/Bid Opening Date:

Must be received by 10:00am
Thursday, January 19, 2023
RFP Available at http://www.cityoflosalamitos.org

Request For Proposal 2022-04
Building & Safety Services
City of Los Alamitos
3 | P a g e

TABLE OF CONTENTS

BUILDING & SAFETY SERVICES
REQUEST FOR PROPOSAL (RFP) 2022-04

IN THE CITY OF LOS ALAMITOS, CALIFORNIA

NOTICE INVITING SEALED PROPOSALS A

PROPOSAL RESPONSE REQUIREMENTS B

BACKGROUND AND PROJECT EXPECTATIONS C

SCOPE OF SERVICES D

PROPOSAL SCHEDULE E

PROFESSIONAL SERVICES AGREEMENT F

Request For Proposal 2022-04
Building & Safety Services
City of Los Alamitos
4 | P a g e

SECTION A

NOTICE INVITING SEALED BIDS

BUILDING & SAFETY SERVICES
REQUEST FOR PROPOSAL (RFP) 2022-04

IN THE CITY OF LOS ALAMITOS, CALIFORNIA

Request For Proposal 2022-04
Building & Safety Services
City of Los Alamitos
5 | P a g e

NOTICE INVITING PROPOSALS

CITY OF LOS ALAMITOS
Development Services Department
NOTICE OF REQUEST FOR PROPOSALS 2022-04
Sealed proposals will be received at the office of the City Clerk of the City of Los Alamitos, 3191 Katella Avenue, Los Alamitos, California 90720 until 10:00 a.m. on Thursday, January 19, 2023.

BUILDING AND SAFETY SERVICES PROPOSAL
Proposals must be submitted on the City’s Request for Proposal Forms and submitted in sealed envelopes marked on the outside, “SEALED PROPOSAL FOR BUILDING AND SAFETY SERVICES RFP 2022-04. DO NOT OPEN WITH REGULAR MAIL.”
The contract will consist of building and safety services, including Building Division administration, permit issuance, plan check, inspection, enforcement of building codes and public counter services.

City of Los Alamitos
Ron Noda
Development Services Director
3191 Katella Avenue
Los Alamitos, CA 90720

Request For Proposal 2022-04
Building & Safety Services
City of Los Alamitos
6 | P a g e

SECTION B

PROPOSAL RESPONSE REQUIREMENTS

BUILDING & SAFETY SERVICES
REQUEST FOR PROPOSAL (RFP) 2022-04

IN THE CITY OF LOS ALAMITOS, CALIFORNIA

Request For Proposal 2022-04
Building & Safety Services
City of Los Alamitos
7 | P a g e

BUILDING & SAFETY SERVICES
REQUEST FOR PROPOSAL (RFP) 2022-04

IN THE CITY OF LOS ALAMITOS, CALIFORNIA
SECTION I – PROPOSAL REQUIREMENTS
Proposal Response Requirements
The purpose of this Request for Proposal (RFP) is to solicit and select Consultant(s) to provide building and safety services, including Building Division administration, permit issuance, plan check, inspection, enforcement of building codes, and public counter services.

Responses must conform with the requirements of this RFP. All services provided by the Consultant shall be performed by individuals, who meet the qualification, standards, and requirements for the position. The successful Consultant(s) shall also have the resources to provide effective and timely services including providing customer service to the City of Los Alamitos.

Proposers shall submit Proposal on or before the Submittal Deadline. If discrepancies are found between the copies, or between the original and copy or copies, the “ORIGINAL” will provide the basis for resolving such discrepancies. If no document can be identified as original bearing original signatures, Proposer's Proposal may be rejected at the discretion of the City.

Please submit six (6) color copies of the proposal, and in addition to the hard copies, an electronic copy on a flash drive shall be included with the proposal submittal. Proposal rate structure shall be submitted and clearly marked.

Proposals sent by telephone, e-mail or facsimile, will not be accepted. It is the sole responsibility of each proposer to ensure that its proposal reaches the City by the time and date specified. Once opened, all responses become public record and will be available to the public for review. Cost incurred by the Proposer in the preparation of the response to this RFP, is the sole responsibility of the respondent, and will not be reimbursed by the City.

It is imperative that all Consultant(s) responding to the RFP comply exactly and completely with the instructions set forth herein. Proposals must be concise but with sufficient detail to allow accurate evaluation and comparative analysis. Proposals should be straightforward and provide "layman" explanations of technical terms that are used. Emphasis should be concentrated on conforming to the RFP instructions, responding to the RFP requirements, and on providing a complete and clear description of the proposal. Proposal should be concise and be able to properly convey all information.

During the evaluation process, the City reserves the right, where it may serve the City’s best interest, to request additional information or clarification from the proposers. The City reserves

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the right to waive any irregularity, informality or error in any proposal or in the RFP process, or to reject any proposal, which does not comply with this RFP. At the discretion of the City, firms submitting proposals may be requested to make oral presentations as part of the evaluation process.

All requests for information (RFI’s) shall be submitted to the City no later than Monday, January 9, 2023 at 10 a.m.

Withdrawal of proposals shall not be permitted for a period of sixty (60) days after the date set for the opening thereof. The City reserves the right to reject any and all proposals.

Section II – Additional Proposal Response Requirements
A: Letter of Transmittal
Please include a brief introduction and history of your firm. Be sure to state why you believe that your firm is the best qualified to provide such services to the City of Los Alamitos.

B: Consultant Data
Please submit the following information:

1. Official firm name and address.

2. Name, address, telephone number and email address of the Proposer’s point of contact.

3. Indicate what type of entity (corporation, Consultant, joint venture, etc.). Please enclose a copy of the Joint Venture Agreement if entity is a joint venture.

4. Federal Employer I.D. Number.

5. The address, telephone numbers, and fax numbers of each of your firm’s locations.

6. A detailed statement indicating whether Proposer is entirely or partially owned by another business organization or individual.

7. Number of years Proposer has been in business under the present business name.

8. All comparable contracts currently in effect.

9. Please describe areas of specialization provided by the Proposer.

10. Any failures or refusals to complete a contract and explanation.

11. Financial interests in other lines of business.

12. Known conflicts of interest.

C: Proposal

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The proposal shall clearly address all of the information requested herein. To achieve a uniform review process and obtain the maximum degree of comparability, it is required for the proposal to be organized, and contain all information as specified below:

1. Letter of Introduction, to include an understanding of the scope of services.

2. The firm’s approach to delivering the scope of services.

3. Brief Consultant profile and number of years the firm has been in business.

4. Location of principal office that will be responsible for the implementation of any contracts.

5. Description of the professional qualifications of the personnel who will be assigned to work in the City of Los Alamitos. While the Consultant(s) may propose any staffing scenario to effectively perform the services, the proposal shall identify the key personnel who will be assigned to perform the services and how, where, and when those services will be provided.
• The successful Proposer may change the Management Contact, Building Inspector, Permit Technician, Building Official and other supporting staff and specialists with prior written permission of the City.

6. Provide the name, title, experience, qualifications, discipline and resume of the personnel who will be assigned to the City, including any sub-consultants.

Indicate the number of persons for each position, including their availability and time commitment and other resources proposed to provide services to the City of Los Alamitos, to fulfill the desired level of services reflected in the Scope of Services.

7. Provide examples of services or projects that the firm/company and Staffing Team Members are successfully working on or have completed, with preference to those assignments that have been completed within the past 5 years.

8. Cost Proposal (including hourly rate) for Services. The method of payment upon negotiation of an agreement shall be monthly payments based upon satisfactory progress and the submission of requests for payments. This should include hourly billable costs of each team member; project manager, associate and various titles.

If fixed fee for compensation, payment subject to accepted percentage completion.

9. Accurate list of all personnel who have any relationship to work performed within the scope of this Agreement. List data shall indicate personnel by building(s) in which they are assigned to work, and must include full names.

10. Any other information, which should be considered, such as any special services or construction management philosophy, which define your firm’s practices.

11. If contracted in the future, the firm will be required to have professional liability insurance including liability at a minimum of one million per occurrence, worker’s compensation. The proposal shall state whether the firm could provide such insurance proof of coverage at time of any contract execution.

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12. The firm will be required to have and provide proof of insurance and indemnify the City in accordance with the City’s insurance requirements. The proposal shall state that such insurances will be in force at time of contract execution.

13. Provide a list of five (5) reference who may be contacted to discuss their experience working with the firm/company on similar services. Please provide contact information including Organization, Name, Title, Address, Phone Number, E-mail, Description of Services Provided and Date of Completion.

14. Proposer shall describe the steps to be taken during the transition period from the existing provider prior to the start of the contract period. The Proposer should provide examples where the consultant has made a similar transition from another contract provider and the methods that the consultant utilized in achieving this transition.

The City of Los Alamitos reserves the right to accept or reject any and all proposals, or any portion of any proposal, or to waive any irregularities or informalities in the proposal or in the proposal process, or to make the award on the basis of that item or combination or items which, in its opinion, serves the best interest of the City. Services shall not commence until the Professional Services Agreement is executed by the City. Responses to this Request for Proposal become the property of the City.

Section III - General Conditions

3.1 Authorized Signatures
Every Proposal must be signed by the person or persons legally authorized to bind the Proposer to a contract for the execution of the work. Upon request of the City, any agent submitting a Proposal on behalf of a Proposer shall provide a current power of attorney certifying the agent’s authority to bind the Proposer. If an individual makes the Proposal, his or her name, signature, and post office address must be shown. If a firm or partnership makes the Proposal, the name and post office address of the firm or partnership and the signature of at least one of the general partners must be shown. If a corporation makes the Proposal, the Proposal shall show the name of the state under the laws of which the corporation is chartered, the name and post office address of the corporation and the title of the person signing on behalf of the corporation.

3.2 Award of Proposal
Award will be made to the Proposers offering the most advantageous Proposal after consideration of all criteria set forth in this RFP. The criteria are not listed in any order of preferences. An Evaluation Committee will be established by the City. The Committee will evaluate all Proposals received in accordance with the Evaluation Criteria. The City reserves the right to establish weight factors that will be applied to the criteria depending upon order of importance. Weight factors and evaluation scores will not be released until after award of Request for Proposal. The City shall not be obligated to accept the lowest

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priced Proposal but will make an award in the best interests of the City after all factors have been evaluated.

Discussions may, at the City's option, be conducted with responsible Proposers who submit Proposals determined to be potentially selected for an award. Discussions may be for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements. Proposers shall be accorded fair and equal treatment with respect to any opportunity for discussion and written revision of Proposals. In conducting discussions, the City will not disclose information derived from Proposals submitted by competing Proposers.

3.3 Cancellation of Solicitation
The City may cancel this solicitation at any time.

3.4 City of Los Alamitos Business License
Firm and its Sub-Consultants are required to maintain an active City business license for the duration of this Agreement.

3.5 Annual Payment to the City
Firm is to provide the City with an annual payment of $12,000 to support City events and Building & Safety outreach. This payment is due at contract execution and each successive January 1st throughout the term of this Agreement.

3.6 Compliance with Laws
All Proposals shall comply with current federal, state, and other laws relative thereto.

3.7 Contract Documents, Examination Of
It is the responsibility of the Proposer to thoroughly examine and be familiar with these RFP documents, general conditions, all forms, specifications, and addenda (if any), referred to as Contract Documents. Proposer shall be satisfied as to the character, quantity, and quality of work to be performed and materials, labor, supervision, necessary to perform the work as specified by the Contract Documents. The failure or neglect of the Proposer to examine the Contract Documents shall in no way relieve them from any obligations with respect to the solicitation or contract. The submission of a Proposal shall constitute an acknowledgment upon which the City may rely that the Proposer has thoroughly examined and is familiar with the Contract Documents. The failure or neglect of a Proposer to receive or examine any of the Contract Documents shall in no way relieve them from any obligations with respect to the Proposal. No claim will be allowed for additional compensation that is based upon a lack of knowledge of any solicitation document.

3.8 Costs
The City is not liable for any costs incurred by Proposers before entering into a formal contract. Costs of developing the Proposal or any other such expenses incurred by the Proposer in responding to the RFP, are entirely the responsibility of the Proposer, and shall

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not be reimbursed in any manner by the City. No reimbursable cost may be incurred in anticipation of award.

3.9 Disqualification of Proposer
If there is reason to believe that collusion exists among the Proposers, the City may refuse to consider Proposals from participants in such collusion. No person, firm, or corporation under the same or different name, shall make, file, or be interested in more than one Proposal for the same work unless alternate Proposals are called for. Reasonable grounds for believing that any Proposer is interested in more than one Proposal for the same work will cause the rejection of all Proposals for the work in which a Proposer is interested. If there is reason to believe that collusion exists among the Proposers, the City may refuse to consider Proposals from participants in such collusion.

3.10 Interpretation of Request for Proposals
City reserves the right to make corrections or clarifications of the information provided in this RFP. If any person is in doubt as to the true meaning of any part of the specifications or any Contract Documents, or finds discrepancies or omissions in the specifications, he or she may submit to the City a written request for an interpretation or correction. The written request for clarifications shall be submitted no later than Monday, January 9, 2023, 2023 at 10 a.m. Oral statement(s) interpretations or clarifications concerning meaning or intent of the contents of this RFP by any person are unauthorized and invalid.

Requests for Interpretations (RFI’s) shall be made in writing and delivered to Development Services Director, City of Los Alamitos, 3191 Katella Avenue, Los Alamitos CA 90720.

The requesting party is responsible for prompt delivery of any requests.

When the City considers interpretations necessary, interpretations will be in the form of an addendum to the Contract Documents, and when issued, will be sent as promptly as is practical to all parties recorded by the City as having received Contract Documents. All such addenda shall become a part of the contract. It is the responsibility of each Proposer to ensure the City has their correct business name and address on file. Any prospective Proposer who obtained a set of Contract Documents is responsible for advising the City that they have a set of Contract Documents and wish to receive subsequent addenda.

3.11 Irregularities
City reserves the right to waive non-material irregularities if such would be in the best interest of the City as determined by the City Council.

3.12 Non-Exclusive Contract
The successful Proposer will enter into a non-exclusive contract and the City reserves the right to enter into agreements with other firms for services.

3.13 No Obligation
The release of this RFP does not obligate nor compel the City to enter into a contract or

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agreement.

3.14 Offers of More Than One Price
Proposers are NOT allowed to submit more than one Proposal.

3.15 Proposal, Rejection Of
The City reserves the right to reject any or all Proposals or any part of a Proposal. The City reserves the right to reject the Proposal of any Proposer who previously failed to perform adequately for the City or any other governmental agency. The City expressly reserves the right to reject the Proposal of any Proposer who is in default on the payment of taxes, licenses or other monies due the City.

3.16 Proprietary Information
Proposal must NOT be marked as confidential or proprietary. City may refuse to consider a Proposal so marked. Information in Proposals shall become public information and is subject to disclosure laws.

3.17 Public Opening
There will be a public opening of Proposals. Prices and other Proposal information shall not be made public until the Proposal is awarded. At that time the submitted Proposal information and executed contract will become public information.

3.18 Severability
If any provisions or portion of any provision, of a contract are held invalid, illegal or unenforceable, they shall be severed from the contract and the remaining provisions shall be valid and enforceable.

3.19 Sub-Consultant Information
If the Proposal includes the use of Sub-Consultants, Proposer must identify SubConsultants and the specific requirements of this RFP for which each proposed SubConsultants would perform services.

3.20 Sub-Consultant References
For all Sub-Consultants that will be used on this project, Proposers must provide a minimum of three references from similar projects performed for any local government clients within the last three years. Information provided shall include:

A. Client name

1. Project description

2. Dates (starting and ending)

3. Technical environment

4. Staff assigned to reference engagement that will be designated for work per this

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RFP

5. Client project manager's name and telephone number.

3.21 Terms of An Offer
The City reserves the right to negotiate final contract terms with any selected Proposer.

The City's standard form Professional Services Agreement (PSA) shall be used, and includes other provisions not described here. A standard Professional Services Agreement is attached for reference. Please review this very carefully and note in the body of your response any exceptions or alterations to the agreement. Alterations or changes to the agreement which were not in the Consultant’s proposal will not be made after the selection of the Consultants. This includes alterations, exceptions, or changes to the insurance and indemnity provisions. In the event of any conflict or contradiction between or among these documents, the documents shall control in the following order of precedence: any executed contract, the RFP, any modifications and clarifications to the awarded Proposer’s Proposal, and the awarded Proposer’s Proposal. Specific exceptions to this general rule may be noted in an executed contract. Proposer understands and acknowledges that the representations above are material and important, and will be relied on by the City in evaluation of the Proposal. Proposer misrepresentation shall be treated as fraudulent concealment from the City of the facts relating to the Proposal.

3.22 Withdrawal of Proposal
Proposers’ authorized representative may withdraw Proposals only by written request received by the City Manager before the Proposal Submittal Deadline.

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SECTION C

BACKGROUND AND PROJECT EXPECTATIONS

BUILDING & SAFETY SERVICES
REQUEST FOR PROPOSAL (RFP) 2022-04

IN THE CITY OF LOS ALAMITOS, CALIFORNIA

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BUILDING & SAFETY SERVICES
REQUEST FOR PROPOSAL (RFP) 2022-04

IN THE CITY OF LOS ALAMITOS, CALIFORNIA

4.0 BACKGROUND AND PROJECT EXPECTATIONS
The purpose of this Request for Proposal (RFP) is to solicit and select Consultant(s) to provide building and safety services, including Building Division administration, permit issuance, plan check, inspection, enforcement of building codes, and public counter services.

The City’s Development Services Department provides a broad spectrum of services to the community in areas of Building & Safety, Code Enforcement, Economic Development, Engineering, Planning and Public Works. This Department also manages, reviews, and approves developmental plans for all properties located within the City boundaries.

Within the Development Services Department, the Building & Safety Division is responsible for providing construction plan review services, in order to ensure the safety of building occupants within homes, workspaces, and other buildings constructed in the City. The review of construction plans is critical to providing the level of safety expected at the earliest and most cost effective time, when the project is in the review stage.

The City’s current contract will expire on June 30, 2023. The City has transitioned plan check reviews to Bluebeam software for plan review, and also utilizes a paperless system to automate workflow, provide online portal capabilities including the issuance of building permits, status tracking, mobile solutions, and other modern technology upgrades. The Building & Safety Division currently utilizes the City Tech system for permits, plan checks and inspections.

Over the past five years, the Building & Safety Division has seen the following levels of activity through the noted fiscal cycles:

FISCAL YEAR 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023* Permit Valuation $23,553,235.00 $24,196.473.45 $10,205,195.92 $10,368,904.00 $6,286,450.00 No. of Permits 411 391 418 415 146
No. of
Inspections 1593 1619 1681 1407 411
The City desires to select a qualified firm to provide building and safety services, including:
• Building Division Administration
• Building Plan Check
• Building Inspection
• Building Code Enforcement

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• Building Counter Operations

4.1 USE OF SUB-CONSULTANTS
The City is committed to selecting an excellent team that will produce a high quality work product, and deliver a high level of customer service. Should the use of sub-consultants be proposed by the proposing firm, they shall be clearly identified and included as part of the proposal in response to this RFP.

4.2 PROPOSAL REVIEW PROCESS & SCHEDULE
The City of Los Alamitos will review all proposals received by the submittal deadline indicated in this RFP. Proposals that do not meet the minimum requirements of this RFP will be rejected. The City reserves the right to select the firm that best meets the overall needs and offers the best overall value to the City based on a variety of criteria, including but not limited to, experience of the team, quality of work product, customer service delivery, and not solely on the lowest cost of services. It is anticipated that following interviews, the City will identify a preferred firm to enter contract negotiations. Upon successful negotiations with the preferred firm, an Agreement will be presented to the City Council for consideration.

The following is the anticipated scheduled for the awarding of this RFP:

Request for Proposal Made
Available
Tuesday, November 15, 2022
Proposal Due at City Hall Thursday, January 19, 2023 at 10 a.m.

City Review of Proposals Monday, January 23, 2023 to
Thursday, February 9, 2023
Interviews with Finalists Monday, February 13, 2023 to
Thursday, February 16, 2023
City Council Consideration for Awarding Monday, March 20, 2023 *Dates subject to change at the sole discretion of the City.

RFP INQUIRIES
All inquiries, questions, and requests for information related to this RFP should be directed to Ron Noda, Development Services Director, via email at [email protected] and will only be accepted until Monday, January 9, 2023 at 10 a.m.

Changes in the contract and corresponding changes in compensation may be implemented upon mutual written agreement of the City and the Consultant. The City reserves the right to add or delete services at any time with 30 days written notice to Consultant. If additional services are requested, the Consultant is required to provide a cost estimate detailing them as an attachment to the proposal along with prices, where applicable, which may be offered as an addendum for the term of this contract agreement.

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All work determined by the City to be defective or deficient in any of the requirements shall be remedied by the Consultant at the Consultant’s expense and in a manner acceptable to the City.

City reserves the right to deduct from the payments due or to become due to the Consultant for deficient performance. The amount of such deductions will be based on the value and extent of the unsatisfactory work. A copy of the City inspection record for the project, with associated deduction calculation will be furnished to the Consultant prior to a deduction being made.

The Consultant shall adhere to all currently applicable federal, state, and local laws, codes and ordinances, including, but not limited to, those promulgated by CAL-OSHA, California Department of Industrial Relations, the California State Department of Health Services, FEDOSHA, EPA and the Material safety Data Sheets (MSDS) standards.

It is the intent of the City to award a contract for provide building and safety services, including Building Division administration, permit issuance, plan check, inspection, enforcement of building codes, and public counter services, in form approved by the City Attorney. The City reserves the right to further negotiate the terms and conditions of the Agreement. The City shall preserve the right to reject any proposal for noncompliance with Agreement requirements and provisions, or to not award an agreement because of unforeseen circumstances or if it is determined to be in the best interest of the City. This project will be awarded based on demonstrated ability and performance providing similar services at a fair and reasonable cost.

This Agreement may not be awarded to the lowest respondent. The City Council will approve, as part of the annual City budget, with a specified project budget.

A. Definitions
Where “as directed”, “as required”, “as permitted”, “approve”, “acceptance”, or words of similar import are used, it shall be understood that the direction, requirement, permission, approval or acceptance by the City of Los Alamitos is intended unless otherwise stated. As used herein, “provide” shall be understood to mean “provide complete”, in total. The word “facility” as used hereinafter shall be understood to mean the location receiving the service. The use of the words “Consultant” shall be held to mean the Consultant and/or any person employed by them and working under the agreement to the awarded Consultant.

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SECTION D

SCOPE OF SERVICES

BUILDING & SAFETY SERVICES
REQUEST FOR PROPOSAL (RFP) 2022-04

IN THE CITY OF LOS ALAMITOS, CALIFORNIA

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5.0 SCOPE OF SERVICES
The purpose of this Request for Proposal (RFP) is to solicit and select Consultant(s) to provide building and safety services, including Building Division administration, permit issuance, plan check, inspection, enforcement of codes, and public counter services. Under the direction of the Development Services Director, the selected Consultant would serve in the described capacity.

The following Scope of Services represents the services and responsibilities the successful proposer will be expected to provide and perform. Please indicate the skills, ability, and or/services which distinguish the firm to make it the best choice for the City. Additional services or tasks which, in your opinion, should be included must be clearly identified. Conversely, requested services or tasks which, in your opinion, should not be included, or are specifically excluded from the proposal, must also be clearly identified.

The final Scope of Services, as may be modified through negotiations and/or by written addendum issued by the City, will be made part of the Agreement with the successful proposer.

1. Building & Safety Services (General)
a. Services shall include issuance of building permits, review of plans and development specifications, inspections of construction sites and buildings, and enforcement of building codes.
b. Consultant will conduct any necessary or required investigations as directed by the City. Investigations will include field and office research, investigation follow-ups and preparation of notices, letters, or documents. The enforcement of codes for work requiring a permit is included.
c. At the firm’s own cost, Consultant will provide and maintain all vehicles and equipment required or necessary to carry out inspections and duties of the Building & Safety Division.

2. Building Division Administration
a. Consultant shall provide an International Code Council (ICC) Certified Building Official. The Building Official shall be responsible for the daily administration of Building Division activities, and shall perform the following services, including but not limited to:
i. Function as the Building Official as set forth in the California Building Code, in other municipal government adopted building codes and ordinances, and as specified in Federal and State law.
ii. Issue Certificates of Use and Occupancy (C of O) for building and structures.
iii. Manage, coordinate and oversee the building permit and plan check, building inspection and building counter services, so that they function as one Building & Safety organization.

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iv. Maintain, amend and develop ordinances and regulations necessary to implement and enforce the latest editions of the California Building Code, including any and all related Codes, or other uniform safety codes, laws, or regulations as adopted or amended by the City deemed necessary by the City to protect the health, safety and welfare of its constituents. v. Make determination on the approval and use of alternative materials and methods of construction.
vi. Process and prepare Planning Commission and City Council reports and recommendations, and assist in the presentation of appeals regarding building and safety matters. Attend City Council, Planning Commission, and other meetings as directed.
vii. Assist other Divisions such as Code Enforcement and Planning, with the preparation of necessary documents when prosecution action is necessary to obtain compliance with the above codes and regulations. viii. Make final interpretations concerning the application of building and safety codes.
ix. Monitor the collection of building plan checks, inspections, permits fees, and other building activity level indicators, submit monthly activity reports to the City based on this information, and notify the City of any staffing changes necessary to maintain the performance standards. x. Perform all other administrative building and safety related duties, including developing and implementing office policies and procedures, and assuring that files and plans are secured, organized, and kept up to date.
xi. Meet with developers, homeowners, business owners, architects, engineers and the general public at the City or in the field, as the need dictates to resolve grievances and/or respond to questions and ensure timely project processing in compliance with Federal, State and City laws and ordinances.
xii. Ensure all building related activities are entered into the City’s tracking system in an accurate, complete and timely manner.
xiii. Provide online permitting system to including but not limited to permit, plan check and inspection tracking system and online customer portal services.
b. Consultant shall provide the City the technical assistance necessary to prepare

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the periodic updates to the uniform building and safety, and fire codes, including any local amendments, in accordance with the schedules established by the State of California, including:

1. Prepare the City’s ordinance updates, staff reports and attend City Council meetings.

2. Coordinate with the Orange County Fire Authority (OCFA) and prepare the City code ordinance update, regarding periodic updates to the Uniform Fire Code, including any local
amendments, and ensure that the City’s building and safety codes and the changes to the Uniform Fire Codes are crossed
referenced.
c. Within the first thirty (30) days of the Agreement, the Consultant shall assemble and review all existing City policies, ordinances, and conditions pertaining to the Building Division operations, and document any areas of insufficient, incomplete or missing information. Based on this review, the Consultant shall develop a timetable for the preparation or revision of policies, ordinances and conditions, and present a report to Development Services Director for consideration.

3. Building Plan Check Services
a. Provide an ICC Certified Plans Examiner to be available at the Building Division counter from 7:30 a.m. to 12:30 p.m., Monday through Thursday, except City designated holidays. Services shall include:
i. Manage, coordinate and oversee the building permit and plan check, building inspection, and building counter processes in the absence of the Building Official.
ii. Perform over-the-counter plan checks.
iii. Answer technical questions from the public, including inquiries regarding building and safety codes and regulations.
iv. Perform building plan checks.
v. Assist in more difficult inspections, in addition to other duties as assigned.
vi. Staffing provided by the Consultant must ensure that all City Building & Safety inspections and plan reviews are conducted in an efficient courteous manner that is responsive to the City and community needs.

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vii. Have the ability to serve as Acting or Deputy Building Official in the absence of the Building Official.
b. Perform architectural, structural, plumbing, mechanical, and electrical plan check review for buildings and structures for compliance with applicable Federal and State laws, building and safety codes, City ordinances, and acceptable engineering practices. Plans not checked by the Consultant at the City’s offices may be plan-checked at the Consultant’s local office.
c. Confirm building use, occupancy, and type of construction, and review construction of buildings and structures to determine satisfaction of safety requirements.
d. Check for compliance with applicable codes adopted by the City, including, but not limited to: Uniform Housing Code, California Building, Mechanical, Plumbing and Electrical Codes, Uniform Swimming Pool Code, Uniform Solar Energy Code, and Sign, Tent, and Relocated Building Codes and any applicable adopted local amendment, State of California codes or regulations. e. Review and approve building/structural revisions to plans required during construction.
f. Calculate building permit and plan check fees, and review permit issuance. g. Coordinate building permit requirements and interface with City Departments and other agencies, including but not limited to the Public Works Division, Planning Division, the Orange County Fire Authority (OCFA) and the Environmental Health Department of the County of Orange. This also includes Building Division review, comment and provision of “conditions of approval” for site plans and building plans as part of the discretionary planning applications.
h. Provide expedited plan check when requested by the City. i. Create a standard plan check for the City, to ensure consistency in plan review.

4. Building Inspection Services
a. Provide building inspection services by fully trained/certified inspectors for all construction regulated by all applicable Federal, State and City building and safety codes/ordinances, and National Pollution Discharge and Elimination System Permit (NPDES) requirements (when applicable).
b. Inspect buildings and structures, for which building permits have been issued, for compliance with the approved plans and applicable codes and ordinances. c. Inspect for compliance and conditions of approval set forth by the City’s

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Development Services Department, Planning Commission, and/or City Council. d. Coordinate with various City and County agencies and departments, including but not limited to the Orange County Fire Authority (OCFA), Environmental Health Department of the County of Orange, and the other governmental agencies providing services, and/or having jurisdiction over any aspects of a development project in order to obtain compliance with the above building and safety code regulations.
e. Enforce conditions of approval associated with discretionary permits regarding building and safety regulations, as adopted by the City. f. During inspections, issue stop/correct work notices, or notices of violation when violations of the above referenced codes and regulations occur. g. At the Consultants sole expense, provide all vehicles, fuel, maintenance and other equipment necessary for field personnel to carry out building permit inspections and all required duties.
h. Provide special inspections by qualified inspectors and conduct investigations as directed by the City, including field and office research and the preparation of letters and/or documents.
i. Input daily inspection information into the City’s computer permit tracking system.
j. Provide inspection, investigation, and enforcement for violations to all the above-referenced building and safety codes and regulations, as well as other adopted City ordinances, which relate to building and safety issues. k. The Building Official/Inspector will conduct daily inspections between 12:30 p.m. and 4:00 p.m.
l. As special circumstances dictate, after hour or weekend inspections will be conducted. Building Official will respond to emergency calls from the City (i.e., staff, police dispatch) at any time as deemed necessary.

5. Building Counter Operations
a. Receive, process and issue building permits and coordinate the plan check and inspection process, including the tracking, routing and storage of building plans, and filing of building permit applications. Input information into the City’s computer tracking system.
b. Consultant is to cooperate with the Orange County Assessor’s office to provide statistical and related information required for the efficient assessment of new developments and/or building projects.

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c. Monitor and track the status of building permit applications and plan check for expiration and develop a process to notify applications prior to the expiration of their building permits.
d. Keep daily logs of building permit and inspection activities. Submit monthly, quarterly and annual reports of Consultant’s activities to the City. The reports shall include, but not limited to, the fees collected, the staffing levels provided, the staff hours expended, the number of permits issued, the number of inspections (by type) conducted, and other financial, operational and statistical information pertinent to the Building Plan Check and Inspection Services process.
e. Provide public information regarding building permit applications, plan check, and inspection services and related matters.
f. Identify and collect all required fees for building permit applications and other Building Division services. Facilitates the collection of fees from other department and/or agencies that are due and payable prior to or concurrent with the issuance of a building permit.
g. Establish, maintain, and update all forms in compliance City requirements, regulations, adopted standards, State or other laws and ordinances necessary for the operation of the Building Division, including “hand-out” sheets, which explain building permit application processing procedures identified as being provide by the City.
h. All approval stamps, applications, forms and other documents used in providing Building and Safety Services to the City shall be identified with the City seal and other identification indicating that the approval stamps, applications, and documents are from the City of Los Alamitos. All of the stamps, applications, forms, and other documents or supplies shall be the property of the City (costs for the provisions of these processing tools and supplies shall be the responsibility of the City).

6. Performance Standards & Monitoring
a. The Consultant shall be responsible for providing monitoring information to the City, that shows achievement of the performance standards and that personnel are providing helpful and courteous services to customers. The monitoring may include, but is not limited to, customer feedback through written questionnaires and interviews and observations at the building counter and during building permit inspections, and monthly statistical reports.
b. City has established Performance Standards that are to be applied to the processing of plan checks, building permits, and general service to the public

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that interacts with the Development Services Department. These Performance Standards are described in subsection c below. The Consultant recognizes the targets established in the Performance Standards, and will adhere to these measures in the performance of its services for the City. The City reserves the right to add, amend, or eliminated Performance Standards at any time during the term of this Agreement. The City may use the Performance Standards to gauge the effectiveness of the Consultant’s service to the City. At the City’s request, the Consultant shall be responsible for providing monitoring information which shows that personnel providing services to the City are achieving the Performance Standards.
c. Consultant shall provide services, which meet the following maximum expected turn-around times for plan check and inspection services. In practice, Consultant shall provide these services with the fastest turn-around time feasible.

Additionally, the following Performance Standards shall be used as a guide to determine staff levels:
i. Plan Check

1. The initial plan check for all building plans for new large scale high density multi-family and mixed-use project shall be completed within ten (10) working days or less from the date of plan submittal.

2. The initial check of building plans for new buildings including commercial, industrial and residential buildings shall be completed within ten (10) working days or less from the date of plan check submittal.

3. The initial check of building plans for all commercial, industrial and residential remodels, renovations and additions shall be completed within ten (10) working days or less from plan submittal.

4. All re-checks of building plans shall be completed within five (5) working days or less from resubmittal.

5. Plan check review for routine and simple structures and items shall be completed over-the-counter. Routine and simple structures and items include but are not limited to re-roofs, patio covers, and fences/walls.
ii. Inspection

1. All building inspections requested by 4:00 p.m. on a working day, shall be conducted on the next working day with an a.m. or

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p.m. commitment and a two (2) to four (4) hour window.

2. As special circumstances dictate, after hour or weekend inspections will be conducted. Building Official will respond to emergency calls from the City (i.e., staff, police dispatch) at any time as deemed necessary.

3. At all times, building inspections shall conduct themselves in a courteous and professional manner and utilize the phone to help coordinate and narrow inspection times and applicants.
iii. Counter

1. Provide service and support for the building counter for ten (10) hours per working day. The building counter shall be open to the public and sufficiently staffed from the hours of 7:30 a.m. to 12:30 p.m., Monday through Thursday, excluding City
recognized holidays. Counter hours may be subject to a
reasonable change by the City, including but not limited to the hours of 7:30 a.m. to 12:30 p.m., with the potential for staggered work hours to cover the additional time. Working days are subject to change at the discretion of the City to a 5 days a week/8-hour schedule, with thirty (30) day noticing to
Consultant.

2. Provide an ICC Certified Counter Technician/Plan Checker to provide services to the public during counter hours.

3. Keep written information regarding building permit applications, plan check and inspection process updates.

4. Answer the building counter phone when not with a customer at the counter, and return telephone calls within two hours. Respond to all email inquiries within the one working day.

5. On an as-needed basis, assist the City in providing or updating any Building Division information to the City’s website.

7. Staffing Levels And Cost Of Services
a. Identify the number of persons for each position that would be assigned to the City to provide the requested services. Indicate by the name and title those persons that will be providing Administration, Plan Check, Inspections and counter services. Clearly indicate if each person will be assigned to the City fulltime, part-time, as-needed, off-site, and whether persons assigned will be providing multiple services (i.e., Administration and Plan Checks). Multiple

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staffing level options may be proposed that are based upon a certain level of permit activity. Proposal must include the option for a certified permit technician during counter hours.

8. Transition from Current Services
a. Consultant is to review City forms, procedures, and policies immediately and will recommend any deficiencies to the City that necessitate modifications. Any action is to be coordinately with City Management first prior to implementing any changes.
b. Consultant is to work alongside the City’s current service provider for Building and Safety Services for a minimum of six (6) weeks, prior to the conclusion of the City’s current contract to ensure a smooth transition. c. Identify how past and existing permits and plan checks will be handled, along with related responsibilities for issuance and/or inspection. d. Assure proper records transfer.
e. Develop timing/schedule for transition.
f. Implement progress/monitoring reports.
g. Establish meeting schedules to assess transition.

5.1 Consultant Staff
It is essential that the Consultant provide adequate experienced and ICC certified personnel, capable of and devoted to the successful accomplishment of work to be performed under this contract. The Consultant must agree to assign specific individuals to the key positions.

A. The Consultant agrees that once assigned to work under this contract, key personnel shall not be removed or replaced without written notice to the City.

B. If key personnel are not available for work under this contract for a continuous period exceeding thirty (30) calendar days, or are expected to devote substantially less effort to the work than initially anticipated, the Consultant shall immediately notify the City, and shall, subject to the concurrence of the City, replace such personnel with personnel of substantially equal ability and qualifications.

C. The Consultant shall provide qualified English-speaking supervision in all areas of operations. The Supervisor shall be accessible to City staff via email, phone or in-person as necessary. The Consultant shall furnish only employees who are authorized, competent and skilled for work under this contract. Should it be determined by the City that the quality of work provided is substandard, at its discretion; the City may request the presence of a Supervisor during business hours.

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D. The Consultant(s) shall provide sufficient staffing to perform all work in accordance with the specifications set forth herein.

E. The City may, at any time, give the Consultant(s) notice to the effect that the conduct or action of a designated employee of the Consultant(s). The Consultant shall meet with representatives of the City to consider the appropriate course of action with respect to such matter and the Consultant(s) shall take reasonable measures under the circumstancesto remedy and improve the situation presented.

F. Assure the City that the conduct and activities of the Consultant's employee(s) will not be detrimental to the interest of the City or public.

G. The Consultant shall establish an identification system for personnel assigned to the facilities, which clearly indicates to City employees and to the public, the name of the Consultant. The identification system shall be furnished at the Consultant's expense and may include appropriate attire and name badges as specified by the City.

H. The Consultant shall direct their employees against the unauthorized reading and disclosing of materials and documents available in the facilities of the City and against unauthorized use of City and personal property,such as: telephones, radios, copy machines, computers, fax machines, etc.

5.1 Dress Code and Appearance
The Consultant(s) shall require each of its employees to adhere to industry standards of work ethics and attire. Shirts shall be worn at all times, and shall be buttoned and tuckedin. No caps with insignias or designs other than the Consultant's logo may be worn, and no caps shall be worn backwards.

5.2 Contract Enforcement
The Consultant(s) or its authorized representative shall meet with the Development Services Director quarterly, or more, at the discretion and convenience of the City.

The City reserves the right to perform audits at any time for the purpose of monitoring performance. The Consultant shall cooperate with City, representative(s) in the review and monitoring of Consultant's performance, and procedures.

In the event the City commences legal proceedings for the enforcement of the Contract, and is the prevailing party, the City shall be entitled to an award of attorney's fees and costs incurred in the action.

5.3 Term of Agreement
The term of the Agreement is expected to commence on July 1, 2023. The initial term of the Agreement is anticipated to be for three (3) years, with two possible – two (2) year

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extensions, at the sole discretion for renewal by the City.

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SECTION E

PROPOSAL SCHEDULE

BUILDING & SAFETY SERVICES
REQUEST FOR PROPOSAL (RFP) 2022-04

IN THE CITY OF LOS ALAMITOS, CALIFORNIA

32 1367754.1

SECTION E PROPOSAL

SCHEDULE

BUILDING & SAFETY SERVICES
REQUEST FOR PROPOSAL (RFP) 2022-04

IN THE CITY OF LOS ALAMITOS, CALIFORNIA
Proposal A – Rate and Services Structure

1. Fee structure for Plan Check: Indicate fee as a percentage of the City’s collected plan check fee of a first-time check and re-check. This fee should include shipping and courier service (if applicable).

Plan Check Percentage
First-time check
Re-Check

2. Firm shall provide separate fee percentages for project valuations of:
• $1 to $15,000
• $15,000 to $30,000
• $30,000 to $75,000
• $75,000 and greater
Valuation Percentage
$1 to $15,000
$15,000 to $30,000
$30,000 to $75,000
$75,000 and greater

3. Fee for Permitting System
System Name Annual Cost

4. Fee Option for expedited Plan Check (if applicable)
Valuation Percentage

33 1367754.1

5. For an actual service compensation system, a copy of the firm’s current hourly rate schedule shall be provided, which reflects the fully loaded total hourly cost for each related consultant position. For a percentage of fees system, proposals shall clearly indicate what costs associated with the consultant services will be offset by the percentage of those fees collection.
• Hourly rates should include, but not limited to the following consulting services roles:

Job Description Hourly Rate
Assistant Planner
Interim Development Services Director
Consultant for the Development Services Department
Landscape Architect
Permit Technician
Plan Checker
Planning Aide

Proposal A Schedule Total: $
Proposal B – Rate and Services Structure for Sub-Consultant(s) Sub-Consultant(s) Hourly Rate
Proposal B Schedule Total: $
The Consultant shall be responsible for calculating and providing unit prices for the schedule.

The Proposal Schedule shall include all costs for services, labor, materials, equipment, and installation associated with completing the work in place per the plans, specifications and details.

Proposal Schedule A & B Total: $

34 1367754.1
Proposal Schedule Total (in word):

35 1367754.1

SECTION F

BUILDING & SAFETY SERVICES
REQUEST FOR PROPOSAL (RFP) 2022-04

IN THE CITY OF LOS ALAMITOS, CALIFORNIA

36 1367754.1

PROFESSIONAL SERVICES AGREEMENT
Building and Safety Services (RFP) 2022-04
[Enter name of Consultant]
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into, to be effective this day of 2023 (“Effective Date”), by and between the CITY OF LOS ALAMITOS, a California charter city and municipal corporation, (“City”) and ________________, (“Firm”) a, ______________. City and Consultant are sometimes hereinafter individually referred to as “Party” and are hereinafter collectively referred to as the “Parties.”

RECITALS
A. City has determined that it requires the services of a qualified firm to provide building and safety services, including Building Division administration, permit issuance, plan check, inspection, enforcement of building codes and public counter services.. It is preferred that the firm provide the City an opportunity to review contract documents and RFP’s in advance of the agenda report deadlines.

B. In response to City’s formal Request for Proposals No. (RFP), dated , 2022, Firm has submitted to City a written proposal, dated , 2023, to provide the desired services.

C. City desires to engage Firm to provide such services subject to the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the promises and mutual obligations, covenants, and conditions contained herein, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

AGREEMENT

1. SERVICES OF FIRM

1.1 Scope of Services and Standard of Performance. Firm shall provide those services set forth in the Proposal, dated , 2023, attached hereto as Exhibit “A” (“Scope of Services” and/or “Project Services”). Firm shall provide the Project Services in compliance with all terms and conditions of this Agreement. Firm warrants that all Project Services shall be performed in a skillful, competent, professional and satisfactory manner in accordance with all standards prevalent in the same profession in the State of California. Firm represents and warrants that it and all employees, subcontractors and subconsultants providing any services pursuant to this Agreement shall have sufficient skill and experience to perform the Project Services. All Project Services shall be completed to the reasonable satisfaction of City.

1.1.1 Contract Documents. This Agreement shall consist of the following: (1) the main body of this Agreement; (2) RPF No. , dated ; and (3) Firm’s

37 1367754.1
Proposal,Exhibit “A”. Should any conflict or inconsistency exist in the Contract Documents, the conflict or inconsistency shall be resolved by applying the provisions in the highest priority document, which shall be determined in the following order of priority: (1st) the main body of this Agreement; (2rd) the RFP, and (3rd) Firm’s Proposal.

1.2 Compliance with Law. All Project Services shall be provided in accordance with all laws, ordinances, resolutions, statutes, rules, and regulations of City and any federal, state or local governmental agency of competent jurisdiction. Firm shall be liable for all violations of such laws, ordinances, resolutions, statutes, rules and regulations in connection with performance of the Project Services. If Firm performs any Project Services in violation of such laws, ordinances, resolutions, statutes, rules or regulations, Firm shall be solely responsible for all penalties and costs arising therefrom. Firm shall defend, indemnify, and hold City, its officials, officers, employees, agents and volunteers, free and harmless from and against any claim or liability arising out of any failure or alleged failure to comply with such laws, ordinances, resolutions, statutes, rules or regulations.

1.3 Licenses and Permits. Prior to performing any Project Services, Firm shall obtain all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession and perform the Project Services. Firm represents and warrants to City that Firm shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement and any extension, any license, permit, qualification, or approval that is legally required for Firm to perform the Project Services. Firm shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Firm's performance of the Project Services, and shall defend, indemnify, and hold the City, its officials, officers, employees, agents and volunteers, free and harmless from and against any claim or liability arising out of any failure or alleged failure to obtain such license, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession and perform the Project Services.

1.4 Familiarity with Work. By executing this Agreement, Firm warrants that Firm (a) has thoroughly investigated and considered the Project Services to be performed, (b) has carefully considered how the Project Services should be performed, and (c) fully understands the facilities, difficulties and restrictions attending performance of the Project Services under this Agreement.

1.5 Care in Performance of Project Services. Firm shall adopt reasonable methods during the term of the Agreement to prevent losses or damage to materials, papers or other components of the Project Services, and shall be responsible for all such damages, to persons or property, until acceptance of the Project Services by the City, except such losses or damages as may be caused by City's own negligence.

1.6 Non-Exclusive Agreement. Firm acknowledges that City may enter into agreements with other Firms, consultants, individuals, or vendors for services similar to the services that are the subject of this Agreement. Firm further acknowledges that City may have its own employees perform services similar to the services that are the subject of this Agreement.

2. COMPENSATION