Los Alamitos City Council
January 16, 2024

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.

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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 incured 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.

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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 atthe 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
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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.

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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.

K.

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.

L. 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.

M. 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.

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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.

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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 fairvalue.

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.

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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.

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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.

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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.

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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
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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
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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:

Minimum
Legal
Not
Investment Type Total Rating 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 - -
Agency Investment Fund (LAIF) 8,360,193 Not Rated 8,360,193 - - Investment held by Bond Trustee:

Money Market Mutual Funds 249 N/A - - 249
Total $20,502,255 $11,208,877 $9,293,129 $ 249
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.

DRAFT

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
DRAFT

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 1,056,916 (500,216) 1,181,420 Total non-depreciable 6,542,435 1,056,916 (500,216) 7,099,135 Depreciable:

Buildings and improvements 2,295,266 - - 2,295,266
Equipment 1,266,120 126,030 (56,015) 1,336,135
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 18,894,706 755,507 (56,015) 19,594,198
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 12,474,086 298,172 - 12,772,258
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 255,918 - 255,918
Internal Service Fund - 105,446 105,446
Totals $ 351,889 $ 105,446 $ 457,335
DRAFT

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 DRAFT

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
DRAFT

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.

DRAFT

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.

DRAFT

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 DRAFT
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 pensionsand 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
DRAFT

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
-1%
(6.15%)
Current
Discount Rate
(7.15%)
Discount Rate
+1%
(8.15%)
Proportion – June 30, 2020 $11,611,367 $ 7,053,182 $ 3,326,094 Proportion – June 30. 2021 13,283,412 7,487,386 2,726,666 Change – Increase (Decrease) $24,894,779 $14,540,568 $ 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:

DRAFT

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) (1,226,349) (2,927,843)
DRAFT

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.

DRAFT

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
DRAFT

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.

DRAFT

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.

DRAFT

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 DRAFT

City of Los Alamitos
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
62 Note 14 – Classification of Fund Balances
6 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.

DRAFT

63 REQUIRED SUPPLEMENTARY

INFORMATION (UNAUDITED)
DRAFT

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 $ 3,216,508 $

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

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, 2022, 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)
DRAFT

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 DRAFT

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 DRAFT

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 DRAFT

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 DRAFT

SUPPLEMENTARY INFORMATION
70 DRAFT

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 -
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 DRAFT

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 - - -
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 DRAFT

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
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 DRAFT

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
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 DRAFT

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 DRAFT

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 415 387 1,801 864
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 - (140,000) (110,000) -
Total other financing sources (uses) - (140,000) (110,000) - 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 DRAFT

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 701,969 236,179 102,142 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 DRAFT

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 1,264,089 210,494

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) - - 78,500 213,500 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 DRAFT

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) $ (103,732) $

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 DRAFT

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 $ 333,980 $

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 DRAFT

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 $ 18,189 $

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 DRAFT

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 DRAFT

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 DRAFT

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 DRAFT

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 DRAFT

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 $ 123,361 79,815 $ 43,546 $

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 DRAFT

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 120,000 12,000 (108,000)
Total charges to appropriations 653,067 526,379 126,688 Fund balance, June 30, 2022 96,643 $ 225,616 $ 128,973 $

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 DRAFT

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 DRAFT

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 $ 115,361 $

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 DRAFT

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 100 50 (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 DRAFT

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 $ (15,892) $

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

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 213,500 213,700 (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 210,494 213,594 3,100
Fund balance, June 30, 2022 355 $ 3,255 $ 2,900 $

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 DRAFT

Police
Technology Capital
Garage Replacement Expenditures
ASSETS
Current assets:

Cash and investments 585,731 $ 397,083 $ 164,927 $
Accounts receivable - - -
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 308,428 8,382 -
Unrestricted 326,172 564,940 161,633
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 DRAFT

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

Cash and investments 293,558 $ 667,948 $ 2,109,247 $
Accounts receivable - 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 - 656,807
Unrestricted 431,011 292,924 1,776,680
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 DRAFT

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 8,380 89,726 -
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 77,573 (130,406) (16,969)
Transfers in - 190,000 -
Total transfers - 190,000 -
Change in net position 77,573 59,594 (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 DRAFT

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 (7,884) (521,368) (599,054)
Transfers in - 660,000 850,000
Total transfers - 660,000 850,000
Change in net position (7,884) 138,632 250,946
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 DRAFT

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 262,052 723,446 178,602 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 DRAFT

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 - (346,725) (460,067) CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES:

Transfers in - 850,000 660,000
Net cash provided (used by) non-capital financing activities - 850,000 660,000 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 $ - $ (346,725) (460,067) $

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

STATISTICAL SECTION
99 DRAFT

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 pr
DRAFT
ovides 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 16,545 Restricted 761 1,350 1,453 2,153 2,353
Unrestricted (10,679) (10,746) (11,287) (9,608) (5,197) 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
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Net investment in capital assets Restricted Unrestricted 101
DRAFT

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
9,746 9,444 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
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DRAFT

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
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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
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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
DRAFT

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
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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 $ 1,091,854 1,031,002 $ 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 $ 1,776,130 1,669,323 $ 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
DRAFT

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 $ 1,266,083 1,200,335 $ 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 $ 2,157,542 2,065,985 $ 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
DRAFT

Fiscal Year
Ended
June 30
2013 $ 1,504,137 $ 134,342 $ - $ 1,638,479 0.117
2014 1,549,169 119,933 - 1,669,102 0.117
2015 1,632,107 143,801 - 1,775,908 0.117
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
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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 2012/2013 - 2021/2022 Tax Rate Table 111
DRAFT

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:

0.101 0.101 0.101 0.101 0.101

0.016 0.016 0.016 0.016 0.016

0.145 0.145 0.145 0.145 0.145

0.412 0.412 0.412 0.412 0.412

0.059 0.059 0.059 0.059 0.059

0.031 0.031 0.031 0.031 0.031

0.095 0.095 0.095 0.095 0.095

0.017 0.017 0.017 0.017 0.017

0.052 0.052 0.052 0.052 0.052

0.013 0.013 0.013 0.013 0.013

0.014 0.014 0.014 0.014 0.014

0.027 0.027 0.027 0.027 0.027

0.002 0.002 0.002 0.002 0.002

0.001 0.001 0.001 0.001 0.001

0.006 0.006 0.006 0.006 0.006

0.000 0.000 0.000 0.000 0.000

0.010 0.010 0.010 0.010 0.010

1.000 1.000 1.000 1.000 1.000

0.022 0.042 0.040 0.040 0.038

0.031 0.030 0.030 0.033 0.030

0.075 0.068 0.069 0.070 0.074

0.047 0.049 0.080 0.093 0.079

0.004 0.004 0.004 0.004 0.004

0.029 0.028 0.024 0.032 0.029
Los Alamitos City General Fund
Los Alamitos City Lighting Reorganization
Educational Revenue Augmentation Fund
Los Alamitos Unified General Fund
North Orange Co. Community College District
Orange County Department of Education
Orange County Fire Authority
Orange County Flood Control District General
Orange County General Fund
Orange County Harbors Beaches & Parks Csa 26
Orange County Public Library
Orange County Sanitation District 3 Operating
Orange County Transit Authority
Orange County Vector Control
Orange County Water District
Orange County Water District Reserve
Rossmoor/Los Alamitos Sewer District
Total Prop 13 Rate
Anaheim High School District
Cypress Elementary
Garden Grove Unified School District
Los Alamitos SFID
Metropolitan Water District
N. Orange County Community College
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 2012/2013 - 2021/2022 Tax Rate Table 112
DRAFT

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 2.261%
JCB Merger Sub LLC 43,248 1.658%
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 1.294%
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 16,963 1.035%
Bayport Los Alamitos Associates LP 12,355 0.754%
Fine US Long Beach LLC
Davenport KCC Partners LLC 14,059 0.858%
Arrowhead Products Corporation 11,088 0.677%
Los Altos LLC 10,798 0.659%
ESS WCOT Owner LLC
Top Ten Totals $ 549,309 21.055% $ 273,212 16.672%
City Totals $ 2,609,01 6 $ 1,638,701
Source: HdL Coren and Cone, Orange County Assessor 2012/13 and 2021/22 Tax Rolls

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

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
DRAFT

CITY OF LOS ALAMITOS
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita)
Governmental Activities
Certificates Total
Fiscal of Capital Primary
Year Participation Lease Government
2013 $ 3,055 $ $ 3,055
2014 2,970 2,970
2015 2,895 2,895
2016 3,685 3,685
2017 3,615 270 3_,885
2018 3,545 204 3,749
2019 3,475 137 3,612
2020 3,400 69 3,469
2021 3,325 68 3,393
2022 $ 3,245 $ 62 $ 3,307
Debt as a
Percentage Debt
of Personal Per
lncome1 Capita1

0.693% 262.77

0.668% 253.22

0.662% 246.91

0.874% 313.94

0.912% 330.95

0.871% 316.02

0.869% 308.16

0.782% 299.90

0.704% 307.51

0.569% 294.48
1 Ratio is calculated using personal income and population data for the prior calendar year.

Source: City of Los Alamitos, Finance Department
115
DRAFT

(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 3,350 100.000% 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% 2,852 112,416 1.773% 1,993
96,460 0.071% 68
8,500 23.810% 2,024
39,500 23.810% 9,405
146,000 0.006% 9
4,052 0.383% $ 16
51,134
N.OC Community College 2014 Bond Series B
Anaheim High 2014 Bond Series 2019
Los Alamitos SFID #1 2008 Series 2020G
Los Alamitos SFID #1 2008 Series 2020B
Garden Grove USD 2016 Series 2021
Metropolitan Water District

TOTAL OVERLAPPING DEBT
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 2021/22 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
DRAFT

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
DRAFT

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
Last Ten Calendar Years
Demographic and Economic Statistics

CITY OF LOS ALAMITOS

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
DRAFT

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Program
General Government
City Council 5555555555
Administration 8888888667
Community Development
Administration 1111111111
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
DRAFT

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 2,089 2,227 2,169 2,068 1,964
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 1,766 3,283 3,963 2,997 1,532
Traffic (moving) violations 2,354 1,786 1,473 2,885 2,177 Incident & crime reports 1,293 1,381 1,167 1,254 1,361
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 1,550 1,245 1,205 1,205 1,650 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
DRAFT

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

Part 1 crimes 193 189 330 157 209
Parking violations 4,221 1,471 1,470 3,835 4,043
Traffic (moving) violations 1,114 1,430 636 677 342
Incident & crime reports 752 729 896 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 991 995 991 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
DRAFT

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
DRAFT

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
DRAFT

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. 253 4 1.79%
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 151 6 1.07%
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 141 8 0.99%
Bearing Inspection, Inc. 123 9 0.87%
Total 4,396 30.19% 3,193 22.59%
Source: HdL Companies, City Planning Department, and State of California Employment Development Department 124
DRAFT

11/21/2023
Tanya Doby
Mayor
City of Los Alamitos, California
Dear Tanya:

We are pleased to notify you that your annual comprehensive financial report for the fiscal year ended June 30, 2022 qualifies for GFOA's Certificate of Achievement for Excellence in Financial Reporting.

The Certificate of Achievement is the highest form of recognition in governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management.

When a Certificate of Achievement is awarded to a government, an Award of Financial Reporting Achievement (AFRA) is also presented to the individual(s) or department designated by the government as primarily responsible for its having earned the Certificate. This award has been sent to the submitter as designated on the application.

We hope that you will arrange for a formal presentation of the Certificate and Award of Financial Reporting Achievement, and give appropriate publicity to this notable achievement. A sample news release is included to assist with this effort.

We hope that your example will encourage other government officials in their efforts to achieve and maintain an appropriate standard of excellence in financial reporting.

Sincerely,
Michele Mark Levine
Director, Technical Services

City of Los Alamitos

CITY COUNCIL AGENDA REPORT
MEETING DATE: January 16, 2024 ITEM NUMBER: 10F
To: Mayor Jordan Nefulda & Members of the City Council
Presented By: Ron Noda, Development Services Director
Subject: Award of Plans and Specifications for the Bloomfield Neighborhood Street Rehabilitation Project (CIP No. 22/23-06)

SUMMARY
This item recommends the award of a bid to begin the Bloomfield Neighborhood Street Rehabilitation Project (CIP No. 22/23-06). The City of Los Alamitos proposes to overlay a portion of Bloomfield Street from Katella Avenue to Florista Street. The total project cost is $330,000.

RECOMMENDATION

1. Award construction for the Bloomfield Neighborhood Street Rehabilitation Project (CIP No. 22/23-06) for $207,000.00 to Hardy & Harper, Inc.; and,

2. Authorize the Mayor to execute the contract with Hardy & Harper, Inc. for the Bloomfield Neighborhood Street Rehabilitation Project (CIP No. 22/23-06); and,

3. Authorize the City Engineer to add work and execute change orders in an amount not to exceed the contingency reserve of 10% or $20,700.00.

BACKGROUND
The City of Los Alamitos is being provided $200,000 in federal Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (CRRSAA) funding through the 2021 Pavement Management Relief Funding (PMRF) Program. Staff is proposing to use the funding from CRRSAA grind and overlay Bloomfield Street from Katella Avenue to Florista Street as part of the City’s ongoing pavement management program. The project will also replace damaged curbs & gutters and lift the sidewalk. ADA curb ramps will also be modified to current codes as necessary for accessibility.

DISCUSSION
Project Bid Results
Notices announcing the solicitation of bids for this project were posted in the local publications, consisting of: the News-Enterprise and the F.W. Dodge publication.

Bids for the project were publicly opened on December 14, 2023, at 11:00 am. From the six (6) total bids received, Staff determined that the lowest responsible bid submitted was from Hardy & Harper,Inc. with the total bid amount of $207,000.00. The bid results are provided below:

All American Asphalt $ 264,264.00
Copp Contracting, Inc. $ 310,496.39
Hardy & Harper, Inc. $ 207,000.00
IE General Engineering, Inc. $ 331,493.00
Onyx Paving Company, Inc. $ 227,000.00
RJ Noble Company $ 294,456.80
Average$ 272,451.70
The following represents an approximate timeline for the completion of the project which consists of street improvements:
• 01/16/2024 Award of Contract
• 03/01/2024 Start of Construction
• 05/01/2024 End of Construction

FISCAL IMPACT
The total allocated budget for the project is currently $300,000, which includes funding from CRRSSA Federal Funding and Gas Tax. Due to higher-than-expected bids from rising construction costs, an additional $30,000 is requested to complete the project. The construction budget for the project was bid at $207,000, with an additional $123,000 for design, federal compliance reporting, advertisement, inspection, construction management, and a 10% construction contingency.

Available funding for the projects is provided as follows:

CRRSAA Federal Funding: $200,000
Gas Tax: $100,000
Additional Funding Needed: $ 30,000
Total: $330,000
Attachment: 1. CIP 22-23-06 Bloomfield Street Improv_Specifications

2. CIP 22-23-06 Bloomfield Street Improv_Plans

3. CIP 22-23-06 Bloomfield Street Improv_Bid Breakdown.12.14.23

CITY OF LOS ALAMITOS

CONTRACT DOCUMENTS AND SPECIFICATIONS
FOR

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA
FEDERAL PROJECT NO. CRAL-5363(013)
NOVEMBER 2023
_____________________________
Ron Noda Chris Kelley, P.E.

Development Services Director City Engineer
Kevin J. Smith, P. E.

P.E. 90584
NOTICE TO THE BIDDERS:

1. Bids will be received electronically through BidNet Direct (http://cityoflosalamitos.org/517/Bid-Opportunities).

2. Bid bond required – 10% of bid amount to be submitted to the Development Services Department.

3. Bids must be received by 11:00 a.m. on the 14
th day of December 2023
_____________________________
Ron Noda Chris Kelley, P.E.

Development Services Director City Engineer
Kevin J. Smith, P. E.

P.E. 90584 Page 242 of 399
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CITY OF LOS ALAMITOS

SPECIFICATIONS FOR

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA

GENERAL REQUIREMENTS AND TECHNICAL PROVISIONS
PREPARED BY:

Willdan Engineering
2401 East Katella Avenue, Suite 300
Anaheim, Ca 92806
(714) 978-8200

FOR THE CITY OF LOS ALAMITOS

PUBLIC WORKS DIVISION

DEVELOPMENT SERVICES DEPARTMENT

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TABLE OF CONTENTS

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA

SECTION
NOTICE INVITING ELECTRONIC BIDS ................................................................................................ A INSTRUCTIONS TO BIDDERS .................................................................................................................B PROPOSAL INFORMATION AND DOCUMENTS..................................................................................C CONTRACT INFORMATION AND DOCUMENTS................................................................................ D STANDARD SPECIFICATIONS ................................................................................................................E SPECIAL PROVISIONS..............................................................................................................................F SPECIAL PROVISIONS – SIGNING, STRIPING AND PAVEMENT MARKERS................................ G FEDERAL PROVISIONS ......................................................................................... APPENDIX – PART 1

This page is intentionally left blank.

SECTION A – Page 1

NOTICE INVITING BID

SECTION A

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA

NOTICE INVITING ELECTRONIC BIDS

SECTION A – Page 2

NOTICE INVITING BID
This page is intentionally left blank.

SECTION A – Page 3

NOTICE INVITING BID

NOTICE INVITING ELECTRONIC BIDS

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA
PUBLIC NOTICE IS HEREBY GIVEN that the City of Los Alamitos as AGENCY, invites electronic bids for the above stated project and will receive such bids electronically through BidNet Direct (http://cityoflosalamitos.org/517/Bid-Opportunities). Bids will be received up to the hour of 11:00 a.m., on the 14
th day of December, 2023 and will be opened virtually at that time. If you would like to attend the virtual bid opening, it will be accessible through Microsoft Teams Meeting:

Click here to join the meeting
Meeting ID: 242 799 408 775
Passcode: MMFTJT
The project involves cold mill and ARHM overlay, reconstruction of failing asphalt, reconstruction of damaged curb ramps, and construction of new curb ramps on Bloomfield Street from Katella Avenue to Florista Street. In addition, the project will also include adjustment of existing utility surface facilities to grade and signing and striping. Existing private facilities will be protected in place within the limits of the project unless otherwise shown.

Bids must be prepared on the approved bid forms in conformance with INSTRUCTIONS TO BIDDERS and must be submitted electronically on BidNet Direct (BidNet), accessible through the Agency’s webpage at http://cityoflosalamitos.org/517/Bid-Opportunities where each prospective bidder must first register as a vendor through the Agency’s BidNet portal. No hard copy bid packages will be accepted.

Plans, and specifications will be available for review on BidNet. All relevant materials shall be obtained from the link above. The Agency is not responsible for and accepts no liability in the event a response is late due to any network, internet or any other technical problem or interruption. The bidder is solely responsible for the “on time” submission of their electronic bid. The Agency will only consider bids that have been transmitted successfully and have been issued an e-bid confirmation number. Bidders experiencing any technical difficulties with the bid submission process may contact BidNet at (800)835- 4603.

In accordance with the provisions of California Public Contract Code § 3300, and Business and Professions Code § 7028.15(e), the Agency has determined that the contractor shall possess a valid Class A contractor’s license at the time that the contract is awarded. Failure to possess the specified license shall render a bidder’s bid as non-responsive and shall bar award of the contract to any bidder not possessing the specified license at the time of the award.

CONTRACTORS ARE REQUIRED BY LAW TO BE LICENSED AND REGULATED BY THE CONTRACTORS’ STATE LICENSE BOARD. ANY QUESTIONS CONCERNING A CONTRACTOR MAY BE REFERRED TO THE REGISTRAR, CONTRACTORS’ STATE LICENSE BOARD, P.O. BOX 2600, SACRAMENTO, CA 95826. At the time the contract is awarded, the contractor shall be properly licensed in accordance with the laws of this state. The first payment for work or material shall not be made unless and until the Registrar of Contractors verifies to the Agency that the records of the Contractors’ State License Board indicate that the contractor was properly licensed at the time the contract was awarded. Any bidder or contractor not so licensed shall be subject to all legal penalties imposed by law including, but not limited to, any appropriate disciplinary action by the Contractors’ State Board. Failure of the bidder to obtain proper and adequate licensing for

SECTION A – Page 4

NOTICE INVITING BID
an award of a contract shall constitute a failure to execute the contract and shall result in the forfeiture of the security of the bidder. (Public Contract Code § 20103.5) THE BID MUST BE ACCOMPANIED BY A BID GUARANTEE IN THE AMOUNT OF 10% OF

THE TOTAL BID PRIOR TO THE BID SUBMISSION DEADLINE, SUBMITTED TO THE DEVELOPMENT SERVICES DEPARTMENT, ATTN: PUBLIC WORKS DEPARTMENT SECRETARY, 3191 KATELLA AVENUE, LOS ALAMITOS, CA 90720. Sealed envelopes bearing the bid bond should be clearly marked with the project title and CIP number as shown on the cover sheet of these specifications. More specifically, pursuant to Public Contract Code §§ 20170 and 20171, all bids for the project shall be presented, under sealed cover and shall be accompanied by one of the following forms of bidder’s security in the amount of ten percent (10%) of the bid: (a) cash; (b) a cashier’s check made payable to the City of Los Alamitos; (c) a certified check made payable to the City of Los Alamitos; or (d) a bidder’s bond executed by an admitted surety insurer made payable to the City of Los Alamitos.

Such security shall be forfeited should the successful bidder to whom the contract is awarded fails to timely execute the contract and to deliver the necessary bonds and insurance certificates as specified in the contract documents.

To the extent applicable, at any time during the term of the Agreement for the proposed project, the successful bidder may, at its own expense, substitute securities equivalent to the amount withheld as retention (or the retained percentage) in accordance with Public Contract Code § 22300.

Pursuant to California Civil Code § 3247, a payment bond is required to be submitted for all projects estimated in excess of $25,000.00.

The Agency has determined that the proposed project is a public works subject to the provisions of Labor Code § 1720 thereby requiring the Contractor to pay the prevailing wage rates for all work performed under the Contract.

The Agency reserves the right to reject any and all bids.

Questions or Requests for Information (RFIs) or interpretations are due December 4 th, 2023, at 11:00
a.m., ten (10) days before the time announced for the opening of the bids and shall be submitted on the BidNet portal. If you have any questions, please contact Vandine Ouk at (562)431-3538 ext. 301 or [email protected].

BY ORDER OF the City Council of the City of Los Alamitos, California.

Pursuant to Federal law, Disadvantaged Business Enterprise (DBE) requirements shall include all DBEs, as described in the Specifications. This project is subject to state contract nondiscrimination and compliance requirements pursuant to Government Code Section 12990, and in any contract entered into pursuant to this advertisement, DBEs will be afforded full opportunity to submit bids in response to this invitation.

The DBE contract goal for this project is 17%.

PREVAILING WAGE REQUIREMENTS: Pursuant to California Labor Code Sections 1770, 1773, 1773.1, 1773.6, and 1773.7, as amended, the applicable prevailing wages for this project have been determined. It shall be mandatory upon the contractor to whom the contract is awarded and upon any subcontractor under him to pay not less than the higher of the Federal and the State prevailing wage rates to all workers employed by them in the execution of the contract. The applicable Federal prevailing wage rates are those that are in effect ten (10) calendar days prior to bid opening; they are set forth on the U.S.

SECTION A – Page 5

NOTICE INVITING BID
General Services Department website: https://sam.gov/content/wage-determinations but are not printed in the Specifications. Lower State wage rates for work classifications not specifically listed in the Federal wage decision are not acceptable. The applicable State prevailing wage rates are set forth on the California Department of Industrial Relations website: http://www.dir.ca.gov/DLSR/PWD but are not printed in the Specifications; these rates are subject to predetermined increases.

The U.S. Department of Transportation (DOT) provides a toll-free hotline service to report bid rigging, bidder collusion, or other fraudulent activities. The hotline is available Mondays through Fridays between 8:00 a.m. and 5:00 p.m. eastern time, at (800) 424-9071. The hotline is part of the DOT’s continuing effort to identify and investigate highway construction contract fraud and abuse and is operated under the direction of the DOT Inspector General. All information will be treated confidentially, and caller anonymity will be respected.

Conflict of Interest: in the procurement of supplies, equipment, construction, and services by subrecipients, the conflict of interest provisions in 24 CFR 85.36, OMB Circular A-110, and 24 CFR 570.611 shall apply. No employee, officer, or agent of the sub-recipient shall participate in the selection, award, or administration of a contract supported by federal funds if a conflict of interest, real or apparent, would be involved.

This project is subject to “Buy America” requirements as amended and described in the Specifications.

This project is subject to the requirements of the Cargo Preference Act, as described in the Specifications.

SECTION B – Page 1

INSTRUCTION TO BIDDERS

SECTION B

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA

INSTRUCTIONS TO BIDDERS

SECTION B – Page 2

INSTRUCTION TO BIDDERS

INSTRUCTIONS TO BIDDERS

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA
B1.01 INSPECTION OF SITE OF WORK
Bidders are required to inspect the site of the work in order to satisfy themselves, by personal examination or by such other means as they may prefer, of the location of the proposed work and as to the actual conditions of and at the site of work. If, during the course of his/her examination, a bidder finds facts or conditions which appear to him/her to conflict with the letter or spirit of the contract documents, or with any other data furnished him/her, he/she may apply to the Agency in writing in accordance with B1.04 INTERPRETATION OF CONTRACT DOCUMENTS for additional information and explanation before submitting his/her bid.

The submission of a proposal by the bidder shall constitute the acknowledgment that, if awarded the contract, he/she has relied and is relying on his/her own examination of (a) the site of the work, (b) the access to the site, and (c) all other data, matters, and things requisite to the fulfillment of the work and on his/her own knowledge of existing services and utilities on and in the vicinity of the site of the work to be constructed under the contract, and not on any representation or warranty of the Agency. No claim for additional compensation will be allowed which is based upon a lack of knowledge of these items.

B1.02 EXAMINATION OF CONTRACT DOCUMENTS
Each bidder shall thoroughly examine and be familiar with legal and procedural documents, general conditions, specifications, drawings and addenda (if any). The submission of a proposal shall constitute an acknowledgment upon which the Agency may rely that the bidder has thoroughly examined and is familiar with the contract documents. The bidders’ attention is directed to the need, if any, for special invoicing for this project. The failure or neglect of a bidder to receive or examine any of the contract documents shall in no way relieve him/her from any obligations with respect to his/her proposal or to the contract. No claim for additional compensation will be allowed which is based upon a lack of knowledge of any contract document.

B1.03 CONTRACT PERIOD/CONSTRUCTION COMPLETION DATE
Bidder’s attention is called to the provisions set forth in SECTION E, STANDARD SPECIFICATIONS, particularly those pertaining to the contract period and liquidated damages for avoidable delays.

The Contractor shall begin work within fifteen (15) calendar days after the date of the Notice to Proceed, and shall diligently prosecute said work to completion before the expiration 20 WORKING DAYS. The Contractor shall pay to the Agency the sum of $1,500.00 per day, for each and every calendar day’s delay in finishing the work in excess of the number of working days prescribed above.

B1.04 INTERPRETATION OF CONTRACT DOCUMENTS
No oral interpretations will be made to any bidder as to the meaning of the contract documents. Requests for an interpretation shall be made in writing and delivered to the Agency at least ten (10) days before the time announced for opening the proposals. Interpretations by the Agency will be in the form of addenda to the contract documents and, when issued, will be sent as promptly as is practical to all parties to whom

SECTION B – Page 3

INSTRUCTION TO BIDDERS
the contract documents have been issued. Agency makes no guarantee that all bidders will receive all addenda. Copies of addenda will be made available for inspection at the office where contract documents are on file for inspection as indicated on the Invitation for Bids. All such addenda shall become part of the contract. All questions shall be addressed to Chris Kelley, City of Los Alamitos, (562) 357-5411.

B1.05 SOIL INFORMATION
Soil reports have not been prepared for this project.

B1.06 PROPOSAL
Proposals shall be made on the forms enclosed in SECTION C of these specifications with or without removal from the bound contract documents. All proposals shall give the prices proposed, both in words and in numbers, shall give all other information requested herein, and shall be signed by the bidder or his/her authorized representative, with his/her address. If the proposal is made by an individual, his/her name, signature and mailing address must be shown; if made by firm or partnership, the name and mailing address of the firm or partnership and the signature of at least one of the general partners must be shown; if made by a corporation, the proposal shall show the name of the state under the laws of which the corporation is chartered, the name and mailing address of the corporation, and the name and title of the person who signs on behalf of the corporation. If the proposal is made by a corporation, a certified copy of the bylaws or resolution of the board of directors of the corporation shall be furnished demonstrating the authority of the officer signing the proposal to execute contracts on behalf of the corporation.

Each proposal shall be submitted as specified in SECTION A - NOTICE INVITING ELECTRONIC BIDS. Bidders are warned against making erasures or alterations of any kind, and proposals which contain omissions, erasures or irregularities of any kind may be rejected. No oral, telegraphic or telephonic proposals or modifications will be considered.

In conformance with the Business and Profession Code, § 7028.15, the Contractor must state clearly his/her license number and expiration date. In addition he/she shall sign a statement that these representations were made under the penalty of perjury. This statement shall be made on the EXPERIENCE STATEMENT in SECTION C.

The contractor will be required to pay prevailing wage pursuant to California Law, including California Labor Code §§ 1770 et seq. Copies of the prevailing rate of per diem wages are on file at the offices of the Agency.

B1.07 ADDENDA
Each proposal shall include specific acknowledgment in the space provided on SECTION C - BID PROPOSAL of receipt of all addenda issued during the bidding period. Failure to so acknowledge may result in the proposal being rejected as not responsive.

B1.08 BID PRICES
Bid prices shall include everything necessary for the completion of construction and fulfillment of the contract including, but not limited to, furnishing all materials, equipment, tools, plant and other facilities and all management, superintendence, labor and services, except as may be provided otherwise in the contract documents. In the event of a difference between a price quoted in words and a price quoted in numbers for the same quotation, the words shall be the amount bid.

SECTION B – Page 4

INSTRUCTION TO BIDDERS
In preparing bid prices, bidder represents that he/she has carefully examined the Contract Documents and the site where the work is to be performed and that he/she has familiarized himself with all local conditions and federal, state and local laws, ordinances, rules, and regulations that may affect the performance of the work in any manner. The bidder further represents that he/she has studied all surveys and investigation reports about subsurface and physical conditions pertaining to the job site, that he/she has performed such additional surveys and investigations as he/she deems necessary to complete the work at his/her bid price, and that he/she has correlated the results of all such data with the requirements of the Contract Documents. The submittal of a bid shall be conclusive evidence that the bidder has investigated and is satisfied as to the conditions to be encountered, including locality, uncertainty of weather and all other contingencies, and as to the character, quality, quantities, and scope of the work.

The plans and specifications for the work show subsurface conditions or otherwise hidden conditions as the Design Engineer supposes or believes them to exist, but is not intended or to be inferred that the conditions as shown thereon constitute a representation that such conditions are actually existent. Except as otherwise specifically provided in the Contract Documents, the Agency, the Design Engineer and their consultants or agents shall not be liable for any loss sustained by the Contractor as a result of any variance of such conditions as shown on the plans and the actual conditions revealed during the progress of the work or otherwise.

The Contractor shall perform an independent take-off of the plans and bid accordingly. Quantities listed in the BID SCHEDULE in SECTION C are intended only as a guide for the Contractor as to the anticipated order of magnitude of work. Contractor shall be responsible for verifying all estimated quantities. Contractor will be reimbursed for the quantity of items actually installed as required by the Contract Documents and shown on the plans to neat line and grade.

The Contractor will not be reimbursed for unauthorized work performed outside of that required by the Contract Documents.

B1.09 TAXES
No mention shall be made in the proposal of sales tax, use tax, or any other tax, as all amounts bid will be deemed and held to include any such taxes which may be applicable.

B1.10 RECOGNITION OF BONDING COMPANIES
All bonding companies used by the Contractor in this contract must be recognized by the Federal Government within Circular 570. All proposals or contracts received that include bonds posted by bonding companies not recognized in Circular 570 will result in the disqualification of the bid proposal and forfeiture of the bid bond.

B1.11 QUALIFICATION OF BIDDERS
Each bidder shall be skilled and regularly engaged in the general class or type of work called for under the contract. A statement setting forth his/her experience shall be submitted by each bidder on the EXPERIENCE STATEMENT form provided in SECTION C.

Each bidder shall posses a valid Contractor’s License issued by the Contractor’s State License Board at the time his/her bid is submitted. The class of license shall be applicable to the work specified in the contract. Each bidder shall also have no less than five (5) years experience in the magnitude and character of the work bid.

It is the intention of the Agency to award a contract to a bidder who furnished satisfactory evidence that he/she has the requisite experience and ability, and that he/she has sufficient capital, facilities, and plant

SECTION B – Page 5

INSTRUCTION TO BIDDERS
to enable him/her to prosecute the work successfully and properly, and to complete it within the time stated in the contract.

To determine the degree of responsibility to be credited to the bidder, the Agency will weigh any evidence that the bidder has performed satisfactorily other contracts of like nature, magnitude and comparable difficulty and comparable rates of progress. If in the opinion of the Agency, a bidder is determined to be insufficiently qualified, then that bidder will not be considered for award of the contract.

B1.12 DESIGNATION OF SUPPLIERS AND SUBCONTRACTORS
Each proposal shall have listed on the DESIGNATION OF SUPPLIERS AND SUBCONTRACTORS form provided in SECTION C the name and address of each subcontractor to whom the bidder proposes to sublet portions of the work in excess of one-half percent of the total amount of his/her bid. For the purpose of this paragraph, a subcontractor is defined as one who contracts with the Contractor to furnish materials and labor, or labor only for the performance of work at the site of the work or who will specially fabricate a portion of the work off the site pursuant to detailed drawings in the contract documents.

Public Contract Code § 4104 requires all bidders to list subcontractors who will perform work in excess of ½% of the total bid, or in the case of streets and highways, ½% or $10,000, whichever is greater.

Public Contract Code § 6109 prohibits a contractor from performing work with a subcontractor who is debarred pursuant to Labor Code §§ 1777.1 or 1777.7.

B1.13 PROPOSAL GUARANTEE
The proposal shall be accompanied by a proposal guarantee bond duly completed on the form provided herewith by a guarantee company authorized to carry on business in the State of California for payments to the Agency in the sum of at least 10% of the total amount of the bid proposal, or alternatively by a certified or cashier’s check payable to the Agency, or cash, in the sum of at least 10% of the total amount of the bid proposal. The amount payable to the Agency under the proposal guarantee shall be forfeited to the Agency in case of failure or neglect of the bidder to furnish, execute and deliver to the Agency the required bonds, evidence of insurance and to enter into, execute and deliver to the Agency the agreement on the form provided herewith, within ten (10) days after being notified in writing by the Agency that the award has been made and the agreement is ready for execution.

B1.14 MODIFICATION OF PROPOSAL
A modification of a bid proposal already received will be considered only if the modification is received before the time announced for the opening of bids. All modifications shall be made in writing, executed and submitted in the same form and manner as the original bid proposal.

B1.15 WITHDRAWAL OF PROPOSAL
A proposal may be withdrawn by a written request signed by the bidder. Such requests must be delivered to the Agency’s designated official prior to the bid opening hour stipulated in SECTION A – NOTICE INVITING ELECTRONIC BIDS. Proposals may not be withdrawn after that time without forfeiture of the proposal guarantee. The withdrawal of a proposal will not prejudice the right of the bidder to submit a new proposal, providing there is time to do so.

B1.16 POSTPONEMENT OF BID OPENING

SECTION B – Page 6

INSTRUCTION TO BIDDERS
The Agency reserves the right to postpone the date and time for opening of bids at any time prior to the date and time announced in SECTION A–NOTICE INVITING ELECTRONIC BIDS.

B1.17 DISQUALIFICATION OF BIDDERS
If there is reason to believe that collusion exists among the bidders, none of the bids of the participants in such collusion will be considered. In the event that any bidder acting as a prime Contractor has an interest in more than one proposal, all such proposals will be rejected, and the bidder will be disqualified.

This restriction does not apply to subcontractors or suppliers who may submit quotations to more than one bidder, and while doing so, may also submit a formal proposal as a prime Contractor.

B1.18 REJECTION OF PROPOSALS
The Agency reserves the right to reject any and all proposals, to waive any irregularity, and to reject any proposals which are incomplete, obscure or irregular; any proposals which omit a bid on any one or more items on which bids are required; which omit unit prices if unit prices are required; in which unit prices are unbalanced in the opinion of the Agency; which are accompanied by insufficient or irregular bid security; or which are from bidders who have previously failed to perform properly or to timely complete contracts of any nature.

B1.19 AWARD OF CONTRACT
The Contract will be awarded, if at all, to the lowest responsible and responsive bidder, whose bid proposal is not rejected for cause by the Agency. However, until an award is made, the Agency reserves right will be reserved to reject any or all bids, and to waive technical errors or discrepancies, if to do so is deemed to best serve the interests of the Agency. In no event will an award be made until all necessary investigations are made as to the responsibility and qualifications of the bidder to whom it is proposed to make such an award.

Each bidder’s attention is directed to the possibility that the award of the project may be delayed for various reasons. The Agency reserves the right to delay the award of the project for 45 calendar days.

After 45 calendar days, the low bidder may at any time request release from its bid without penalty.

The acceptance of a proposal will be evidenced by a Notice of Award of Contract in writing, delivered by mail to the bidder whose proposal is accepted. No other act of the Agency shall constitute acceptance of a proposal. The award of contract shall obligate the bidder whose proposal is accepted to furnish a performance bond, payment bond and maintenance bond, as well as evidence of insurance and to execute the contract set forth herein.

B1.20 RETURN OF PROPOSAL GUARANTEES
Within ten (10) calendar days after the bids are opened, the Agency will release the proposal guarantees accompanying the proposals which are not to be considered in making the award. Proposal guarantees for the two lowest bidders will be held until the contract has been fully executed, after which they will be returned to the respective bidders.

B2.21 EXECUTION OF CONTRACT
The contract agreement shall be executed in duplicate by the successful bidder and returned, together with the contract bonds and evidence of insurance, within ten (10) calendar days after the notification of the contract award by the Agency in writing. In case of failure of the successful bidder to execute the contract agreement within ten (10) calendar days after such notice, or any subsequent extension approved

SECTION B – Page 7

INSTRUCTION TO BIDDERS
by Agency, the Agency at its option may consider the bidder in default, in which case the bid bond or proposal guarantee accompanying the bid shall become the property of the Agency. After execution by the Agency, one original contract shall be returned to the Contractor.

B1.22 FLEXIBILITY OF BID SCHEDULE
It is the intent of the Agency to award a contract to the lowest responsible and responsive bidder and the flexibility shown in the bid schedule is necessary to ensure a project within the Agency’s budget limits and constraints.

SECTION C – Page 8

PROPOSAL INFORMATION AND DOCUMENT

SECTION C

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA

PROPOSAL INFORMATION AND DOCUMENTS

PROPOSAL INFORMATION AND DOCUMENTS

BID PROPOSAL

BID SCHEDULE

BID BOND

BID GUARANTEE

BIDDER INFORMATION

EXPERIENCE STATEMENT

DESIGNATION OF SUPPLIERS AND SUBCONTRACTORS

NON-COLLUSION AFFIDAVIT

SECTION C – Page 9

PROPOSAL INFORMATION AND DOCUMENT

BID PROPOSAL

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA
The undersigned, as bidder, declares that he/she has examined all of the contract documents and specifications contained in this project manual for the above referenced project, and that he/she will contract with the Agency on the form of contract provided herewith to do everything necessary for the fulfillment of this contract at the price, and on the terms and conditions therein contained.

The following are included and are to be considered as forming a part of this proposal: BID

PROPOSAL, BID SCHEDULE, BID BOND, NONCOLLUSION AFFIDAVIT, BID GUARANTEE (if submitted in lieu of Bid Bond), BIDDER INFORMATION, EXPERIENCE STATEMENT, DESIGNATION OF SUPPLIERS & SUBCONTRACTORS, BIDDER’S STATEMENT REGARDING INSURANCE COVERAGE, and STATEMENT REGARDING CONTRACTOR’S LICENSING LAWS.

Contractor acknowledges receipt and inclusion of addenda ______ to ______ into this bid proposal and the contract documents.

Attached is a Bid Bond duly completed by a guarantee company authorized to carry on business in the State of California in the amount of at least 10% of the total amount of this proposal, or alternatively, there is attached a certified or cashier’s check payable to the Agency or evidence of a cash payment to the Agency, in the amount of at least 10% of the total amount of our proposal.

If this proposal is accepted, we agree to sign the contract form and to furnish the Performance Bond and the Payment Bond (each to be 100% of the bid amount), the Maintenance Bond (to be 50% of the bid amount), and the required evidences of insurance within ten (10) calendar days after receiving written Notice of Award of Contract.

We further agree if our proposal is accepted and a contract for the performance of the work is entered into with the Agency, to so plan the work and to prosecute it with such diligence that all of the work shall be completed within the time stipulated in SECTION E - TIME OF COMPLETION.

NAME OF BIDDER: ____________________________________________________________ MAILING ADDRESS: ___________________________________________________________ STATE OF INCORPORATION: ___________________________________________________ AUTHORIZED SIGNATURE: ____________________________________________________ TITLE: _______________________________________________________________________ DATE: _______________________________________________________________________

SECTION C – Page 10

PROPOSAL INFORMATION AND DOCUMENT
(If Company is a Corporation, provide corporate resolution per B 1.06 PROPOSAL.)

SECTION C – Page 11

PROPOSAL INFORMATION AND DOCUMENT

BID SCHEDULE

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA
The cost of all labor, services, material, equipment and installation necessary for the completion of the work itemized under this schedule, even though not shown or specified, shall be included in the unit price for the various items shown herein. For a description of the work associated with each bid item, see SECTION E–SPECIAL PROVISIONS. The Agency reserves the right to increase or decrease the quantity of any item or omit items as may be necessary, and the same shall in no way affect or void the contract, except that appropriate additions or deductions from the contract total price will be made at the stipulated unit price in accordance with these Contract Documents.

The Agency reserves the right to reject any and all bids, to waive any informality in a bid, and to make awards in the interest of the Agency.

The Contractor shall perform an independent take-off of the plans and bid accordingly. Quantities listed in this Bid Schedule are intended only as a guide for the Contractor as to the anticipated order of magnitude of work. The Contractor shall be responsible for verifying all estimated quantities. The Contractor will be reimbursed for the quantity of items actually installed as required by the Contract Documents, including addenda, and shown on the plans to neat line and grade.

The Contractor will not be reimbursed for work performed for his convenience, or as required to adapt to field conditions, or for unauthorized work performed outside of that required by the Contract Documents.

The Contractor shall be responsible for calculating and providing totals for the bid schedule. The proposal schedule shall include all costs for labor, services, material, equipment, and installation associated with completing the work in place per the plans, specifications and details.

NAME OF BIDDER:_________________________________________________________ CONTRACTOR’S LICENSE NO.:______________________________________________ AUTHORIZED SIGNATURE:__________________________________________________ TITLE:____________________________________________________________________ DATE:____________________________________________________________________

SECTION C – Page 12

PROPOSAL INFORMATION AND DOCUMENT
BID SCHEDULE (Continued)

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA

BID SCHEDULE
No. Item Description Estimated
Quantity
Unit Unit Price Item Amount
1 Mobilization 1 LS $ $
2 Traffic Control 1 LS $ $
3 Cold Mill Existing Pavement 1.5-Inch
Uniform Depth 33,780 SF $ $
4 Remove and Construct 7.5-Inch Full
Depth Asphalt Concrete Pavement

95.2 TN $ $
5 Construct 1.5-Inch Thick ARHM Overlay 310 TN $ $
6 Adjust to Grade (Item as Noted) 1 EA $ $
7 Install Signing and Striping Complete per
Plans 1 LS $ $
8 Remove and Replace Curb Ramp, Type
per Plan 4 EA $ $
9 Construct Handrail Per SPPWC Std 606-4 21 LF $ $
10 Install Detector Loop Complete Per Plan 7 EA $ $
Total
Bid Schedule Total
$___________________________________________________________________ Bid Schedule Total (in words):
____________________________________________________________________________________ _
The Contractor 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.

The City has the option to reject all bids with or without cause. The City also has the option to remove bid items at its discretion. If the City chooses to remove bid items, no bid price adjustment will be allowed.

For the purposes of determining the lowest responsible bidder, the Bid Schedule Total shall be considered.

SECTION C – Page 13

PROPOSAL INFORMATION AND DOCUMENT
(Company Name of Bidder) (Date)

BID BOND

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA
KNOW ALL MEN BY THESE PRESENTS that Bidder ________________________, as PRINCIPAL, and ______________________, as SURETY, are held and firmly bound unto the City of Los Alamitos as AGENCY, in the penal sum of
___________________________________________________________ dollars ($____________________), which is ten percent (10%) of the total amount bid by PRINCIPAL to AGENCY for the above stated project, for the payment of which sum, PRINCIPAL and SURETY agree to be bound, jointly and severally, firmly by these presents.

The SURETY, for value received, hereby stipulates and agrees that the obligations of said SURETY and its BOND shall be in no way impaired or affected by any extension of the time within which the AGENCY may accept such Bid; and said SURETY does hereby waive notice of any such extension.

THE CONDITIONS OF THIS OBLIGATION ARE SUCH that, whereas PRINCIPAL is about to submit a bid to AGENCY for the above stated project, if said bid is rejected, or if said bid is accepted and a contract is awarded and entered into by PRINCIPAL in the manner and time specified, and PRINCIPAL provides the required payment and performance bonds and insurance coverages to AGENCY, then this obligation shall be null and void, otherwise it shall remain in full force and effect in favor of AGENCY.

IN WITNESS WHEREOF the parties hereto have set their names, titles, hands, and seals this__ day of ., 2023.

PRINCIPAL*
________________
_____________________________________________
_____________________________________________
SURETY* _____________________________________________
_____________________________________________

SECTION C – Page 14

PROPOSAL INFORMATION AND DOCUMENT
_____________________________________________
*Provide BIDDER and SURETY name, address and telephone number and the name, title, address and telephone number for their authorized representatives. Power of Attorney must be attached.

Subscribed and sworn to this day of , 2023.

NOTARY PUBLIC _______________________________________________ (SEAL)

SECTION C – Page 15

PROPOSAL INFORMATION AND DOCUMENT

BID GUARANTEE

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA
Note: The following statement shall be used if other than a bid surety bond accompanies bid. “Accompanying this proposal is a money order*, certified check*, cashier’s check*, cash*, payable to the order of the City of Los Alamitos in the amount of
_______________________________________________ Dollars ($__________________) which is at least ten percent (10%) of the total amount of this bid. The proceeds of this bid guarantee shall become the property of the City of Los Alamitos provided this bid is accepted by said City, through action of its legally constituted contracting authorities, and the undersigned fails to execute a contract and furnish the required bonds and insurance within the stipulated time. Otherwise, the proceeds of this bid guarantee shall be returned to the undersigned.”
NAME OF BIDDER:

MAILING ADDRESS:

AUTHORIZED SIGNATURE:

TITLE:

DATE:
(*Delete the inapplicable words)

SECTION C – Page 16

PROPOSAL INFORMATION AND DOCUMENT

BIDDER INFORMATION

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA
BIDDER certifies that the following information is true and correct:

Name of Bidder:
...........................................................................................................................................................

Business Address:
...........................................................................................................................................................

Telephone: .FAX:

E-mail:

Contractor’s License No.: Date License Issued: .

License Expiration Date:

The following are the names, titles, addresses, and phone numbers of all individuals, firm members, partners, joint venturers, and/or corporate officers having a principal interest in this proposal: (Name / Title / Address / Telephone)

Any voluntary or involuntary bankruptcy judgments against any principal having an interest in this proposal are as follows: (Type of Judgment / Date)

All current and prior DBA’s, aliases, and/or fictitious business names for any principal having an interest in this proposal are as follows: (Principal / DBA’s / Applicable Dates)

SECTION C – Page 17

PROPOSAL INFORMATION AND DOCUMENT

Prior Disqualification
Has your firm ever been disqualified from performing work for any City, County, Public or Private Contracting entity? Yes / No _________. If yes, provide the following information. (If more than once, use separate sheets):

Date: Entity:

Location:

Reason:

Provide Status and any Supplemental Statement:

Has your firm been reinstated by this entity? Yes / No
Violations of Federal or State Law
A. Has your firm or its officers been assessed any penalties by any agency for noncompliance, violations of Federal or State labor laws and/or business or licensing regulations within the past five (5) years relating to your construction projects?
Yes / No: Federal / State:

If “yes”, identify and describe, (including status):

Have the penalties been paid? Yes / No:___________________

SECTION C – Page 18

PROPOSAL INFORMATION AND DOCUMENT
B. Does you firm or its officers have any ongoing investigations by any AGENCY regarding violations of the State Labor Code, California Business and Professions Code or State Licensing laws?
Yes / No: Codes / Laws: Section / Article:
................................................

If “yes”, identify and describe (including status):
...........................................................................................................................................................

...........................................................................................................................................................

I declare under penalty of perjury under the laws of the State of California that all of the representations made in this BIDDER INFORMATION are true and correct. Executed this __________________ day of _______________________________, 2023, at _____________________________________, California.

Authorized Representative Signature and Title________________________________________

SECTION C – Page 19

PROPOSAL INFORMATION AND DOCUMENT

EXPERIENCE STATEMENT

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA
Pursuant to this BID PROPOSAL and QUALIFICATION OF BIDDERS, the following is a record of the Bidder’s experience in construction of a type similar in magnitude and character to that contemplated under this contract. Included in this section should be a complete list of references for similar projects in terms of scope of work, value of work, and time constraints. The Contractor must demonstrate that he/she has experience with this type of project and can manage this project effectively.

If necessary, additional numbered pages can be attached to this page. The Contractor must be properly licensed to perform the work in this project as determined by the State Contractor’s License Board.

Project Title:__________________________________ Client:_______________________________ Date: ______________ Project Value: ______________ Contact: _____________ Tel #____________
Description: __________________________________________________________________ ______________________________________________________________________ ______________________________________________________________ Subject to Federal Labor Standards: Yes No
Project Title:__________________________________ Client:_______________________________ Date: ______________ Project Value: ______________ Contact: _____________ Tel #____________
Description: __________________________________________________________________ ______________________________________________________________________ ______________________________________________________________ Subject to Federal Labor Standards: Yes No

SECTION C – Page 20

PROPOSAL INFORMATION AND DOCUMENT
EXPERIENCE STATEMENT (Continued)

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA
Project Title:__________________________________ Client:_______________________________ Date: ______________ Project Value: ______________ Contact: _____________ Tel #____________
Description: __________________________________________________________________ ______________________________________________________________________ ______________________________________________________________ Subject to Federal Labor Standards: Yes No
Project Title:__________________________________ Client:_______________________________ Date: ______________ Project Value: ______________ Contact: _____________ Tel #____________
Description: __________________________________________________________________ ______________________________________________________________________ ______________________________________________________________ Subject to Federal Labor Standards: Yes No
I declare under penalty of perjury under the laws of the State of California that all of the representations made in this EXPERIENCE STATEMENT are true and correct. Executed this __________________ day of _______________________________, 20__, at _____________________________________, California.
_________________________________________________________________ Authorized Representative Signature and Title

SECTION C – Page 21

PROPOSAL INFORMATION AND DOCUMENT

DESIGNATION OF SUPPLIERS AND SUBCONTRACTORS

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA
The following is a list of subcontractors and suppliers, as defined in 2-3 SUBCONTRACTS of the Standard Specifications, who will perform work or provide materials of value in excess of one-half percent of the total bid price or $10,000, whichever is greater.

No subcontractor shall perform work in excess of the amount specified in 2-3 SUBCONTRACTS of the Standard Specifications, without the written approval of the Agency.

The Contractor is responsible to ensure that appropriate provisions are to be inserted in all subcontracts to bind subcontractors to the contract requirements as contained herein.

Each subcontractor must agree to comply with all applicable Federal, State, and local requirements.

SECTION C – Page 22

PROPOSAL INFORMATION AND DOCUMENT
Exhibit 12-B: Bidder’s List of Subcontractors (DBE and Non-DBE) - Part 1 As of March 1, 2015, Contractors (and subcontractors) wishing to bid on public works contracts shall be registered with the State Division of Industrial Relations and certified to bid on Public Works contracts. Please register at https://www.dir.ca.gov/Public-Works/ContractorRegistration.html. The local agency will verify registration of all contractors and subcontractors on public works projects at bid and thereafter annually to assure that yearly registration is maintained throughout the life of the project.

In accordance with Title 49, Section 26.11 of the Code of Federal Regulations and Section 4104 of the Public Contract Code of the State of California, as amended, the following information is required for each subcontractor who will perform work amounting to more than one half of one percent (0.5%) of the Total Base Bid or $10,000 (whichever is greater).

Photocopy this form for additional firms.

FEDERAL PROJECT NUMBER:

CRAL-5363(013)
Subcontractor Name & Location Line Item & Description Subcontract Amount
Percentage of
Bid Item
Subcontracted
Contactor License Number DBE
(Y/N)
DBE Cert
Number
Annual Gross
Receipts DIR Reg Number
NAME < $1 million
< $5 million
< $10
million
City, State < $15
million
Age of Firm
in years
NAME < $1 million
< $5 million
< $10 million
City, State < $15 million
Age of Firm
in years
NAME < $1 million
< $5 million
< $10 million
City, State < $15 million
Age of Firm
in years
NAME < $1 million
< $5 million
< $10 million
City, State < $15 million
Age of Firm
in years
NAME < $1 million
< $5 million
< $10 million
City, State < $15 million
Age of Firm
in years
NAME < $1 million
< $5 million
< $10 million
City, State < $15 million
Age of Firm
in years
NAME < $1 million
< $5 million
< $10 million
City, State < $15 million
Age of Firm
in years
NAME < $1 million
< $5 million
< $10 million
City, State < $15 million
Age of Firm
in years
NAME < $1 million
< $5 million
< $10 million
City, State < $15 million
Age of Firm
in years
Distribution – Original: Local Agency File; Copy: DLAE w/Award Package

SECTION C – Page 23

PROPOSAL INFORMATION AND DOCUMENT
Exhibit 12-B: Bidder’s List of Subcontractors (DBE and Non-DBE) - Part 2 In accordance with Title 49, Section 26.11 of the Code of Federal Regulations, the Bidder shall list all subcontractors who provided a quote or bid but were not selected to participate as a subcontractor on this project.

Photocopy this form for additional firms.

FEDERAL PROJECT NUMBER:

CRAL-5363(013)
Subcontractor Name & Location Line Item & Description Subcontract Amount
Percentage of
Bid Item
Subcontracted
Contactor License Number DBE
(Y/N)
DBE Cert
Number
Annual Gross
Receipts DIR Reg Number
NAME < $1 million
< $5 million
< $10
million
City, State < $15
million
Age of Firm
in years
NAME < $1 million
< $5 million
< $10 million
City, State < $15 million
Age of Firm
in years
NAME < $1 million
< $5 million
< $10 million
City, State < $15 million
Age of Firm
in years
NAME < $1 million
< $5 million
< $10 million
City, State < $15 million
Age of Firm
in years
NAME < $1 million
< $5 million
< $10 million
City, State < $15 million
Age of Firm
in years
NAME < $1 million
< $5 million
< $10 million
City, State < $15 million
Age of Firm
in years
NAME < $1 million
< $5 million
< $10 million
City, State < $15 million
Age of Firm
in years
NAME < $1 million
< $5 million
< $10 million
City, State < $15 million
Age of Firm
in years
NAME < $1 million
< $5 million
< $10 million
City, State < $15 million
Age of Firm
in years
NAME < $1 million
< $5 million
< $10 million
City, State < $15 million
Age of Firm
in years
Distribution – Original: Local Agency File; Copy: DLAE w/Award Package

SECTION C – Page 24

PROPOSAL INFORMATION AND DOCUMENT
These representations are made under the penalty of perjury under the laws of the State of California.

The undersigned hereby certifies that each subcontractor has been notified in writing of its equal opportunity obligations.

NAME OF BIDDER: _________________________________________________________ AUTHORIZED SIGNATURE: __________________________________________________ Date: _____________________________

SECTION C – Page 25

PROPOSAL INFORMATION AND DOCUMENT

NON-COLLUSION AFFIDAVIT
The undersigned declares:

I am the _______________ of _______________________, the party making the foregoing bid.

The bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. The bid is genuine and not collusive or sham. The bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid. The bidder has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or to refrain from bidding. The bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder. All statements contained in the bid are true. The bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof, to effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such purpose.

Any person executing this declaration on behalf of a bidder that is a corporation, partnership, joint venture, limited liability company, limited liability partnership, or any other entity, hereby represents that he or she has full power to execute, and does execute, this declaration on behalf of the bidder.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on _______[date], at _____________[city], ______________[state].
__________________________
Signature of Declarant
__________________________
Printed Name of Declarant

SECTION D – Page 1

CONTRACT INFORMATION AND DOCUMENT

SECTION D

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA

CONTRACT INFORMATION AND DOCUMENTS

CONTRACT INFORMATION AND DOCUMENTS

CONTRACT AGREEMENT

PAYMENT BOND

FAITHFUL PERFORMANCE BOND

MAINTENANCE BOND
WORKER’S COMPENSATION INSURANCE CERTIFICATE

INSURANCE ENDORSEMENT

STATEMENT RE INSURANCE COVERAGE
STATEMENT RE THE CONTRACTOR’S LICENSING LAWS

SECTION D – Page 2

CONTRACT INFORMATION AND DOCUMENT

ARTICLES OF AGREEMENT

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA
THIS BLOOMFIELD STREET IMRPVOEMENT PROJECT CIP NO. 22/23-06 AGREEMENT (“AGREEMENT”) is made and entered into for the above-stated project this __ day of Month, 20XX (Council Action Date Here), BY AND BETWEEN the City of Los Alamitos, a municipal corporation, hereafter designated as “AGENCY”, and CONTRACTOR’S BUSINESS NAME, a ____________ (State) ___________ (corporation, partnership, limited liability company, or other business form), hereafter designated as “CONTRACTOR.”
WITNESSETH that AGENCY and CONTRACTOR have mutually agreed as follows:

ARTICLE I: Contract Documents
The contract documents for the BLOOMFIELD STREET IMRPVOEMENT PROJECT CIP NO. 22/23-06 shall consist of the Notice Inviting Electronic Bids, Instructions To Bidders, Bid Proposal, Bid Schedule, Standard Specifications, Special Provisions, and all referenced specifications, details, standard drawings, and appendices; together with two signed copies of the AGREEMENT, two signed copies of required bonds; one copy of the insurance certificates, permits, notices, and affidavits; and also including any and all addenda or supplemental agreements clarifying, amending, or extending the work contemplated as may be required to ensure its completion in an acceptable manner (collectively referred to herein as the “Contract Documents”). All of the provisions of the Contract Documents are made a part hereof as though fully set forth herein.

ARTICLE II: Scope of Work
For and in consideration of the payments and agreements to be made and performed by AGENCY, CONTRACTOR agrees to furnish all materials and equipment and perform all work required for the above-stated project, and to fulfill all other obligations as set forth in the aforesaid contract documents.

AGENCY hereby employs CONTRACTOR to provide the materials, do the work, and fulfill the obligations according to the terms and conditions herein contained and referred to, for the prices provided herein, and hereby contracts to pay the same at the time, in the manner, and upon the conditions set forth in this AGREEMENT.

In entering into a public works contract or a subcontract to supply goods, services, or materials pursuant to this AGREEMENT, CONTRACTOR offers and agrees to assign to the AGENCY all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (Section 16700, et seq.) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time the awarding body tenders final payment to CONTRACTOR, without further acknowledgment by the parties.

SECTION D – Page 3

CONTRACT INFORMATION AND DOCUMENT
ARTICLE III: Compensation
A. CONTRACTOR agrees to receive and accept the prices set forth in the Bid Proposal and Bid Schedule as full compensation for furnishing all materials, performing all work, and fulfilling all obligations hereunder. In no event shall the total compensation and costs payable to CONTRACTOR under this Agreement exceed the sun of Dollars ($ ,) unless specifically approved in advance and in writing by AGENCY Such compensation shall cover all expenses, losses, damages, and consequences arising out of the nature of the work during its progress or prior to its acceptance including those for well and faithfully completing the work and the whole thereof in the manner and time specified in the aforesaid Contract Documents; and also including those arising from actions of the elements, unforeseen difficulties or obstructions encountered in the prosecution of the work, suspension or discontinuance of the work, and all other unknowns or risks of any description connected with the work.

B. This AGREEMENT is subject to the provisions of Article 1.7 (commencing at Section 20104.50) of Division 2, Part 3 of the Public Contract Code regarding prompt payment of contractors by local governments. Article 1.7 mandates certain procedures for the payment of undisputed and properly submitted payment requests within 30 days after receipt, for the review of payment requests, for notice to Contractor of improper payment requests, and provides for the payment of interest on progress payment requests which are not timely made in accordance with that Article. This AGREEMENT hereby incorporates the provisions of Article 1.7 as though fully set forth herein.

C. At the request and expense of CONTRACTOR, securities equivalent to the amount withheld shall be deposited with AGENCY, or with a state or federally chartered bank in this state as the escrow agent, who shall then pay those moneys to CONTRACTOR upon Agency’s confirmation of CONTRACTOR’S satisfactory completion of this AGREEMENT. At any time during the term of this AGREEMENT CONTRACTOR may, at its own expense, substitute securities for funds otherwise withheld as retention (or the retained percentage) in accordance with Public Contract Code § 22300.

ARTICLE IV: Labor Code
AGENCY and CONTRACTOR acknowledge that this AGREEMENT is subject to the provisions of Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public works and public agencies and agree to be bound by all the provisions thereof as though set forth fully herein. Full compensation for conforming to the requirements of the Labor Code and with other Federal, State and local laws related to labor, and rules, regulations and ordinances which apply to any work performed pursuant to this AGREEMENT is included in the price for all contract items of work involved.

This AGREEMENT is further subject to prevailing wage law, including, but not limited to, the following:

A. The CONTRACTOR shall pay the prevailing wage rates for all work performed under the AGREEMENT. When any craft or classification is omitted from the general prevailing wage determinations, the CONTRACTOR shall pay the wage rate of the craft or classification most closely related to the omitted classification. The CONTRACTOR shall

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CONTRACT INFORMATION AND DOCUMENT
forfeit as a penalty to AGENCY $200.00 or any greater penalty provided in the Labor Code for each Calendar Day, or portion thereof, for each worker paid less than the prevailing wage rates for any work done under the AGREEMENT in violation of the provisions of the Labor Code whether such worker is employed in the execution of the work by CONTRACTOR or by any Subcontractor under CONTRACTOR. In addition, CONTRACTOR shall pay each worker the difference between such prevailing wage rates and the amount paid to each worker for each Calendar Day, or portion thereof, for which each worker was paid less than the prevailing wage rate.

B. CONTRACTOR shall comply with the provisions of Labor Code Section 1777.5 concerning the employment of apprentices on public works projects, and further agrees that CONTRACTOR is responsible for compliance with Section 1777.5 by all of its subcontractors.

C. Pursuant to Labor Code § 1776, CONTRACTOR and any subcontractor shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with this AGREEMENT. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following: (1) The information contained in the payroll record is true and correct; and (2) The employer has complied with the requirements of Labor Code §§ 1811, and 1815 for any work performed by his or her employees on the public works project. The payroll records enumerated under subdivision (a) shall be certified and shall be available for inspection at all reasonable hours as required by Labor Code § 1776.

D. This AGREEMENT is further subject to 8-hour work day and wage and hour penalty law, including, but not limited to, Labor Code Sections 1810 and 1813, as well as California nondiscrimination laws, as follows:

CONTRACTOR shall strictly adhere to the provisions of the Labor Code regarding the 8- hour day and the 40-hour week, overtime, Saturday, Sunday and holiday work and nondiscrimination on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex or sexual orientation, except as provided in Section 12940 of the Government Code. Pursuant to the provisions of the Labor Code, eight hours’ labor shall constitute a legal day’s work. Work performed by CONTRACTOR’s employees in excess of eight hours per day, and 40 hours during any one week, must include compensation for all hours worked in excess of eight hours per day, or 40 hours during any one week, at not less than one and one-half times the basic rate of pay. CONTRACTOR shall forfeit as a penalty to AGENCY $25.00 or any greater penalty set forth in the Labor Code for each worker employed in the execution of the work by CONTRACTOR or by any Subcontractor of CONTRACTOR, for each Calendar Day during which such worker is required or permitted to the work more than eight hours in one Calendar Day or more than 40 hours in any one calendar week in violation of the Labor Code.

E. This AGREEMENT is subject to Public Contract Code Section 6109:

CONTRACTOR shall be prohibited from performing work on this project with a subcontractor who is ineligible to perform work on the project pursuant to Sections 1777.1 or 1777.7 of the Labor Code.

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ARTICLE V: Work Site Conditions
A. In compliance with and pursuant to Government Code Section 4215, AGENCY shall assume the responsibility, as between the parties to this AGREEMENT, for the timely removal, relocation, or protection of existing main- or trunk-line utility facilities located on the site of any construction project that is a subject of this AGREEMENT, if such utilities are not identified by AGENCY in the plans and specifications made a part of the invitation for bids. The Contract Documents shall include provisions to compensate CONTRACTOR for the costs of locating, repairing damage not due to the failure of CONTRACTOR to exercise reasonable care, and removing or relocating such utility facilities not indicated in the plans and specifications with reasonable accuracy, and for equipment on the project necessarily idled during such work. CONTRACTOR shall not be assessed liquidated damages for delay in completion of the project, when such delay was caused by the failure of AGENCY or the owner of a utility to provide for removal or relocation of such utility facilities.

B. To the extent that the work requires trenches in excess of five feet (5’) and is estimated to cost more than $25,000, prior to any excavation, CONTRACTOR must provide the AGENCY, or a registered civil or structural engineer employed by the AGENCY to whom authority has been delegated to accept such plans, a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches. If such plan varies from the shoring system standards, the plan shall be prepared by a registered civil or structural engineer. Nothing in this section shall be deemed to allow the use of a shoring, sloping, or protective system less effective than that required by the Construction Safety Orders.

C. This AGREEMENT is further subject to Public Contract Code Section 7104 with regard to any trenches deeper than four feet (4’) involved in the proposed work as follows:

CONTRACTOR shall promptly, and before the following conditions are disturbed, notify AGENCY, in writing, of any:
(1) Material that CONTRACTOR believes may be hazardous waste, as defined in Section 25117 of the Health and Safety Code, which is required to be removed to a Class I, Class II, or Class III disposal site in accordance with existing law. (2) Subsurface or latent physical conditions at the site differing from those indicated by all available information provided prior to the deadline for submission of bids. (3) Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the contract.

AGENCY shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or involve hazardous waste, and cause a decrease or increase in CONTRACTOR’s cost of, or the time required for, performance of any part of the work, AGENCY shall issue a change order under the procedures described in this AGREEMENT.

In the event that a dispute arises between AGENCY and CONTRACTOR whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in

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CONTRACTOR’s cost of, or time required for, performance of any part of the work, CONTRACTOR shall not be excused from any scheduled completion date provided in the AGREEMENT, but shall proceed with all work to be performed under the AGREEMENT.

CONTRACTOR shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting parties.

ARTICLE VI: Insurance
A. With respect to performance of work under this AGREEMENT, CONTRACTOR shall maintain, and shall require all of its subcontractors to maintain, insurance as required by Section E “Standard Specifications” of the Contract Documents.

B. This AGREEMENT is further subject to Workers’ Compensation obligations, including, but not limited to, California Labor Code Sections 1860 and 1861 as follows:

CONTRACTOR shall take out and maintain, during the life of this contract, Worker’s Compensation Insurance for all of CONTRACTOR’s employees employed at the site of improvement; and, if any work is sublet, CONTRACTOR shall require the subcontractor similarly to provide Worker’s Compensation Insurance for all of the latter’s employees, unless such employees are covered by the protection afforded by CONTRACTOR.

CONTRACTOR and any of CONTRACTOR’s subcontractors shall be required to provide AGENCY with a written statement acknowledging its obligation to secure payment of Worker’s Compensation Insurance as required by Labor Code § 1861; to wit: ‘I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.’ If any class of employees engaged in work under this AGREEMENT at the site of the Project is not protected under any Worker’s Compensation law, CONTRACTOR shall provide and shall cause each subcontractor to provide adequate insurance for the protection of employees not otherwise protected.

CONTRACTOR shall indemnify and hold harmless AGENCY for any damage resulting from failure of either CONTRACTOR or any subcontractor to take out or maintain such insurance.

ARTICLE VII: Indemnification
To the fullest extent permitted by law, CONTRACTOR shall, at its sole cost and expense, fully defend, indemnify and hold harmless AGENCY, its authorized representatives and their respective subsidiaries, affiliates, members, directors, officers, employees and agents (collectively, the “Indemnitees”) from and against any and all claims, actions, demands, costs, judgments, liens, penalties, liabilities, damages, losses, and expenses, including but not limited to any fees of accountants, attorneys or other professionals (collectively “Liabilities”), arising out of, in connection with, resulting from or related to, any act, omission, fault or negligence of CONTRACTOR, CONTRACTOR’s Representative, or any of its officers, agents, employees, Subcontractors or Suppliers, or any person or organization directly or indirectly employed by any of them (Collectively, the “Indemnitors”), in connection with or relating to or claimed to be in connection with or relating to the work performed under this AGREEMENT.

If CONTRACTOR is a joint venture or partnership, each venturer or partner shall be jointly and severally liable for any and all of the duties and obligations of CONTRACTOR that are

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assumed under or arise out of this AGREEMENT. Each of such venturers or partners waives notice of the breach or non-performance of any undertaking or obligation of CONTRACTOR contained in, resulting from or assumed under this AGREEMENT, and the failure to give any such notice shall not affect or impair such venturer’s or partner’s joint and several liability hereunder.

ARTICLE VIII: Binding Effect
AGENCY and CONTRACTOR each binds itself, its partners, successors, assigns, and legal representatives to the other party hereto and to its partners, successors, assigns, and legal representatives in respect of all covenants, agreements, and obligations contained in the Contract Documents. This AGREEMENT is not assignable nor the performance of either party’s duties delegable without the prior written consent of the other party. Any attempted or purported assignment or delegation of any of the rights of obligations of either party without the prior written consent of the other shall be void and of no force and effect.

ARTICLE IX: Dispute Resolution
A. In the event of a dispute arising out of the terms of this AGREEMENT, including any action brought to declare the rights granted herein or to enforce any of the terms of this AGREEMENT, the party prevailing in such dispute shall be entitled to all reasonable costs and litigation expenses actually incurred, including fees of attorneys and expert witnesses.

Any court action arising out of this AGREEMENT shall be filed in the Los Angeles County Superior Court. Any alternative dispute resolution proceeding arising out of this AGREEMENT shall be heard in the City of Los Angeles or the City of Los Alamitos, California.

B. AGENCY shall have full authority to compromise or otherwise settle any claim relating to this AGREEMENT or any part hereof at any time. AGENCY shall provide timely notification to CONTRACTOR of the receipt of any third-party claim relating to this AGREEMENT. AGENCY shall be entitled to recover its reasonable costs incurred in providing the notification required by this section.

C. This AGREEMENT is further subject to the provisions of Article 1.5 (commencing at Section 20104) of Division 2, Part 3 of the Public Contract Code regarding the resolution of public works claims of less than $375,000. Article 1.5 mandates certain procedures for the filing of claims and supporting documentation by Contractor, for the response to such claims by the Agency, for a mandatory meet and confer conference upon the request of Contractor, for mandatory nonbinding mediation in the event litigation is commenced, and for mandatory judicial arbitration upon the parties’ failure to resolve the dispute through mediation. This AGREEMENT hereby incorporates the provisions of Article

1.5 as though fully set forth herein.

ARTICLE X: Independent Contractor
CONTRACTOR is and shall at all times remain as to AGENCY, a wholly independent contractor. Neither AGENCY nor any of its agents shall have control of the conduct of CONTRACTOR or any of CONTRACTOR’s employees, except as herein set forth.

CONTRACTOR shall not at any time or in any manner represent that it or any of its agents or employees are in any manner agents or employees of AGENCY.

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ARTICLE XI: Taxes
CONTRACTOR is responsible for paying all retail, sales and use, transportation, export, import, special or other taxes and duties applicable to, and assessable against any work, materials, equipment, services, processes and operations incidental to or involved in this AGREEMENT. The CONTRACTOR is responsible for ascertaining and arranging to pay such taxes and duties. The prices established in this AGREEMENT shall include compensation for any taxes the CONTRACTOR is required to pay by laws and regulations in effect as of the execution of this AGREEMENT.

ARTICLE XII: Notices
All notices and communications shall be sent in writing to the parties at the following addresses:

AGENCY: Chris Kelley CONTRACTOR: [INSERT CONTACT]
CITY OF LOS ALAMITOS CONTRACTOR’S BUSINESS NAME
3191 Katella Avenue Mailing Street Address
Los Alamitos, CA 90720 City, State Zip Code
ARTICLE XIII: Entire Agreement
This AGREEMENT supersedes any and all other agreements, either oral or written, between the parties and contains all of the covenants and agreements between the parties pertaining to the work of improvements described herein. Each party to this AGREEMENT acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that any other agreement, statement or promise not contained in this AGREEMENT shall not be valid or binding. Any modification of this AGREEMENT will be effective only if signed by the party to be charged.

The benefits and obligations of this AGREEMENT shall inure to and be binding upon the representatives, agents, partners, heirs, successors and assigns of the parties hereto. This AGREEMENT shall be construed pursuant to the laws of the State of California.

ARTICLE XIV: Authority to Contract
The signatories hereto represent that they are authorized to sign on behalf of the respective parties they represent and are competent to do so, and each of the parties hereto hereby irrevocably waives any and all rights to challenge signatures on these bases.

ARTICLE XV: General Provisions
A. All reports, documents or other written material (“written products” herein) developed by CONTRACTOR in the performance of this Agreement shall be and remain the property of AGENCY without restriction or limitation upon its use or dissemination by AGENCY. CONTRACTOR may take and retain copies of such written products as desired,

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CONTRACT INFORMATION AND DOCUMENT
but no such written products shall be the subject of a copyright application by CONTRACTOR.

B. In the performance of this Agreement, CONTRACTOR shall not discriminate against any employee, subcontractor, or applicant for employment because of race, color, creed, religion, sex, marital status, sexual orientation, national origin, ancestry, age, physical or mental disability, medical condition or any other unlawful basis.

C. The captions appearing at the commencement of the sections hereof, and in any paragraph thereof, are descriptive only and for convenience in reference to this Agreement.

Should there be any conflict between such heading, and the section or paragraph at the head of which it appears, the section or paragraph hereof, as the case may be, and not such heading, shall control and govern in the construction of this Agreement. Masculine or feminine pronouns shall be substituted for the neuter form and vice versa, and the plural shall be substituted for the singular form and vice versa, in any place or places herein in which the context requires such substitution(s).

D. The waiver by AGENCY or CONTRACTOR of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition or of any subsequent breach of the same or any other term, covenant or condition herein contained. No term, covenant or condition of this Agreement shall be deemed to have been waived by AGENCY or CONTRACTOR unless in writing.

E. Each right, power and remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise shall be cumulative and shall be in addition to every other right, power, or remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise. The exercise, the commencement of the exercise, or the forbearance of the exercise by any party of any one or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by such party of any of all of such other rights, powers or remedies.

IN WITNESS WHEREOF the parties hereto for themselves, their heirs, executors, administrators, successors, and assigns do hereby agree to the full performance of the covenants herein contained and have caused this AGREEMENT to be executed in duplicate by setting hereunto their names, titles, hands, and seals this Xth day of Month, 20XX (Council Action Date Here)
CONTRACTOR: Contractor’s Business Name
__________________________________________
Contractor’s Sign Name, Title
Contractor’s License No. XXXXXX
Subscribed and sworn to this _______ day of _________, 20__.

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CONTRACT INFORMATION AND DOCUMENT
NOTARY PUBLIC ______________________________________________ (SEAL) AGENCY: ______________________________ __________
Mayor Date
City of Los Alamitos
ATTESTED: ______________________________ __________
Windmera Quintanar, MMC, City Clerk Date
City of Los Alamitos

APPROVED AS
TO FORM: ______________________________ __________
Michael S. Daudt, City Attorney Date
City of Los Alamitos
( E X E C U T E I N D U P L I C A T E )

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CONTRACT INFORMATION AND DOCUMENT

PAYMENT BOND

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA
WHEREAS, the City of Los Alamitos, as AGENCY has awarded to Contractor’s Business Name, as CONTRACTOR, a contract for the above-stated project;
AND WHEREAS, CONTRACTOR is required to furnish a bond in connection with the contract, to secure the payment of claims of laborers, mechanics, material persons, and other persons as provided by law; NOW THEREFORE, we, the undersigned CONTRACTOR and SURETY, are held and firmly bound unto AGENCY in the sum of [DESCRIBE VERBALLY; 100% OF TOTAL CONTRACT AMOUNT—TO BE INSERTED BY CONTRACTOR]Dollars ($XXX,XXX.XX) which is one hundred percent (100%) of the total contract amount for the above-stated project, for which payment well and truly to be made we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITIONS OF THIS OBLIGATION IS SUCH that if CONTRACTOR, its heirs, executors, administrators, successors, assigns or subcontractors, shall fail to pay any of the persons named in Civil Code Section 3181, or amounts due under the Unemployment Insurance Code with respect to work or labor withheld, and to pay over to the Employment Development Department from the wages of employees of the CONTRACTOR and its subcontractors pursuant to Section 13020 of the Unemployment Insurance Code, with respect to such work and labor, that the surety or sureties herein will pay for the same in an amount not exceeding the sum specified in this bond, otherwise the above obligation shall be void. In case suit is brought upon this bond, SURETY will pay reasonable attorneys’ fees to the plaintiffs and AGENCY in an amount to be fixed by the court.

This bond shall inure to the benefit to any of the persons named in Civil Code Section 3181 as to give a right of action to such persons or their assigns in any suit brought upon this bond.

The SURETY hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the contract or the specifications accompanying it shall in any manner affect SURETY’s obligations on this bond. The SURETY hereby waives notice of any such change, extension, alteration or addition and hereby waives the requirements of Section 2845 of the Civil Code as a condition precedent to any remedies AGENCY may have.

IN WITNESS WHEREOF the parties hereto have set their names, titles, hands, and seals this day of ________________, 20__.

Contractor* Contractor’s Signer’s Name, Title
Contractor’s Business Name
Mailing Street Address
City, State, Zip Code
Telephone #
Surety* _________________________________________________ _________________________________________________
_________________________________________________
________________________________________________
*Provide CONTRACTOR and SURETY name, address and telephone number and the name, title, address and telephone number for the respective authorized representatives. Power of Attorney must be attached.

Subscribed and sworn to this___ day of _____________________, 20__.

NOTARY PUBLIC........................................................................................................ .......................................................................................................................................(SEAL) (E X E C U T E I N D U P L I C A T E)

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CONTRACT INFORMATION AND DOCUMENT

FAITHFUL PERFORMANCE BOND

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA
KNOW ALL PERSONS BY THESE PRESENTS That Contractor’s Business Name, hereinafter referred to as “CONTRACTOR” as PRINCIPAL, and
, a corporation duly organized and doing business under and by virtue of the laws of the State of California and duly licensed for the purpose of making, guaranteeing, or becoming sole surety upon bonds or undertakings as Surety, are held and firmly bound unto the CITY OF LOS ALAMITOS, CALIFORNIA, hereinafter referred to as the “AGENCY” in the sum of [DESCRIBE VERBALLY; 100% OF TOTAL CONTRACT AMOUNT—TO BE INSERTED BY CONTRACTOR]Dollars ($XXX,XXX.XX); which is one hundred percent (100%) of the total contract amount for the above stated project; lawful money of the United States of America for the payment of which sum, well and truly to be made, we bind ourselves, our heirs, executors, administrators, assigns and successors, jointly and severally, firmly by these presents.

THE CONDITIONS OF THIS OBLIGATION ARE SUCH, that whereas CONTRACTOR has been awarded and is about to enter into a Contract with AGENCY to perform all work required pursuant to the contract documents for the project entitled: BLOOMFIELD STREET IMPROVEMENT PROJECT CIP NO. 22/23-06 which Contract is by this reference incorporated herein, and is required by AGENCY to give this Bond in connection with the execution of the Contract; NOW, THEREFORE, if CONTRACTOR and his or her Subcontractors shall well and truly do and perform all the covenants and obligations of the Contract on his or her part to be done and performed at the times and in the manner specified herein including compliance with all Contract specifications and quality requirements, then this obligation shall be null and void, otherwise it shall be and remain in full force and effect;
PROVIDED, that any alterations in the work to be done, or in the material to be furnished, which may be made pursuant to the terms of the Contract, shall not in any way release CONTRACTOR or the Surety thereunder, nor shall any extensions of time granted under the provisions of the Contract release either CONTRACTOR or said Surety, and notice of such alterations of extensions of the Contract is hereby waived by said Surety.

In the event suit is brought upon this Bond by AGENCY and judgment is recovered, said Surety shall pay all costs incurred by AGENCY in such suit, including a reasonable attorney’s fee to be fixed by the Court.

IN WITNESS WHEREOF the parties hereto have set their names, titles, hands, and seals this_____day of , 20__
Contractor* Name, Title of Signer
SURETY*………………………………………….

Contractor’s Business Name
……………………………………………
Mailing Street Address
……………………………………………
City, State, Zip Code
……………………………………………
Telephone #
……………………………………………
*Provide CONTRACTOR and SURETY name, address and telephone number and the name, title, address and telephone number for their respective authorized representatives. Power of Attorney must be attached.

Subscribed and sworn to this___ day of ______________ , 20__

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CONTRACT INFORMATION AND DOCUMENT
NOTARY PUBLIC..................................................................................................(SEAL) (E X E C U T E I N D U P L I C A T E)

SECTION D – Page 14

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MAINTENANCE BOND

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA
KNOW ALL PERSONS BY THESE PRESENTS THAT WHEREAS, the City of Los Alamitos, as AGENCY has awarded to Contractor’s Business Name, as CONTRACTOR, a contract for the abovestated project.

AND WHEREAS, CONTRACTOR is required to furnish a bond in connection with the contract guaranteeing maintenance thereof;
NOW, THEREFORE, we, the undersigned CONTRACTOR and SURETY, are held firmly bound unto AGENCY in the sum of DESCRIBE VERBALLY; 50% OF TOTAL CONTRACT AMOUNT—TO BE INSERTED BY CONTRACTOR]Dollars ($XXX,XXX.XX), which is fifty percent (50%) of the total contract amount for the above-stated project to be paid to AGENCY, its successors and assigns, for which payment well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITIONS OF THIS OBLIGATION ARE SUCH that if CONTRACTOR shall remedy without cost to AGENCY any defects which may develop during a period of one (1) year from the date of recordation of the Notice of Completion of the work performed under the contract, provided such defects are caused by defective or inferior materials or work, then this obligation shall be void; otherwise it shall be and remain in full force and effect. In case suit is brought upon this bond, SURETY will pay reasonable attorneys’ fees to the AGENCY in an amount to be fixed by the court.

IN WITNESS WHEREOF the parties hereto have set their names, titles, hands, and seals this____ day of
......................................, 20__.

Contractor* Contractor’s Signer’s Name, Title
Contractor’s Business Name
Mailing Street Address
City, State, Zip Code
Telephone #
SURETY* ______________________________________________
______________________________________________
______________________________________________
______________________________________________
*Provide CONTRACTOR and SURETY name, address and telephone number and the name, title, address and telephone number for their respective authorized representatives. Powers of Attorney must be attached.

Subscribed and sworn to this ........... day of..............................., 20__.

NOTARY PUBLIC.................................................................................................. .................................................................................................................................(SEAL) (EXECUTE IN DUPLICATE)

SECTION D – Page 15

CONTRACT INFORMATION AND DOCUMENT
WORKERS’ COMPENSATION INSURANCE CERTIFICATE
The Contractor shall execute the following form as required by the California Labor Code, Sections 1860 and 1861:

I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.

DATE: Contractor’s Business Name .
(Contractor)
By:
(Signature)

(Title)
Attest:

By:
(Signature)

(Title)
Note: See Section 5 Legal Relations and Responsibilities, Subsection 5-4 of the Standard Specifications for insurance carrier rating requirements.

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CONTRACT INFORMATION AND DOCUMENT

ENDORSEMENTS TO INSURANCE POLICY

Name of Insurance Company:

Policy Number:

Effective Date:

The following endorsements are hereby incorporated by reference into the attached Certificate of Insurance as though fully set forth thereon:

1. The naming of an additional insured as herein provided shall not affect any recovery to which such additional insured would be entitled under this policy if not named as such additional insured, and

2. The additional insured named herein shall not be held liable for any premium or expense of any nature on this policy or any extensions thereof, and

3. The additional insured named herein shall not by reason of being so named be considered a member of any mutual insurance company for any purpose whatsoever, and

4. The provisions of the policy will not be changed, suspended, canceled or otherwise terminated as to the interest of the additional insured named herein without first giving such additional insured twenty (20) days’ written notice.

5. Any other insurance held by the additional insured shall not be required to contribute anything toward any loss or expense covered by the insurance, which is referred to by this certificate.

6. The company provided insurance for this certificate is a company licensed to do business in the State of California with a Best’s rating of A+ VIII or greater.

It is agreed that the City of Los Alamitos, its officers and employees, are included as Additional Insureds under the contracts of insurance for which the Certificate of Insurance is given.

Authorized Insurance Agent
Date:

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CONTRACT INFORMATION AND DOCUMENT

STATEMENT REGARDING INSURANCE COVERAGE

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA
The undersigned representative of Bidder hereby certifies that he/she has reviewed the insurance coverage requirements specified in 5.4 INSURANCE of Section E, Standard Specifications. Should Bidder be awarded the contract for the work, the undersigned further certifies that Bidder can meet all of these specification requirements for insurance including insurance coverage of his/her subcontractors.

NAME OF BIDDER: .......................................................................................................

MAILING ADDRESS: ....................................................................................................... ....................................................................................................... .......................................................................................................

AUTHORIZED SIGNATURE: .......................................................................................................

TITLE: .......................................................................................................

DATE: .......................................................................................................

SECTION D – Page 18

CONTRACT INFORMATION AND DOCUMENT
STATEMENT REGARDING CONTRACTOR’S LICENSING LAWS

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA
[Business & Professions Code § 7028.15]
[Public Contract Code § 20103.5]
I, the undersigned, certify that I am aware of the following provisions of California law and that I, or the entity on whose behalf this certification is given, hold a currently valid California contractor’s license as set forth below:

Business & Professions Code § 7028.15:
a) It is a misdemeanor for any person to submit a bid to a public agency to engage in the business or act in the capacity of a contractor within this state without having a license therefor, except in any of the following cases:
(1)The person is particularly exempted from this chapter. (2)The bid is submitted on a state project governed by Section 10164 of the Public Contract Code or on any local agency project governed by Section 20104 [now § 20103.5] of the Public Contract Code.
b) If a person has been previously convicted of the offense described in this section, the court shall impose a fine of 20 percent of the price of the contract under which the unlicensed person performed contracting work, or four thousand five hundred dollars ($4,500), whichever is greater, or imprisonment in the county jail for not less than 10 days nor more than six months, or both.

In the event the person performing the contracting work has agreed to furnish materials and labor on an hourly basis, “the price of the contract” for the purposes of this subdivision means the aggregate sum of the cost of materials and labor furnished and the cost of completing the work to be performed.
c) This section shall not apply to a joint venture license, as required by Section 7029.1.

However, at the time of making a bid as a joint venture, each person submitting the bid shall be subject to this section with respect to his/her individual licenser. d) This section shall not affect the right or ability of a licensed architect, land surveyor, or registered professional engineer to form joint ventures with licensed contractors to render services within the scope of their respective practices. e) Unless one of the foregoing exceptions applies, a bid submitted to a public agency by a contractor who is not licensed in accordance with this chapter shall be considered nonresponsive and shall be rejected by the public agency. Unless one of the foregoing exceptions applies, a local public agency shall, before awarding a contract or issuing a purchase order, verify that the contractor was properly licensed when the contractor submitted the bid. Notwithstanding any other provision of law, unless one of the foregoing exceptions applies, the registrar may issue a citation to any public officer or employee of a public entity who knowingly awards a contract or issues a purchase order to a contractor who is not licensed pursuant to this chapter. The amount of civil penalties, appeal, and finality of such citations shall be subject to Sections 7028.7 to 7028.13, inclusive. Any contract awarded to, or any purchase order issued to, as contractor who is not licensed pursuant to this chapter is void.

SECTION D – Page 19

CONTRACT INFORMATION AND DOCUMENT
f) Any compliance or noncompliance with subdivision (e) of this section, as added by Chapter 863 of the Statutes of 1989, shall not invalidate any contract or bid awarded by a public agency during which time that subdivision was in effect. g) A public employee or officer shall not be subject to a citation pursuant to this section if the public employee, officer, or employing agency made an inquiry to the board for the purposes of verifying the license status of any person or contractor and the board failed to respond to the inquiry within three business days. For purposes of this section, a telephone response by the board shall be deemed sufficient.

Public Contract Code § 20103.5:

In all contracts subject to this part where federal funds are involved, no bid submitted shall be invalidated by the failure of the bidder to be licensed in accordance with the laws of this state.

However, at the time the contract is awarded, the contractor shall be properly licensed in accordance with the laws of this state. The first payment for work or material under any contract shall not be made unless and until the Registrar of Contractors verifies to the agency that the records of the Contractors’ State License Board indicate that the contractor was properly licensed at the time the contract was awarded. Any bidder or contractor not so licensed shall be subject to all legal penalties imposed by law, including, but not limited to, any appropriate disciplinary action by the Contractors’ State License Board. The agency shall include a statement to that effect in the standard form of pre-qualification questionnaire and financial statement. Failure of the bidder to obtain proper and adequate licensing for an award of a contract shall constitute a failure to execute the contract and shall result in the forfeiture of the security of the bidder.

Contractors License Number: _____________________________________________ License Expiration Date: _____________________________________________ Authorized Signature: _____________________________________________ Date: _____________________________________________

SECTION E – Page 1

STANDARD SPECIFICATIONS

SECTION E

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA

STANDARD SPECIFICATION

SECTION E – Page 2

STANDARD SPECIFICATIONS

STANDARD SPECIFICATIONS

BLOOMFIELD STREET IMPROVEMENT PROJECT
CIP NO. 22/23-06

IN THE CITY OF LOS ALAMITOS, CALIFORNIA
0-1 STANDARD SPECIFICATIONS
Except as hereinafter amended, the provisions of the 2021 Edition of the “Green Book,” Standard Specifications for Public Works Construction (“SSPWC”), with the latest Supplements, prepared and promulgated by the Southern California Chapters of the American Public Works Association and the Associated General Contractors of America, and these modifications thereto are adopted as the “Standard Specifications” for the Agency. These Standard Specifications will be numbered as Sections 0 through 800 per the SSPWC.
0-2 NUMBERING OF SECTIONS
The numbering of sections and subsections in these amendments and modifications are compatible with the numbering of sections in the SSPWC.
0-3 AMENDMENTS AND MODIFICATIONS
The following sections of the SSPWC are amended as provided herein. In the event of any inconsistencies between the amendments outlined herein and the SSPWC, these amendments shall control.
1-2 TERMS AND DEFINITIONS
Add the following:

Agent—Shall include persons and companies, other than the Contractor, retained by the City to perform design and construction services in relation to the Work.

Acceptance—The Agency’s formal written acceptance of a project that has been completed in all respects in accordance with the plans and specifications and any modifications thereof.

City—The City of Los Alamitos, California, as the Agency and Owner.

City Council—City Council of the City of Los Alamitos, California.

Construction Manager—Persons and/or company retained by the City to perform construction management services.

Design Engineer—Persons and/or company retained by the City to perform engineering design services.

Due Notice—A written notification, provided in due time, of a proposed action, where the contract requires such notification within a specified time (usually 48 hours or two working days) prior to the commencement of the contemplated action.

Engineer—The City Engineer of the City of Los Alamitos, or his/her authorized representative.

SECTION E – Page 3

STANDARD SPECIFICATIONS
Geotechnical Engineer—Person licensed to practice Soils Engineering or Geotechnical Engineering pursuant to the laws of the State of California and retained by the Agency during construction.

Prompt—The briefest interval of time required for a considered reply, including time required for approval by a governing body.

Standard Plans—“Standard Plans for Public Works Construction” - Latest edition of the Southern California Chapter of the American Public Works Association.

State Standard Specifications (“SSS”)—Standard Specifications prepared by the State of California, Business and Transportation Agency, Department of Transportation.

State Standard Plans (“SSP”)—Standard Plans prepared by State of California, Business and Transportation Agency, Department of Transportation.

Working Days—Any days, except: (1) Saturdays, Sundays, legal holidays on which Los Alamitos City Hall is closed for business; (2) days when work is suspended by the Engineer for reasons unrelated to the performance of the contractor, and provided in Subsections 6-3 and 6-3.1; and (3) days determined to be non-working in accordance with Section 6-3 “Time of Completion”. 1-3.3 INSTITUTIONS
Add the following:

AGCA Associated General Contractors of America
ASME American Society of Mechanical Engineers
CRSI Concrete Reinforcing Steel Institute
CSI Construction Specifications Institute
NFPA National Fire Protection Association
SSS State of California Standard Specifications, latest edition, Department of Transportation SSP State of California Standard Plans, latest edition, Department of Transportation.

SSPWC Standard Specifications for Public Works Construction, as specified in Subsection 0-1 1-6 BIDDING AND SUBMISSION OF THE BID
1-6.2 SUBCONTRACTOR LISTING
Replace the third paragraph with the following:

Subcontracting of more than one-half of one percent of the work for which no Subcontractor was designated in the original Bid will be allowed only in cases of public emergency or necessity and only after the Engineer makes a written finding of circumstances constituting public emergency or necessity.

Delete the fourth paragraph and replace with the following:

SECTION E – Page 4

STANDARD SPECIFICATIONS
The Contractor must obtain written consent of the City Council to substitute a Subcontractor designated in the original Bid, to permit any subcontract to be assigned or transferred, or to otherwise allow a subcontract to be performed by anyone other than the originally designated Subcontractor.

Delete the fifth paragraph and replace with the following:

A violation of any of the above provisions will be considered a violation of the Contract, and the City may cancel the Contract and collect appropriate damages or assess the Contractor a penalty of not more than ten (10) percent of the subcontract involved.

Add the following:

If subcontracted work is not being performed in a satisfactory manner, the City will notify the Contractor of the need to take corrective action and the Engineer may report the facts to the City Council. Upon order by City Council and the Contractor’s receipt of written instructions from the Engineer, the Subcontractor shall immediately be removed from the Work and may not again be employed on the Work.
1-7 AWARD AND EXECUTION OF THE CONTRACT
1-7.1 GENERAL
Add the following:

The City reserves the right to reject any or all proposals.

The Contract will be awarded, if at all, to the lowest responsible and responsive Bidder determined as provided on the Proposal Form, whose proposal complies with all the requirements prescribed. Such award, if made, will be made within the number of days stated in the proposal form. Refusal or failure to deliver the executed contract, bonds, or insurance in the form provided in the Contract and approved by the Agency’s attorney within the time provided herein shall be cause, at the Agency’s option, for the annulment of the award and forfeiture of the bid security. In such event, the Agency may successively award the Contract to the next lowest responsible and responsive Bidder until a properly executed Contract, bonds, and insurance is obtained, or it may at any time reject all remaining bids and proceed as provided by law. The refusal or failure of a successive lowest responsible and responsive Bidder to execute the Contract may, at the Agency’s option, result in an annulment of the award to that Bidder and the forfeiture of that Bidder’s bid security. The periods of time specified above within which the award of the Contract may be made shall be subject to extension for such further period as may be agreed upon in writing between the Agency and the concerned Bidder.

The Agency reserves the right to waive any irregularities.

Within ten (10) calendar days after the date of the Notice of Award, the Contractor shall execute and return the following contract documents to the Agency:

Contract Agreement (in duplicate)
Faithful Performance Bond (in duplicate)
Maintenance Bond (in duplicate)
Payment Bond (in duplicate)
Public Liability and Property Damage Insurance Certificate (two original) Additionally Insured Endorsement

SECTION E – Page 5

STANDARD SPECIFICATIONS
Workers’ Compensation Insurance Certificate (two original) A corporation to which an award is made may be required, before the Contract agreement is executed by the Agency, to furnish evidence of its corporate existence, of its right to enter into contracts in the State of California, and that the officers signing the contract and bonds for the corporation have the authority to do so.
1-7.2 CONTRACT BONDS
Add the following:

The PAYMENT BOND shall remain in force until thirty-five (35) days after the date of recordation of the Notice of Completion. The FAITHFUL PERFORMANCE BOND shall remain in force until the date of recordation of the Notice of Completion. The MAINTENANCE BOND shall remain in force until one (1) year after the date of recordation of the Notice of Completion.

All bonds must be accompanied by a Power of Attorney
SECTION 2 – SCOPE OF THE WORK
2-1 WORK TO BE DONE
Add the following:

Any plan or method of work suggested by the Agency or the Engineer to the Contractor but not specified or required, if adopted or followed by the Contractor in whole or in part, shall be used at the risk and responsibility of the Contractor; and the Agency and the Engineer shall assume no responsibility therefore and in no way be held liable for any defects in the work which may result from or be caused by use of such plan or method of work.

The work includes, but is not necessarily limited to, the following items as shown on the plans and specified in these Special Provisions:

The City of Los Alamitos proposes to cold mill and overlay pavement with asphalt rubber hot mix (ARHM) and remove and construct sidewalk, curb, gutter, and full depth asphalt concrete pavement.

Additional items of work include signing, and striping and adjusting manhole frames and utility valves to grade. Existing private facilities will be protected in place within the limits of the project unless otherwise shown.
2-2 PERMITS
Replace first paragraph with the following:

Prior to the start of any work, the Contractor shall apply for and receive any applicable City, County, State, and Federal permits.
2-3 RIGHT-OF-WAY
Add the following:

SECTION E – Page 6

STANDARD SPECIFICATIONS
When the Contractor arranges for additional work areas and facilities temporarily required by him/her, he/she shall provide the Agency with proof that the additional work areas and/or facilities have been left in a condition satisfactory to the owner(s) of said work areas and/or facilities prior to acceptance of the work.
2-4 COOPERATION AND COLLATERAL WORK
Add the following:

Contractor shall coordinate his/her work so as to minimize disruption to ongoing or scheduled private development projects in the project area.
2-7 CHANGES INITIATED BY THE AGENCY
2-7.1 GENERAL
Add the following:

All final locations determined in the field, and any deviations from the Plans and Specification, shall be marked in red on the documents to show the as-built conditions. Contractor shall maintain a complete and accurate record of all changes of construction from that shown in these plans and specifications for the purpose of providing a basis for construction record drawings. No changes shall be made without prior written approval of the Engineer. Upon completion of the Project, Contractor shall deliver this record of all construction changes to the Engineer along with a letter which declares that other than these noted changes “the Project was constructed in conformance with the Contract Documents”. Final payment will not be made until this requirement is met.

As the figured dimensions shown on the drawings and in the specifications of the Contract may not in every case agree with scaled dimensions, the figured dimensions shall be followed in preference to the scaled dimensions, and drawings to a large scale shall be followed in preference to the drawings to a small scale. Should it appear that the work to be performed, or any related matter, are not sufficiently detailed or explained in the Contract documents, the Contractor shall apply to the Engineer for such further explanations as necessary, and shall conform to such further explanations provided by the Engineer as part of the Contract to the extent that it is consistent with the terms of the Contract.

Caution: The engineer preparing these plans will not be responsible or liable for unauthorized changes to or uses of these plans. All changes to the plans must be approved in writing by the Engineer.

SECTION 3 – CONTROL OF THE WORK
3-3 SUBCONTRACTORS
Replace the first paragraph with the following:

All persons engaged in the Work, including Subcontractors and their employees, will be considered employees of the Contractor. The Contractor will be held responsible for their work. The Agency will deal directly and solely with the Contractor and make all payments to the Contractor. 3-5 INSPECTION

SECTION E – Page 7

STANDARD SPECIFICATIONS
Add the following:

The Agency shall inspect for compliance with requirements for 8-hour days and 40-hour weeks on normal working days. The Contractor shall reimburse the Agency, at rates established by the Agency, for any additional inspection, including inspection on legal holidays. 3-10 SURVEYING
3-10.1 GENERAL
Add the following:

The Contractor shall be responsible for all survey and layout of work.

The line and grades for construction will be parallel to and offset from the position of the work. From the established lines and grades, the Contractor shall extend the necessary lines and grades for construction of the work and shall be responsible for the correctness of same. 3-12 WORK SITE MAINTENANCE
3-12.1 General
Add the following Subsection:
3-12.1.1 WORK AREA APPEARANCE
The Contractor shall maintain a neat appearance to the Work.

All unsuitable construction materials and rubbish and debris shall be regularly removed from the job site, be transported to a suitable location, and be disposed of in a proper and legal manner.

In any area visible to the public, the following shall apply:

1. Broken concrete and debris developed during clearing and grubbing shall be disposed of weekly.

2. The Contractor shall furnish trash bins for all debris from structure construction. All debris shall be placed in trash bins daily.

3. Forms or false work that are to be re-used shall be neatly stacked concurrent with their removal.

4. Forms and false work that are not to be re-used shall be disposed of with their removal.

5. Wash down from concrete trucks shall be at one location. Concrete from wash down procedures shall be removed from the site weekly.
3-12.3 NOISE CONTROL
Add the following:

A noise level limit of 85 dba at a distance of fifty (50) feet shall apply to all construction equipment on or related to the job, whether owned by the Contractor or not. The use of excessively loud warning signals shall be avoided except in those cases where required for the protection of personnel.

SECTION E – Page 8

STANDARD SPECIFICATIONS
The Contractor shall arrange and maintain a secure storage site for all equipment and materials. All equipment and unused materials shall be returned to this site at the end of each work day. 3-12.6 WATER POLLUTION CONTROL
3-12.6.1 General
Add the following:

This item shall consist of preparation, implementation and compliance with a storm water pollution prevention plan (SWPPP) for the project, if applicable. 3-12.6.2 BEST MANAGEMENT PRACTICES (BMPs)
Add the following:

All storm water pollution prevention measures shall be in accordance with the submitted SWPPP. In the event circumstances during the course of construction require changes to the original SWPPP, a revised plan shall be promptly submitted to the Agency’s representative in each instance. No responsibility shall accrue to the Agency as a result of the plan or as a result of knowledge of the plan. All work installed by the Contractor in connection with the SWPPP but not specified to become a permanent part of the project shall be removed and the site restored in so far as practical to its original condition prior to completion of construction or when directed by the Agency’s representative. 3-12.6.3 Storm Water Pollution Prevention Plan (SWPPP)
Add the following:

Contractor shall submit to the engineer a completed and signed SWPPP at the preconstruction conference.

The plan may utilize the practices recommended in the California Storm Water Best Management Practices Handbook dated January 2015, available from California Stormwater Quality Association (CSQA), and online at http://www.cabmphandbooks.net/ . The plan shall be consistent with the construction General Permit, issued by the State Water Resources, Control Board, through submittal of the Notice of Intent (NOI).

If construction will occur between October 15 and April 15 (considered as the rainy season per the Agency’s Ordinance), a wet weather erosion control plan must be submitted. Additionally, Best Management Practices (BMPs) implemented during the Agency’s rainy season shall include but not be limited to those appropriate for wet weather conditions. 3-12.6.5 PAYMENT
Add the following:

Unless otherwise indicated in the Special Provision, measurement and payment for Storm Water Pollution Prevention Measures, as described herein, shall be included in the items of Work requiring storm water pollution prevention measures as indicated in the project Special Provisions. Such payment shall be considered full compensation for all labor, materials, tools, and equipment for completion, and implementation and compliance with the SWPPP.
3-13 COMPLETION, ACCEPTANCE, AND WARRANTY

SECTION E – Page 9

STANDARD SPECIFICATIONS
3-13.3 WARRANTY
Add the following:

The Contractor shall warrant and guarantee the entire Work and all parts thereof, including that performed and constructed by subcontractors, and others employed directly or indirectly on the Work, against faulty or defective materials, equipment or workmanship for the maximum period provided by law. In addition thereto, for a period of one (1) year commencing on the date of acceptance of the Work, the Contractor shall, upon the receipt of notice in writing from the Agency, promptly make all repairs arising out of defective materials, workmanship or equipment and bear the cost thereof. The Agency is hereby authorized to make such repairs and the Contractor and Surety shall bear the cost thereof if, ten (10) days after the giving of such notice to the Contractor, the Contractor has failed to make or undertake with due diligence the repairs; provided, however, that, in the case of an emergency where, in the opinion of the Agency, delay could cause serious loss or damage, repairs may be made without notice being sent to the Contractor or Surety, and all expense in connection therewith shall be charged to the Contractor and Surety.

For the purpose of this article “Acceptance of the Work” shall mean the acceptance of the Work by the Agency in accordance with Subsection 3-13.2 but not for the purpose of extinguishing any covenant or agreement or agreement on the part of the Contractor to be performed or fulfilled under this Contract, which has not in fact been performed or fulfilled at the time of such acceptance all of such covenants and agreements, shall continue to be binding on the Contractor until they have been fulfilled.

The effective date of Acceptance of the Work and commencement of the Guarantee shall be the date of acceptance of the Notice of Completion by the City Council.

Add the following subsection to Subsection 3-13:
3-13.3.4 General Guaranty
The Contractor shall remedy any defects in the Work and pay for any damage to other work resulting therefrom, which shall appear within a period of one year from the date of final acceptance of the Work unless a longer period is specified. The Agency will give notice of observed defects with reasonable promptness.

SECTION 4 – CONTROL OF MATERIALS
4-1 GENERAL
Add the following:

The Contractor and all subcontractors, suppliers, and vendors, shall guarantee that the entire Work will meet all requirements of this Contract as to the quality of materials, equipment, and workmanship. The Contractor, at no cost to the Agency, shall make any repairs or replacements made necessary by defects in materials, equipment, or workmanship that become evident within one year after the date of recordation of the Notice of Completion. Within this one year period, the Contractor shall also restore to full compliance with the requirements of this Contract any portion of the Work which is found not to meet those requirements. The Contractor shall defend, indemnify, and hold the Agency, its officers, agents, and employees harmless from claims of any kind due to injuries or damages arising, directly or indirectly, from said defects or noncompliance.

SECTION E – Page 10

STANDARD SPECIFICATIONS
The Contractor shall make all repairs, replacements, and restorations within thirty-five (35) days after the date of the Engineers’ written notice.

If, in the opinion of the Engineer, the defective work is not of sufficient magnitude or importance to make the work dangerous or undesirable, or if, in the opinion of the Engineer, the removal of such work is impractical or will create conditions which are dangerous or undesirable, the Agency shall have the right and authority to retain such work instead of requiring it to be removed and reconstructed, but will make such deductions thereof in the payments due or to become due to the Contractor as the Agency may deem just and reasonable.
4-4 TESTING
Replace the third and fourth sentences of the first paragraph with the following:

Except as elsewhere specified, the Agency will bear the cost of testing material and/or workmanship which meet or exceed the requirements indicated in the Standard Specifications and the Special Provisions. The Contractor shall bear the cost of all other tests, including the retesting of material or workmanship that fails to pass the first test.
4-6 TRADE NAMES
Replace the third sentence of the second paragraph with the following:

Approval of equipment and materials offered as equivalents to those specified must be obtained prior to the opening of bids as set forth in the Instructions to Bidders.

Add the following:

Along with information supplied by the Contractor regarding equivalency of the proposed item, the Contractor shall clearly identify all deviations from the specified item. Deviations discovered by the Engineer after acceptance of an “or equal” item which were not identified by the Contractor with his/her submittal shall be cause for rejection of the “or equal” item. Contractor shall be due no additional compensation in time or money for acceptance or rejection of a proposed “or equal” item and subsequent replacement with the item specified. Contractor shall pay cost to Agency for items requiring more than two submittals and analysis of any shop drawing which requires more than a general review of an “or equal” item.

SECTION 5 – LEGAL RELATIONS AND RESPONSIBILITIES
5-3 LABOR
5-3.1 General
Add the following:

The Contractor shall ensure unlimited access to the job site for all Equal Opportunity Compliance officers.

Every Contractor and Subcontractor shall keep an accurate record showing the name, occupation, and the actual per diem wages paid to each worker employed by him/her in connection with the public work. The record shall be kept open at all reasonable hours to the inspection of the body awarding the Contract and to the Division of Labor Law Enforcement.

SECTION E – Page 11

STANDARD SPECIFICATIONS
Add the following Subsection:
5-3.4.1 OVERTIME AND SHIFT WORK
The Contractor may establish overtime and shift work as a regular procedure only with the written permission of the Engineer. Such permission may be revoked at any time. No work other than overtime and shift work established as a regular procedure shall be done between the hours of 4:00 p.m. and 7:30 a.m., nor on Saturdays, Sundays or legal holidays, except such work as is necessary for the proper care and protection of the work already performed or except in case of an emergency.

All costs for overtime inspection, except those occurring as a result of overtime and shift work established as a regular procedure, shall be paid by the Contractor. Overtime inspection shall include inspection required during holidays observed by the AGC and Trade Unions, Saturdays, Sundays, and any weekday between the hours of 4:00 p.m. and 7:30 a.m.. Such costs will include but will not necessarily be limited to engineering, inspection, general supervision and other overhead expenses that are directly chargeable to the overtime work. The Agency shall deduct all such charges from payments due the Contractor.

5.4 INSURANCE
5-4.2 GENERAL LIABILITY INSURANCE
Replace Subsection 5-4.2 with the following:
5-4.2.1 GENERAL. CONTRACTOR and AGENCY agree that Agency, its employees, agents and officials should, to the extent permitted by law, be fully protected from any loss, injury, damage, claim, lawsuit, cost, expense, attorneys fees, litigation costs, defense costs, court costs or any other cost arising out of or in any way related to the performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the parties to be interpreted and construed to provide the fullest protection possible under the law to the Agency. CONTRACTOR acknowledges that AGENCY would not have entered into this Agreement in the absence of the commitment of CONTRACTOR to indemnify and protect AGENCY as set forth here.
5-4.2.2 To the full extent permitted by law, CONTRACTOR shall defend, indemnify and hold harmless AGENCY, its employees, agents and officials, from any liability, claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged, or threatened, actual attorneys fees incurred by AGENCY, court costs, interest, defense costs including expert witness fees and any other costs or expenses of any kind whatsoever without restriction or limitation incurred in relation to, as a consequence of, arising out of or in any way attributable actually, allegedly or impliedly, in whole or in part to the performance of this Agreement. All obligations under this provision are to be paid by CONTRACTOR as they are incurred by the AGENCY. 5-4.2.3 Without affecting the rights of AGENCY under any provision of this agreement or this section, CONTRACTOR shall not be required to indemnify and hold harmless AGENCY as set forth above for liability attributable to the sole fault of AGENCY, provided such sole fault is determined by agreement between the parties or the findings of a court of competent jurisdiction.

This exception will apply only in instances where the AGENCY is shown to have been solely at fault and not in instances where CONTRACTOR is solely or partially at fault or in instances where AGENCY’s fault accounts for only a percentage of the liability involved. In those instances, the obligation of CONTRACTOR will be all-inclusive and AGENCY will be indemnified for all liability incurred, even though a percentage of the liability is attributable to the conduct of the AGENCY. 5-4.2.4 CONTRACTOR acknowledges that its obligation pursuant to this section extends to liability attributable to AGENCY, if that liability is less than the sole fault of AGENCY. CONTRACTOR has no