REQUEST FOR PROPOSAL
ANNUAL SANITARY SEWER MAINTENANCE SERVICES
FOR THE CITY OF LYNWOOD PUBLIC WORKS UTILITY DEPARTMENT
Issued By:
City of Lynwood
Public Works Department
Contact:
George Cambero, Interim Utility Manager
[email protected]
KEY DATES
Release Date: February 09, 2023
Last Date to Submit Questions: March 02, 2023
RFI Response Posted March 06, 2023
Proposals Due Date: March 13, 2023 - 10:00 a.m. (PST)
Tentative Interview Date: March 15 & 16, 2023
City Council Awarding Date: March 21, 2023
City Council Regular Meeting - Page 235 of 343
REQUEST FOR PROPOSAL (RFP)
ANNUAL SANITARY SEWER MAINTENANCE SERVICES
FOR THE CITY OF LYNWOOD PUBLIC WORKS UTILITY DEPARTMENT Issue Date: February 09, 2023
The City of Lynwood (City) is seeking proposals from qualified sanitary sewer maintenance service contractors to perform annual sanitary sewer maintenance to defined areas within the city limits.
The awarded contractor will provide sanitary sewer maintenance services and Closed-Circuit Television (CCTV) inspection services for the City’s sanitary sewer system listed in the Scope of Work and Bid Schedule ( Attachment C) for a period of two (2) years commencing upon approval by City Council with option to extend for 1 (two) year extension. The City reserves the right to assign more or less quantities/work per year for the same unit price provided by the Proposer in the Bid Schedule (Attachment C).
Last Day for Questions: March 02, 2023 – Please upload all questions via PlanetBids for response.
Response to RFI/Addendum Notices: March 06, 2023 via PlanetBids The deadline to submit a proposal is March 13, 2023 - 10:00 a.m. (PST). Proposals received after the deadline will not be considered. Proposer is required to submit an “ebid” through PlanetBids online platform. See link below:
https://www.planetbids.com/portal/portal.cfm?CompanyID=39486 No hard copy RFP submittals will be accepted and returned unopened.
A copy of the Request for Qualifications (RFP) and subsequent addenda to the RFP are available on the PlanetBids online platform on the link listed above.
It is the proposer’s responsibility to ensure that the most complete and current version of the solicitation, including addenda, has been downloaded. Submission of a proposal shall constitute acknowledgement and acceptance of all terms and conditions contained in this RFP and all exhibits and attachments hereto.
Contact: If you have any questions regarding this RFP, please provide in writing and upload via PlanetBids.
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Table of Contents
Page
I. BACKGROUND ................................................................................................ 4 II. SCOPE OF SERVICES ................................................................................... 5 III. SUBMITTAL REQUIREMENTS ........................................................................ 8 IV. RFP SCHEDULE ............................................................................................ 12 V. SELECTION PROCESS ................................................................................. 13 VI. OTHER REQUIREMENTS.............................................................................. 14 VII. QUESTIONS & ADDENDA ............................................................................. 16 ATTACHMENT A: SUPPLEMENTAL DOCUMENTS ............................................... 17 ATTACHMENT B: SAMPLE PROFESSIONAL SERVICES AGREEMENT .............. 18 ATTACHMENT C: BID SCHEDULE ................................................................... 22-28 ATTACHMENT D: SEWER SYSTEM MAP 2019 ..................................................... 29 City Council Regular Meeting - Page 237 of 343
REQUEST FOR PROPOSAL (RFP)
ANNUAL SANITARY SEWER MAINTENANCE SERVICES
FOR THE CITY OF LYNWOOD PUBLIC WORKS UTILITY DEPARTMENT I. Background
The City owns and operates its local sanitary sewer system consisting of approximately 81 miles of gravity flow sewer pipelines (of 8 to 24 -inch vitrified clay pipe) and 1,704 manholes. The existing sewer system consists completely of local collector sewers that discharge to trunk sewers owned and operated by the County Sanitation Districts of Los Angeles County and two local sewer pipes that discharge into the adjacent City of Compton and two others that discharge into the unincorporated area known a s east Rancho Dominguez sewer systems (see Attachment D).
System Summary:
1. The total number of sewer manholes in the system is 1,704
2. Total lineal feet of sewer is as follows:
a. 8-inch Sewer in the System = 403,101 feet
b. 10-inch Sewer in the System = 18,663 feet
c. 12-inch Sewer in the System = 3,418 feet
d. 15-inch Sewer in the System = 2,089 feet
e. 24-inch Sewer in the System = 397 feet
Total: 427,318 feet
80.9 Miles
It is the intent of the City to award a contract for Sanitary Sewer Maintenance services as proposed in Exhibit A and B to provide service to defined areas within the existing city limits. The City is requesting service s in order to continue to protect the public health & safety, protect the environment and meet all federal, state, and local regulatory requirements and permits.
This contract may not be awarded to the lowest proposer and shall be based on the evaluation criteria and selection procedures outlined in this RFP.
II. Scope of Services
The Contractor shall perform sanitary sewer maintenance services to designated areas within the existing city limits as directed by the Director of Public Works or designee. Sanitary sewer maintenance services include the cleaning and maintenance of the City owned sanitary sewer pipelines and manholes as designated the City and the regular reporting to the City for the work competed by the Contractor.
Sewer Map (Attachment D) are provided for information only.
Preliminary Scope of Work and Task Schedule is described in Attachment C.
A Class “C -34 Pipeline Contractor, C -36 Plumbing Contractor or C-42 Sanitation System Contractor” License issued by the California Contractor’s State License Board City Council Regular Meeting - Page 238 of 343
will be required at the time the Proposer’s proposal documentation are submitted unless otherwise required by state or federal law.
III. SUBMITTAL REQUIREMENTS
The proposal shall provide a straight forward, concise description of the proposer’s proposal to provide the scope of services under this RFP. Emphasis shall be on the quality, completeness, clarity of content, responsiveness to requirements, and an understanding of the City’s needs. An incomplete proposal may at the discretion of the City, be considered non-responsive and may be subject to rejection.
The following information is to be submitted as part of the proposal. The proposal is to be organized as follows:
1. Proposal Format and Content
The following information are to be submitted as part of the proposal. The proposal is to be organized as follows:
a. Letter of Transmittal - A signature by a principal or officer having the authority to negotiate and contractually bind and extend the terms of the written proposal, is required. Provide a brief statement of your firm’s project understanding.
b. Proposer’s Organization, Credentials and Background - State the legal name of your firm, physical address, mailing address, and telephone number.
Provide a brief profile of your firm, principals of the firm, and any key sub- contractors, including type of legal entity (i.e. corporation), date firm was established, location of office that will perform the work and basic services provided by the firm. Provide a description of your firm’s background, experience, and project qualifications.
Provide a general description of the firm’s financial condition and identify any conditions (e.g. bankruptcy, pending litigation, planned office closures, impending merger, etc.) that may impede the proposer to provide services.
c. Approach to the Scope of Services - Describe your approach to the Scope of Services and any special ideas, techniques or suggestions that might make the Scope of Services implemented smoothly.
d. Experience - Provide project profiles for at least three (3) projects similar to this Project scale and scope within the past five (5) years. Include a list of public agencies for which similar services were performed. • Brief summary of project: project name, location, year completed, size, project budget
• Client contact name, title and phone number
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• Was the project completed within the proposed project schedule and budget?
e. Commence Services - Submit your estimated time to assume services from award of contract.
f. Qualifications of persons to be assigned to City
• Provide evidence that the firm’s personnel and team members have expertise and experience to carry out the scope of services. • Identify the proposed key team members, and provide their qualifications including individual experience with similar projects. • Identify project subcontractors by firm name, address, contact person, telephone number and project function, if applicable. The list should include a summary of the roles and responsibilities of each sub-contractor.
• Provide certifications (if applicable) for the proposed personnel. g. References
• Provide a minimum of three (3) references from public agencies with projects of similar nature. Each reference shall contain:
• Client name and updated contact information (email and phone) • Project Name
• Role of key project team members
h. Professional Services Agreement - Affirm your firm’s ability to execute the City’s Professional Services Agreement
Provide specific assurances regarding the firm’s ability to secure insurance that meets the City’s requirements.
1. Legal Issues
Provide details of any past or pending litigation, or claims file, against your firm, principals of the firm, or each of your key subcontractor, related to services performed for public agencies, or in actions that may affect its performance under a contract with the City.
Provide a detailed litigation history (including open or pending matters) for the last five years. The history should include the nature of action, the amount of claim, the resolution, etc. In each case, provide the total amount awarded in favor or against the parties involved. Provide the same information as above on any claims settled without litigation.
By providing the information requested above, all parties involved in the submitted proposal for services hereby grant permission for the City to take whatever actions they may deem necessary to substantiate and verify the City Council Regular Meeting - Page 240 of 343
information provided. Failure to provide the information requested may result in disqualification.
2. Disclosures
Provide detailed information on whether your firm or any principal of the firm has been, or currently is, the subject of any investigation by the County, State and/or Federal agencies within the past five years. If so, identify the agency, contact person, the nature of the investigation, and any determination over the outcome of said investigation. Failure to provide the information may result in disqualification.
3. Additional Statements
Proposer shall add the following written statements in their proposal:
Proposer shall adhere to all federal laws, state, and local laws and regulations.
Proposer shall allow authorized federal, state, county, and City officials access to place of work, books, documents, papers, fiscal, p ayroll materials, and other relevant contract records pertinent to the Project. All relevant records shall be retained for at least three years.
Proposer will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin.
4. Fee Proposal
Submit a current fee schedule of all firm capabilities. The fee schedule shall include all hourly rates and reimbursable expenses. The rates are to remain firm throughout the four (4) year duration of the contract.
The City plans to issue and approve a Task Order to the selected firm for each project requiring labor compliance services. The selected firm, would be required to submit a proposed Task Order which includes scope of work and a cost proposal per project. P rovide a narrative on your firm’s proposed billing method. For example, do you bill based on percentage of construction cost or number of construction days? Include in your narrative the justification of your firm’s proposed billing methodology.
IV. RFP SCHEDULE
This RFP will be governed by the following schedule:
Release Date: February 09, 2023
Last Date to Submit Questions: March 02, 2023
RFI Response Posted March 06, 2023
Proposals Due Date: March 13, 2023 - 10:00 a.m. (PST)
Tentative Interview Date: March 15 & 16, 2023City Council Awarding Date: March 21, 2023
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No amendments, additions, or alternates will be accepted after the above submission date. All Proposal and documents submitted will become the property of the City.
Anything considered to be proprietary should be so designated.
Submittal Instructions
Proposer is required to submit an “ebid” through PlanetBids online platform. It is the proposer’s responsibility to ensure that the most complete and current version of solicitation, including addenda, has been downloaded.
Proposals are due March 13, 2023 at 10:00 AM Pacific Standard Time.
See link below: https://www.planetbids.com/portal/portal.cfm?CompanyID=39486
V. SELECTION PROCESS
City staff will evaluate each proposal and determine which proposer will be invited to the interview.
The City may, in its discretion, may select a short list of top ranked proposers to interview for this project, interview all proposers or directly negotiate with the preferred proposer. The City has tentatively scheduled March 15, 2023 or soon thereafter starting at 10:00 am for finalist interviews if needed. If selected as one of the finalist in the selection process, the City reserves the right to request financial information from the proposer. Any financial information requested will be held in confidence and used only in evaluating the financial strength of the proposer and ability to perform all services requested.
Evaluation criteria for an invitation to interview will include but not limited to the following:
a. Responsiveness to the RFP,
b. Experience and qualifications of the firm and of individual personnel, c. Ability to offer and approach to implementing the scope services listed in the Scope of Services,
d. Fee proposal, and
e. Information provided by the references.
The City will award this contract based on “best value” as determined by the City as determined by the City, under its sole and absolute discretion.
VI. OTHER REQUIREMENTS
1. The City, in its sole discretion, reserves the right to accept post -deadline modifications if it is determined that such modifications are in the best interest of the City. Proposers to this RFP shall be solely and exclusively responsible for all costs incurred in connection with the preparation and submission of a proposal; City Council Regular Meeting - Page 242 of 343
interviews; preparation of responses to questions and requests for additional information; for contract discussions; or for anything in any way related to this RFP.
Whether or not a proposer is awarded a contract pursuant to this RFP, no proposer shall be entitled to reimbursement for any costs or expenses associated with the proposer’s participation in this RFP process.
2. The City reserves the right to withdraw this RFP at any time without prior notice or to extend its due date. Further, the City reserves the right to modify the RFP schedule. The City makes no representation that any contract will be awarded to any Proposer responding to this RFP. The City expressly reserves the right to reject any and all proposals without indicating any reasons for such rejection(s), to waive any irregularity or informality in any proposal or in the RFP procedure, and to be the sole judge of the responsibility of any proposer and of the suitability of the materials and/or services to be rendered.
3. If so directed, City staff may negotiate a contract with the best qualified proposer.
The City reserves the right to negotiate specific requirements and cost using the selected proposal as a basis. City staff may meet with the recommended proposer and negotiate the final form of the contract. If good faith negotiations with the selected proposer is unsuccessful, the City will terminate such negotiations, and undertake new negotiations with another proposer, or prop osers. The authorization for contract award for this Project will be upon approval and the discretion of the Lynwood City Council. Award of Contract is targeted for March 21, 2023 or soon thereafter.
4. The City reserves the right to cancel or modify this RFP. There is no guarantee that the City will award a contract.
5. The City reserves the right to investigate the qualifications of any proposer under consideration including proposed subcontractors and parties otherwise related to the proposer, and require c onfirmation of information furnished by a proposer, or require additional evidence of experience and qualifications to provide the services required by this RFP.
6. Following the submission deadline, the City, pursuant to the California Public Records Act (Govt. Code Section 6250 et seq.) reserves the right to make copies of all submitted Proposals available for inspection and copying by any interested member of the public, except to the limited extent City determines that any information contained in the prop osal is legally privileged under the California Public Records Act. By submission of a proposal, proposers acknowledge and agree that their proposal and any information contained therein may be disclosed by the City to interested members of the public, including other proposers.
7. The City reserves the right to solicit additional service providers.
8. The City reserves the right to approve or disapprove of particular subcontractors, joint venture partners, or other proposed team members.
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9. The City reserves the right to evaluate responses in terms of the best interests of the City, applying criteria provided in this RFP and any other criteria the City, in its sole discretion, deems pertinent.
10. The City, in its sole discretion, reserves the right to waive irregularit ies in a proposal and negotiate directly with any successful proposer, terms that differ from those proposed in the proposer’s proposal.
11. It is presumed that each proposer has read and is thoroughly familiar with the categories of services to be performed under this RFP.
12. Proposers submitting a proposal agree to execute a Professional Services Agreement (PSA) with the City in the form attached hereto under Attachment B, inclusive of all stated terms and conditions relating to indemnification, required insurance and standard of care requirements.
VII. QUESTIONS AND ADDENDA
1. Contact: If you have any questions regarding this RFP, please provide in writing and upload via PlanetBids.
2. If it becomes necessary to revise any part of this RFP, an addendum will be posted on the planet bids website:
https://www.planetbids.com/portal/portal.cfm?CompanyID=39486
3. It shall be the sole responsibility of the proposer to check for any addendum to the RFP that may be issued by the City.
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ATTACHMENT A
SUPPLEMENTAL DOCUMENTS
CERTIFICATION OF NON-COLLUSION
The undersigned proposer or agent, being duly sworn on oath, says that he/she has not, nor has any other member, representative, or agent of the firm, company, corporation or partnership represented by him/her, entered into any combination, collusion or agreement with any person relative to the price to be submitted by anyone at such letting nor to prev ent any person from proposing nor to include anyone to refrain from proposing, and that this proposal is made without reference to any other proposal and without any agreement, understanding or combination with any other person in reference to such proposal.
He/She further says that no person or persons, member, representative or agent of the firm, corporation or partnership represented by him/her has, have or will receive directly or indirectly, any rebate, fee gift, commission or thing of value on account of such proposal.
He/She further says that no person or persons, member, representative or agent of the firm, corporation or partnership represented by him/her has, have or will receive directly or indirectly contact, lobby, influence or discuss this proposal with any member of the City Council.
He/She further says that the proposal is genuine and not collusive or sham, that he/she has not directly or indirectly induced or solicited any other proposer to put in a false or sham bid.
He/She further says that the bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation.
OATH AND AFFIRMATION
I HEREBY AFFIRM UNDER THE PENALTIES FOR PERJURY AND DISQUALIFICATION
OF SUMBITTED BID/PROPOSAL THAT THE FACTS AND INFORMATION CONTAINED IN THE FOREGOING BID ARE TRUE AND CORRECT.
Dated this __________ day of ____________________ , ___________ _______________________________________________________________________ (Name of Organization) (Title of Person Signing)
(Signature)
ACKNOWLEDGEMENT
STATE OF ____________________ ) ) ss COUNTY
OF __________________________ )
Before me, a Notary Public, personally appeared the above named and swore that the statements contained in the foregoing document are true and correct.
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REQUEST FOR PROPOSAL (RFP)
ANNUAL SANITARY SEWER MAINTENANCE SERVICES
FOR THE CITY OF LYNWOOD PUBLIC WORKS UTILITY DEPARTMENT
City Council Regular Meeting - Page 246 of 343
REQUEST FOR PROPOSAL (RFP)
ANNUAL SANITARY SEWER MAINTENANCE SERVICES
FOR THE CITY OF LYNWOOD PUBLIC WORKS UTILITY DEPARTMENT
City Council Regular Meeting - Page 247 of 343
REQUEST FOR PROPOSAL (RFP)
ANNUAL SANITARY SEWER MAINTENANCE SERVICES
FOR THE CITY OF LYNWOOD PUBLIC WORKS UTILITY DEPARTMENT City Council Regular Meeting - Page 248 of 343
ATTACHMENT B
PROFESSIONAL SERVICES AGREEMENT
This agreement (“Agreement”) is made as of ___________ , 2023 by and between the City of Lynwood, a municipal corporation ("City") and (“Consultant”). City and Consultant are sometimes hereinafter individually referred to as a “Party” and collectively referred to as the “Parties.”R E C I T A L S WHEREAS, City desires to utilize the services of Consultant as an independent contractor to provide consulting services to City as set forth in the attached Exhibit A; and
WHEREAS, Consultant represents that it is fully qualified to perform such consulting servic es by virtue of its experience and the training, education and expertise of its principals and employees.
NOW, THEREFORE , in consideration of performance by the Parties of the covenants and conditions herein contained, the Parties hereto agree as follows:
1. Consultant's Services.
A. Scope of Services . The nature and scope of the specific services to be performed by Consultant are as described in Exhibit A.
B. Time of Performance . Consultant shall complete the specific services according to the schedule of performance which is also set forth in Exhibit A.
2. Term of Agreement . This Agreement shall be for a term of Two (2) Years, commencing on _________, 2023 (the “Commencement Date”) and terminating on __________________________ 20_ __ (the “Termination Date”), unless sooner terminated pursuant to the provisions of this Agreement.
On or before thirty (30) days prior to the Termination Date, Consultant and City shall discuss this Agreement and its possible extension and or modification.
Said Agreement may be extended an additional two (2) “one -year” extensions by the City Manager.
In the event Parties do not enter into a new agreement prior to the Termination Date, this Agreement shall continue on a month-to-month basis under the same terms for a period not to exceed three (3) months following the Termination Date. If the Parties execute no new agreement by the end of the three -month period following the Termination Date, this Agreement shall terminate at the end of such three -month period.
3. Compensation.
A. City agrees to compensate Consultant for services under this Agreement in compliance with the schedule set forth in Exhibit A. Payment will be made only after City Council Regular Meeting - Page 249 of 343
submission of proper monthly invoices in the form and manner specified by City. Each invoice shall include a breakdown of all monthly services performed together with the hours spent on each service. City shall endeavor to pay invoices bearing correct a nd authorized charges within thirty (30) days of the date they are received; however, Consultant acknowledges and agrees that due to City warrant run procedures, the City cannot guarantee that payment will occur within this time period. City shall not be responsible to Consultant for any additional charges, interest or penalties due to a failure to pay within such period.
B. Upon City’s request, Consultant shall submit a proposed Task Order for a particular project, including a scope of work and total cost for services (“Task Order”).
Once City accepts a Task Order as submitted or amended and issues a written Notice to Proceed, therefor, City agrees to compensate Consultant in accordance with the total cost for services listed in the Task Order, for services de scribed under Exhibit A. If the City requests any work that is beyond the scope of work listed in the Proposal, the City and Consultant shall negotiate the scope of work and fees for this extra work in accordance with Consultant’s Schedule of Hourly Rate, which is within Exhibit A.
Upon mutual agreement of the Scope of Work and fees, the City shall approve the Task Order and issue a written Notice to Proceed therefor. The rates in Exhibit A shall remain in effect through the end of the Agreement.
C. If at the request of the City, Consultant is required to incur out of pocket expenses (including but not limited to, out-of-town travel and lodging) which are above and beyond the ordinary expenses associated with performance of this Agreement, Consultant shall be e ntitled to reimbursement of such expenses only if approved in advance in writing by the City Manager or designee. Consultant shall only be reimbursed for those expenses which: (i) appear on Consultant’s monthly invoices; (ii) are accompanied by a copy of t he City’s written authorization for Consultant to incur such expenses; and (iii) receipts documenting such expenses.
4. General Terms and Conditions. The General Terms and Conditions set forth in Exhibit B are incorporated as part of this Agreement. In the event of any inconsistency between the General Terms and Conditions and any other exhibit to this Agreement, the General Terms and Conditions shall control unless it is clear from the context that both Parties intend the provisions of the other exhibit(s) to control.
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5. Contact Information.
City of Lynwood Consultant
11330 Bullis Road ____________________________
Lynwood, CA 90262 ____________________________
Attn: Director of Public Works Attn: ________________________
Phone: Phone:
6. Exhibits. All exhibits referred to in this Agreement are listed here and are incorporated and made part of this Agreement by this reference.
Exhibit A – Scope of Services, Time of Performance and Compensation Schedule Exhibit B – General Terms and Conditions
///
///
SIGNATURES ON FOLLOWING PAGE
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates written below.
CITY OF LYNWOOD
By: _____________________________ Date: _______________ Oscar Flores
Mayor
ATTEST:
By: _____________________________ Date: _______________ Maria Quinones
City Clerk
APPROVED AS TO FORM:
By: _____________________________ Date: _______________ Noel Tapia
City Attorney
CONSULTANT
Authorized Signature
By: _____________________________ Date: _______________ City Council Regular Meeting - Page 252 of 343
EXHIBIT A
SCOPE OF SERVICES, TIME OF PERFORMANCE AND COMPENSATION
SCHEDULE
[TO BE LATER INSERTED]
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EXHIBIT B
GENERAL TERMS AND CONDITIONS
1. Status as Independent Contractor.
A. Consultant is, and shall at all times remain as to City, a wholly independent contractor. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant's employees, except as set forth in this Agreement. Consultant 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 City.
B. Consultant agrees to pay all required taxes on amounts paid to Consultant under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independen t contractor relationship created by this Agreement. In the event that City is audited by any Federal or State agency regarding the independent contractor status of Consultant and the audit in any way fails to sustain the validity of a wholly independent c ontractor relationship between City and Consultant, then Consultant agrees to reimburse City for all costs, including accounting and attorney's fees, arising out of such audit and any appeals relating thereto.
C. Consultant shall fully comply with the workers ' compensation law regarding Consultant and Consultant's employees. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with applicable worker's compensation laws. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant's failure to promptly pay to City any reimbursement or indemnification arising under this Section 1.
2. Standard of Performance.
A. Consultant shall perform all work to the highest professional standards and in a manner reasonably satisfactory to the City Manager or his/her designee.
The City Manager or his/her designee may from time to time assign additional or different tasks or services to Consultant, provided such tasks are within the scope of services described in Exhibit A. However, no additional or different tasks or services shall be performed by Consultant other than those specified in Exhibit A, or those so assigned in writing to Consultant by the City Manager or his/her designee.
B. The City shall, until further notice to Consultant, administer this Agreement and provide for immediate supervision of Consultant with respect to the services to be provided hereunder.
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3.Indemnification.
A. Consultant is skilled in the professional calling necessary to perform the services and duties agreed to be performed under this Agreement, and City is relying upon the skill and knowledge of Consultant to perform said services and duties.
B. City and its respective elected and appointed boards, officials, officers, agents, employees and volunteers (individually and collectively, "Indemnitees") shall have no liability to Consultant or any other person for, and Consultant shall indemnify, defend, protect and hold harmless Indemnitees from and against, any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses of whatever nature, including reasonable attorneys' fees and disbursements (collectively "Claims"), which Indemnitees may suffer or incur or to which Indemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or other loss occurring as a result of or allegedly caused by the Consultant’s performance of or failure to perform any services under this Agreement or by the negligent or willful acts or omissions of Consultant, its agents, officers, directors, subcontra ctors, subconsultants or employees, committed in performing any of the services under this Agreement.
Notwithstanding the foregoing, the provisions of this subsection shall not apply to Claims occurring as a result of the City’s sole negligence or willful acts or omissions.
C. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth in this Section from each and every subcontractor, subconsultant or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. In the event Consultant fails to obtain such indemnity obligations from others as required in this Section, Consultant agrees to be fully responsible according to the terms of this Section. Failure of the City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend Indemnitees as set forth herein shall survive the termination of this Agreement for a period of four years and is in addition to any rights which City may have under the law. This indemnity is effective without reference to the existence of any insurance coverages which may have been required under this Agreement or any additional insured endorsements which may extend to City.
4. Insurance.
A. Without limiting Consultant’s indemnification of Indemnitees pursuant to Section 3 of this Agreement, Consultant shall obtain and provide and maintain at its own expense during the term of this Agreement the types and amounts of insurance as described below:
(i) Commercial General Liability Insurance using Insurance Services Office Commercial General Liability form CG 00 01 or the exact equivalent.
Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another. Limits City Council Regular Meeting - Page 255 of 343
shall be no less than $4,000,000 per occurrence for all covered losses and no less than $2,000,000 general aggregate.
Business Auto Coverage on ISO Business Auto Coverage form CA 00 01 including symbol 1 (Any Auto) or the exact equivalent. Limits shall be no less than 1,000,000 per accident, combined single limit. If consultant owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described in the preceding subsection. If Consultant or Consultant’s employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person.
(iii) Workers’ Compensation insurance on a state approved policy form providing statutory benefits as required by law with employer’s liability limits no less than $1,000,000 per accident for all covered losses. (iv) Professional Liability or Errors and Omissions Insurance as appropriate to the profession, written on a policy form coverage specifically designed to protect against acts, errors or omissions of the consultant and “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy limit shall be not less than $2,000,000 per claim and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this Agreement.
B. City, its officers, officials, employees and volunteers shall be named as additional insureds on the policy(ies) as to commercial general liability and automotive liability.
C. All insurance procured pursuant to these requirements shall be written by insurers that are admitted carriers in the state of California with a Best’s rating of no less than A:VII.
D. All insurance policies shall provide that the insurance coverage shall not be non -renewed, canceled, reduced, or otherwise modified (except through the addition of additional insureds to the policy) by the insurance carrier without the insurance carrier giving City thirty (30) days' prior written notice thereof. Any such thirty ( 30) day notice shall be submitted to City via certified mail, return receipt requested, addressed to “Risk Manager,” City of Lynwood, 11330 Bullis Road, Lynwood, California, 90262. Consultant agrees that it will not cancel, reduce or otherwise modify said insurance coverage.
E. Consultant shall submit to City (i) insurance certificates indicating compliance with the minimum worker's compensation insurance requirements above, and (ii) insurance policy endorsements indicating compliance with all other minimum insurance requirements above, not less that one (1) day prior to beginning of performance under this Agreement. Endorsements shall be executed on City’s appropriate standard forms entitled "Additional Insured Endorsement".
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F. The Consultant’s insurance shall be primary as respects the City, its officers, officials, employees and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees and volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.
G. Consultant agrees that if it does not keep the aforesaid insurance in full force and effect, and such insurance is available at a reasonable cost, City may take out the necessary insurance and pay the premium thereon, and the repayment thereof shall be deemed an obligation of Consultant and the cost of such insurance may be deducted, at the option of City, from payments due Consultant.
5. Confidentiality. Consultant in the course of its duties may have access to confidential data of City, privat e individuals, or employees of the City. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant's covenant under this section shall survive the termination of this Agreement.
6. Ownership of Work Product. All reports, documents or other written material developed by Consultant in the performance of this Agreement shall be and remain the property of City without restriction or limitation upon i ts use or dissemination by City. Such material shall not be the subject of a copyright application by Consultant.
7. Conflict of Interest.
A. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by Consultant under this Agreement, or which would conflict in any manner with the performance of its services hereunder. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest which would conflict in any manner with the performance of its services pursuant to this Agreement.
B. Consultant covenants not to give or rec eive, or promise to give or receive, any compensation, monetary or otherwise, to or from the ultimate vendor(s) of services to City as a result of the performance of this Agreement, or the services that may be procured by the City as a result of the recomm endations made by Consultant. Consultant's covenant under this section shall survive the termination of this Agreement for a period of one year.
8. Termination. City may terminate this Agreement with or without cause upon thirty (30) days' written notice to Consultant. The effective date of termination shall be upon the date specified in the notice of termination. Consultant agrees that in the event of such termination, City’s obligation to pay Consultant shall be limited to payment only for those services satisfactorily rendered prior to the effective date of termination. Immediately upon receiving written notice of termination, Consultant shall discontinue performing services, preserve the product of the services, and turn over to City the product of the services in accordance with written instruction of City.
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9. Personnel. Consultant represents that it has, or will secure at its own expense, all personnel required to perform the services under this Agreement. All of the services required under this Agreement will be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. Consultant reserves the right to determine the assignment of its own employees to the performance of Consultant's services under this Agreement, but City reserves the right, for good cause, to require Consultant to exclude any employee from performing services on City's premises.
10. Financial Condition. Prior to entering into this Agreement, Consultant has submitted documentation acceptable to the City Manager or his designee, establishing that it is financially solvent, such that it can reasonably be expected to perform the services required by this Agreement. Within thirty (30) days of the first anniversary of the effective date of this Agreement, and each year thereafter throughout the term of this Agreement, Consultant shall submit such financial information as may be appropriate to establish to the satisfaction of the City City Manager or his designee that Consultant is in at least as sound a financial position as was the case prior to entering into this Agreement. Financial information submitted to the City City Manager or his designee shall be returned to Consultant after review and shall not be retaine d by City.
11. Non-Discrimination and Equal Employment Opportunity.
A. Consultant shall not discriminate as to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orienta tion, in the performance of its services and duties pursuant to this Agreement, and will comply with all rules and regulations of City relating thereto. Such nondiscrimination shall include but not be limited to the following: employment, upgrading, demoti on, transfers, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.
B. Consultant will, in all solicitations or advertisements for employees placed by or on behalf of Consultant state either that it is an equal opportunity employer or that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation.
C. Consultant will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement except contracts or subcontracts for standard commercial supplies or raw materials.
12. Assignment. Consultant shall not assign or transfer any interest in this Agreement nor the
performance of any of Consultant's obligations hereunder, without the prior written consent of City, and any attempt by Consultant to so as sign this Agreement or any rights, duties, or obligations arising hereunder shall be void and of no effect.
13. Performance Evaluation. For any Agreement in effect for twelve months or longer, a written annual administrative performance evaluation shall be required within ninety (90) days of the first anniversary of the effective date of this Agreement, and each year thereafter throughout the term of this Agreement. The work product required City Council Regular Meeting - Page 258 of 343
by this Agree ment shall be utilized as the basis for review, and any comments or complaints received by City during the review period, either orally or in writing, shall be considered. City shall meet with Consultant prior to preparing the written report. If any noncompliance with the Agreement is found, City may direct Consultant to correct the inadequacies, or, in the alternative, may terminate this Agreement as provided herein.
14. Compliance with Laws. Consultant shall keep itself informed of State, Federal and Local la ws, ordinances, codes and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times comply with such laws, ordinances, codes and regulations. Without limiting the generality of the foregoing, if Consultant is an out-of-state corporation or LLC, it must be qualified or registered to do business in the state of California pursuant to sections 2105 and 17451 of California Corporations Code. The City, its officers and employees shall not be liable at law or in equity occasioned by failure of Consultant to comply with this Section.
15. Licenses. At all times during the term of this Agreement, Consultant shall have in full force and effect all licenses ( including a City business license) required of it by law for performance of the services hereunder.
16. Non-Waiver of Terms, Rights and Remedies. Waiver by either party of any one or more of the conditions of performance under this Agreement shall not be a waiver of any other condition of performance under this Agreement. In no event shall the making by City of any payment to Consultant constitute or be construed as a waiver by City of any breach of covenant, or any default which may then exist on the part of Consultant, and the making of any such payment by City shall in no way impair or prejudice any right or remedy available to City with regard to such breach or default.
17. Attorney's Fees. In the event that either party to this Agreement shall commence any lega l or equitable action or proceeding to enforce or interpret the provisions of this Agreement, the prevailing party in such action or proceeding shall be entitled to recover its costs of suit, including reasonable attorney's fees and costs, including costs of expert witnesses and consultants.
18. Notices. Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on (a) the day of delivery if delivered by hand during Consultant's regular business hours or by facsimile before or during Consultant's regular business hours; or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses heretofore set forth in the Agreement, or to such other addresses as the Parties may, from time to t ime, designate in writing pursuant to the provisions of this section.
19. Governing Law. This Agreement shall be interpreted, construed and enforced in accordance with the laws of the State of California.
20. Counterparts. This Agreement may be executed in any num ber of counterparts, each of which shall be deemed to be the original, and all of which together shall constitute one and the same instrument.
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21. Severability. If any provision or any part of any provision of this Agreement is found to be invalid or unenforceable, the balance of this Agreement shall remain in full force and effect.
22. Entire Agreement. This Agreement, and any other documents incorporated herein by specific reference, represents the entire and integrated agreement between Consultant and City. This Agreement supersedes all prior oral or written negotiations, representations or agreements. This Agreement may not be amended, nor any provision or breach hereof waived, except in a writing signed by the Parties which expressly refers to this Agreement. Amendments on behalf of the City will only be valid if signed by the appropriate officer of the City as set forth in subsection 6 -
3.1 et seq. of the Lynwood Municipal Code and attested by the City Clerk.
23. Authority. The person or persons executing this Agreement on behalf of Consultant warrants and represents that he/she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereund.
- End of Attachment B -
City Council Regular Meeting - Page 260 of 343
ATTACHMENT C
BID SCHEDULE
REQUEST FOR PROPOSAL (RFP)
ANNUAL SANITARY SEWER MAINTENANCE SERVICES
FOR THE CITY OF LYNWOOD PUBLIC WORKS UTILITY DEPARTMENT Description of Work Estimated
Quantity
Unit Unit
Cost
Total
Year 1
1 Hydraulic flushing/cleaning for
designated areas within the
existing city limits as directed by
the City including, but not limited
to: traffic control, water, water
meter(s), hauling, disposal of
materials, reports and dump fees.
214,000 LF $ $
2 CCTV and Condition Assessment
Inspection: Include all fees for
services. Inspections shall include,
but are not limited to, system-wide;
as-needed blockage responses,
quality control and high
maintenance area inspections as
directed by the City.
107,000 LF $ $
3 Manhole Structural Report 5 EA $ $
4 Emergency call-out for sewer
spills including, but not limited to,
clean-up, hauling, disposal, and
traffic control.
5 EA $ $
5 Annual Increase of Sewer
Maintenance Cost – FY 2024/25 %
6 Annual Increase of Sewer
Maintenance Cost – FY 2025/26 %
7 Annual Increase of Sewer
Maintenance Cost – FY 2026/27 %
8 Total Annual Sewer Maintenance Cost – FY 2023/24
(Sum of Items 1 thru 4) $
9 Total Annual Sewer Maintenance Cost – FY 2024/25
(Sum of Items 1 thru 4 times Item 5) $
10 Total Annual Sewer Maintenance Cost – FY 2025/26
(Sum of Items 1 thru 4 times Item 6) $
11 Total Annual Sewer Maintenance Cost – FY 2026/27
(Sum of Items 1 thru 4 times Item 7) $
City Council Regular Meeting - Page 261 of 343
Total Annual Sewer Maintenance Contract Amount
(Sum of Items 8 thru 11) $
Total Annual Sewer Maintenance Contract Amount in Words
DOLLARS
Note: Please attach unit price and hourly rate sheet for all other sewer cleaning work or as needed call-outs provided by the Proposer as part of the submittal.
The quantities estimated above are for the purpose of evaluation of the proposal submitted by the Proposer, not guaranteed work. The City reserves the right to assign more or less quantities/work for the same unit or crew hourly rate price provided by the contractor herein. The City is not obligated to any minimum or maximum quantities/work under the contract. Nothing in these documents are elsewhere in the contract documents shall be construed as obligating the city to do so.
PROPOSER’S INFORMATION
PROPOSER certifies that the following information is true and correct:
Proposer’s Name: __________________________________________________ Business Address: __________________________________________________ _________________________________________________
Telephone: __________________________________________________ State Contractor’s License No. and Class ________________________________ Original Date Issued: _______________ Expiration Date: _______________ Proposer Name/Title: ________________________________________________ Authorized Signature: _______________________________________________ Phone: ____________________________________
Email: _____________________________________
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ATTACHMENT D
SEWER SYSTEM MAP 2019
City Council Regular Meeting - Page 263 of 343
Agenda Item # 16.
AGENDA STAFF REPORT
DATE:
February 7, 2023
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Ernie Hernandez, City Manager
PREPARED BY:
Julian Lee, Director of Public Works
SUBJECT:
APPROVAL OF CHANGE ORDER NO. 1 WITH SENIORS AND JUNIORS INC. IN THE AMOUNT OF $16,472.25 FOR THE IMPROVEMENTS OF LOS ANGELES COUNTY FIRE DEPARTMENT STATION 148
Recommendation:
Staff recommends that the City Council adopt the attached resolution entitled: “ACCEPTANCE OF CHANGE ORDER NO.1 WITH SENIORS AND JUNIORS INC. FOR THE IMPROVEMENTS OF LOS ANGELES COUNTY
FIRE DEPARTMENT STATION 148”.
Background:
The Los Angeles County Fire Department Station 148 is located at 4264 Martin Luther King Junior Boulevard, Lynwood California 90262. Fire Station 148 provides fire protection and emergency response services to the Lynwood community, they respond to fires, medical emergencies, motor vehicle accidents, rescue calls, and other emergencies. For the safety of our fire fighters and our community, it is important to upkeep the fire station with maintenance and reconstruction. A fire station supports the needs of the fire department and its community. It must accommodate housing, recreation, administration, training, among other functions. Fire Station 148 is currently undergoing a ceiling renovation in which improvements are being made to strengthen the ceiling with replacing broken rafters and support them with adding posts and bears to the structure.
Discussion and Analysis:
On December. 14
th
, 2022 the city entered an agreement with Seniors and Juniors Inc. (S&J) and began undergoing a ceiling renovation at Los Angeles County Fire Department Station 148 in which improvements are being made to strengthen the ceiling by replacing broken rafters and support them with adding posts and bears to the structure. The contractor came across unforeseen conditions in the ceiling post demolition that will require a new structure design resulting in a change order.
Staff recommends approval of Change Order No.1 at $16,472.25 and additional $3,527.75 for future potential change order
.
With the original agreement amount of $49,500 and with total change order amount of $20,000, the City Council Regular Meeting - Page 264 of 343
new construction cost will be $69,000 which is within the budget.
Pursuant to Section 6-3.7(b)(2) of the Lynwood Municipal Code, purchases between $50,001 and $200,000 shall be by an informal bid process and must be approved by the City Council. Because the total project cost has increased to $69,000, staff recommends that the City Council to approve the requested change order and to authorize the City Manager to proceed with the construction work with (S&J) to complete the ceiling renovation at Fire Station 148.
Fiscal Impact:
The Project has an approved FY23 Budget of $337,000 whereas the total construction amount of Fire Station 148 is $69,500.
Coordinated With:
City Manager’s Office
Department of Finance and Administration Services
ATTACHMENTS:
Description
Resolution
City Council Regular Meeting - Page 265 of 343
1 RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVAL OF CHANGE ORDER NO. 1 WITH SENIORS AND JUNIORS INC. IN THE AMOUNT OF $16,472.25 FOR THE IMPROVEMENTS OF LOS ANGELES COUNTY FIRE DEPARTMENT STATION 148.
WHEREAS, On August 21, 2022, the city received three proposals for various improvement work at Los Angeles County Fire Station 147 and Fire Station 148. Seniors and Juniors, Inc. was the lowest bid at $233,300, this bid included all around wall and fence for the Fire Station 147 and ceiling improvements at Fire Station 148.; and
WHEREAS, On Dec. 14, 2023 the city entered an agreement with Seniors and Juniors Inc. and began undergoing a ceiling renovation at Fire Department Station 148.
WHEREAS, the contractor came across unforeseen conditions in the ceiling post demolition that will require a new structure design resulting in a Change Order.
WHEREAS, the new total project cost including contingency, inspection, project management, labor compliance and other costs will be $69,000; and WHEREAS, per Lynwood Municipal Code section 6-3.7(b)(2), purchases between $50,001 and $200,000 shall be by an informal bid process and must be approved by the City Council; and
WHEREAS, to move forward with this Project, appropriation is needed.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS:
Section 1. The City Council of the City of Lynwood hereby finds and declares that the foregoing recitals are true and correct, and incorporates them herein as findings and as a substantive part of this Resolution.
Section 2. The City Council of the City of Lynwood hereby approves Contract Change Order No. 1 in the amount of $16,472.25 and additional $3,527.75 for future potential change order to Seniors and Juniors Inc. and authorizes the City Manager to sign the Contract Change Order.
Section 3. The City Council of the City of Lynwood authorizes the City Manager under LMC 6-3.7(b)(2) to approve the requested change order and to authorize the City Manager proceed with the construction work to proceed with the construction work wi th (S&J) to complete the ceiling renovation at Fire Station 148.
Section 4. Authorize the Mayor to execute the Resolution for and on behalf of the City of Lynwood.
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2 Section 5. This Resolution shall take effect immediately upon its adoption.
Section 6. The City Clerk shall certify to the adoption of this resolution and hereafter the same shall be in full force and effect.
(Signatures on Next Page)
City Council Regular Meeting - Page 267 of 343
3 PASSED, APPROVED and ADOPTED this 7th day of February 2023.
Oscar Flores
Mayor
ATTEST:
Maria Quinonez Ernie Hernandez
City Clerk City Manager
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
Noel Tapia Julian Lee
City Attorney Director of Public Works
City Council Regular Meeting - Page 268 of 343
4 STATE OF CALIFORNIA )
)
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Resolution was passed and adopted by the City Council of the City of Lynwood at a regular meeting held on the 7th day of February 2023, and passed by the following votes:
AYES:
NOES:
ABSTAIN:
ABSENT:
Maria Quinonez, City Clerk
STATE OF CALIFORNIA )
)
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, and the Clerk of the City Council of said City, do hereby certify that the above foregoing is a full, true, and correct copy of Resolution No. on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 7th day of February 2023.
Maria Quinonez, City Clerk
City Council Regular Meeting - Page 269 of 343
Agenda Item # 17.
AGENDA STAFF REPORT
DATE:
February 7, 2023
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Ernie Hernandez, City Manager
PREPARED BY:
Ernie Hernandez, City Manager
SUBJECT:
INTRODUCTION FOR FIRST READING BY TITLE ONLY AN ORDINANCE
AMENDING LYNWOOD'S MUNICIPAL CODE SETTIG A MIMINUM WAGE OF TWENTY-FIVE ($25.00) PER HOUR FOR QUALIFYING HEALTHCARE WORKERS
WORKING IN THE CITY OF LYNWOOD
Recommendation:
Introduce for first reading by title only the attached ordinances entitled, "AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF LYNWOOD AMENDING CHAPTER XX, SUBSECTION XX OF THE
LYNWOOD MUNICIPAL CODE, AMENDING LYNWOOD'S MUNICIPAL CODE SETTING A MINIMUM WAGE OF TWENTY-FIVE ($25.00) PER HOUR FOR QUALIFYING HEALTHCARE EMPLOYEES WORKING IN THE CITY OF LYNOOD," and consider proposed changes provided by labor to facilitate implementation process.
Background:
A citizens group of Lynwood residents (proponents) previously prepared a Notice of Intent to circulate an initative petition seeking to qualify a Healthcare Workers Minimum Wage Ordinance in Lynwood. The proponents failed to gather the necessary signatures to advance the measure to the foregoing election. However, the proponents and their advocates have presented several times to the City Council their position and continued desire to seek such ordinance. Additionally, staff has met with the proponents to gather additional information. Consequently, this item is on this agenda for consideration or further direction.
Discussion and Analysis:
Staff along with the City Attorneys Office has reviewed and prepared a City of Lynwood specific draft ordinance reflecting much of the language and factors included in the initiative originally proposed by the proponents.
Attached for City Council consideration is a draft ordinance in substantially the form of the ordinance that was circulated as part of the initiative process. The version of the ordinance includes two noteworthy modifications that impace the implementation of the ordinance in the City of Lynwood. Additionally, in an effort to gather additional information and discuss impacts to the City of Lynwood, staff met with the proponents and their advocates to City Council Regular Meeting - Page 270 of 343
discussed the proposed ordinance in detail.
Below is a simple summary of the enforcement mechanisms that are included in the ordinance:
The draft ordinance requires the City establish procedures for the enforcement of the ordinance; The draft ordinance authorizes the City to enter into an agreement with the Department of Consumer and Business Affairs of the County of Los Angeles to assist in the enforcement of the ordinance; and The draft ordinance includes a provision authorizing various parties, including healthcare workers, to file legal actions in court to enforce the requirements of the ordinance against all alleged violations.
Furthermore, as stated earlier, staff met with healthcare worker representatives and received the following implementation enhancement;
They recommended removing the exclusion of managers and supervisors from the definition of Covered Healthcare Workers: in this draft, workers are entitled to the minimum wage regardless of whether they are classified as managerial.
This measure would establish a twenty-five ($25.00) per hour minimum wage for qualifying healthcare workers working in the city of Lynwood and subject to annual percentage increase per the consumer price index.
Finally,
this draft delays the effective date until 90 days after the ordinance is adopted to ensure employers have time to prepare and implement it, whereas other cities' ordinances took effect more quickly, without an equivalent "grace period."
Fiscal Impact:
There is no fiscal impact to the budget at this time.
Coordinated With:
City Attorney's Office
ATTACHMENTS:
Description
Lynwood Healthcare Worker Minimum Wage Ordinance
City Council Regular Meeting - Page 271 of 343
1 ORDINANCE NO. _______
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD,
COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ADDING
CHAPTER 4-35 TO THE LYNWOOD MUNICIPAL CODE AS AN
ORDINANCE TO ESTABLISH A MINIMUM WAGE OF $25.00 PER HOUR
FOR QUALIFYING HEALTHCARE WORKERS IN THE CITY OF
LYNWOOD
RECITALS
WHEREAS, pursuant to the police powers vested in the City of Lynwood under the California Constitution, Art. XI, Section 7 and California Labor Code Section 1205(b); and
WHEREAS, approximately three years have passed since cases were first reported, the coronavirus 19 (“COVID-19”) disease presents an ongoing transmission risk in the community; and
WHEREAS, COVID-19 has broadly spread throughout California and the risk of emergent new variants of COVID -19 and future surges remain real and a significant health risk to the community, especially healthcare workers and members of our most vulnerable population; and
WHEREAS, healthcare workers perform services that are fundamental to the economy and health of the community. From the start of the COVID -19 pandemic they worked in high-risk conditions with inconsistent access to protective equipment and other safety measures; wor ked in public situations with limited ability to engage in physical distancing; and continually exposed themselves and the public to the spread of disease; and
WHEREAS, after approximately three years of working on the front lines, healthcare workers are experiencing emotional, mental, and physical fallouts of providing healthcare during a pandemic. At the same time, healthcare workers are dealing with the stress caused by the increased cost of living; and
WHEREAS, hospitals, health systems, and clinics across the state of California are facing staffing shortages that could jeopardize the availability of care in Lynwood. The availability of healthcare workers is fundamental to the health of the Lynwood community.
Healthcare workers in Lynwood will continue to face safety risks and difficult working conditions as the virus presents an ongoing threat for an uncertain period, likely resulting in subsequent waves of infection; and
WHEREAS, establishing a requirement for covered healthcare facilities to provide a minimum wage of $25.00 per hour to covered healthcare workers protects public health, supports stable incomes, and promotes job retention by ensuring that healthcare workers are compensated for the substantial risks, efforts, and expenses they are undertaking to City Council Regular Meeting - Page 272 of 343
2 provide essential services in a safe and reliable manner as the COVID-19 virus remains a threat to the community.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. The City Council hereby finds and determines that all of the above recitals are true and correct and incorporates such recitals into this Ordinance.
Section 2. Name. This Ordinance shall be known as the "Healthcare Workers Minimum Wage Ordinance."
Section 3. The Lynwood Municipal Code is hereby amended to add Chapter 4- 35, entitled Healthcare Workers Minimum Wage, as follows:
4-35
HEALTHCARE WORKERS
4-35.1 Findings and Purposes.
This Ordinance, adopted by the City of Lynwood, makes the following findings and has the following purposes:
The purpose of this Ordinance is to establish a minimum wage for covered healthcare workers within the City of Lynwood.
The City of Lynwood needs a sufficient healthcare workforce to ensure that life -saving healthcare faciliti es including hospitals, health systems, and dialysis clinics offer consistent, timely, high-quality care. Workers at acute care facilities provide vital services including emergency care, labor and delivery, cancer treatments, and primary and specialty care. Similarly, dialysis clinic workers provide life -preserving care to patients with End-Stage Renal Disease and are part of the continuum of kidney care that also includes hospitals and health systems. Hospitals, health systems, and dialysis clinics are facing staffing shortages that could jeopardize the availability of care in our city. Even before the COVID pandemic, California was facing an urgent and immediate shortage of health care workers, adversely impacting the health and well -being of Californians , especially economically disadvantaged Californians. The COVID -19 pandemic has worsened these shortages. Healthcare job vacancies are rising as workers on the frontlines deal with the emotional, mental, and physical fallout of providing healthcare during a pandemic. Workforce shortages across industries also mean that the healthcare industry is competing with other economic sectors to fill critical non-clinical positions such as for cleaning staff, food service workers, and IT administrators. With rising h ousing costs, healthcare workers are being forced to live further from their places of work, increasing their stress and leading to retention challenges. While healthcare workers at hospitals, health systems, and dialysis clinics are experiencing unprecede ntedly difficult working conditions and burnout, the companies running these facilities have made City Council Regular Meeting - Page 273 of 343
3 millions, and in some instances billions, in profits during the pandemic and many CEOs were paid compensation packages in the millions. These healthcare facil ities need to fairly compensate workers who are sacrificing every day to care for their patients. Raising the minimum wage in Lynwood will help address retention challenges and workforce shortages which negatively impact care for vulnerable patients receiv ing life -saving, complex care in settings such as emergency rooms, operating rooms, and dialysis clinics, and will help to ensure that large healthcare corporations are maintaining a robust workforce able to meet the challenges affecting our community.
4-35.2 Definitions.
The following definitions shall apply to this chapter:
a. "City" means the City of Lynwood.
b. “Covered Healthcare Worker” means an Employee who is Employed to work at or by a Covered Healthcare Facility to provide patient care, healthcare services, or services supporting the provision of healthcare. “Covered Healthcare Worker” includes a clinician, professional, non -professional, nurse, certified nursing assistant, aide, technician, maintenance worker, janitorial or housekeeping staffperson, groundskeeper, guard, food service worker, laundry worker, pharmacist, administrative worker and business office clerical worker. A “Covered Healthcare Worker” works at a Covered Healthcare Facility only if that individual’s primary place of employmen t is physically located at one or more such facilities or work sites; for example, delivery workers employed primarily outside a Covered Healthcare Facility are not Covered Healthcare Workers for purposes of this chapter unless Employed by a Person that ow ns, controls or operates a Covered Healthcare Facility.
c. "Covered Healthcare Facility" means the following types of facilities or work sites, provided that they are privately owned and are located within the boundaries of the City:
A licensed general acute, care hospital as defined in Section 1250(a) of the California Health and Safety Code, including a distinct part of any such hospital.
A clinic, as defined in Section 1206(d) of the California Health and Safety Code, that is conducted, operated, or maintained as an outpatient department of a general acute care hospital.
A licensed chronic dialysis clinic as described in Section 1204(b)(2) of the California Health and Safety Code.
A facility or other work site that is part of an Integrated Healthcare Delivery System.
City Council Regular Meeting - Page 274 of 343
4 d. "Covered Physician Group" means a medical group practice, including a professional medical corporation as defined in Section 2406 of the California Business and Professions Code, another form of corporation controlled by physician s and surgeons, a medical partnership, or an independent practice association, provided that the group includes a total of 10 or more physicians.
e. “Employ” means to engage, suffer, or permit to work.
f. "Employee" means any person Employed by any Employer.
g. "Employer" means any Person, including a corporate officer or executive, who directly or indirectly or through any other Person, including through the services of a temporary service, staffing agency, or similar entity, Employs or exercises c ontrol over the wages, hours or working conditions of any Employee.
h. "Integrated Healthcare Delivery System" means an entity or group of related entities that includes both of the following: (1) one or more hospitals and (2) one or more Covered Physician Groups, health care service plans, medical foundation clinics, other facilities, or other entities, providing health care or supporting the provision of health care where the hospital or hospitals and other entities are related through:
Parent/subsidiary relationships, joint or common ownership or control, common branding, or common boards of directors and shared senior management; or
A contractual relationship in which affiliated Covered Physician Groups or medical foundation clinics contract with a health care service plan, hospital or other part of the system, all operating under a common trade name; or
A contractual relationship in which a nonprofit health care service plan provides medical services to enrollees in a specific geographic region of the state through an affiliated hospital system, and contracts with a single Covered Physician Group in each geographic region of the state to provide medical services to a majority of the plan's enrollees in that region.
i. "Minimum Wage" means the minim um amount that must be paid to Covered Healthcare Workers as compensation for their labor, whether the amount is fixed or ascertained by the standard of time, task, piece, commission basis, or other method of calculation. "Minimum Wage" does not include bonuses, shift differentials, premium pay, reimbursement or allowances for work -related equipment or other expenses, credits for meals or lodging, tips, gratuities, or the cost of medical, dental, retirement or similar benefits.
j. "Person" means an individual, corporation, partnership, limited partnership, limited liability partnership, limited liability company, business trust, estate, trust, association, City Council Regular Meeting - Page 275 of 343
5 joint venture, agency, instrumentality, or any other legal or commercial entity, whether domestic or foreign.
4-35.3 Payment of Minimum Wage to Covered Healthcare Workers. a. An Employer shall ensure that each Covered Healthcare Worker it Employs is paid a Minimum Wage equivalent to no less than the hourly rate set forth herein or under the authority of this chapter for hours worked within the geographic boundaries of the City.
b. The Minimum Wage for Covered Healthcare Workers shall be as follows:
On the effective date of this chapter, the Minimum Wage shall be no t less than $25 per hour for all hours worked as a Covered Healthcare Worker.
One year (365 days) after the date this chapter takes effect , and annually thereafter on the same date , the Minimum Wage shall increase based on the annual increase in the cost of living for the preceding twelve months, as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI -W) for the Los Angeles metropolitan area (Los Angeles-Long Beach-Anaheim, CA), which is published by the Bureau of Labor Statistics. If the change to the cost of living over the applicable twelve months is negative, the Minimum Wage shall not increase or decrease. The City shall annually publish a bulletin announcing the adjusted Minimum Wage.
c. An Employer may not fund the Minimum Wage increases required by this chapter in any of the following ways:
Reducing Covered Healthcare Workers' premium pay rates or shift differentials;
Reducing vacation, healthcare, or other non-wage benefits of any Covered Healthcare Worker;
Reducing Covered Healthcare Workers' hours of work;
Laying off Covered Healthcare Workers; or
Increasing charges to any Covered Healthcare Worker for parking, work - related materials or equipment.
d. An Employer is in violation of subsection (c) of this section if the Mi nimum Wage requirements of this chapter are a motivating factor in the Employer's decision to take any of the actions described in subsection (c) of this section, unless the Employer proves that it would have taken the same action at the time that it did irrespective of the operation of this chapter.
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6 4-35.4 Retaliation.
No Employer shall discharge, terminate a contract with, reduce compensation to, or otherwise discriminate against or take adverse action against any Covered Healthcare Worker for opposing any practice proscribed by this chapter, for participating in proceedings related to this chapter, for seeking to enforce rights under this chapter by any lawful means, or for otherwise asserting rights under this chapter. Protections of this section shall apply to any Covered Healthcare Worker who mistakenly, but in good faith, alleges noncompliance with this chapter. Taking any adverse action against a Covered Healthcare Worker within 90 days of the Covered Healthcare Worker's exercise of rights protected under this chapter shall raise a rebuttable presumption of having done so in retaliation for the exercise of such rights.
4-35.5 Posting and Payroll Records.
Covered Healthcare Facilities shall post in a conspicuous place a notice of the cu rrent Minimum Wage for Covered Healthcare Workers required by this chapter. Employers of Covered Healthcare Worker s shall retain payroll records pertaining to Covered Healthcare Workers for a minimum of four years, and shall allow the City or its designee access to such records, with appropriate notice and during business hours, to monitor compliance with the requirements of this chapter.
4-35.6 Enforcement and Implementation.
a. The City shall have responsibility for enforcement of this chapter, includin g, at a minimum:
Establishing a process for reporting complaints of violations of this chapter.
Establishing and implementing processes for investigating complaints and other possible violations of this chapter. Employers and Covered Healthcare Facilities shall cooperate fully in any such investigation.
Establishing and implementing an administrative citation process that may include the issuance of correction orders, a hearing and appeal process, and the imposition of administrative fines.
Taking appropriate enforcement action through the administrative citation process, civil actions, or other approaches on behalf of Covered Healthcare Workers, collecting back wages and any other amounts owed to Covered Healthcare Workers, and disbursing them to Covered Healthcare Workers.
Conducting any other education and enforcement activities necessary to ensure compliance with this chapter.
b. The City is authorized to promulgate rules and regulations and issue determinations and interpretations relating to this chapter that are consistent with its purposes.
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7 c. The City may seek to enter into an agreement with the Department of Consumer and Business Affairs of the County of Los Angeles to allow the County's Wage Enforcement Program to provide wage enforc ement and education services necessary for enforcement of this chapter. If the City and County enter into such an agreement, it may include any services necessary to carry out the enforcement and education responsibilities and activities described in subse ction (a) of this section or pursuant to rules and regulations relating to this chapter
d. A Covered Healthcare Worker, a representative of a Covered Healthcare Worker, the City Attorney, or another Person acting on behalf of the public as provided for un der applicable state law may bring a civil action in a court of competent jurisdiction against an Employer violating this chapter. If the City, a Covered Healthcare Worker , or a representative of a Covered Healthcare Worker prevails in the action, the Cour t shall impose all remedies available under the law or in equity, including injunctive or other equitable relief, reinstatement, the payment of any wages unlawfully withheld, the payment of penalties in the amount of up to $120 to each Covered Healthcare Worker for each day that a violation occurred or continued, and reasonable attorneys' fees and costs.
For retaliatory action by the Employer, the Covered Healthcare Worker shall be entitled to reinstatement and a trebling of all wages and penalties owed. An y other Person enforcing this chapter on the public's behalf, upon prevailing, shall be entitled to an award of only equitable, injunctive, and/or restitutionary relief, and reasonable attorneys' fees and costs.
4-35.7 No Waiver of Rights.
Any waiver by a Covered Healthcare Worker of any or all of the provisions of this chapter or of rights or protections afforded under the authority of this chapter shall be deemed contrary to public policy and shall be void and unenforceable.
4-35.8 Coexistence with Other Available Relief.
The provisions of this chapter shall not be construed as limiting any Covered Healthcare Worker's right to obtain relief to which the Covered Healthcare Worker may be entitled at law or in equity.
4-35.9 One-Year Court-Granted Waiver.
This Chapter is not intended to cause reduction in employment or work hours for Covered Healthcare Workers. Therefore, a court may grant a one -year waiver from the Minimum Wage requirements of this chapter if an Employer can demonstra te by substantial evidence that compliance with this chapter would raise substantial doubt about the Employer's ability to continue as a going concern under generally accepted accounting standards. The evidence must include documentation of the Employer's financial condition, as well as the condition of any parent or affiliated entity, and evidence of the actual or potential direct financial impact of compliance with this chapter. A one -year waiver granted by a court pursuant to this section does not exempt an Employer from complying with any and all federal, state, or local laws and regulations, including any other applicable federal, state, or local minimum wage requirement.
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8 4-35.10 Conflicts.
Nothing in this chapter shall be interpreted or applied so as to create any power or duty in conflict with any federal or state law.
4-35.11 Severability.
If any subsection, sentence, clause, phrase, or provision of this chapter is found invalid or unconstitutional by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect.
Section 4. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent ju risdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.
Section 5. CEQA Findings. The City Council hereby finds and determines that this Ordinance is not subject to the California Environmental Quality Act (Public Resources Code Section 21000, et seq.) (CEQA) pursuant to Section 15061(b)(3) of the State CEQA Guidelines because there is no possibility that it may have a significant effect on the environment.
.
Section 6. Effective Date. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be published or posted according to law. This Ordinance shall become effective ninety (90) days after its adoption in order to allow covered Employers adequate time to implement its requirements.
PASSED, APPROVED AND ADOPTED this ____ day of ________ 2023.
________________________________
Oscar Flores, Mayor
ATTEST:
_______________________________
Maria Quinonez, City Clerk
APPROVED AS TO FORM APPROVED AT TO CONTENT
City Council Regular Meeting - Page 279 of 343
9 _______________________________ ________________________________ Noel Tapia, City Attorney Ernie Hernandez, City Manager City Council Regular Meeting - Page 280 of 343
10 STATE OF CALIFORNIA )
) §
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing Ordinance was duly adopted by the City Council of the City of Lynwood at a regular meeting held in the City Hall of said City on the _______ day of __________, 2023, and passed by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________________
Maria Quinonez, City Clerk
City Council Regular Meeting - Page 281 of 343
Agenda Item # 18.
AGENDA STAFF REPORT
DATE:
February 7, 2023
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Ernie Hernandez, City Manager
PREPARED BY:
Gabriel Linares PE,
Director of Community Development
SUBJECT:
RENEWAL OF TORRANCE PIPELINE COMPLANY, LLC, PIPELINE FRANCHISE Recommendation:
Staff recommends that the City Council:
Approve a resolution declaring its intention to extend the franchise agreement for continued use of existing pipeline, and
Set a public hearing date concerning renewal of the franchise agreement for the next regular meeting March 7, 2023
Direct City Clerk to publish notice of same within the local newspaper 15 days after approval of resolution.
Background:
Pursuant to Ordinance No. 1600 adopted by the City Council on March 18, 2008, the City granted ExxonMobil Oil Corporation the right, privilege and franchise to lay and use pipes and appurtenances for transmitting and distributing oil and petroleum products through, under and along City streets (see attached copy of Ordinance).
The franchise succeeded a similar franchise between ExxonMobil and the County of Orange that pre dated City incorporation. On June 7, 2016, the City Council approved a transfer of the franchise to Torrance Pipeline Company, LLC (grantee), who is the successor in interest to the related pipeline assets and remains the current owner.
The current franchise agreement term is fifteen (15) years, ending on April 17, 2023. The City receives a franchise fee from the grantee on a semi-annual basis, which is based on the allowable rate for similar public utility pipelines (per Public Utilities Code Section 6231.5[b][1]), which includes applicable adjustments annually based on the Consumer Price Index
.
The physical pipeline facility is twelve inches
(12'')
in diameter and has a
length of 6,525 linear feet. It runs through the westerly portion of the City in a north-south alignment (see attached exhibit). The pipeline continues southerly and north beyond the City limits to its point of destination at the grantee's terminal facility in the City of
Vernon.
As the expiration date (April 17, 2023) for the franchise is approaching, Torrance Pipeline Company, LLC, submitted a letter to the City on April 5, 2022, requesting renewal of the franchise agreement (see attached copies).
Public Utilities Code (PUC) Division 3, Chapter 2, authorizes local municipalities to grant franchises to private firms to City Council Regular Meeting - Page 282 of 343
lay pipes and appurtenances for transmitting oil under and along public streets in accordance with certain parameters outlined in the chapter. The two-step procedure for granting such franchises is outlined in Section 6232 et seq., which states that upon receiving an application, the legislative body shall pass a resolution declaring its intention to grant the franchise applied for, stating the character of the franchise, setting forth a notice of the day, hour, and place when and where all persons having any objection to the granting thereof may appear before the legislative body and be heard thereon, and directing the clerk of the legislative body to publish the notice at least once within fifteen (15) days after the passage of the resolution in a newspaper of general circulation within the municipality. The time for the public hearing shall be not less than twenty (20) nor more than sixty (60) days after the date of the passage of the resolution.
Discussion and Analysis:
Based on the foregoing procedural requirements, the City Council may adopted Resolution No. XXXXXX on February 7, 2023, initiating renewal of the franchise agreement and setting a public hearing concerning renewal of the franchise agreement for the regular City Council meeting on March 7, 2023 and directing the City Clerk to publish notice of same
within the local newspaper (15-days after adoption of resolution). Accordingly, a public hearing notice meeting the requirements of PUC Section 6232 et seq was published in the local Newspaper.
The subject pipeline franchise has been operating safely and without incident at its current location for decades. Per section 51014.5(b) of the CA Government Code, M-145 was last hydrostatically tested on 1/21/2019. The pipeline was last inspected on 12/20/2019 by in-line inspection per 49 CFR 195.452. The pipeline in-line inspection schedule is currently set to five years with the next inspection due in 2024. On this basis, staff has retained the essential framework of the existing 2008 franchise agreement in preparing the current renewal, while incorporating only necessary updates to some of its provisions. As drafted, the attached renewal ordinance/agreement includes the following substantive revisions:
Agreement Term- The current agreement reflects an initial 15-year term with provision for an additional 15 years to extend out to April 2038.
Insurance- The required amount of liability insurance has been updated and current.
The fee has been updated per California Public Utilities Code Section 6231.5(e)(2).
The revenue estimated for a 6,525 linear foot, 12 inch pipeline is based on the California Public Utilities Code Section 6231.5(e)(2) of $1.68 per cubic ft for a 12 inch pipeline including adjustments based on the increase in the Consumer Price Index.
The 2023 f
ee projection is: $10,640 and $10,674, a total payments of $21,314 (including a 5% projected increase in the CPI rate).
Fiscal Impact:
The General Fund will receive semi-annual revenue payments for the term of the lease with appropriate CPI rate increases. The projected 2023 lease payment will be $21,314.
Coordinated With:
Approved as to form by City attorney.
ATTACHMENTS:
Description
Torrance Pipeline LLC franchise renewal request
Torrance LLC Pipeline Ordinance
Torrance LLC Pipeline Reso
Public hearing notice
City Council Regular Meeting - Page 283 of 343
Torrance Pipeline
Company LLC
12851 East 166th Street
Cerritos, California 90703
www.pbfenergy.com
Company LLC
December 5, 2022
Sent Via Email
City of Lynwood
11330 Bullis Road
Lynwood, CA 90262
Attn: Mr. Gabriel Linares
RE: FRANCHISE ORD. NO. 1600
(As amended by Resolution 2016.109)
Our File: R/W TPC 4900
Dear Mr. Linares,
On June 07, 2016, the Lynwood City Council approved Resolution No.2016.109, which consented to the transfer and assignment of the above referenced pipeline franchise agreement to Torrance Pipeline Company LLC.
Torrance Pipeline Company LLC (Applicant) submits this written request to the City of Lynwood to extend Ordinance No. 1600 (and its subsequent amendments) for an additional 15 years. If granted an extension, Torrance Pipeline will continue to pay to the City of Lynwood an annual fee as outline in the subject agreement. For your review, attached is map a that depicts active 12- inch M-145 pipeline segment located within the city boundaries.
I look forward to working with the city staff on the renewal of this agreement. Should you have questions or require additional information, please contact me at (310) 212-4374 or at [email protected].
Very truly yours,
Adriane R. Simon
Right of Way Agent
Enclosures
City Council Regular Meeting - Page 284 of 343
City Council Regular Meeting - Page 285 of 343
1 ORDINANCE NO. _______
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD GRANTING
A NONEXCLUSIVE FRANCHISE TO TORRANCE PIPELINE COMPANY TO
OPERATE AND MAINTAIN A PIPELINE SYSTEM FOR THE TRANSPORTATION OF
OIL AND GAS UNDER CERTAIN PUBLIC WAYS AND PUBLIC PLACES IN THE CITY OF LYNWOOD; SETTING FORTH CONDITIONS ACCOMPANYING A GRANT OF NONEXCLUSIVE FRANCHISE; PROVIDING FOR AMOUNT AND METHOD OF
PAYMENT BY FRANCHISEE FOR THE PRIVILEGE GRANTED, AND PROVIDING
FOR THE TERM OF THE NONEXCLUSIVE FRANCHISE
RECITALS
WHEREAS, the Public Utilities Code Sections 6234 authorizes City to grant nonexclusive franchises for oil and gas pipelines by ordinance;
WHEREAS, On March 18, 2008, the City Council of the City of Lynwood (“City Council”) adopted Ordinance No. 1600, which granted ExxonMobil Oil Corporation a non- exclusive fifteen (15) year franchise to operate and maintain a pipeline system for the transportation of oil and gas under certain public ways and public places within City boundaries (“Franchise”); and
WHEREAS, on June 7, 2016, the City Council approved the transfer of Pipeline Ordinance No. 1600 from the ExxonMobil Oil Corporation to Torrance Pipeline Company LLC; and
WHEREAS, the Franchise will expire in March of 2023 and Torrance Pipeline Company LLC desire to extend the Franchise for an additional fifteen (15) year term; and
WHEREAS, on December 5, 2022, Torrance Pipeline Company LL C filed a request to extend the existing pipeline Franchise; and
WHEREAS, on February __, 202 3, pursuant to California Public Utilities Code Section 6232, The City Council adopted Resolution No. ____ declaring its intent to grant an additional fifteen (15) year term to Torrance Pipeline Company LLC and set a hearing date of February __, 2023; and
WHEREAS, on March __, 2023, the City Council conducted a duly noticed hearing regarding the granting of such Franchise to Torrance Pipeline Company LLC; and
WHEREAS, the City Council and Torrance Pipeline Company LLC desire to grant Torrance Pipeline Company LLC an oil and gas pipeline franchise as further described below.
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2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. TITLE
This ordinance shall be known and may be cited as the " Torrance Pipeline Company LLC Franchise Ordinance."
Section 2. DEFINITIONS
For the purpose of this Ordinance, the following terms, phrases, words and their derivations have the meaning set forth below. When not inconsistent with the context, words used in the present tense include the future tense, words in the plural number include the singular number, and words in the singular number include the plural number.
The word "shall" is always mandatory and not merely directory.
a. City means the City of Lynwood.
b. Council means the City Council of the City of Lynwood.
c. Code means the Municipal Code of the City of Lynwood, as amended from time to time.
d. Department means the Department of Public Works of the City of Lynwood.
e. Director means Director of Public Works of the City of Lynwood.
f. Facilities or Appurtenances means all property of the Franchisee, including, but not limited to, pipelines, pump stations, and service connections to the Franchisee's Facilities, whether or not installed by the Franchisee, which are erected, constructed, laid, operated or maintained in, upon, over, under, along or across any street in accordance with any right or privilege granted by the Franchise.
g. Franchise means the privilege granted by the City of Lynwood to construct, operate and maintain oil and gas pipelines under the streets, alleys, public ways and public places now laid out or dedicated, and all extensions thereof, and additions thereto, to the City of Lynwood.
h. Franchisee means Torrance Pipeline Company LLC.
i. Franchise Payment Period means the time period between the effective date of the ordinance granting the franchise and June 30 or December 31 of the same calendar year, whichever first occurs; and the period between January 1 and June 30, and July 1 and December 31 of each successive calendar year during the term of the franchise.
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3 j. Main means any pipeline or conduit laid in, along, or approximately parallel with any street for the collection, transmission or distribution of any substance or commodity.
k. Major Street means any street or portion of a street designated as a major secondary highway in the Circulation Element of the General Plan.
l. Minor Street means any street or portion of a street other than one designated as a major secondary highway in the Circulation Element of the General Plan.
m. Person means any individual, firm, partners hip, association, corporation, company, or organization of any kind.
n. Service Connection means the wire, pipes, or conduits which connect the building or place where the service or commodity supplied by the Franchisee is used or delivered, or is made avail able for use or delivery, with the supply line or supply main in the street or with the supply line or supply main on private property.
o. Street means any road, highway, alley, land, or court or other public easement or public place, and the space above and below it, which now or hereafter exists in the City and with respect to which the City has the authority to grant a Franchise.
Section 3. GRANT OF NON-EXCLUSIVE FRANCHISE
a. The privilege and Franchise is hereby granted to Franchisee, to operate and maintain oil and gas pipelines (Facilities) under the streets, alleys, public ways and public places now laid out or dedicated, and all extensions thereof, and additions thereto, to the City of Lynwood, and more particularly described as follows: A 12-inch pipeline beginning at the southerly boundary line of the City of Lynwood, said point being 225.12 feet northerly of Dixon Avenue and
9.3 feet westerly of centerline Alameda Street East; thence continuing northerly along Alameda Street East ±3,708.41 feet to a point on centerline of Fernwood Avenue North, said point 5.25 feet westerly of the centerline of Alameda Street East; thence continuing northerly along Alameda Street East ±360.48 feet to a point 11.11 feet westerly of the centerline of Alameda Street East and 35.47 feet northerly of the centerline of 112th Street; thence northerly along Alameda Street East ±1,610.23 feet to a point 11.5 feet westerly of centerline of Alameda Street East and 188.18 feet northerly of centerline of 108th Street; thence continuing northerly along Alameda Street East ±434.31 feet to a point being 10.15 feet westerly of centerline of Alameda Street East and 280.22 feet northerly of Martin Luther King Jr.
Boulevard and formally Century Boulevard; thence continuing northerly along Alameda Street East ±411.70 feet to the northerly boundary line of Lynwood, City Council Regular Meeting - Page 288 of 343
4 said point being and 9.3 feet westerly of centerline of Alameda Street East; a total distance within the City of Lynwood of ±6,525.13 more or less all of which is 12-inch pipeline.
b. The right to use and occupy said streets, alleys, public ways and public places of the purpose set forth, shall not be exclusive, and the City reserves the right to grant a similar use of such streets, alleys, public ways and public places, to any person at any time during the period of the Franchise.
c. The Franchise is granted subject to all of the terms and conditions contained in this Ordinance and the City of Lynwood Municipal Code. If this Ordinance specifies terms and conditions that augment, modify, or waive the terms and conditions set forth in the City of Lynwood Municipal Code, the provisions of this Ordinance will be deemed to be controlling.
Section 4. TERM
The term of the Franchise shall be for a period of fifteen (15) years commencing thirty (30) days atter the adoption of this Ordinance.
Section 5. ACCEPTANCE OF FRANCHISE
Within thirty (30) days after the Council's adoption of this Ordinance granting the Franchise, the Franchisee must file with the Director, its written acceptance of the terms and conditions of this ordinance.
Section 6. MAPS
Within ninety (90) days after the date on which any Facilities or Appurtenances have been laid, removed or abandoned under the Franchise, the Franchisee must file with the Department a map or maps accurately showing the "as built" location, depth, and size of those Facilities or Appurtenances.
Section 7. INSURANCE
On or before the effective date of this Ordinance granting the Franchise, the Franchisee must provide satisfactory evidence of having obtained policies of comprehensive general liability and workers' compensation insurance from companies authorized to transact business as insurers in the State of California.
a. The policy of comprehensive general liability insurance must:
1. Be issued to the Franchisee and name the City, its officers, agents, and employees, as additional insureds.
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5 2. Indemnify the City against all liability for personal and bodily injury, death, and damage to property arising from activities conducted pursuant to the Franchise and provide for the following:
i. Coverage for negligent acts or omissions of the Franchisee, its agents, servants and employees, committed in the con duct of Franchise operations;
ii. A combined single-limit liability insurance coverage in the amount of ten million dollars ($10,000,000.00); and
iii. No cancellation without thirty (30) days' prior written notice of cancellation to the Director.
b. The policy of workers' compensation insurance must:
1. Be in a form and substance previously approved by the California Insurance Commissioner.
2. Cover all employees of Franchisee who will be employed or do work related to the Franchise operations.
3. Provide for every benefit and payment required by the California Labor Code, including, but not limited to, vocational rehabilitation and death benefits.
4. Be non -cancelable without thirty (30) days' prior written notice of cancellation to the Director.
c. Fran chisee must file with the Director, prior to commencement of any Franchise operations, either:
1. Certified copies of the required insurance policies; or
2. A certificate of insurance for each of the required policies, executed by the insurer issuing the p olicy, and containing the following information with respect to each policy:
i. The policy number.
ii. The date upon which the policy will become effective and the date upon which it will expire.
iii. The name of the insured and of any additional insureds. iv. The type and limits of coverage provided by the policy. v. A description of all endorsements that form a part of the policy.
d. Environmental Pollution Coverage, including Contractors Pollution Liability with minimum limits of five million dollars ($ 5,000,000) per claim, or ten million dollars ($10,000,000) per claim if an aggregate policy is provided, insuring against all liabilities related to environmental pollution and damage, including, but not limited to, all such liabilities for which Franchisee would be liable pursuant to the Franchise.
e. Automobile liability insurance against claims and liability for personal injury, death, or property damage arising from the use, construction, or maintenance of the Franchise, providing protection in an amou nt no less than Two Million Dollars ($2,000,000.00) per occurrence for personal injury, death and property damage. Said policy shall be carried only by a financially sound insurance company admitted and licensed to do business in City Council Regular Meeting - Page 290 of 343
6 the State of California and which is rated A.VII or better according to the most recent A.M.
Best Co. Rating Guide.
f. No Franchise operations may commence until Franchisee has complied with the provisions of this Section, and all Franchise operations will be suspended during any period that Franchisee fails to keep in effect the required insurance policies.
For commencement of the Franchise or any subsequent transfer of the Franchise or any portion thereof, Franchisee shall furnish City with original endorsements, or copies of each required policy, effecting and evidencing the insurance coverage required by the Franchise. Notwithstanding the above, and subject to approval by City, Franchisee may provide a program of self -insurance. Any self -insurance program maintained by Franchisee shall comply with the provisions and the specified limits contained herein.
Franchisee may effect for its own account any insurance not required under this Ordinance. Franchisee shall provide each year for the duration of the Franchise, written notification to the City of its intent to self-insure.
Franchisee shall furnish evidence of all insurance policies required by this Ordinance.
City reserves the right to require Franchisee to deliver to City copies and endorsements of all insurance policies required by this Ordinance, together with evidence reasonably satisfactory to City of payment required for procurement and maintenance of the policy, with the following time limits:
For insurance required at the commencement of the Franchise or any subsequent transfer of the Franchise or any portion thereof, within ten (10) days after the Franchise or any subsequent transfer of the Franchise or any portion thereof becomes effective;
For insurance becoming required at a later date, at least (10) days befor e the requirement takes effect, or as soon thereafter as the requirement, if new, takes effect;
For any renewal or replacement of a policy already in existence, at least thirty (30) days before expiration or other termination of the existing policy.
If Franchisee fails or refuses to procure or maintain insurance as required by this Ordinance or fails or refuses to furnish City with required proof that the insurance has been procured and is in force and paid for, City shall have the right at City's election and on ten (10) days notice, to declare the Franchise as a forfeiture.
Section 8. FAITHFUL PERFORMANCE BOND
Franchisee must maintain on file with the Director, a corporate surety bond, approved as to form by the City Attorney, in the penal sum of one hundred thousand dollars ($100,000.00). This bond must be issued by an admitted surety insurer approved by the Director, and provide that Franchisee will perform each condition of the Franchise and that, upon any breach of condition of the bond, the whole amount of the penal sum will City Council Regular Meeting - Page 291 of 343
7 be deemed to be liquidated damages and will be recoverable from the principal and sureties on the bond. If the bond, after it has been filed, becomes insufficient at any time during the term of the Franchis e, the Franchisee must obtain a new bond, in a form approved by the City Attorney, within ten (10) days after written notice to do so is given by the Director.
Section 9. FORFEITURE
The Franchisee must comply with all conditions contained in this Ordinance, including those conditions contained in the City of Lynwood Municipal Code which are incorporated by reference in this Ordinance. Any neglect, failure or refusal by the Franchisee to comply with any conditions of this Ordinance will constitute g rounds for suspension or forfeiture of the Franchise. Before any suspension or forfeiture of the Franchise, the City must give to the Franchisee not less than thirty (30) days' written notice of any default. If the Franchisee does not, within the noticed p eriod, commence the work of compliance or, after commencing, does not prosecute the work with due diligence to completion, the Council may hold a hearing. Notice of the hearing must be given to the Franchisee by certified mail not less than ten (10) days before the hearing. At that hearing the Franchisee has the right to appear and be heard, and the Council may then determine whether the conditions are material to the operation of the Franchise and whether the Franchisee is in default of those conditions. T he Council may, in its discretion, declare the Franchise suspended or forfeited.
Section 10. STATE HIGHWAYS
a. If any street or portion of a street becomes a State highway, the State will succeed to all rights reserved to the City by the Franchise, except for the right to continue to collect the Franchise payments and such other rights as by law may remain with the City.
b. This Section applies to any street or portion of a street which becomes a State highway and in which the Franchisee maintains its Fac ilities under the authorization of the Franchise at the time that street or portion of it becomes a State highway.
Section 11. EMINENT DOMAIN
No franchise granted by the City affects the right of the City or any successor in authority to acquire the property of the Franchisee by purchase or condemnation, and nothing contained in this Ordinance may be construed to contract away, modify, or abridge, either for a term or in perpetuity, the City's right of eminent domain in respect to any public utility.
Section 12. ADMINISTRATIVE COSTS
The Franchisee must pay to the City, within thirty (30) days after receiving an itemized statement, all administrative and advertising costs associated with the preparation and advertising of this Ordinance.
Section 13. ASSIGNMENT
The Franchisee may not transfer or assign the Franchise or any part of it, except with the consent of the Council. A transfer or assignment may be made only after filing with the Council a copy of the executed instrument of transfer or assignment and a written request City Council Regular Meeting - Page 292 of 343
8 for the consent of the Council to that transfer or assignment. If that executed instrument and written request are not filed with the Council within thirty (30) days prior to the effective date of the proposed transfer or assignment, then the Franchise is subject to forfeiture and the Council may, without notice, adopt an ordinance repealing this Ordinance. In consenting to the proposed transfer or assignment, the Council may, by ordinance, impose any additional terms and conditions upon the Franchise, and upon the transferee or assignee, which the Council deems to be in the public interest. The Franchisee has no right to transfer or assign the Franchise, in whole or in part, except in the manner specified in this Section. This Section applies to any assignment, whether by operation of law, by voluntary act of the Franchisee, or otherwise.
Section 14. PRIOR FRANCHISES
All Facilities erected, constructed, laid, operated, or maintained by the Franchisee in the streets or other areas described in this Ordinance granting the Franchise, whether or not originally installed by the Franchisee, and which are in existence prior to the effective date of this Ordinance, are subject to all terms and conditions of this Ordinance upon its effective date. This Section does not apply to Facilities which have been constructed, laid, operated, or maintained under a prior right which did not involve the issuance of a franchise.
Section 15. DELEGATION OF AUTHORITY/DUTIES
Wherever, in this Ordinance, a power is granted to or a duty is imposed upon a public officer or employee, the power may be exercised or the duty may be performed by a deputy of that officer or employee or by a person otherwise duly authorized pursuant to statute or ordinance.
Section 16. INDEMNITY AND HOLD HARMLESS
The Franchisee shall indemnify, defend, and hold harmless the City, its officers, agents, and employees, from and against all damages and liability arising from the use, operation, or possession of the Franchise, and from the use , operation, and maintenance of all Facilities erected, constructed, laid, operated or maintained under the Franchise.
Franchisee will not be liable to City for any damages resulting from or arising out of the negligent or willful acts, errors, or omissions of the City, its employees and/or authorized representatives.
Section 17. CONFLICTING IMPROVEMENTS
If the City or any other authorized public entity constructs or maintains any storm drain, sewer structure, or other facility or improvement under or across any Facility of the Franchisee which is maintained in accordance with this Ordinance, the Franchisee must provide, at no expense to the City or other public entity, such support as is reasonably required for the support, maintenance and protection of that facility or improvement.
Section 18. RELOCATION
In connection with any City work or improvement specified in Section 35 of this Ordinance, if the Franchisee, after reasonable notice, fails or refuses to relocate, permanently or temporarily, its Facilities that are located in, on, upon, along, under, over, across, or above City Council Regular Meeting - Page 293 of 343
9 any street, or to pave, surface, grade, repave, resurface, or re-grade a street as required under any provision of the Franchise, then the City may cause that work to be done. The City must keep an itemized account of the entire cost of that work, and the Franchisee must reimburse the City for that cost within thirty (30) days after its receipt of an itemized account of that cost. The Franchisee is obligated to indemnify, defend, and hold harmless the City, its officers, agents, and employees, in accord with Section 16 of this Ordinance, from any liability which arises or is claimed to arise from the moving, cutting, or alteration of any of the Franchisee's Facilities, or the tur ning on or off of water, oil, or other liquid, or of gas or electricity.
Section 19. DAMAGE CAUSED BY DEFECTIVE FACILITIES
If any portion of a street is damaged as a result of defective Facilities laid or constructed under the Franchise, the Franchisee must, at its sole expense, repair that damage and restore the street to the condition existing before the damage was incurred, all to the satisfaction of the City. If the Franchisee, within ten (10) days after receipt of written notice from the City instructing it to repair the damage, fails to commence compliance with those instructions, or, after commencing compliance, fails to prosecute diligently the work to completion, then the City may immediately undertake whatever work is necessary to carry out those instructions. That work will be at the cost and expense of the Franchisee. By the acceptance of the Franchise, the Franchise e agrees to pay that cost and expense upon demand after receiving an itemized statement of reasonable costs incurred by City in the performance of such repair . If the damage creates an immediate danger to the public health or safety requiring immediate repair, the City may, repair that damage, and the Franchisee must pay the reasonable cost of that repair upon demand, but only if City takes reasonable efforts to notify Franchise of such repair action.
Section 20. HAZARDOUS SUBSTANCES
Prior to the issuance of any excavation permit for the construction or installation of a new pipeline for the transportation of a hazardous substance in a gaseous state, or for the transportation of hazardous liquid substances or highly volatile liquid substances, the following conditions must be satisfied, as applicable:
a. With regard to pipelines for the transportation of a hazardous substance in a gaseous state, approval must be obtained from the Los Angeles County Fire Department — Petrochemical Unit. This approval will be based upon a determination that no undue fire hazard will threaten life or property in any areas of the City where the proposed pipeline will be located. In making this determination, the Los Angeles County Fire Department — Petrochemical Unit must consider and report upon the following:
1. The type of substance in a gaseous state that is to be transported in the pipeline.
2. The density of population or structural development in the areas of the City where the pipeline will be located.
3. The adequacy of water supplies for fire suppression purposes.
4. The availability of public fire protection facilities.
5. The number and location. of shut-off valves in the pipeline.
b. With regard to pipelines for the transportation of hazardous liquid substances or highly volatile substances, including hydrocarbon substances, the Franchisee must, City Council Regular Meeting - Page 294 of 343
10 unless preempted by paramount State or Federal law, submit to the Director copies of documents previously submitted to the State Fire Marshal evidencing the following:
1. That the new pipeline is designed to accommodate the passage of instrumented inspection devices, and has leak mitigation and emergency response plans and equipment as may be required by the State Fire Marshal, as provided for in section 51013(b) of the California Government Code.
2. That the newly constructed pipeline will be tested in accordance with subpart E (commencing with section 195.300) of part 195 of title 49 of the Code of Federal Regulations, as provided for in section 51013.5(a) of the California Government Code.
3. That the Franchisee will notify the State Fire Marshal and the Los Angeles County Fire Department — Petrochemical Unit at least three (3) working days prior to conducting a hydrostatic test required by the Elder California Pipeline Saf ety Act of 1981 (Government Code §51010 et seq.), as provided for in section 51014.3 of the California Government Code.
4. That the Franchisee will provide to the Los Angeles County Fire Department — Petrochemical Unit, a map or suitable diagram showing the location of the pipeline, a description of all products to be transported within the pipeline, and a contingency plan for pipeline emergencies that includes, without limitation, any reasonable information that the State Fire Marshal may require, as provid ed for in section 51015(a) of the California Government Code.
5. That the Franchisee will be available to meet with the Los Angeles County Fire Department — Petrochemical Unit, at least once each calendar year to discuss and review contingency plans for pi peline emergencies, as provided for in section 51015 (e) of the California Government Code.
6. That, with regard to any portion of the proposed pipeline that is within five hundred feet (500') of any rail line in the City, the Franchisee will be in compl iance with all applicable regulations adopted by the State Fire Marshal governing the construction, testing, operations, periodic inspect ion, and emergency operations of intrastate hazardous liquid pipelines, as provided for in section 51015.2 of the Calif ornia Government Code.
7. That the Franchisee will comply with all applicable regulations of the State Fire Marshal that establish procedures for maintaining, testing, and inspecting mainline valves and check valves on the intrastate hazardous liquid pipel ine, as provided for in section 51015.4 of the California Government Code.
8. That the Franchises will be in compliance with all applicable guidelines and regulations of the State Fire Marshal relating to the spacing of valves on new pipelines so as to limit spillage from surrounding higher ground into standard metropolitan statistical areas and environmentally sensitive areas, as provided for in section 51016 of the California Government Code.
9. That the Franchisee will immediately report to the Los Angel es County Fire Department — Petrochemical Unit, as well as the office of Emergency Services, every rupture, explosion, or fire involving the pipeline, including the testing of such pipeline, as provided for in section 51018(a) of the California Government Code.
Section 21. COUNCIL APPROVAL OF LOCATION OF FACILITIES
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11 With the exception of existing Facilities and on -going maintenance and operations associated with such assets, t he Franchisee may not install or operate any Facilities in any public street, alley, public way, or public place without first obtaining the prior approval of the Council.
PART B. COMPENSATION
Section 22. DAMAGE TO PUBLIC PROPERTY GENERALLY
Any damage caused directly or indirectly to any public property by the Franchisee, while exercising any right, power, or privilege under the Franchise, or while performing any duty under the provisions of this Ordinance, must be promptly repaired by Franchisee at its sole cost and expense.
Section 23. COMPLIANCE WITH APPLICABLE LAWS
The Franchisee shall, at all times during the term of the Franchise, comply with all Applicable State, Federal and Local laws, ordinances, codes, rules and regulations.
Section 24. NOTICES
All notices, bills, payments, reports, or other material required to be delivered under the terms of the Franchise shall be delivered to:
City
City of Lynwood
Public Works Director
11330 Bullis Road
Lynwood, California 90262
Franchisee
Torrance Pipeline Company
Manager Right of Way
12851 E. 166th Street
Cerritos, California 90703
Any notices, bills, payments, reports, or other material required by this Ordinance shall be deemed received on (a) the day of delivery if delivered by hand during Franchisee's regular business hours or by email, facsimile before or during Franchisee's regular business hours; or b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses heretofore set in this Ordinance, or to such other addresses as the parties may, from time to time, designate in writing.
Section 25. FEES
The Franchisee must pay to the City an annual Base Franchise Fee, for nonpublic utility pipeline franchises for gas or oil products , of $1.68 per cubic ft. of pipeline for a 12 inch pipeline, including an adjustment based on the increase in the Consumer Price Index, All Urban Consumers for the Los Ang eles-Long Beach -Anaheim Area region (“CPI”) as compared to the base CPI on Jun e 1995 for each for Franchise Pay Period . As of the City Council Regular Meeting - Page 296 of 343
12 date of adoption of this Ordinance, the Facilities consist of 6,011.50 cubic feet of M -145 pipeline with a size of 12 inches.
Section 26. PRORATION OF PAYMENTS
If Facilities are abandoned by the Franchisee with the approval of the City as elsewhere provided in this Ordinance, or if Faciliti es are removed by the Franchisee, the annual Base Franchise Fee will be prorated for that calendar year, as of the end of the calendar month in which that abandonment or removal occurs.
Section 27. RECORDS AND INSPECTIONS
a. Franchisee must preserve for a period of five (5) years all records necessary to determine the amount of any fee which is payable to the City under the provisions of this Ordinance.
b. At all reasonable times, the Franchisee must permit the City to inspect all property of the Franchise e that is erected, constructed, laid, operated , or maintained under the Franchise, and to examine and make copies of all non -proprietary books, accounts, papers, maps, and other records maintained by the Franchisee, or under its control, which concern the operations, transactions, property or financial condition of the Franchisee pertaining to the Franchise. These records must be made available to the City at a location in the County of Los Angeles.
PART C. CONSTRUCTION
Section 28. CONSTRUCTION REQUIREMENTS
Pipelines and appurtenances must be constructed and maintained in a good and workmanlike manner and in conformity with all applicable State, Federal and Local laws, ordinances, codes, rules and regulations.
Section 29. NEW INSTALLATION OR REPLACEMENT
The installation or replacement of pipelines, Appurtenances, and all other Facilities necessary for the operation, maintenance, and safety of pipelines and conduits must be in accordance with permits issued by the Department. All proposed installations or replacements must be reviewed and approved, if approved, by the Director as to the most acceptable location in the City's streets.
Section 30. PERMITS
Where the provisions of any law, ordinance, code, or regulation require the issuance of an excavation, encroachment or similar type of permit, the Franchisee may not commence any excavation or encroachment work under the Franchise until it has obtained that permit from the appropriate agency and/or the Department, except in cases of emergency affecting the public health, safety or welfare, or the preservation of life or property, in which case the Franchisee must apply for a permit not later than the next business day after work has commenced.
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13 The Franchisee's application for the permit issued by the Department must include a map showing the length and proposed location of the pipeline or Appurtenance intended to be used, and such other information as the Department may require. The Franchisee must pay to the Department all permit fees including, but not limited to, permit inspection fees.
The Franchisee shall notify Underground Service Alert of Southern California at 1-800- 422-4133 and obtain an inquiry identification number (USA Ticket) a minimum of two (2) working days not including day of submission , but not more than fourteen (14) calendar days, prior to any excavation in the vicinity of any potentially existing underground facilities in order to verify the location of all utilities prior to the commencement of any excavation.
The Franchisee shall be responsible for coordinating its work with all utility companies.
Section 31. WORK ON AND RESTORATION OF STREETS
a. The work of constructing, laying, replacing, maintaining, repairing or removing those pipelines and Appurtenances authorized under the provisions of this Ordinance in, over, under, along or across any street must be conducted so as to cause the least possible interference with pedestrian and vehicular travel on the street. As soon as the work is completed, all portions of the street which have been excavated or otherwise damaged must be promptly repaired, replaced or restored and placed in as good condition as before the commencement of such work. The restoration, repair or replacement work may, as determined by the Director, require the resurfa cing, slurry sealing or other treatment of a street to a minimum of one driving lane, and all work must be done to the satisfaction of the Director and at the expense of the Franchisee.
b. If a Franchisee fails or neglects to undertake or complete the repair, replacement, or restoration work on any street, within ten (10) days after written notice has been given to Franchisee by the Director, the City may repair, replace or restore that street at the expense of Franchisee. Franchisee must pay to the City a ll costs incurred in performing that work. The amount chargeable is the direct cost of that work, plus the current rate of overhead then charged by the City for reimbursable work.
Section 32. FAILURE TO TIMELY COMPLY
a. If the Franchisee fails to complete any work within the time specified in a permit, the City may require the Franchisee to pay to the City Five Hundred Dollars ($500.00) per day as liquidated damages for each day that construction extends bey ond the time specified in the permit if the Franc hisee fails to make a good faith effo rt to complete the work within the time frame specified in the permit. The amount specified per day as liquidated damages will be adjusted annually by the percentage change in CPI commencing one year from the effective date of this Ordinance.
b. If the Franchisee fails to complete any work required by the terms and conditions of the Franchise, or any related permits, within the required time limits, the City ma y complete or cause to be completed that work at the expense of the Franchisee if the Franchisee fails to make a good faith effort to complete the work with on the time frame City Council Regular Meeting - Page 298 of 343
14 specified in the permit. The Franchisee must pay to the City the cost of performing that work after receiving an itemized statement of reasonable costs incurred by City in the performance of such repair. The amount chargeable to Franchisee is the di rect cost of that work, plus the current rate of overhead then charged by the City for reimbursable work.
c. Franchisee shall not be liable or responsible to City, nor be deemed to have defaulted under or breached this Agreement, for any failure or delay in fulfilling or performing any term of this Agreement, with the exception of any obligation to pay any fees required by this Agreement, when and to the extent such failure or delay is caused by or results from acts beyond the Franchisee’s reasonable control and cannot be reasonably mitigated by Franchisee , including, without limitation, the following force majeure events (“ Force Majeure Event(s)”) that frustrates the purpose of this agreement: (a) acts of God; (b) flood, fire, earthquake or explosion; (c) war, invasion, hostilities (whether war is declared or not), terrorist threats or acts, riot or other civil unrest; (d) government order or law; (e) actions, embargoes or blockades in effect on or after the date of this agreement; (f) action by any governmental authority; (g) national or regional emergency; (h) strikes, labor stoppages or slowdowns or other industrial disturbances; (i) epidemic, pandemic or similar influenza or bacterial infection (which is defined by the United States Center for Disease Control as virulent human influenza or infection that may cause global outbreak, or pandemic, or serious illness); (j) emergency state; (k) shortage of adequate medical supplies and equipment; (l) shortage of power or transportation facilities; and (m) other similar events beyond the reasonable control of Franchisee.
Section 33. COMPLETION STATEMENT
Upon the completion of the construction of any pipelines or appurtenances authorized by the Franchise, the Franchisee must submit to the Director a statement which identifies the permit or permits issued by the Department, the total length of pipeline authorized to be constructed un der the permit or permits, and the total length of pipelines or Appurtenances actually laid.
Section 34. APPURTENANCES
The Franchisee has the right to construct, maintain and repair all traps, manholes, conduits, valves, appliances, attachments, and Appurtenances (collectively referred to as "Appurtenances") as may be necessary for the proper maintenance and operation of the pipelines under the Franchise. Those Appurtenances must be kept flush with the surface of the street and be located so as to conform to all applicable State, Federal and local laws, ordinances, codes, rules and regulations, and to all permits issued by the Department, and must not interfere with the use of the street for travel. The Fra nchisee has the right, subject to all applicable State, Federal and Local laws, ordinances, codes, rules and regulations, to make all necessary excavations in the streets for the construction, maintenance and repair of those Appurtenances; but the Franc hisee must first obtain an excavation permit from the Department to undertake that work.
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15 Section 35. ORDINARY REPAIR
The Franchisee may excavate in the street for pipeline repair for the number of days agreed upon by the Franchisee and the Department; but the Franchisee must first obtain an excavation permit from the Department to undertake that work.
Section 36. RELOCATION OF PIPELINES AND APPURTENANCES
a. The City reserves the right to change the grade, alignment, or width, of any public street, way, alley, or place over which the Franchise is granted, including the construction of any subway or viaduct. If any pipelines, Facilities or Appurtenances constructed, installed, or maintained by the Franchisee are located in a manner which prevents or interferes with the change of grade, traffic needs, operation, maintenance, improvements, repair, construction, reconstruction, widening, alteration or relocation of a street, the Franchisee must permanently or temporarily relocate that Facility, at no expense to the City, upon receipt of a written request from the D irector to do so. The Franchisee must commence that work on or before the date specified in the written request, which date may be not less than ninety (90) days from receipt of the written request. Franchisee must then diligently prosecute that work to completion.
b. The City reserves the right for itself, and all other public entities which are now or may later be so authorized, to lay, construct, repair, alter, relocate , and maintain subsurface or other facilities or improvements of any type or description within the streets over which the Franchise is granted. If the City or other public entity determines that the location or relocation of those facilities or improvements conflicts with the Facilities laid, constructed or maintained under the Franchise, whether those Facilities were laid before or after the facilities of the City or other public entity were laid, the Franchisee must relocate those Facilities or improvements, at no expense to the City or other public entity.
The Franchisee must, on or before the date specified in a written request from the Director, which date may not be less than ninety (90) days after receipt of the notice and request to do so, commence work to permanently or temporarily change the location of all Facilities which conflict with those improvements to another location which is approved by the Director. Franchisee must then diligently prosecute the work to completion. If the street is later designated as a State highway, the rights of the State of California will be as provided in California section 680 of the Streets and Highways Code while it remains a State highway.
Section 37. BREAKS OR LEAKS
If any portion of a street is damaged by reason of breaks or leaks in any pipeline, conduit, or Appurtenance constructed or maintained under the Franchise, the Franchisee must, at its sole expense and immediately following written or oral notification from the Director, promptly repair that damage and put the street in as good condition as existed before that damage or leak, all to the satisfaction of the Department. The Franchisee must obtain an excavation permit from the Department to undertake that work.
Section 38. EMERGENCY EQUIPMENT
At all times during the term of the Franchise, the Franchisee must maintain or arrange for, on a twenty four (24) hour basis, an emergency telephone number provided to the City Council Regular Meeting - Page 300 of 343
16 Los Angeles County Fire Department Station 147, adequate emergency equipment, and a properly trained emergency crew. The emergency equipment and crew must be available within a radius of twenty five (25) miles from any Facilities installed or maintained under the Franchise for the following purpose: shutting off the pressure and the flow of substances in those Facilities in the event of an emergency resulting from an earthquake, act of war, civil disturbance, fire, flood, or any other cause.
Section 39. REMOVAL OR ABANDONMENT OF FACILITIES
a. Upon the expiration, revocation or termination of the Franchise, or upon the permanent discontinuance of the use of all or a portion of its Facilities, Franchisee must, within the following thirty (30) days, make written application to the Director for authority, as determined by the Franchisee, either: 1) to abandon all or a portion of those Facilities in place; or 2) to remove all or a portion of those Facilities. The application must describe the Facilities desired to be abandoned or removed by reference to the map or maps required by Section 6 of this Ordinance and must describe with reasonable accuracy the physical condition of those Facilities.
b. The Director must determine whether the abandonment or removal proposed by the Franchisee may be performed without detriment to the public interest and under what conditions the proposed abandonment or removal may be safely completed. The Director must then notify the Franchisee of that determination. The Franchisee must pay to the City the cost of all tests and studies required to determine the disposition of the application for abandonment or removal.
c. Within thirty (30) days after recei pt of the notice, the Franchisee must apply for a permit from the Department to abandon or remove all or any portion of the Facilities and must pay all applicable fees and costs. The permit must set forth any conditions of abandonment or removal that may be prescribed by the Director . Any abandonment of the Facilities must be conditioned, in part, upon Franchisee's future compliance with the provisions of Section 35 of this Ordinance.
d. Within ninety (90) days after obtaining the permit, the Franchisee must commence and diligently prosecute to completion the work authorized by the permit.
e. If the Franchisee applies for authority to abandon in place all or a portion of its Facilities, and the Director determines, in his or her sole discretion, that such abandonment in place may be effected without detriment to the public interest, and the Director accepts such abandonment in place of all or a portion of the Facilities, the Franchisee must pay to the City an abandonment fee as follows:
Pipelines with an Internal Diameter of: Amount per Lineal Foot 0-12 inches $15.00
13-18 inches $22.00
19-30 inches $28.00
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17 Section 40. FAILURE TO COMPLY
a. If any Facilities proposed to be abandoned "in place" and subject to prescribed conditions are not abandoned in accordance with those conditions, the Director may issue additional orders, including an order that the Franchisee remove any or all of those Facilities. The Franchisee must comply with these additional orders.
b. If the Franchisee fails to comply with the terms and conditions of abandonment or removal as required by this Ordinance and within the time prescribed by the Director, then the City may remove or cause to be removed those Facilities at the Franchisee's expense.
The Franchisee must pay to the City the cost of that work, plus the current rate of overhead then charged by the City for reimbursable work after receiving an itemized statement of reasonable costs incurred by City in the performance of such repair.
c. If, upon the expiration, revocation or termination of the Franchise, or the permanent discontinuance of the use of all or a portion of its Facilities, the Franchisee, within thirty (30) days thereafter, fails or refuses to make written application f or the authority referenced above, the Director will make the determination as to whether the Facilities are to be abandoned in place or removed. The Director must then notify the Franchisee of that determination. The Franchisee must then comply with the provisions of Section 39 of this Ordinance.
Section 41. ABANDONMENT "IN PLACE" CONDITIONS:
Facilities abandoned "in place" are subject to the condition that, if at any time after the effective date of the abandonment, the Director determines that any Facility interferes with a public project, Franchisee or its successor in interest must remove that Facility at its expense when requested to do so by the City, or pay the City for the cost of that removal.
PART D. SPECIAL PROVISIONS
Section 42. RIGHTS GRANTED
Franchisee has the right, during the term of that Franchise, to transport petroleum, oil, gas, gasoline, and like substances through the pipelines maintained under the Franchise.
Section 43. MATERIALS USED
All pipelines used for the transportation of petroleum, oil, gas, gasoline, and like substances, or other flammable liquids must be of standard material and in conformity with current American Petroleum Institute pipeline specifications.
Section 44. APPROVALS
No excavation permit for a pipeline t o be constructed or installed in accordance with the Franchise may be issued unless the Franchisee has complied with all applicable provisions of Subsection 20b of this Ordinance relating to pipelines for the transportation of hazardous liquid substances or highly volatile liquid substances. This requirement does City Council Regular Meeting - Page 302 of 343
18 not apply to emergency situations, such as those involving the mitigation of pipeline ruptures, spills or leaks.
Section 45. REPORTS
During the term of the Franchise, and within thirty (30) days after the expiration of each Franchise Payment Period, the Franchisee must:
a. File with the Director two (2) copies of a report, verified under penalty of perjury by a duly authorized representative of the Franchisee, showing for the immediately preceding Franchise Payment Period: 1) the length of all lines in streets; 2) the internal diameter of those lines; 3) the rate per foot per year; and 4) the total amount due the City.
b. File with the Director a report in triplicate, showing the number of each permit obtained for the installation of new mains during the immediately preceding Franchise Payment Period, together with the length and size of those mains. The Franchisee must show on this report any change in pipeline footage since the last Franchise Payment Period, segregating that footage as to new mains laid, old mains removed, old mains abandoned in place, and the footage of mains in any territory annexed or incorporated since the last Franchise Payment Period.
Section 46. PAYMENTS DUE
The Franchisee's payments are due semi-annually in accordance with the Franchise Payment Period indicated in Section 2 of this Ordinance.
Section 47. SEVERABILITY
If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.
Section 48. PUBLISHING ORDINANCE
The City Clerk is directed to certify to the passage and adoption of this Ordinance and to cause it to be posted or published as required by law and said Ordinance shall become effective 30 days after its passage.
PASSED, APPROVED AND ADOPTED this ____ day of ________ 2023.
________________________________
Oscar Flores, Mayor
City Council Regular Meeting - Page 303 of 343
19 ATTEST:
_______________________________
Maria Quiñonez, City Clerk
APPROVED AS TO FORM APPROVED AT TO CONTENT
_______________________________ ________________________________ Noel Tapia, City Attorney Ernie Hernandez, City Manager City Council Regular Meeting - Page 304 of 343
20 STATE OF CALIFORNIA )
) §
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing Ordinance was duly adopted by the City Council of the City of Lynwood at a regular meeting held in the City Hall of said City on the _______ day of __________, 2023, and passed by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________________
Maria Quiñonez, City Clerk
City Council Regular Meeting - Page 305 of 343
RESOLUTION NO. XXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
DECLARING ITS INTENTION TO GRANT A PIPELINE FRANCHISE TO
TORRANCE PIPELINE COMPANY LLC
RECITALS
WHEREAS, On March 18, 2008, the City Council of the City of Lynwood (“City Council”) adopted Ordinance No. 1600, which granted ExxonMobil Oil Corporation a non-exclusive fifteen (15) year franchise to operate and maintain a pipeline system for the transportation of oil and gas under certain public ways and public places within City boundaries (“Franchise”); and
WHEREAS, on June 7, 2016, the City Council approved the transfer of Pipeline Ordinance No. 1600 from the ExxonMobil Oil Corporation to Torrance Pipeline Company LLC; and
WHEREAS, the Franchise will expire in April of 2023 and Torrance Pipeline Company LLC desire to extend the Franchise for an additional fifteen (15) year term; and
WHEREAS, on April 5, 2022 and December 5, 2022, Torrance Pipeline Company LLC has filed requests to extend the existing pipeline Franchise; and
WHEREAS, pursuant to California Public Utilities Code Section 6232, the City Council desires to adopt a resolution declaring its intent to grant a pipeline franchise to Torrance Pipeline Company LLC and direct the City Clerk to publish notice of the related hearing within fifteen (15) days after adoption of said resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS:
Section 1. The City Council hereby finds and determines that all of the above Recitals are true and correct and incorporates such Recitals into this Resolution.
Section 2 . That City Council hereby declares its intention to grant Torrance Pipeline Company LLC a franchise to operate and maintain a pipeline system for the transportation of oil and gas under certain public ways and public places within City boundaries for an additional fifteen (15) year period;
Section 3. That it is the opinion of the City Council that the public good requires that said Franchise be granted;
Section 4. That City Council will hear objections to the granting of said Franchise on March __, 2023 at 6:00 p.m. in the Council Chambers of City Hall, 11330 Bullis Road, Lynwood, California.
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Section 5. The City Clerk is hereby directed to publish notice of the hearing at least once in a newspaper of general circulation printed and published nearest to the City of Lynwood, within 15 days after the passage of this Resolution; and
Section 6. The City Clerk shall certify to the adoption of this Reso lution and hereafter the same shall be in full force and effect.
PASSED, APPROVED AND ADOPTED this ____ day of ________ 2023.
________________________________
Oscar Flores, Mayor
ATTEST:
___________________________ ______________________________ María Quiñónez, City Clerk Ernie Hernandez, City Manager
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
__________________________ ______________________________ Noel Tapia, City Attorney Gabriel Linares
Director of Community Development
City Council Regular Meeting - Page 307 of 343
Lynwood City Council
Notice of Public Hearing
NOTICE IS HEREBY GIVEN that the Lynwood City Council will hold a public hearing on March __, 2023 as follows:
Date: March __, 2023 (City Council Meeting)
Time: 6:00 p.m. (or soon thereafter as the matter may be heard) Place: Live Meeting in Council Chamber - 11350 Bullis Road, Lynwood, CA 90262 - Web conference via ZOOM for the public. To participate please join via Zoom - Meeting ID: 835 2029 8238, or by telephone at 1-669-900-9128 or 1-253-215-8782. If Spanish interpretation services are needed, please dial (310) 372-7549; conference code 673120.
Subject: Pursuant to Resolution No. ____ dated February 7, 2023, the City Council will consider the grant of a Franchise to the Torrance Pipeline Company, LLC for the operation and maintenance of an existing 12 inch oil and gas pipeline consisting of 6,011.50 cubic feet of pipeline for a term of fifteen (15) years . Torrance Pipeline Company, LLC and it s successors and assigns, during the lifetime of the Franchise, agrees to pay a Franchise Fee of $1.68 per cubic foot, subject to adjustments based on any increase in the Consumer Price Index. If Torrance Pipeline Company, LLC does not pay the Franchise Fee, the Franchise will be forfeited.
A copy of all relevant material regarding the proposed Development Agreement is on file in the Community Development Department at Lynwood City Hall, 11330 Bullis Road, Lynwood, California 90262. Said documents are open for public inspection during regular business hours, 7:00 a.m. to 6:00 p.m. Monday through Thursday. All interested persons are invited to inspect the file and to be present to give testimony at the public hearing.
All persons either favoring or opposing this proposal are invited to present their views on the above referenced project to the City Council at this hearing. Those desiring to be heard in favor of or in opposition to this item will be given an opportunity to do so during such hearing to be conducted at the above address or by writing to the City at the above address prior to said hearing date. Please reference hearing title and date of hearing in any correspondence.
NOTICE IS FURTHER GIVEN that on Tuesday, March __, 2023, at the hour of 6:00 p.m., or soon thereafter as the matter may be heard, the Lynwood City Council will hold a public hearing in the City Hall Annex Council Chambers at 11350 Bullis Road, Lynwood, California for the solicitation of public comment on a proposed Pipeline Franchise to the Torrance Pipeline Company, LLC for the operation and maintenance of an existing 12 inch oil and gas pipeline consisting of 6,011.50 cubic feet of pipeline for a term of fifteen (15) years. Torrance Pipeline Company, LLC and it s successors and assigns, during the lifetime of the Franchise, agrees to pay a Franchise Fee of $1.68 per cubic foot, subject to adjustments based on any increase in the Consumer Price Index.
To participate please join via Zoom - Meeting ID: 835 2029 8238, or by telephone at 1 -669-900- 9128 or 1 -253-215-8782. If Spanish interpretation services are needed, please dial (310) 372 - 7549; conference code 673120.
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NOTICE IS FURTHER GIVEN that if you challenge the aforementioned action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City at, or prior to the public hearing.
DATED THIS __TH DAY OF FEBRUARY 2023
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Agenda Item # 19.
AGENDA STAFF REPORT
DATE:
February 7, 2023
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Ernie Hernandez, City Manager
PREPARED BY:
Harry Wong, Director of Finance & Administration
Patrick Matson, Director of Human Resources & Risk Management
SUBJECT:
FISCAL YEAR (FY) 2022-23 MID-YEAR FINANCIAL REVIEW AND AMENDMENT TO FY 2022-23 CLASSIFICATION AND COMPENSATION (SALARY SCHEDULE)
PLANS FOR STAFF/POSITION REALLOCATIONS
Recommendation:
Staff recommends that the City Council adopt the attached resolutions entitled:
·
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD RECEIVING AND FILING THE FY 2022-23 MID-YEAR FINANCIAL REVIEW REPORT, APPROVING THE FY 2022-23 MID-YEAR BUDGET ADJUSTMENTS TO AMEND THE FY 2022-23 ADOPTED BUDGET HERETO ATTACHED AS
SCHEDULE A
·
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AMENDING THE FISCAL YEAR 2022-23 ADOPTED BUDGET CLASSIFICATION AND COMPENSATION (SALARY SCHEDULE)
PLANS FOR STAFF/POSITION REALLOCATIONS
Background:
On July 20, 2021, the City Council adopted the FY 2021-22 budget and approved the FY 2022-23 budget. On June 21, 2022, the City Council adopted the updated second year (FY 2022-23) operating budget. The budget is the City’s financial operating plan that establishes the City’s goals, budget priorities, and desired service levels for the fiscal year, as well as identifies the fiscal resources necessary to achieve them. The updated adopted budget was based on certain assumptions and meeting expenditure and revenue projections.
The FY 2022-23 Mid-Year Financial Review reports on the City’s fiscal performance through mid-year (July through December), comparing all revenues and expenditures incurred during the first two quarters of FY 2022-23 to the same period in FY 2021-22. The Mid-Year Financial Review also provides an updated FY 2022-23 Financial Forecast, as well as presents mid-year budget adjustments for Council’s consideration to amend the FY 2022-23 Adopted Budget.
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As customary, the Mid-Year Financial Review primarily focuses on the General Fund since this is the fund that supports traditional municipal services the City provides for residents, such as law enforcement, fire protection, public works services, parks, and recreation.
Discussion and Analysis:
At the end of each fiscal year, the Finance & Administration Department begins its process of closing out the year. This process includes trueing up the budget, ensuring all capital improvement project carryovers are processed and reflected in the new fiscal year. In addition, to avoid possible budget inflation, at the end of each fiscal year, all purchase orders and encumbrances are closed out.
FY 2022-23 Mid-Year Financial Report:
The table below shows the City’s revenues and expenditures incurred through the mid-year point of the fiscal year (first two quarters), from July 1 through December 31 in FY2022-23 and FY 2021-22.
TABLE 1
GENERAL FUND REVENUES &
EXPENDITURES
JULY - DECEMBER
FY 23
Adopted
Budget
FY 23
July -
December
Actuals
FY 22
July -
December
Actuals
FY 23
Mid-Year
Dollar
Increase
(Decrease)
FY 23
Mid-Year
Percentage
Increase
(Decrease)
Revenues
Property Tax
$13,094,249
$1,618,183
$1,431,183
$187,000
13.1%
Sales Tax
6,968,362
1,975,351
2,085,629
(110,278)
-5.3%
Sales Tax Measure PS
7,713,521
2,396,022
2,344,466
51,556
2.2%
Utility Users Tax
5,270,000
2,830,463
2,379,615
450,848
18.9%
Franchise Fees
1,690,991
178,558
246,940
(68,382)
-27.7%
Business License & Other Tax
605,100
412,508
326,352
86,156
26.4%
Charges for Current Services
1,534,800
770,162
826,905
(
56,743
)
-
6.9 %
Fines, Forfeits, & Penalties
906,000
601,677
618,000
(
16,323
)
-
2.6 %
Other Revenues
2,138,238
1,164,868
471,910
692,958
146.8
%
Transfers In
2,218,674
0 37,858
0 0.0%
Total Revenues
$42,139,935
$
11,947,792
$10,768,858
$
1,178,934
10.9 %
Expenditures
Operational Expenditures
$38,790,040
$
14,741,956
$14,429,096
$312,860
2.2 %
Transfers Out
2,560,634
0 0
0 0.0%
Total Expenditures
$41,350,674
$
14,741
,956
$14,429,096
$312,860
2.2 %
FY 202-23 Mid-Year Revenue Performance:
Property Tax
– Through the mid-year point of FY 2022-23, the City’s largest revenue source, Property Tax, was up by
13.1% (or $187,000) from FY 2021-22. The City will receive its last large installment in April 2023, which accounts for approximately 90% of our total property tax.
Sales Tax
– Sales Tax is down 5.3% (or 110,278) compared to FY 2021-22. The decrease can possibly be attributed to inflation, thus causing a decline in consumer spending.
Utility Users Tax
– Utility Users Tax is up 18.9% (or $450,848) from FY 2021-22 due to an increase in Utility User Tax- Electric (up by $374,205), Utility User Tax-Gas (up by $95,615), Utility User Tax-Telephone (up by $9,222). However, there is a decrease in Utility User Tax-Water (down by $19,684).
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Franchise Fees
– Franchise fees are down by 27.7% (or $68,382) from FY 2021-22 due to decrease in franchise fees for cable (down by $62,275), quarterly cannabis tax (down by $4,423), and franchise fees for towing services (down by $1,683).
Business License & Other Tax
– Business License & Other Tax is up by 26.4% (or $86,156) from FY 2021-22, specifically due to construction permits (up by $113,087), real property report fees (up by $10,809), business license (down by $20,791), and conditional use permits (down by $18,820).
Charges for Current Services
– Charges for Current Services is down by 6.9% (or $56,743) due to a decrease in plan check fees (down by $82,692), zoning variance (down by $12,170), parcel and tract map (down by $5,430), environmental assessment (down by $13,580), property owners’ notification (down by $9,600), fire inspection fees (down by $43,716), billboard agreement (down by $21,400) and an increase in cannabis cost recovery fee (up by $100,000), registration special events (up $10,861), recreation fees (ups ($25,130), etc.
Fines, Forfeits & Penalties
– Fines, Forfeits & Penalties is down by 2.6% (or $16,323) due to a decrease in Municipal Code Fines (down by $31,662), Animal License (down by $2,885), Code Enforcement-bldg. violation (down by $5,114), Firework Citation Fees (down by $21,729) offset by an increase in Street Sweeping Parking Fines (up by $11,121), Code Enforcement Citations (up by $7,119) and Misc. Parking Fines (up by $23,933).
Other Revenue
– Other Revenue is up by 146.8% (or $692,958) due to an increase State-Mandated Cost (up by $129,969), Miscellaneous rev (up by $115,017), Interest (up by $709,309), offset by a decrease in sources such as Specific Plan Amendment-Outsourced (down by $101,662), Admin Cost Reimbursement (down by $125,000) and Centennial Celebration (down by $42,545), which is attributed to one time revenue and timing differences from the prior fiscal year.
FY 2022-23 Mid-Year Expenditure Performance:
The City expended 2.2% (or $312,860) more than last year through the mid-year point of FY 2022-23. The increase in expenditures can be attributed to expenses related to the election held in the fall of 2022, increase in salaries which were paid via workers compensation during the same period of the prior fiscal year, and financial assistance to the consortium. The Finance & Administration Department will continue to monitor spending, address unanticipated needs for the current fiscal year, and help ensure that departments are adhering to the approved budget.
FY 2022-23 Financial Forecast:
In addition to reporting on the fiscal condition of the City through the first half of the year, the FY 2022-23 Mid-Year Financial Review Report provides an updated FY 2022-23 Financial Forecast. Throughout the year, fiscal issues arise and budget adjustments may be required that may impact the FY 2022-23 Adopted Budget. When this happens, budget assumptions and year-end projections change. The Mid-Year Financial Review is usually a good time to present an updated FY 2022-23 Financial Forecast, as we become aware of new fiscal issues that arise subsequent to the budget adoption. Refer to Table 2 below for an updated FY 2022-23 Financial Forecast.
TABLE 2
GENERAL FUND
ADJUSTED FY 23 FINANCIAL FORECAST
FY 23 Adopted
Budget
FY 23 Adjusted
Budget
Revenues
Adopted Revenues (including Transfers In)
$42,139,935
$42,191,935
Total Adjusted Revenues
$42,139,935
$42,191,935
Expenditures
Adopted Expenditures (including Transfers Out)
$41,350,674
$41,350,674
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1st Quarter Council Approved Budget Adjustments
252,000
2nd Quarter
Council Approved Budget Adjustments
100,000
Public Works Operational Budget (Proposed)
23,887
Community Development Operational Budget (Proposed)
24,500
Finance & Administration Operational Budget (Proposed)
24,740
Estimated Personnel Cost Savings
(Proposed)
(6,243)
Total Adjusted Expenditures
$41,350,674
$41,
769
,
558
Operating (Deficit)/Surplus
$789,261
$
422,377
Beginning Fund Balance
$3,898,348
$3,898,348
Ending Fund Balance
$4,687,609
$4,
3 20
,
725
*The FY 23 Adjusted Beginning Fund Balance is unaudited.
The second column on Table 2 represents the FY 2022-23 Adjusted Budget taking into account all unanticipated expenditures (temporary staff needs, financial assistance to consortium, trailer mounted pole cameras) and proposed budget adjustments. Based on the second column, the new FY 2022-23 ending fund balance is projected to be $4,320,725. The new reserve level is $4,176,956 the minimum General Fund reserve level of 10% of the current-year adopted operating budget.
FY 2022-23 Mid-Year Budget Adjustments:
Finance staff is presenting the following Mid-Year Budget Adjustments for Council’s consideration to amend the FY 2022-23 Adopted Budget for the General Fund.
1. Public Works Operational Budget ($23,887
– General Fund; $357,595 – All Funds)
– An additional
appropriation in the amount of $357,595 ($23,887 in General Fund reserves, $35,574 in Gas Tax Fund reserves, $18,406 in SB 1 Fund reserves, $250 in Measure M reserves, $1,000 in Prop C Fund reserves, $11,750 in Measure R, $15,000 in Street Lighting Fund reserves, $204,000 in Landscape Fund reserves, $10,000 in Safe Clean Water Fund reserves, $19,229 in CIP Fund reserves, $5,000 in Water Fund reserves, $2,000 in Sewer Fund reserves, $11,500 in Garage Fund reserves) is needed to cover office supplies, operating supplies, furniture, contractual services, graffiti removal materials/supplies, overtime expense, equipment rentals, citywide street LED light replacements, emergency tree removal, NPDS compliance & FOG program, vehicle repairs, etc.
2. Community Development Operational Budget ($24,500 – General Fund; $3,106,604 – All Funds) – An
additional appropriation in the amount of $3,106,604 ($24,500 in General Fund reserves, $78,095 in HUD/CDBG Fund reserves, $228,876 in LEAP Grant funds, $2,143,746 in DTSC-ECRG Grant funds, $631,387 in PLHA Grant funds) is needed for outreach services, consulting services and activities related to new grants that were awarded. Appropriation of funds will be offset by anticipated grant funding.
3. Finance & Administration Operational Budget ($24,740 – General Fund; $159,943 – All Funds) – An
additional appropriation in the amount of $159,943 ($24,740 in General Fund reserves, $36,555 in Refuse Fund reserves, $25,000 in Retirement Fund reserves, $37,094 in Water Fund reserves, $36,555 in Sewer Fund reserves) is needed for legal services pertaining to the pension obligation bonds, temporary staffing services, printing/mailing of utility bills, etc.
FY 2022-23 MID-YEAR CLASSIFICATION AND COMPENSATION (SALARY SCHEDULE) PLANS FOR STAFF/POSITION REALLOCATIONS:
In addition, in an effort to optimize efficiency and service levels, the City’s management team is proposing changes to the organization’s staffing in order to meet the current demands of the stakeholders to our City.
Therefore, in order to approve the proposed staffing changes, the City Council must amend the City’s classification plan by way of a resolution in accordance with Rule IV, Section 1-5 of the City’s Personnel Rules and Regulations
(Exhibit A) and its City’s compensation plan (Salary Schedule), including any amendments to the salary schedule, by way of resolution in accordance with Rule V, Sections 1-2 of the City’s Personnel Rules and City Council Regular Meeting - Page 313 of 343
Regulations (Exhibit B).
Human Resources staff has prepared the following amendments to the classification and compensation (salary schedule) plans for staff/position reallocations.
Action #1 - Amend the City’s Classification and Compensation Plans (Salary Schedule) to Reflect Title Change for Public Works Assistant Classification to Assistant Engineer:
Management
recommends a title change from the current “Public Works Assistant” classification to “Assistant Engineer”, with no other changes to the job description (Exhibit C) or minimum qualification requirements.
Prior to formalizing the proposed change, the City
fulfilled its “meet and confer” obligations with the Lynwood Employees’ Association/AFSCME Local 1920 bargaining unit, and was able to reach an agreement on the proposed title change only. Furthermore, the title change was approved by the Personnel Board during its
November 17, 2022 regular meeting.
If the proposed resolution is approved by the City Council, the title change will be reflected on the salary schedule, which will insert the “Assistant Engineer” classification while deleting the “Public Works Assistant” classification
simultaneously, and keeping the salary range unchanged.
Action #2 - Amend the City’s Classification and Compensation Plans (Salary Schedule) to Reflect Title Change for Civil Engineer Classification to Associate Engineer:
Manag
ement recommends a title change from the current “Civil Engineer” classification to “Associate Engineer”, with no other changes to the job description (Exhibit D) or minimum qualification requirements
Prior to formalizing the proposed change, the City ful
filled its “meet and confer” obligations with the Lynwood Employees’ Management Group (LEMG) bargaining unit, and was able to reach an agreement on the proposed title change only. Furthermore, the title change was approved by the Personnel Board during it s January 26, 2023
special
meeting.
If the proposed resolution is approved by the City Council, the title change will be reflected on the salary schedule (Exhibit F), which will insert the “Associate Engineer” classification while deleting the “Civil Engi neer”
classification simultaneously, and keeping the salary range unchanged.
Action #3 - Amend the City’s Compensation Plan (Salary Schedule) to Include the Senior Planner Classification:
Management recommends adding the Senior Planner classification to the salary schedule.
The Senior Planner position is an existing classification (Exhibit E) within the LEMG (Management) bargaining unit, that has not been utilized for an unknown period of time within the organization, and is not reflected in the current
salary schedule as a result.
If the proposed resolution is approved by the City Council, the “Senior Planner” classification will be added to the salary schedule (Exhibit F).
Action #4 - Amend the Fiscal Year 2022-23 Adopted Budget and City’s Compensation Plan (Salary Schedule)
to Include the Addition of (1) Full-Time Account Specialist Position Within Department of Finance:
Management recommends adding (1) Account Specialist position to the FY 2022-23 budget and inserting the classification i
nto the salary schedule.
If the proposed resolution is approved by the City Council, the “Account Specialist” position will be added to the FY 2022-23 budget while the classification will be inserted into the salary schedule (Exhibit F).
Action #5 -
Amend the Fiscal Year 2022-23 Adopted Budget to Upgrade (1) Full-Time Assistant Engineer Position to Associate Engineer Within Department of Public Works:
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Management recommends upgrading the full-time, budgeted Assistant Engineer (Currently the Pu blic Works
Assistant classification pending approval for title change) to Associate Engineer (Currently the Civil Engineer classification pending approval for title change) with the Department of Public Works.
If the proposed resolution is approved by the
City Council, the budgeted position will be upgraded from a full-time Assistant Engineer to a full-time Associate Engineer.
Action #6 - Amend the Fiscal Year 2022-23 Adopted Budget to Downgrade (1) Full-Time Maintenance Worker Position to (2) Part-Time M
aintenance Worker Positions Within Department of Public Works:
Management recommends downgrading (1) full-time, budgeted Maintenance Worker position to (2) part-time Maintenance Worker positions.
If the proposed resolution is approved by the City
Council, the full-time Maintenance Worker position will be downgraded into (2) part-time Maintenance Worker positions.
Action #7 - Amend the Fiscal Year 2022-23 Adopted Budget to Downgrade Full-Time Public Works Special Projects Manager to Senior Managem
ent Analyst Within Department of Public Works:
Management recommends the downgrade of the full-time, budgeted Public Works Special Projects Manager to Senior Management Analyst with the Department of Public Works.
If the proposed resolution is
approved by the City Council, the budgeted position will be downgraded from a full- time Public Works Special Projects Manager to a full-time Senior Management Analyst.
Action #8 - Amend the Fiscal Year 2022-23 Adopted Budget to Downgrade of Full-Time Exec utive Assistant
Position to Administrative Assistant Within Department of Community Development:
Management recommends the downgrade of the full-time, budgeted Executive Assistant Position to Administrative Assistant within the Department of Commu nity Development.
If the proposed resolution is approved by the City Council, the budgeted position will be downgraded from a full- time Executive Assistant to a full-time Administrative Assistant.
Action #9 - Amend the Fiscal Year 2022-23 Adopted Budget to Transfer Budgeted Administrative Analyst III
Position and General Fund portion of Budgeted Senior Human Resources Analyst position to Department of Community Development:
Management recommends transferring the full-time Administrative Analyst III position in the City Manager's Office and the General Fund portion of Senior Human Resources Analyst position from Human Resources to the Department of Community Dev
elopment.
If the proposed resolution is approved by the City Council, the corresponding staff positions will be transferred from the Administration and Human Resources budgets to the Department of Community Development’s budget.
Closing:
As we are in the midst of the FY 2022-23 budget, it is imperative that City stay above the minimum General Fund reserves levels. Falling below the minimum reserve level raises serious and alarming concerns to the City’s fiscal condition and the City’s ability to contend with unanticipated fiscal challenges that may be on the horizon, as well as the potential adverse impacts to the City’s bond ratings.
We must continue to identify corrective actions to address the City’s fiscal issues so that the City does not end up in a state of fiscal distress.
Fiscal Impact:
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The FY 2022-23 projected General Fund ending fund balance is $4,320,725. The Proposed adjustments total impact to the General Fund Expenditure is $66,884.
Coordinated With:
All Departments
ATTACHMENTS:
Description
Reso_FY 2022-23 Mid-Year Financial Review
Schedule A _FY 2022-23 Proposed Mid-Year Adjustments
Reso_FY 2022-23 Mid-Year Staffing Changes
Exhibit A - Rule IV Personnel Rules & Regulations
Exhibit B - Rule V Personnel Rules & Regulations
Exhibit C - Assistant Engineer Class Spec
Exhibit D - Associate Engineer Class Spec
Exhibit E - Senior Planner Class Spec
Exhibit F - Proposed Amended Salary Schedule
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RESOLUTION NO. ___________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD RECEIVING AND FILING THE FY 2022-23 MID-YEAR FINANCIAL REVIEW REPORT, APPROVING THE FY 2022-23 MID-YEAR BUDGET ADJUSTMENTS TO AMEND THE FY 2022 -23
ADOPTED BUDGET HERETO ATTACHED AS SCHEDULE A
WHEREAS, on July 20, 2021, the City Council adopted the FY 2021 -22 budget and approved the FY 2022 -23 budget. On June 21, 2022, the City Council adopted the updated second year (FY 2022-23) operating budget; and
WHEREAS, the budget is the City’s financial operating plan that establishes the City’s goal, budget priorities, and desired service levels for the fiscal year, as well as identifies the fiscal resources necessary to achieve them. The updated budget was based on certain assumptions and meeting expenditures and revenue projections; and
WHEREAS, the FY 2022-23 Mid-Year Financial Review reports on the City’s fiscal performance through mid -year (July through December), comparing all revenues and expenditures incurred during the first two quarters of FY 2022 -23 to the same period in FY 2021-22; and
WHEREAS, the Mid-Year Financial Review also provides an updated FY 2022-23 Financial Forecast, as well as presents mid -year budget adjustments for Council’s consideration to amend the FY 2022-23 Adopted Budget; and
WHEREAS, staff has identified several citywide fiscal issues that were not included in the FY 2022 -23 Adopted Budget that will require adjustments to avoid disruption of services & ensure proper funding levels; and
WHEREAS, as a result, staff is recommending the following proposed budget adjustments, hereto attached as Schedule A, which will amend the FY 2022-23 Adopted Budget; and
WHEREAS, if the recommended budget adjustments are approved by Council, the FY 2022-23 projected ending fund balance is $4,320,725, which is above the minimum General Fund reserve level of the current-year adopted operating budget.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, ORDER, AND RESOLVE AS FOLLOWS:
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Section 1. By adoption of this resolution, the City Council approves the FY 2022- 23 Proposed Budget Adjustments hereto attached as Schedule A and hereby amends the FY 2022-23 Adopted Budget.
Section 2. The City Council authorizes the City Manager, or his designee, to make the necessary budget adjustments to the City’s Financial system to reflect appropriate changes to the FY 2022-23 Adopted Budget.
Section 3. This resolution shall become effective immediately upon its adoption.
PASSED, APPROVED AND ADOPTED this 7th day of February, 2023.
_________________________
Oscar Flores
Mayor
ATTEST:
________________________ __________________________
Maria Quinonez Ernie Hernandez
City Clerk City Manager
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
________________________ __________________________ Noel Tapia Harry Wong
City Attorney Director of Finance & Administration
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City of Lynwood
Schedule A
FY 2022-23 Proposed Budget Adjustments
#P r o p o s e d Adjustment
1 Public Works Operational
Budget
$23,887 $35,574 Gas Tax Fund Public Works
$18,406 SB 1 Fund
$250 Measure M
$1,000 Prop C Fund
$11,750 Measure R
$15,000 Street Lighting
Fund
$204,000 Landscape Maint.
Fund
10,000 Safe Clean Water
Fund
$19,229 CIP
5,000 Water Fund
2,000 Sewer Fund
11,500 Garage Fund
Subtotal: $23,887 $333,709
2 Community Development
Operational Budget
$24,500 $78,095 CDBG ‐CV Community
Development
$228,876 LEAP Grant
$2,143,746 DTSC ‐ECRG Grant
$631,387 PLHA Grant
Subtotal: $24,500 $3,082,104
3F i n a n c e & Administration
Operational Budget
$24,740 $36,555 Refuse Fund Finance &
Administration
$25,000 Retirement Fund
37,094 Water Fund
36,555 Sewer Fund
Subtotal: $24,740 $135,203
4 Personnel Cost Savings ($6,243) ($42,462) Water All Departments ($7,321) Self Insurance
Fund
($11,284) HUD/CDBG
($3,009) HOME
($4,108) Refuse Fund
($4,108) Measure M
($4,108) Prop C Fund
($4,108) Measure R
($8,216) Transportation
Fund
($4,108) Lighting Fund
($78,811) Landscape Maint.
Fund
($8,216) Safe Clean Water
Fund
($4,108) Sewer Fund
Subtotal: ($6,243) ($183,966)
Total FY 2022‐23 Proposed
Budget Adjustments: $66,884 $3,367,050
Department/Divisions
Proposed
Other Funds
Adjustment Amount
Proposed
General Fund
Adjustment Amount
EXPENDITURES
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City of Lynwood
Schedule A
FY 2022-23 Proposed Budget Adjustments
#P r o p o s e d Adjustment
1 Community Development
Operational Budget
$0 $78,095 CDBG ‐CV Community
Development
$228,876 LEAP Grant
$2,143,746 DTSC ‐ECRG Grant
$631,387 PLHA Grant
Subtotal: $0 $3,082,104
Total FY 2022‐23 Proposed
Budget Adjustments: $0 $3,082,104
Department/Divisions
Proposed
Other Funds
Adjustment Amount
Proposed
General Fund
Adjustment Amount
REVENUES
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RESOLUTION NO. [XX]
A RESOLUTION OF THE CITY COUNCIL AND THE CITY OF LYNWOOD AMENDING THE FISCAL YEAR 2022-23 ADOPTED BUDGET, CLASSIFICATION
AND COMPENSATION (SALARY SCHEDULE) PLANS FOR STAFF/POSITION
REALLOCATIONS
WHEREAS, the City of Lynwood is a General Law City under California law and is governed by and elected City Council; and
WHEREAS, the City Council of the City of Lynwood has adopted an Employee Classification and Position Plan and on occasion amends the plan as needed; and
WHEREAS, the City Council of the City of Lynwood has adopted a salary resolution with salary schedules for Management and General employees; and
WHEREAS, in order to amend the City’s classification plan, the City Council must do so by way of resolution in accordance with Rule IV, Sections 1-5 of the City’s Personnel Rules and Regulations;
WHEREAS, in order to amend the City’s compensation plan, the City Council must do so by way of resolution in accordance with Rule V, Sections 1-2 of the City’s Personnel Rules and Regulations;
NOW, THEREFORE, THE LYNWOOD CITY COUNCIL DOES HEREBY
RESOLVE AND DETERMINE AS FOLLOWS:
Section 1. The Fiscal Year 2022 -23 adopted budget will be amended through the following personnel actions and their funding:
1. Downgrade the budgeted Full -Time Executive Assistant position to Administrative Assistant within Department of Community Development; and
2. Downgrade the budgeted Full -Time Public Works Special Projects Manager position to Senior Management Analyst within the Department of Public Works; and
3. Transfer budgeted Administrative Analyst III position from City Manager’s Office and General Fund portion of budgeted Senior Human Resources Analyst position to Department of Community Development; and
4. Upgrade (1) budgeted Full -Time Assistant Engineer Position to Associate Engineer within Department of Public Works; and
5. Downgrade of (1) budgeted Full -Time Maintenance Worker to (2) Part -Time Maintenance Worker equivalents; and
6. Add (1) Full-Time Account Specialist (new position) to Department of Finance
Section 2. Amend the City’s Classification and Compensation Plan s (Salary Schedule) to reflect the following personnel actions:
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1. Title change for the Public Works Assistant classification to Assistant Engineer; and
2. Title change for the Civil Engineer classification to Associate Engineer; and
3. Insert the Senior Planner classification into the City’s Salary Schedule; and
4. Insert the Account Specialist classification into the City’s Salary Schedule.
PASSED, APPROVED and ADOPTED this 7th day of February, 2023
Oscar Flores
MAYOR
ATTEST:
Maria Quinonez
CITY CLERK
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
Noel Tapia Patrick Matson
CITY ATTORNEY DIR. OF HUMAN RESOURCES
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RULE IV
CLASSIFICATION
Section 1. Preparation Of Plan: The Personnel Officer or a person or agency employed for that purpose, shall ascertain and record the duties and responsibilities of all positions in the classified service and, after consul tat ion with appointing authorities and heads of departments affected, shall recommend a classification plan for such positions. The classification plan shall consist of classes of positions in the classified service defined by class specifications, including title, a description of typical duties and responsibilities of positions in each class, a statement of the training, experience, and other qualifications to be required of applicants for positions in each class. The classificQtion plQn ohull be oo developed und muintuined thut ull positions substantially similar with respect to duties, responsibilities, authority, and character of work are included within the same class, and that the same schedules of compensation may be made to apply with equity under like working conditions to all positions in the same class.
Section 2. Adoption Of Plan: Before the classification plan or any part thereof shall become effective, it shall first be approved in whole or in part by the City Council. Upon adoption by the Council, by resolution, the provisions of the
classification plan shall be observed in the handling of all personnel actions and activities. The classification plan shall be amended or revised as occasion requires in the same manner as originally established.
Section 3. New Positions: When a new position is created, before the same may be filled, the appointing authority shall notify the Personnel Officer and, except as otherwise provided by ordinance or these rules, no person shall be appointed or employed to fill any such position until the classification plan shall have been to provide therefor and an appropriate employment list has been established for such position.
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Section 4. Reclassification: Positions, t he dut i es of which have changed materially so as to necessitate reclassification, shall be allocated by the Personnel Officer to a more appropriate class, whether new or already created, in the same manner as originally classified and allocated. Reclassification shall not be used for the purpose of avoiding restrictions surrounding demotions and promotions.
SectLoo 5.Amending The Classification Plan: ---- -""---- ---- ---- ------ The City Council may create new classes, and revise or abo li sh existing classe s .
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ROLE V
COMPENSATION
Section 1.Preparation Of Plan: The Personnel Officer or the person or agency employed for that purpose shall prepare a pay plan covering all classes of positions in the classified service, showing the minimum and maximum rates of pay. In arriving at such salary ranges, consideration shall be given to prevailing rates of pay for comparable work in other public and in private employment, including consideration of conditions of work as well as basic pay to current costs of living' to suggestions of department heads; and to the city's financial condition and policies. The Personnel Officer or the person or agency employed for that purpose shall thereafter make such further studies of the compensation plan as may be requested by the City Council.
Se c ti on 2. Adoption 0£ Plan: The Personnel Officer shall submit the proposed pay plan to the City Council. The Council shall adopt or amend the proposed plan. Thereafter, no position shall be assigned a salary higher than the maximum or lower than the minimum salary provided for that class or position unless the salary schedule for the class is amended in the same manner as herein provided for its adoption.
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CITY OF LYNWOOD
ASSISTANT ENGINEER
(FORMERLY PUBLIC WORKS ASSISTANT)
DEFINITION
Under general direction, to perform responsible public works assignments of average difficulty on assigned projects, including the planning and design of street, water, sewer and other public works projects; to provide some training and work direction for public works staff; and to do related work as required.
SUPERVISION RECEIVED AND EXERCISED
Receives direction from the Public Works Associate or Senior Public Works Manager.
May provide direction to assigned lower-level staff.
IMPORTANT & ESSENTIAL DUTIES
Designs and develops designs, drawings, specifications and cost estimate in connection with the construction and maintenance of a variety of public works projects, including storm drains, sewers and water distribution systems; assists with the review and evaluation of project proposa ls and engineering specifications submitted by private engineering firms; conducts preliminary design studies and confers with supervisors during preliminary and design phases of projects to discuss technical and policy problems; coordinates design proposals with utility companies and other public agencies; reviews and critiques subdivi sion and parcel maps for design, accuracy, completeness and conformance with applicable ordinances; uses CAD or other automation systems as appropriate; makes recommendations for revision and improvement of subdivision maps and plans; prepares plan lay -outs and drawings; makes calculations; oversees and assists with the preparation of reports, official maps, legal property descriptions and deeds; inspects public work construction projects and private developments for conformance to design standards, specifications, proper quality of construction and sound engineering practices; coordinates assignments with other City departments; collects and develops data for the formation of assessment and improvement districts; provides training to nonprofessional staff; acts as a public works contact with the general public, contractors and developers, explaining technical information, Public Works Department policies and permit regulations.
SPECIAL REQUIREMENT(S)
Possession of an appropriate California driver’s license issued by the State Department of Motor Vehicles.
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Assistant Engineer
DESIRABLE QUALIFICATIONS
Knowledge of:
Practices and methods applicable to planning, design and construction of a variety of municipal public works projects;
Engineering computer applications;
Design principles, strengths of materials and stress analysis required in planning and constructing public work projects;
Public Works office procedures;
Specification writing and estimate preparations;
Computer-aided design (CAD) principles;
Technical report writing;
Safe work practices, including safe driving techniques;
and
Ability to:
Prepare accurate plans, specifications, cost estimates and reports; Make accurate engineering computations and drawings;
Prepare and review designs;
Review subdivision maps and plans for conformance with legal requirements and design standards;
Perform construction and project inspection;
Perform technical field surveying work;
Perform professional design, drafting, and mapping with skill, both manu ally and using CAD and other automation systems as appropriate;
Provide training to public works assistance staff;
Deal tactfully and courteously with the public, contractors and representatives of other agencies in providing technical assistance and info rmation about Public Works Department policies and projects;
Establish and maintain cooperative working relationships with co-workers, other City employees, individuals from outside agencies and the public.
TRAINING AND EXPERIENCE
Any combination of training and experience which would provide the required knowledge and abilities is qualifying. A typical way to obtain the knowledge and abilities would be:
Experience: One year of professional civil engineering work including experience in the design and construction of municipal public works projects. Experience or training with CAD applications is highly desirable.
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Assistant Engineer
Education: Bachelor’s Degree from an accredited college or university with a degree in Civil Engineering or a closely related field.
PHYSICAL DEMANDS AND WORKING CONDITIONS
The physical demands described below are representative of those that must be met by an employee to successfully perform the essential functions of the job. Reasonable accommodations may be made to enable indivi duals with disabilities to perform the essential functions on a case -by-case basis. Ability to work in a standard office environment with some exposure to the outdoors; ability to travel to other sites and locations when necessary. Exposure to smoke, fumes, gas, excessive heat and cold, high frequency noise, dirt, dust, grease, and oil. Work in a high traffic area and in inclement weather. Incumbents must be able to stand, sit, walk, climb stairs and ladders, balance, stoop, twist, bend, squat, kneel, grasp, reach overhead, use both hand, legs and feet, lift, carry, push and pull up to 25 pounds; speak clearly, hear, have depth perception and color vision and have corrected vision sufficient for near and distance vision. Incumbent must have the ability to work in a standard office environment and ability to travel to other sites and locations when necessary.
Effective Date: November 2022
Now, therefore, having met and conferred in good faith, the City of Lynwood and the Lynwood Employees’ Association/AFSCME Local 1920 (LEA) agree to the aforementioned job description, as presented, for the Assistant Engineer classification. Once executed below, the job description take effect immediately thereafter.
City of Lynwood LEA Group
BY BY
City Manager President
Dated: Dated:
BY
Director of Human Resources & Risk Management
Dated:
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CITY OF LYNWOOD
ASSOCIATE ENGINEER
(Formerly Civil Engineer)
DEFINITION
Under general direction/supervision of the Director of Public Works, or his/her designee; performs complex and professional civil engineering work pertaining to the design and construction of assigned projects in support of the Director of Public Works, or his/her designee; acts as project manager for assigned capital improvement projects; co nducts engineering analysis and reviews plans and specifications; coordinates assigned activities of the Public Works Department and other City departments and outside agencies; and performs other related work as assigned.
Plans, supervises and coordinates difficult, professional engineering work in support of a wide range of complex Public Works projects; directs the work of subordinate professional and technical engineering staff; assists in the administration and supervision of the Engineering Division.
This position shall also be capable of reviewing and completing staff work to a high degree of completion. Strong communication and writing skills are essential. The incumbent must have strong interpersonal skills and be able to build consensus and convincingly represent the City in a wide variety of concerns and interests. Incumbents work independently, seeking assistance only as new or unusual situations arise.
EXAMPLE OF ESSENTIAL DUTIES
Essential duties include, but are not limited to, the following:
Performs a variety of professional/difficult civil engineering work; prepares designs of Public Works projects according to general guidelines, objectives, and specifications. Prepares and submits specifications and cost estimates for Public Works and other projects, including traffic, streets, street lighting, water and sewer projects.
Administers construction contracts; performs some project inspections. Design and prepare specifications, cost estimates and contract documents related to the construction and maintenance of a variety of projects. Coordinate projects with contractors, utility companies and other public agencies.
Assists in the preparation, coordination and control of the operating and capital improvement budgets; assists in ev aluating the need for and developing plans and schedules for long -range Public Works projects. Assists in the development and implementation of the Division budget and Capital Improvement Program.
Establishes design procedures and interprets the application of design criteria. Reviews improvement plans, parcel maps, road and grading plans, drainage plans, related maps, specifications, and other information for accuracy, format; may review for conformance to City Council Regular Meeting - Page 329 of 343
ASSOCIATE ENGINEER
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established engineering practices, and complian ce with state, county and city laws, ordinances, and regulations. Assists in the compliance efforts related to the requirements of the City's Municipal Separate Storm Sewer System (MS4) Permit and National Pollutant Discharge Elimination System (NPDES) program.
Provides liaison to contractor representatives in coordinating contract projects; monitors and inspects project construction activity; reviews and prepares environmental analysis and determinations; prepares change orders as necessary to recommend alteration of plans and specifications.
Coordinates projects with other departments, divisions, sections, or teams, consultants, developers and/or property owners; gives presentations to elected and appointed officials; responds to citizen inquiries and complaints, and takes appropriate action.
Supervises review of private development and/or subdivision plans for conformance to standards. Participates in the development of capital improvement projects for compliance with City specifications; resolves disputes between the City and developers, contractors, engineers and the general public relative to City policies, specifications, regulations, procedures and extra work.
Prepares complex engineering reports; prepares Public Works conditions of approval; calculates and collects development fees, permit fees, deposits, bonds; processes improvement plans.
Serves as a member of the Public Works Department's management team and participates in the development and implementation of Division goals, policies and procedures; administrative planning; and problem resolution.
QUALIFICATIONS GUIDELINES:
Knowledge, Skills, and Abilities:
Knowledge of: Civil engineering principles and practices as applied to public services; related federal and state laws, ordinances, and regulations; methods and techniques utilized in the preparation of Public Works projects, designs, and related plans, specifications, and cost estimates; the principles, methods, and equipment utilized in surveying and materials testing. Contract administration from start to finish; State and City traffic laws and regulations pertaining to traffic control; equipment and techniques, including operation of Auto CAD (Computer Aided Drafting) software; principles and practices of GIS concepts and processes.
Ability to: perform professional engineering work; including project design; conduct inspections and evaluate construction relative to approved plans and specifications; coordinate the work of others involved in related activities; prepare and maintain records and prepare reports; interpret and apply related laws, ordinances, and regulations; communicate effectively both orally and in writing; establish and maintain cooperative working relationships; work well with other governmental agencies in the processing of cooperatively funded projects.
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ASSOCIATE ENGINEER
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Education and/or Experience
Graduation from an accredited four -year college or university wi th a degree in civil engineering or a closely related field.
A minimum of four (4) years of increasingly responsible professional civil engineering experience performing duties including two (2) years experience as a project manager with administrative and/or supervisory experience is strongly preferred.
Required Licenses and Certificates
Possession of an EIT Certificate and a California Driver License. Licensed as a Registered Civil Engineer in the State of California is highly desirable.
PHYSICAL DEMANDS AND WORK ENVIRONMENT:
The physical demands and work environment described here are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.
Physical Demands
Work is performed mostly in office settings. Some outdoor work is required in the inspection of various land use developments, construction sites, or Public Works facilities.
Hand-eye coordination is necessary to operate drafting instruments, computers and various pieces of office equipment.
While performing the duties of this job, the employee is occasionally required to stand; walk; use hands to finger, handle, f eel or operate objects, tools, or controls; and reach with hands and arms. The employee is occasionally required to sit; climb or balance; stoop, kneel, crouch, or crawl; talk or hear; and smell.
The employee must occasionally lift and/or move up to 25 pounds.
Specific vision abilities required by this job include close vision, distance vision, color vision, peripheral vision, depth perception, and the ability to adjust focus.
Work Environment
While performing the duties of this job, the employee occasi onally works in outside weather conditions. The employee occasionally works near moving mechanical parts and in high, precarious places and is occasionally exposed to wet and/or humid conditions, fumes or airborne particles, toxic or caustic chemicals, ri sk of electrical shock, and vibration.
The noise level in the work environment is usually quiet to moderate.
Adopted: 12/5/2022
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ASSOCIATE ENGINEER
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City of Lynwood LEMG Group
BY BY
City Manager President
Dated: Dated:
BY
Director of Human Resources & Risk Management
Dated:
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CITY OF LYNWOOD
SENIOR PLANNER
DEFINITION
Under general supervision of the Director of Development Services, plans, coordinates and manages major planning functions and develops projections to determine future City expansion, and to do related work as required.
ESSENTIAL DUTIES AND RESPONSIBILITIES
The duties and responsibilities listed below are intended to provide a representative list of the various types of work that may be performed.
Specifications are not intended to reflect all duties performed within the job class, and incumbents may expect to perform other related duties.
Plans, coordinates and monitors mid and long range planning and zoning activities for community and economic development; reviews development plans for compliance with zoning ordinances, regulations and policies established by the Planning Commission and City Council; inspects sites, drafts or reviews and approves recommendations regarding proposed zone changes, variances and conditional use permits; researches, analyzes, prepares technical reports, agenda items, makes presentations and provides staff support to the Planning Commission; develops and implements creative solutions to difficult and multi - faceted community development and service problems; supervises an d participates in economic studies, analyses factors influencing economic, population, and demographic trends; manage complex planning projects and consulting contracts; assist and coordinate planning activities with various citizen groups and official com mittees; prepare technical reports on various planning matters and elements of the general plan; review development proposals and work with developers to reach agreement on acceptable site plans; review building plans, parcel maps, and subdivision proposal s for compliance with appropriate regulations, and prepare reports of recommendations; assist in preparation of department annual budget, prepares division budget estimates and controls budgetary expenditures; supervises, monitors and assists in the operat ion of department public counter services; attends City Council meetings as directed.
QUALIFICATIONS
Knowledge of:
Principles of public administration, including budgeting, training, public relations, supervision and department organization; Principles and procedures of city, county, and regional planning and zoning;
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Techniques used in the development of general plans and environmental impact reports;
Report writing principles and techniques;
Federal, State and local laws, rules and regulations relating to planning and zoning activities;
Current State codes and guidelines;
Principles of employee supervision and training;
and
Ability to:
Plan, organize, direct and participate in the planning and zoning activities of the City;
Formulate planning ordinances and recommended policies; Collect and analyze data and develop and administer plans; Interpret, explain and apply applicable laws, rules and regulations; Formulate and administer a department budget;
Serve as technical advisor to the Planning Commission, City Council and the general public on planning and zoning
matters;
Establish and maintain cooperative working relationships with subordinates, elected and appointed City officia ls and the general public;
Speak and write effectively.
TRAINING AND EXPERIENCE
Experience: Four years of journey level experience in municipal planning and zoning; including at least two years in an administrative or supervisory capacity; and public contact experience.
and
Education: A Bachelor’s degree from an accredited college or university in urban or regional planning, architecture, public
administration or a related field.
SPECIAL REQUIREMENTS
Possession of a valid California Class C driver ’s license issued by the California State Department of Motor Vehicles and good driving record.
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PHYSICAL TASKS AND ENVIRONMENTAL CONDITIONS
The physical demands described below are representative of those that must be met by an employee to successfully perform the essential functions of the job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essen tial functions on a case -by-case basis. There is frequent need to sit, stand, stoop, walk, and perform other similar actions during the course of the workday. Incumbents require sufficient mobility to work in an office setting and operate office equipmen t, transport materials and supplies weighing up to 10 pounds, and to travel to various locations; must be able to see in the normal visual range with or without correction with vision sufficient to read small print, computer screens and other printed docum ents; must be able to hear in the normal audio range with or without correction; and must be able to speak to communicate in person, before groups and over the telephone.
This job specification should not be interpreted as all -inclusive. It is intended to identify essential functions and requirements of the job. Not all incumbents may perform all duties at all times.
However, incumbents must be able to perform essential duties, with or without accommodation for disability at any time while holding this position.
Effective Date: 02/03/15
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CITY OF LYNWOOD
CLASSIFICATION & COMPENSATION SCHEDULE
Biweekly and Monthly Salaries & MOU-Related Pay
As of February 7, 2023
ELECTED OFFICIALS
UNIT JOB TITLE CURRENT
E Councilmember 975.00
E City Clerk 1,000.00
E City Treasurer 1,000.00
CITY MANAGEMENT: At-Will Contract Employees
JOB TITLE STEP A B C D E
Ex/AW City Manager* DOQ
Ex/AW Assistant City Manager DOQ
DEPARTMENT DIRECTOR: Executive Magagement At-Will Contract Employees (Under Reso No. 2021.105)
JOB TITLE STEP A B C D E
Ex/AW Director of Community Development Annual Salary 157,071.58 164,925.17 173,171.43 181,830.01 190,921.52 Monthly Salary 13,089.30 13,743.77 14,430.96 15,152.51 15,910.13 Ex/AW Director of Finance Annual Salary 146,875.55 154,219.33 161,930.30 170,026.83 178,528.17 Monthly Salary 12,239.62 12,851.62 13,494.19 14,168.90 14,877.35 Ex/AW Director of HR & Risk Management Annual Salary 146,875.55 154,219.33 161,930.30 170,026.83 178,528.17 Monthly Salary 12,239.62 12,851.62 13,494.19 14,168.90 14,877.35 Ex/AW Director of Public Works Annual Salary 157,071.58 164,925.17 173,171.43 181,830.01 190,921.52 Monthly Salary 13,089.30 13,743.77 14,430.96 15,152.51 15,910.13 Ex/AW Director of Recreation & Community Services Annual Salary 146,875.55 154,219.33 161,930.30 170,026.83 178,528.17 Monthly Salary 12,239.62 12,851.62 13,494.19 14,168.90 14,877.35 Ex/AW Director of Technology Services Annual Salary 140,696.22 147,731.04 155,117.59 162,873.48 171,017.16 Monthly Salary 11,724.68 12,310.92 12,926.46 13,572.79 14,251.43 City Council Regular Meeting - Page 336 of 343
DEPARTMENT DIRECTOR: Executive Magagement At-Will Contract Employees (Pre-Date Reso No. 2021.105)
JOB TITLE STEP A B C D E
Ex/AW Director of Recreation & Community Services* DOQ
Ex/AW Director of Technology Services* DOQ
MANAGEMENT: At-Will Contract Employees
M/AW Assistant City Engineer DOQ
M/AW City Engineer DOQ
MANAGEMENT: At-Will Contract Employees
M/AW Deputy Director of Finance DOQ
M/AW Deputy Director of Community Development DOQ
M/AW Controller DOQ
M/AW Risk Manager DOQ
M/AW American Rescue Plan Act Coordinator* Monthly 6,999.28 Annually 83,991.45
MANAGEMENT CIVIL SERVICE EMPLOYEES - Supervisory, Professional & Technical Staff
UNIT JOB TITLE BAND STEP A B C D E
M. Accounting/Auditing Supervisor M-54 2,911.02 3,053.82 3,240.04 3,418.25 3,606.25 6,307.22 6,616.61 7,020.10 7,406.20 7,813.54 M. Accountant M-55 2,941.59 3,085.89 3,274.06 3,454.14 3,644.12 6,373.45 6,686.09 7,093.80 7,483.97 7,895.58 M. Administrative Analyst II M-50 2,668.27 2,801.69 2,941.77 3,088.86 3,243.30 5,781.25 6,070.32 6,373.84 6,692.53 7,027.15
UNIT JOB TITLE BAND STEP A B C D E
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M Administrative Analyst III M-56 3,109.47 3,266.20 3,427.28 3,604.05 3,786.91 6,737.18 7,076.77 7,425.78 7,808.77 8,204.98 Ex. Assistant to the City Manager M-65 3,847.06 4,016.26 4,193.91 4,380.45 4,576.32 8,335.29 8,701.89 9,086.81 9,490.98 9,915.35 M Billing & Collections Supervisor M-54 2,911.02 3,053.82 3,240.04 3,418.25 3,606.25 6,307.22 6,616.61 7,020.10 7,406.20 7,813.54 M Building Official M-70 4,611.69 4,845.74 5,088.05 5,342.20 5,608.46 9,992.00 10,499.10 11,024.10 11,574.77 12,151.65 M Associate Engineer** M-61 3,383.95 3,553.15 3,730.81 3,917.35 4,113.21 7,331.89 7,698.49 8,083.42 8,487.58 8,911.96 M Deputy Dir. of Admin. Services M-61 3,383.95 3,553.15 3,730.81 3,917.35 4,113.21 7,331.89 7,698.49 8,083.42 8,487.58 8,911.96 M Deputy Dir. of Public Works M-71 5,501.63 5,666.68 5,836.68 6,011.78 6,192.13 11,920.20 12,277.81 12,646.14 13,025.52 13,416.29 M Deputy Dir. of Rec and Comm Services M-70 4,611.69 4,845.74 5,088.05 5,342.20 5,608.46 9,992.00 10,499.10 11,024.10 11,574.77 12,151.65 M Electrical Maintenance Supervisor M-45 2,374.55 2,492.97 2,618.37 2,751.59 2,889.16 5,144.86 5,401.44 5,673.13 5,961.78 6,259.85 M Deputy City Clerk M-52 2,819.49 2,959.68 3,109.47 3,266.20 3,427.28 6,108.90 6,412.64 6,737.18 7,076.77 7,425.77 M. Deputy City Treasurer M-52 2,819.49 2,959.68 3,109.47 3,266.20 3,427.28 6,108.90 6,412.64 6,737.18 7,076.77 7,425.77 M/Conf. Human Resources & Risk Analyst M-52 2,819.49 2,959.68 3,109.47 3,266.20 3,427.28 6,108.90 6,412.64 6,737.18 7,076.77 7,425.77 M Planning Associate M-56 3,109.47 3,266.20 3,427.29 3,604.05 3,786.91 6,737.18 7,076.77 7,425.78 7,808.77 8,204.98 M Planning Manager M-69 4,379.65 4,631.48 4,897.79 5,179.42 5,477.23 9,489.24 10,034.88 10,611.88 11,222.07 11,867.34 M Principal Accountant M-65 3,847.06 4,016.26 4,193.91 4,380.45 4,576.32 8,335.29 8,701.89 9,086.81 9,490.98 9,915.35 M Principal Planner M-67 4,078.61 4,200.11 4,413.54 4,634.63 4,914.17 8,836.99 9,100.24 9,562.67 10,041.69 10,647.36
UNIT JOB TITLE BAND STEP A B C D E
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M Public Safety Manager M-65 3,847.06 4,016.26 4,193.91 4,380.45 4,576.32 8,335.29 8,701.89 9,086.81 9,490.98 9,915.35 M Public Works Operations Manager M-69 4,379.65 4,631.48 4,897.79 5,179.42 5,477.23 9,489.24 10,034.88 10,611.88 11,222.07 11,867.34 M Public Works Operations Supervisor M-56 3,109.47 3,266.20 3,427.29 3,604.05 3,786.91 6,737.18 7,076.77 7,425.78 7,808.77 8,204.98 M Public Works Special Projects Mgr M-71 5,501.63 5,666.68 5,836.68 6,011.78 6,192.13 11,920.20 12,277.81 12,646.14 13,025.52 13,416.29 M Recreation Facility & Program Supervisor M-50 2,668.27 2,801.69 2,941.77 3,088.86 3,243.30 5,781.25 6,070.32 6,373.84 6,692.53 7,027.15 M Recreation Superintendent II M-61 3,383.95 3,553.15 3,730.81 3,917.35 4,113.21 7,331.89 7,698.49 8,083.42 8,487.58 8,911.96 M. Senior Accountant M-61 3,383.95 3,553.15 3,730.81 3,917.35 4,113.21 7,331.89 7,698.49 8,083.42 8,487.58 8,911.96 M/Conf. Senior Human Resources & Risk Analyst M-65 3,847.06 4,016.26 4,193.91 4,380.45 4,576.32 8,335.29 8,701.89 9,086.81 9,490.98 9,915.35 M/Conf. Senior Management Analyst M-61 3,383.95 3,553.15 3,730.81 3,917.35 4,113.21 7,331.89 7,698.49 8,083.42 8,487.58 8,911.96 M Senior Planner*** M-65 3,847.06 4,016.26 4,193.91 4,380.45 4,576.32 8,335.29 8,701.89 9,086.81 9,490.98 9,915.35 M Senior Project Manager M-61 3,383.95 3,553.15 3,730.81 3,917.35 4,113.21 7,331.89 7,698.49 8,083.42 8,487.58 8,911.96 M Senior Public Works Manager M-56 3,109.47 3,266.20 3,427.29 3,604.05 3,786.91 6,737.18 7,076.77 7,425.78 7,808.77 8,204.98 M System Analyst M-56 3,109.47 3,266.20 3,427.29 3,604.05 3,786.91 6,737.18 7,076.77 7,425.78 7,808.77 8,204.98 M Water Operations Supervisor M-56 3,109.47 3,266.20 3,427.29 3,604.05 3,786.91 6,737.18 7,076.77 7,425.78 7,808.77 8,204.98 CIVIL SERVICE EMPLOYEES - Leads & General Staff - - - - -
UNIT JOB TITLE BAND STEP A STEP B STEP C STEP D STEP E G Account Clerk G-31 1,696.84 1,781.77 1,871.09 1,963.88 2,061.95 3,676.50 3,860.51 4,054.02 4,255.08 4,467.57 G Account Specialist**** 1,728.03 1,814.43 1,905.16 2,000.41 2,100.43 3,744.07 3,931.27 4,127.84 4,334.23 4,550.94 City Council Regular Meeting - Page 339 of 343
G Accounting Technician G-38 2,000.66 2,100.69 2,205.73 2,316.01 2,431.81 4,334.76 4,551.49 4,779.08 5,018.02 5,268.92
UNIT JOB TITLE BAND STEP A STEP B STEP C STEP D STEP E G Administrative Assistant G-41 2,165.27 2,273.84 2,387.65 2,506.72 2,632.82 4,691.42 4,926.65 5,173.24 5,431.23 5,704.45 G Assistant Administratuve Analyst G-43 2,273.84 2,387.65 2,506.72 2,632.82 2,766.79 4,926.64 5,173.24 5,431.24 5,704.44 5,994.72 G Assistant to the City Clerk G-38 2,000.66 2,100.69 2,205.73 2,316.01 2,431.81 4,334.76 4,551.49 4,779.08 5,018.02 5,268.92 G Assistant Engineer***** G-46 2,492.98 2,618.37 2,751.59 2,889.16 3,031.98 5,401.45 5,673.13 5,961.78 6,259.84 6,569.29 G Building Inspector G-55 2,819.49 2,959.68 3,109.47 3,266.20 3,427.28 6,108.90 6,412.65 6,737.18 7,076.77 7,425.77 G Building Maintenance Lead Worker G-43 2,273.84 2,387.65 2,506.72 2,632.82 2,766.79 4,926.64 5,173.24 5,431.24 5,704.44 5,994.72 G Building Maintenance Worker G-38 2,000.66 2,100.69 2,205.73 2,316.01 2,431.81 4,334.76 4,551.49 4,779.08 5,018.02 5,268.92 G Business License Officer G-36 1,916.60 2,012.05 2,112.72 2,218.67 2,329.88 4,152.63 4,359.44 4,577.57 4,807.12 5,048.07 G Business License Technician G-38 2,000.66 2,100.69 2,205.73 2,316.01 2,431.81 4,334.76 4,551.49 4,779.08 5,018.02 5,268.92 G Custodian G-29 1,616.28 1,696.84 1,781.77 1,871.08 1,963.88 3,501.95 3,676.49 3,860.51 4,054.02 4,255.08 G Electrical Maintenance Worker G-42 2,210.81 2,337.93 2,472.36 2,614.52 2,764.85 4,790.08 5,065.50 5,356.77 5,664.79 5,990.52 G Executive Assistant to G-46 2,492.98 2,618.37 2,751.59 2,889.16 3,031.98 Community Development 5,401.45 5,673.13 5,961.78 6,259.84 6,569.29 G Executive Assistant G-46 2,492.98 2,618.37 2,751.59 2,889.16 3,031.98 5,401.45 5,673.13 5,961.78 6,259.84 6,569.29 G/Conf. Human Resources & Risk Technician G-38 2,000.66 2,100.69 2,205.73 2,316.01 2,431.81 4,334.76 4,551.49 4,779.08 5,018.02 5,268.92 G/Conf. Human Resources & Risk Specialist G-45 2,411.52 2,531.79 2,659.15 2,794.45 2,934.16 5,224.97 5,485.54 5,761.48 6,054.64 6,357.35 City Council Regular Meeting - Page 340 of 343
G Garage/Fleet Coordinator G-34 1,825.43 1,916.70 2,012.53 2,113.16 2,218.82 3,955.09 4,152.85 4,360.48 4,578.51 4,807.45 G Information System Assistant G-37 1,963.88 2,061.96 2,165.27 2,273.83 2,387.66 4,255.08 4,467.57 4,691.41 4,926.62 5,173.26
UNIT JOB TITLE BAND STEP A STEP B STEP C STEP D STEP E G Information System Technician G-41 2,165.27 2,273.84 2,387.65 2,506.72 2,632.82 4,691.42 4,926.65 5,173.24 5,431.23 5,704.45 G Laborer G-24 1,429.79 1,501.60 1,576.89 1,655.70 1,738.87 3,097.89 3,253.46 3,416.58 3,587.36 3,767.55 G Lead Custodian G-34 1,825.43 1,916.70 2,012.53 2,113.16 2,218.82 3,955.09 4,152.85 4,360.48 4,578.51 4,807.45 G Lead Public Safety Officer G-54 2,652.68 2,784.97 2,925.06 3,073.89 3,227.58 5,747.47 6,034.10 6,337.63 6,660.10 6,993.08 G Maintenance Worker G-37 1,963.88 2,061.96 2,165.27 2,273.83 2,387.66 4,255.08 4,467.57 4,691.41 4,926.62 5,173.26 G Media Specialist G-46 2,492.98 2,618.37 2,751.59 2,889.16 3,031.98 5,401.45 5,673.13 5,961.78 6,259.84 6,569.29 G Office Assistant I G-12 1,066.43 1,119.84 1,175.88 1,234.54 1,296.72 2,310.60 2,426.32 2,547.75 2,674.84 2,809.55 G Office Assistant II G-24 1,429.79 1,501.60 1,576.89 1,655.70 1,738.87 3,097.89 3,253.46 3,416.58 3,587.36 3,767.55 G Park Maintenance Lead Worker G-43 2,273.84 2,387.65 2,506.72 2,632.82 2,766.79 4,926.64 5,173.24 5,431.24 5,704.44 5,994.72 G/Conf. Payroll Specialist G-46 2,492.98 2,618.37 2,751.59 2,889.16 3,031.98 5,401.45 5,673.13 5,961.78 6,259.84 6,569.29 G Permit Technician G-39 2,061.95 2,165.27 2,273.84 2,387.65 2,506.72 4,467.57 4,691.41 4,926.64 5,173.24 5,431.23 G Public Safety Officer G-45 2,411.52 2,531.79 2,659.15 2,794.45 2,934.16 5,224.97 5,485.54 5,761.48 6,054.64 6,357.35 G Public Works Operations Coordinator G-34 1,825.43 1,916.70 2,012.53 2,113.16 2,218.82 3,955.09 4,152.85 4,360.48 4,578.51 4,807.45 G Public Works Inspector G-57 2,871.75 3,015.34 3,166.10 3,324.41 3,490.63 6,222.12 6,533.23 6,859.89 7,202.89 7,563.04 City Council Regular Meeting - Page 341 of 343
G Public Works Technician G-38 2,000.66 2,100.69 2,205.73 2,316.01 2,431.81 4,334.76 4,551.49 4,779.08 5,018.02 5,268.92
UNIT JOB TITLE BAND STEP A STEP B STEP C STEP D STEP E G Recreation Coordinator G-39 2,061.95 2,165.27 2,273.84 2,387.65 2,506.72 4,467.57 4,691.41 4,926.64 5,173.24 5,431.23 G Recreation Specialist G-23 1,395.64 1,465.69 1,539.24 1,616.28 1,696.85 3,023.89 3,175.67 3,335.01 3,501.93 3,676.50 G Right -Of-Way Maintenance Lead Worker G-43 2,273.84 2,387.65 2,506.72 2,632.82 2,766.79 4,926.64 5,173.24 5,431.24 5,704.44 5,994.72 G Senior Accounting Technician G-46 2,492.98 2,618.37 2,751.59 2,889.16 3,031.98 5,401.45 5,673.13 5,961.78 6,259.84 6,569.29 G Sr. Building Inspector/Asst. Building Official G-61 3,383.95 3,553.15 3,730.81 3,917.35 4,113.21 7,331.89 7,698.49 8,083.42 8,487.58 8,911.96
G Senior Information Systems Technician G-44 2,329.87 2,470.07 2,568.89 2,699.36 2,835.06 5,048.06 5,351.82 5,565.93 5,848.61 6,142.64 G Senior Lifeguard G-23 1,395.64 1,465.69 1,539.24 1,616.28 1,696.85 3,023.89 3,175.67 3,335.01 3,501.93 3,676.50 G Senior Street Maintenance Worker G-39 2,061.95 2,165.27 2,273.84 2,387.65 2,506.72 4,467.57 4,691.41 4,926.64 5,173.24 5,431.23 G Street Maintenance Lead Worker G-43 2,273.84 2,387.65 2,506.72 2,632.82 2,766.79 4,926.64 5,173.24 5,431.24 5,704.44 5,994.72 G Street Maintenance Worker G-37 1,963.88 2,061.96 2,165.27 2,273.82 2,387.66 4,255.08 4,467.57 4,691.41 4,926.62 5,173.26 G Water Quality Specialist G-44 2,329.87 2,470.07 2,568.89 2,699.36 2,835.06 5,048.06 5,351.82 5,565.93 5,848.61 6,142.64 G Water Service/Wastewater Lead Worker G-58 2,991.13 3,132.69 3,282.58 3,441.83 3,606.28 6,480.79 6,787.49 7,112.26 7,457.30 7,813.60 G Water Service/Wastewater Worker I G-40 2,151.07 2,254.38 2,362.95 2,476.76 2,595.84 4,660.65 4,884.50 5,119.73 5,366.32 5,624.32 G Water Service/Wastewater Worker II G-45 2,411.52 2,531.79 2,659.15 2,794.45 2,934.16 5,224.97 5,485.54 5,761.48 6,054.64 6,357.35 G Water Service/Wastewater Worker III G-47 2,580.33 2,709.02 2,845.28 2,990.06 3,139.55 5,590.72 5,869.53 6,164.78 6,478.46 6,802.37 City Council Regular Meeting - Page 342 of 343
****Account Specialist - New Position Being Added to Salary Schedule NON-CIVIL SERVICE - General and Exempt At-Will Staff
G/AW Community Liaison DOQ
G/AW Trainee DOQ
EX/AW CalPERS Retired Annuitant DOQ
HOURLY NON-CIVIL SERVICE - Part-Time, Temporary & Seasonal Staff Note: Minimum Wage Increase 1-1-22 Resolution 2018.215
UNIT JOB TITLE BAND STEP A STEP B STEP C STEP D STEP E G Administrative Intern H-43B 15.45 16.29 17.19 18.13 19.12 G Cashier (Pool) * H-66 15.50 - - - - G Information Systems Technician H-38A 27.10 28.19 29.33 30.54 31.80 G Laborer (PW) H-18 15.45 16.22 17.03 17.87 18.76 G Laborer (Recreation Facilites) H-15 15.45 16.22 17.03 17.87 18.76 G Lifeguard H-8 15.45 16.22 17.03 17.87 18.76 G Locker Attendant* H-6 15.50 - - - - G Maintenance Worker H-43 15.45 16.25 17.10 17.98 18.91 G Office Assistant II H-36B 15.45 16.22 17.01 17.87 18.76
UNIT JOB TITLE BAND STEP A STEP B STEP C STEP D STEP E G Public Safety Officer H-39 20.76 21.79 22.89 24.03 25.23 G Recreation Leader H-14 15.45 15.91 16.39 16.87 17.38 G Recreation Specialist/Instructor H-13 16.28 17.10 17.96 18.86 19.80 G Senior Lifeguard H-8B 15.45 16.29 17.19 18.13 19.12 *
* Eligible for any LEMG COLA
Hourly wage increased from $15.45 to $15.50 to comply with State of California Minimum Wage Law effective 1/1/23 *****Assistant Engineer Added to Salary Schedule (formerly Public Works Assistant) **Associate Engineer Added to Salary Schedule (formerly Civil Engineer) ***Senior Planner Added to Salary Schedule
City Council Regular Meeting - Page 343 of 343
This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda are on file in the Office of the City Clerk and are available for public inspection. Any person who has a question concerning any of the agenda items may call the City Manager at (310) 603-0220, ext. 200.
Procedures for Addressing the Council
IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE
COUNCIL SUBMIT YOUR COMMENTS IN ADVANCE TO
[email protected]
OR FILL OUT A FORM
PROVIDED AT THE PODIUM, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL.
AGENDA
City of Lynwood as Successor Agency
to the Lynwood Redevelopment Agency
TO BE HELD ON
February 7, 2023
COUNCIL CHAMBERS - 11350 BULLIS RD. LYNWOOD, CA 90262 or Web conference via ZOOM - To participate via Zoom or by telephone: 1-669-900-9128 or 1-253-215-8782 Meeting ID: 835 2029 8238
Duly Posted on 2/4/2023 by MQ
6:00 PM
1. CALL TO ORDER
2. CERTIFICATION OF AGENDA POSTING BY SECRETARY
3. ROLL CALL OF MEMBERS
Oscar Flores, Mayor
Rita Soto
, Mayor Pro Tem
Gabriela Camacho, Council Member
Juan Munoz-Guevara
, Council Member
Jose Luis Solache, Council Member
PUBLIC ORAL COMMUNICATIONS
(Regarding Agenda Items Only)
NON-AGENDA PUBLIC ORAL COMMUNICATIONS
THIS PORTION PROVIDES AN OPPORTUNITY FOR THE PUBLIC TO ADDRESS THE LYNWOOD SUCCESSOR
AGENCY ON ITEMS WITHIN THE JURISDICTION OF THE LYNWOOD SUCCESSOR AGENCY AND NOT LISTED ON THE AGENDA. IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION
OF THE ISSUE BY LYNWOOD SUCCESSOR AGENCY, BUT LYNWOOD SUCCESSOR AGENCY MAY REFER THE Lynwood Successor Agency - Page 1 of 50
MATTER TO STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M.
Brown Act, Government Code Section 54954.2 (a).)
CONSENT CALENDAR
ALL MATTERS LISTED UNDER THE CONSENT CALENDAR WILL BE ACTED UPON BY ONE MOTION AFFIRMING THE ACTION RECOMMENDED ON THE AGENDA. THERE WILL BE NO SEPARATE DISCUSSION ON
THESE ITEMS PRIOR TO VOTING UNLESS MEMBERS OF THE COUNCIL OR STAFF REQUEST SPECIFIC ITEMS TO BE REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION.
4. PREVIOUS MEETING MINUTES
Comments:
Approving previous meeting minutes for Lynwood Successor Agency (CC).
October 18, 2022 Regular LSA Meeting
Recommendation:
Staff recommends that the Lynwood Successor Agency approve the following minutes:
October 18, 2022 Regular LSA Meeting
5. TREASURER'S MONTHLY INVESTMENT REPORT
Comments:
The purpose of this item is to have the Honorable Mayor and the Lynwood City Council, as Successor to Lynwood Redevelopment Board review the Treasurer’s Monthly Investment Report as required by State Statutes. (CT)
Recommendation:
The following is the Investment Report for the month ending December 31, 2022. This report is provided to ensure City Council is informed of the Department’s investment activities. The report satisfies the recommended reporting requirements of the City of Lynwood, which addresses the City Council’s request for monthly financial information.
It is recommended that the City Council for the City of Lynwood receive and file the attached Monthly Investment Report.
6. TREASURER'S QUARTERLY REPORT
Comments:
The purpose of this item is to have the Honorable Mayor and the Lynwood City Council review the Treasurer’s Quarterly Investment Report as required by State Statutes. (CT)
Recommendation:
It is recommended that the City of Lynwood receive and file the attached Quarterly Investment Report.
The following information provided in this report highlights the investment activity for the 2nd quarter ending December 31, 2022.
ADJOURNMENT
CITY OF LYNWOOD AS SUCCESSOR AGENCY TO THE LYNWOOD REDEVELOPMENT AGENCY MEETINGS WILL BE POSTED AS NEEDED. THE NEXT MEETING WILL BE HELD IN THE COUNCIL CHAMBERS OF CITY HALL ANNEX, 11350 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA.
Lynwood Successor Agency - Page 2 of 50
Agenda Item # 4.
AGENDA STAFF REPORT
DATE:
February 7, 2023
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Ernie Hernandez, City Manager
PREPARED BY:
Maria Quinonez, City Clerk
Silvia Pineda, Assistant to the City Clerk
SUBJECT:
PREVIOUS MEETING MINUTES
Recommendation:
Staff recommends that the Lynwood Successor Agency approve the following minutes:
October 18, 2022 Regular LSA Meeting
Background:
N/A
Discussion and Analysis:
N/A
Fiscal Impact:
N/A
Coordinated With:
N/A
ATTACHMENTS:
Description
LSA Regular Meeting 10/18/2022
Lynwood Successor Agency - Page 3 of 50
1 City of Lynwood as Successor Agency to the Lynwood
Redevelopment Agency Meeting
Meeting Minutes
October 18, 2022
01. CALL TO ORDER
The City of Lynwood as Successor Agency to the Lynwood Redevelopment Agency Meeting of the City of Lynwood met in the Council Chambers, 11350 Bullis Road, Lynwood, CA 90262 or Web conference via ZOOM - To participate via Zoom or by telephone: 1-669-900-9128 or 1-253-215-8782 Meeting ID: 835 2029 8238 on the above date at 6:00 p.m.
Meeting called to order 6:28 p.m.
Mayor Casanova presiding.
02. CERTIFICATION OF AGENDA POSTING BY CITY CLERK
City Clerk Quinonez announced the Agenda had been duly posted in accordance with the Brown Act.
03. ROLL CALL OF COUNCILMEMBERS
PRESENT: COUNCIL MEMBERS FLORES, SANTANA, SOTO, MAYOR PRO
TEM SOLACHE AND MAYOR CASANOVA
ABSENT: NONE
STAFF PRESENT:
City Manager Hernandez, City Attorney Tapia, City Treasurer Camacho, City Clerk Quiňonez
PUBLIC ORAL COMMUNICATIONS
(Regarding Agenda Items Only)
NONE
NON-AGENDA PUBLIC ORAL COMMUNICATIONS
NONE
CONSENT CALENDAR
All matters listed under the Consent Calendar will be acted upon by one motion affirming the action recommended on the agenda. There will be no separate discussion on these items prior to voting unless members of the Council or staff request specific items be removed from the Consent Calendar for separate action.
Lynwood Successor Agency - Page 4 of 50
2 MOTION: It was moved by Mayor Pro Tem Solache, seconded by Council Member Soto to approve the consent calendar. Motion carried with 5-0 vote.
ROLL CALL:
AYES: COUNCIL MEMBERS FLORES, SANTANA, SOTO, MAYOR PRO TEM
SOLACHE AND MAYOR CASANOVA
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
04. TREASURER'S MONTHLY INVESTMENT REPORT
Received and Filed Investment Report for the month ending September 30, 2022
ADJOURNMENT
Having no further discussion, it was moved by Council Member Flores, seconded by Council Member Soto to adjourn the City of Lynwood as Successor Agency to the Lynwood Redevelopment Agency meeting at 6:29 p.m. Motion carried by unanimous consent.
______________________ _______________________
Maria Quinonez, City Clerk Jorge Casanova, Mayor
Lynwood Successor Agency - Page 5 of 50
Agenda Item # 5.
AGENDA STAFF REPORT
DATE:
February 7, 2023
TO:
Honorable Mayor and Members of Lynwood City Council, as Successor to Lynwood Redevelopment Board
APPROVED BY:
Ernie Hernandez, City Manager
PREPARED BY:
Sheila Harding, Deputy City Treasurer
SUBJECT:
TREASURER'S MONTHLY INVESTMENT REPORT
Recommendation:
The following is the Investment Report for the month ending December 31, 2022. This report is provided to ensure City Council is informed of the Department’s investment activities. The report satisfies the recommended reporting requirements of the City of Lynwood, which addresses the City Council’s request for monthly financial information.
It is recommended that the City Council for the City of Lynwood receive and file the attached Monthly Investment Report.
Background:
Government Code Section 53607, last amended 1996, with reference to the reporting of investment transactions states that the Treasurer
shall
make a monthly report of those transaction to the legislative body. Government Code Section 53646 (b) (1), last amended 2004, with reference to discussion related to establishment of an Investment Policy and investment reporting states that “the Treasurer may render a quarterly report”. To determine the applicable code inasmuch as reference to Government Code Section 53607 or non-compliance thereof has never been included in past audit findings. While Government Code Section 53646 (b) (1) which is the most current version related to Investment Reporting utilizes the word “may” indicating the reporting mechanism is optional, to err on the side of caution, and in order to ensure that we are in compliance with all Government Codes, a new procedure of submitting monthly reports to the Council/Agency agenda was implemented. Attached for Council/Agency review is the City’s/Agency’s Monthly Treasurer’s Report.
Discussion and Analysis:
The investment transactions were executed in accordance with the City's Investment Policy and the California State Government Code Section 5346(b)(3) that requires the general fund is able to meet its expenditure requirements for the next six months.
Lynwood Successor Agency - Page 6 of 50
Fiscal Impact:
The action recommended in this report will not have a fiscal impact on the City.
Coordinated With:
FHN Financial Main Street Advisors currently monitors the City’s investment activities.
ATTACHMENTS:
Description
ACTIVITY & PERFORMANCE SUMMARY - DEC 2022
FHN ECONOMIC REPORT - DECEMBER 2022
NRF & CONFERENCE BOARD GLOBAL - DECEMBER 2022
Lynwood Successor Agency - Page 7 of 50
ACTIVITY & PERFORMANCE SUMMARY
DECEMBER 2022
1 The following is the City’s cash flow and the monthly investment report. The monthly report includes a summary of the City’s investment portfolio, a monthly review of the investment market as prepared by the investment managers and detailed information on monthly transactions, cash flows and investments by issuer.
FHN Investment Advisors manage the portion of investments not invested by LAIF (State Local Agency Investment Fund).
The tables below provide key statistics regarding the City’s cash flow and investment portfolio as of December 31, 2022.
Type Balances Held
Cash - US Bank $48,689,265.10
Cash - JPMorgan Chase Bank $8,056,091.92
Local Agency Investment Fund $9,595,678.13
FHN Investment Advisors/BNY 25,744,440.91
TOTAL $92,085,476.06
FHN ACCOUNT SUMMARY
31-Dec 30- Nov
Market Value $35,344,239 $35,314,063
Book Value $36,481,176 $36,466,189
Variance (1,136,936) ($1,152,126)
Par Value $36,500,250 $36,492,754
Net Asset Value $96.88 $96.84
Book Yield 2.38% 2.35%
Market Yield 3.95% 3.88%
Years to Maturity 1.69 1.75
Effective Duration 1.45 1.45
FHN INVESTMENT COMPLIANCE
% %
Company Book Value of
Portfolio
Allowed
by Policy
US Treasuries 6,499,374.86 17.82% 100%
US Federal Agencies 10,450,169.07 28.65% 100%
Supranational Obligations $0.00 0% 30%
LAIF 9,595,678.13 26.30% 75%
Commercial Paper 1,478,968.63 4.05% 25%
Money Market Funds 52,571.67 0.14% 20%
Negotiable Certificates of Deposit 4,915,622.91 13.47% 30% Corporate Obligations 3,488,790.30 9.56% 30%
State and Local Governments $0.00 0% 100%
Total 36,481,175.57 100.00%
Lynwood Successor Agency - Page 8 of 50
ACTIVITY & PERFORMANCE SUMMARY
DECEMBER 2022
2 All of the City’s rated investments were rated “A” or higher by at least two rating agencies on December 2022. The City’s investments comply with its current investment policy, which emphasizes the safety, liquidity, and return of its investments, allowing the city to meet its expenditures for the next six months.
PURCHASES & MATURITIES
No Purchases or Redemptions for the month of December 2022.
FHN INCOME EARNED SUMMARY
December
Month End
Fiscal Year to
Date
INTEREST
Interest Received/Purchased. 7,495.34 191,919.53
Plus Accrued Interest at End of Period 165,558.38 165,558.38 Less Accrued Interest at Beginning of Period -124,829.88 -74,680.06 Interest Earned During Period 48,223.84 282,797.85
Total Adjustments for Amortization/Accretion 7,491.20 25,036.43 Total Capital Gains or Losses 0.00 0.00
Total Earnings During Period 55,715.04 307,834.28
Lynwood Successor Agency - Page 9 of 50
Quarterly Economic and Market Update
December 2022
Lynwood Successor Agency - Page 10 of 50
Economic and Market Update
*Estimates for the current quarter/month, some data are lagged Sources: FHN Main Street and Bloomberg Case-Shiller Home Prices YOY* 8.6% 16.0% (7.4%)
Consumer Confidence 108.3 103.2 5.1
Gold (per ounce) $1,824.02 $1,660.61 $163.41
Dollar Index 103.52 112.12 (8.60)
U.S. Avg Regular Unleaded $3.21 $3.80 ($0.59)
Retail Sales YOY* 8.7% 8.4% 0.3%
S&P 500 3,840 3,586 7.1%
Consumer Price Index YOY* 7.6% 8.2% (0.6%)
1-5 Yr A-AAA Corporate Spread 0.69% 0.81% (0.12%)
Dow Jones 33,147 28,726 15.4%
30 Year Mortgage Rate 6.66% 5.83% 0.83%
1-5 Yr Agency Spread 0.07% 0.03% 0.04%
10 Year T-Note 3.88% 3.83% 0.04%
U.S. Fed Debt Avg Yield* 2.30% 1.99% 0.31%
3 Year T-Note 4.23% 4.29% (0.06%)
5 Year T-Note 4.01% 4.09% (0.09%)
2 Year T-Note 4.43% 4.28% 0.15%
3 Month T-Bill 4.37% 3.27% 1.10%
Labor Force Participation 62.3% 62.3% 0.0%
Effective Fed Funds Rate 4.33% 3.08% 1.25%
U.S. Payrolls Monthly Change 223,000 269,000 (46,000)
Unemployment Rate 3.5% 3.5% 0.0%
12/31/2022
Item 12/31/2022 9/30/2022 Change
2 Lynwood Successor Agency - Page 11 of 50
Economic and Market Update
* Real Rate (Inflation Adjusted)
Source: Bureau of Economic Analysis
Estimate: Bloomberg's Survey of Economists
As of: 12/31/2022
12/31/2022
-1.4
5.2 4.7
1.8 3.3
2.3 1.3
0.6 2.4
1.2 2.4
2.0 1.7
2.0 3.4
4.1 2.8
2.8 2.9
0.7 2.2
2.7 3.6
1.8 -4.6
-29.9
35.3 3.9
6.3 7.0
2.7 7.0
-1.6
-0.6
3.2 1.1
0.0 -0.6
0.0 -45
-35
-25
-15
-5
5 15
25 35
45 Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Q3 2018
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Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Percent
U.S. GDP (Quarter over Quarter Annualized)*
Estimates
3 Lynwood Successor Agency - Page 12 of 50
Economic and Market Update
* Real Rate (Inflation Adjusted)
Source: Bureau of Economic Analysis
12/31/2022
Estimate: Bloomberg's Survey of Economists
As of: 12/31/2022
8.7 8.0
4.1 4.7
-0.6
7.1 2.1
2.1 -0.7
6.9 2.6
2.6 6.1
4.4 5.8
6.5 6.6
2.7 4.9
3.1 0.2
3.3 5.3
5.6 -0.5
-0.2
5.4 4.6
5.5 3.2
-0.3
2.5 -1.8
4.6 7.2
4.2 3.5
3.5 4.2
3.7 1.9
-0.1
3.5 2.8
4.0 2.7
3.8 4.4
4.5 4.8
4.1 1.0
1.7 2.8
3.9 3.5
2.8 2.0
0.1 -2.6
2.7 1.5
2.3 1.8
2.3 2.7
1.7 2.2
2.9 2.3
-2.8
5.9 1.9
-10
-9
-8
-7
-6
-5
-4
-3
-2
-1
0 1
2 3
4 5
6 7
8 9
10 1950
1952
1954
1956
1958
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
Percent
U.S. Annual GDP *
1980s 3.2% 1990s 3.2% 2000s 1.9% 2010s 2.3%1960s 4.5% 1970s 3.3%1950s 4.2% 4 Lynwood Successor Agency - Page 13 of 50
Economic and Market Update
Source: Bureau of Labor Statistics
12 Month Average Job Change 375,250
12/31/2022
-22
-20
-18
-16
-14
-12
-10
-8
-6
-4
-2
0 2
4 6
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Millions
U.S. Monthly Non-Farm Payrolls Change
-25.0
-20.0
-15.0
-10.0
-5.0
0.0 5.0
10.0 15.0
20.0 Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Millions
U.S. Monthly Non-Farm Payrolls YOY Change
5 Lynwood Successor Agency - Page 14 of 50
Economic and Market Update
Source: Bureau of Labor Statistics
12/31/2022
0 5
10 15
20 25
30 Jun-18
Aug-18
Oct-18
Dec-18
Feb-19
Apr-19
Jun-19
Aug-19
Oct-19
Dec-19
Feb-20
Apr-20
Jun-20
Aug-20
Oct-20
Dec-20
Feb-21
Apr-21
Jun-21
Aug-21
Oct-21
Dec-21
Feb-22
Apr-22
Jun-22
Aug-22
Oct-22
Dec-22
Percent
Unemployment Rates
U.S.A Nevada California Idaho Washington Hawaii Oregon Utah 6 Lynwood Successor Agency - Page 15 of 50
Economic and Market Update
Source: Bureau of Labor Statistics
12/31/2022
128
130
132
134
136
138
140
142
144
146
148
150
152
154
156
Dec-12
Jul-13
Feb-14
Sep-14
Apr-15
Nov-15
Jun-16
Jan-17
Aug-17
Mar-18
Oct-18
May-19
Dec-19
Jul-20
Feb-21
Sep-21
Apr-22
Nov-22
Millions
U.S. Number of Employed
Full-Time and Part-Time
60.0 60.5
61.0 61.5
62.0 62.5
63.0 63.5
64.0 Dec-12
Jul-13
Feb-14
Sep-14
Apr-15
Nov-15
Jun-16
Jan-17
Aug-17
Mar-18
Oct-18
May-19
Dec-19
Jul-20
Feb-21
Sep-21
Apr-22
Nov-22
Percent
U.S. Labor Force Participation Rate
7 Lynwood Successor Agency - Page 16 of 50
Economic and Market Update
Source: Department of Labor and Bloomberg
12/31/2022
Weekly Initial Jobless Claims is the actual number of people who have filed for Unemployment benefits for the first time. The following five eligibility criteria must be met in order to file for unemployment benefits: 1. Meet the requirements of time worked during a 1 year period (full time or not). 2. Become unemployed through no fault of your own (cannot be fired). 3. Must be able to work; no physical or mental holdbacks. 4. Must be available for work. 5. Must be actively seeking work.
0.0 0.5
1.0 1.5
2.0 2.5
3.0 3.5
4.0 4.5
5.0 5.5
6.0 1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Millions
Weekly Initial Jobless Claims
(4 Week Moving Average)
8 Lynwood Successor Agency - Page 17 of 50
Economic and Market Update
*Real: Inflation Adjusted
Source: U.S. Census Bureau Source: Conference Board
12/31/2022
-30
-20
-10
0 10
20 30
40 50
60 Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Percent
U.S. Real* Retail Sales YOY % Change
40 50
60 70
80 90
100
110
120
130
140
Jun-12
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
Jun-15
Dec-15
Jun-16
Dec-16
Jun-17
Dec-17
Jun-18
Dec-18
Jun-19
Dec-19
Jun-20
Dec-20
Jun-21
Dec-21
Jun-22
Dec-22
Index Value
U.S. Consumer Confidence
9 Lynwood Successor Agency - Page 18 of 50
Economic and Market Update
CPIX: Consumer Price Index, excluding food and energy PCEC: Personal Consumption Expenditure Core Source: Bureau of Labor Statistics and Bureau of Economic Analysis 12/31/2022
0.0 1.0
2.0 3.0
4.0 5.0
6.0 7.0
8.0 9.0
10.0 Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Percent
CPI and CPIX YOY % Change
CPI
CPIX
0.0 1.0
2.0 3.0
4.0 5.0
6.0 7.0
8.0 Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Percent
PCE and PCEC YOY % Change
PCE
PCEC
10 Lynwood Successor Agency - Page 19 of 50
Economic and Market Update
Sources: New (U.S. Census Bureau),Existing (National Assoc. of Realtors) Source: Case-Shiller Seasonally Adjusted Annual Rate
12/31/2022
0 2
4 6
8 10
12 14
16 18
20 22
24 Jul-14
Dec-14
May-15
Oct-15
Mar-16
Aug-16
Jan-17
Jun-17
Nov-17
Apr-18
Sep-18
Feb-19
Jul-19
Dec-19
May-20
Oct-20
Mar-21
Aug-21
Jan-22
Jun-22
YOY Percent
Case-Shiller 20 City U.S. Home Price Index
YOY % Increase
200
300
400
500
600
700
800
900
1,000
1,100
3.0 3.5
4.0 4.5
5.0 5.5
6.0 6.5
7.0 Jun-14
Dec-14
Jun-15
Dec-15
Jun-16
Dec-16
Jun-17
Dec-17
Jun-18
Dec-18
Jun-19
Dec-19
Jun-20
Dec-20
Jun-21
Dec-21
Jun-22
New-Thousands
Existing-Millions
U.S. New and Existing Home Sales
Existing-Left
New-Right
11 Lynwood Successor Agency - Page 20 of 50
Economic and Market Update
Source: U.S. Treasury
12/31/2022
$12
$13
$14
$15
$16
$17
$18
$19
$20
$21
$22
$23
$24
$25
$26
$27
$28
$29
$30
$31
$32
$33
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
Jun-15
Dec-15
Jun-16
Dec-16
Jun-17
Dec-17
Jun-18
Dec-18
Jun-19
Dec-19
Jun-20
Dec-20
Jun-21
Dec-21
Jun-22
Trillions
U.S. Federal Debt Outstanding
1.3 1.5
1.7 1.9
2.1 2.3
2.5 2.7
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
Jun-15
Dec-15
Jun-16
Dec-16
Jun-17
Dec-17
Jun-18
Dec-18
Jun-19
Dec-19
Jun-20
Dec-20
Jun-21
Dec-21
Jun-22
Percent
U.S. Treasury Interest Bearing Debt Avg Rate
12 Lynwood Successor Agency - Page 21 of 50
Economic and Market Update
Fed Funds Anticipated Rate from the September 21, 2022 FOMC Meeting Source: Bloomberg
12/31/2022
2.00 2.50
3.00 3.50
4.00 4.50
5.00 5.50
Dec-2022
Jan-2023
Feb-2023
Mar-2023
Apr-2023
May-2023
Jun-2023
Jul-2023
Aug-2023
Sep-2023
Oct-2023
Nov-2023
Dec-2023
Jan-2024
Feb-2024
Mar-2024
Apr-2024
May-2024
Jun-2024
Jul-2024
Aug-2024
Sep-2024
Oct-2024
Nov-2024
Dec-2024
Jan-2025
Feb-2025
Mar-2025
Apr-2025
May-2025
Jun-2025
Jul-2025
Aug-2025
Sep-2025
Oct-2025
Nov-2025
Dec-2025
Jan-2026
Percent
Fed Funds FuturesFed's Anticipated Rates
Fed Funds Futures
13 Lynwood Successor Agency - Page 22 of 50
Economic and Market Update
Source: Bloomberg
Figures may not total due to rounding
12/31/2022
3Y 4.23 4.29 -0.06
30Y 3.97 3.78 0.19
5Y 4.01 4.09 -0.09
10Y
4.37 3.88 3.83 0.04
Change9/30/2212/30/22
3M
Maturity
0.154.284.432Y
0.723.994.711Y
0.833.934.766M
1.103.27
0.0 0.5
1.0 1.5
2.0 2.5
3.0 3.5
4.0 4.5
5.0 3M 6M 1Y 2Y 3Yr 5Y 10Y 30Y
Percent
U.S. Treasury Yield Curve Change
12/30/22
9/30/22
-20
0 20
40 60
80 100
120
3M
6M
1Y
2Y
3Yr
5Y
10Y
30Y
Basis Points
Basis Point Change
14 Lynwood Successor Agency - Page 23 of 50
Economic and Market Update
Source: Bloomberg
12/31/2022
0.00 0.25
0.50 0.75
1.00 1.25
1.50 1.75
2.00 2.25
2.50 2.75
3.00 3.25
3.50 3.75
4.00 4.25
4.50 4.75
5.00 Dec-17
Mar-18
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Percent
U.S. Treasury Yields: 3M and 1Y
1Y
3M
0.00 0.25
0.50 0.75
1.00 1.25
1.50 1.75
2.00 2.25
2.50 2.75
3.00 3.25
3.50 3.75
4.00 4.25
4.50 4.75
Dec-17
Mar-18
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Percent
U.S. Treasury Yields: 2Y and 5Y
5Y
2Y
15 Lynwood Successor Agency - Page 24 of 50
Economic and Market Update
Source: Bloomberg
12/31/2022
0 1
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
Jan-54
Jan-56
Jan-58
Jan-60
Jan-62
Jan-64
Jan-66
Jan-68
Jan-70
Jan-72
Jan-74
Jan-76
Jan-78
Jan-80
Jan-82
Jan-84
Jan-86
Jan-88
Jan-90
Jan-92
Jan-94
Jan-96
Jan-98
Jan-00
Jan-02
Jan-04
Jan-06
Jan-08
Jan-10
Jan-12
Jan-14
Jan-16
Jan-18
Jan-20
Jan-22
Percent
U.S. Treasury Yields 2Yr and 5Yr - Fed Funds Target Rate 5Yr
2Yr
Fed Funds
16 Lynwood Successor Agency - Page 25 of 50
Economic and Market Update
Source: Bloomberg
12/31/2022
Global Treasury Rates
2 Year Yields 5 Year Yields 10 Year Yields
0.03%
1.22%
2.74%
2.77%
2.83%
2.89%
3.24%
3.40%
3.53%
4.05%
4.43%
-2.0% 0.0% 2.0% 4.0%
Japan
Switzlnd
Germany
Portugal
France
Spain
Italy
Australia
England
Canada
USA
0.23%
1.42%
2.57%
2.87%
2.95%
3.14%
3.41%
3.60%
3.68%
4.00%
4.00%
-1.0% 1.0% 3.0% 5.0%
Japan
Switzlnd
Germany
France
Portugal
Spain
Canada
England
Australia
Italy
USA
0.41%
1.58%
2.57%
3.11%
3.30%
3.58%
3.65%
3.66%
3.87%
4.05%
4.70%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0%
Japan
Switzlnd
Germany
France
Canada
Portugal
Spain
England
USA
Australia
Italy
17 Lynwood Successor Agency - Page 26 of 50
Economic and Market Update
ICE BofAML Index (option adjusted spread vs. Treasury) ICE BofAML Index (option adjusted spread vs. Treasury) 1-5Yr Non-Callable Agency (GVPB) Corporate A-AAA Excluding Yankee (CVAC) Source: ICE BofAML Indices
12/31/2022
Current Spread is 7 Current Spread is 69
-20
0 20
40 60
80 100
120
140
160
180
Nov-08
Nov-09
Nov-10
Nov-11
Nov-12
Nov-13
Nov-14
Nov-15
Nov-16
Nov-17
Nov-18
Nov-19
Nov-20
Nov-21
Nov-22
Basis Points
Spread: 1-5Yr Agency vs Treasury
0 50
100
150
200
250
300
350
400
450
500
550
600
650
Nov-08
Nov-09
Nov-10
Nov-11
Nov-12
Nov-13
Nov-14
Nov-15
Nov-16
Nov-17
Nov-18
Nov-19
Nov-20
Nov-21
Nov-22
Basis Points
Spread: 1-5Yr A-AAA Corporate vs Treasury
18 Lynwood Successor Agency - Page 27 of 50
Economic and Market Update
*ICE BofAML Index (option adjusted spread vs. Treasury) *ICE BofAML Index (option adjusted spread vs. Treasury) AAA Rated ABS (R0A1) CMO Agency 0-3Yr PAC (CM1P)
Source: ICE BofAML Indices
12/31/2022
Current Spread is 88 Current Spread is 71
0 50
100
150
200
250
300
350
400
450
500
550
600
650
700
750
800
Nov-08
Nov-09
Nov-10
Nov-11
Nov-12
Nov-13
Nov-14
Nov-15
Nov-16
Nov-17
Nov-18
Nov-19
Nov-20
Nov-21
Nov-22
Basis Points
Spread: AAA Asset Backed vs Treasury
-150
-100
-50
0 50
100
150
200
250
300
Nov-08
Nov-09
Nov-10
Nov-11
Nov-12
Nov-13
Nov-14
Nov-15
Nov-16
Nov-17
Nov-18
Nov-19
Nov-20
Nov-21
Nov-22
Basis Points
Spread: 0-3Yr Agency CMO vs Treasury
19 Lynwood Successor Agency - Page 28 of 50
Economic and Market Update
Source: Bloomberg
12/31/2022
-7.0
-1.9
-0.1
0.6 0.7 0.9 1.6 1.9 2.0 2.4
4.3 4.7 4.8
7.4 7.6
8.6 9.0 9.7
10.8 15.8 15.9
17.7 (10)
(5)
0 5
10 15
20 Percent
Selected Sector Quarterly Total Returns
20 Lynwood Successor Agency - Page 29 of 50
Economic and Market Update
Source: Bloomberg
12/31/2022
-32.6 -31.2
-26.2
-21.9 -21.2
-18.2 -18.0 -16.2 -15.2 -14.4 -13.1 -13.0 -12.2 -12.2
-7.0 -5.6 -3.9
-0.6
0.9 9.5
17.5 29.0
(40)
(30)
(20)
(10)
0 10
20 30
40 Percent
Selected Sector Year-Over-Year Total Returns
21 Lynwood Successor Agency - Page 30 of 50
Economic and Market Update
Sources: Bloomberg, FHN Main Street
12/31/2022
3.50 3.60
3.70 3.80
3.90 4.00
4.10 4.20
4.30 4.40
4.50 9/30/22
10/3/22
10/6/22
10/9/22
10/12/22
10/15/22
10/18/22
10/21/22
10/24/22
10/27/22
10/30/22
11/2/22
11/5/22
11/8/22
11/11/22
11/14/22
11/17/22
11/20/22
11/23/22
11/26/22
11/29/22
12/2/22
12/5/22
12/8/22
12/11/22
12/14/22
12/17/22
12/20/22
12/23/22
12/26/22
12/29/22
Percent
5 Year Treasury Note Yield
Yields Higher After
Bank Of Japan Raises
Cap On 10-Year Japan
Government Bonds
Core CPI Up 0.6%
Month Over Month
Fed Hikes Rates
75bpsUnemployment Rate
Dropped To 3.5%, The
Lowest Level In Decades
Q3 GDP Up 2.6%
Powell Says Fed May
Slow Down Pace Of
Rate Hikes
Treasuries Post Biggest
Annual Loss Ever, As
Inflation Takes Toll
CPI YoY Up 7.1% Versus
Expected 7.3%, Beating
Expectations
San Francisco Fed's Daly
Says Rate Pause Is Off
The Table
October CPI 0.4% MoM
Core 0.3%
22 Lynwood Successor Agency - Page 31 of 50
Economic and Market Update
Sources: Bloomberg, FHN Financial, FHN Main Street
12/31/2022
28,000
29,000
30,000
31,000
32,000
33,000
34,000
35,000
9/30/22
10/3/22
10/6/22
10/9/22
10/12/22
10/15/22
10/18/22
10/21/22
10/24/22
10/27/22
10/30/22
11/2/22
11/5/22
11/8/22
11/11/22
11/14/22
11/17/22
11/20/22
11/23/22
11/26/22
11/29/22
12/2/22
12/5/22
12/8/22
12/11/22
12/14/22
12/17/22
12/20/22
12/23/22
12/26/22
12/29/22
Dow Jones Industrial Average
Sales Forecast By Best Buy
Dampens Concerns High
Inflation Would Lead To
Poor Holiday Shopping
Season
Upbeat Corporate Earnings
And Economic Data Cause
Stocks To Rally
August Job
Openings Fall To 14-
Month Low
Powell Says Fed Could
Slow Down Pace Of
Interest Rate Hikes As
Early As December
University Of Michigan Inflation
Expectations Rise For First Time
In Seven Months
Lower Than Expected
October CPI Raises Hopes
For Slower Tightening
Apple Gains On Earnings
Help Push Stocks Higher
Smaller Than Expected
Increase In CPI Lifts
Investor Confidence
Pace Of Rate Hikes
Expected To Slow
23 Lynwood Successor Agency - Page 32 of 50
Disclosure
This report represents the opinions of FHN Financial Main Street Advisors, LLC and should not be considered predictive of any future market performance. Opinions are subject to change without notice. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered investment advice or a recommendation of any particular security, investment strategy, or investment product.
Although this information has been obtained from sources which we believe to be reliable, we do not guarantee its accuracy, a nd it may be incomplete or condensed.
This is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. All herein listed securities are subject to availability and change in price. Past performance is not indicative of future results, and changes in any assumpt ions may have a material effect on projected results. Ratings on all securities are subject to change.
FHN Financial Capital Markets, FHN Financial Portfolio Advisors, and FHN Financial Municipal Advisors are divisions of First Horizon Bank. FHN Financial Securities Corp., FHN Financial Main Street Advisors, LLC, and FHN Financial Capital Assets Corp. are wholly owned subsidiaries of First Horizo n Bank. FHN Financial Securities Corp. is a member of FINRA and SIPC — http://www.sipc.org/.
FHN Financial Municipal Advisors is a registered municipal advisor. FHN Financial Portfolio Advisors is a portfolio manager operating under the trust powers of First Horizon Bank. FHN Financial Main Street Advisors, LLC is a registered investment advisor. None of the other FHN entities, including FHN Financial Capital Markets, FHN Financial Securities Corp., or FHN Financial Capital Assets Corp. are acting as your advisor, and none owe a fiduciary duty under the securities laws to you, any municipal entity, or any obligated person with respect to, among other things, the information and material contained in this communica tion. Instead, these FHN entities are acting for their own interests. You should discuss any information or material contained in this communication with any and a ll internal or external advisors and experts that you deem appropriate before acting on this information or material.
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AND REPRESENTATIONS, EXPRESS AND/OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, INCLUDING THE INDICES, INDEX DATA AND ANY DATA INCLUDED IN, RELATED TO, OR DERIVED THEREFROM. NEITHER ICE DATA, ITS AFFILIATES OR THEIR RESPECTIVE THIRD PARTY
PROVIDERS SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY WITH RESPECT TO THE QUALITY, ADEQUACY, ACCURACY, TIMELINESS OR COM PLETENESS OF THE INDICES OR THE INDEX DATA OR ANY COMPONENT THEREOF, AND THE INDICES AND INDEX DATA AND ALL COMPONENTS THEREOF ARE PROVIDED ON AN "AS IS" BASIS AND SUBSCRIBER'S USE IS AT SUBSCRIBER'S OWN RISK. ICE DATA, ITS AFFILIATES AND THEIR RESPECTIVE THIRD PARTY DO NOT SPONSOR, E NDORSE, OR RECOMMEND FHN FINANCIAL MAIN STREET ADVISORS, LLC, OR ANY OF ITS PRODUCTS OR SERVICES. 24 Lynwood Successor Agency - Page 33 of 50
1 MONTHLY ECONOMIC REVIEW
DECEMBER 2022
NATIONAL RETAIL FEDERATION
After two straight quarters of year-over-year decline, the third quarter’s 2.6% annualized growth in gross domestic product was a solid improvement and much better than expected. The third quarter’s results clearly dispelled the notion that the U.S. economy is in a recession, and the silver lining was the ongoing resiliency in consumption. Even though consumers made fewer purchases, they continued to spend on both goods and services and helped lift GDP. A strong labor market, rising wages and access to excess savings built up during the pandemic have given households strong balance sheets that have helped spending continue despite inflation and higher interest rates.
Nonetheless, the economy is cooling and interest-sensitive sectors, in particular, have seen a significant pullback in spending. This has been especially notable in housing, where the Federal Reserve's aggressive efforts to rein in inflation have resulted in a sharp rise in mortgage rates that have left many potential buyers unable to afford a home. Correspondingly, builder confidence in the market for newly built single-family homes posted its 11th straight monthly decline in November and builders are cutting back on single-family construction.
GDP is expected to grow very gradually in the closing months of 2022, at best about half of what was recorded in the third quarter. Consumers are stepping back to a degree and changing how they allocate their resources, spending more on food and less on other retail goods. At the same time, spending on services has been hearty in recent months and there is no reason to expect that it will moderate even with the continued upward pace of service sector inflation.
Even with inflation, the willingness to spend has been stable for the better part of this year, with retail sales growing 7.5% year over year for the first 10 months. That is on track with NRF’s forecasts that overall, 2022 retail sales and November-December holiday sales will both grow between 6% and 8% over 2021. The pace slowed to 6.5% in October, but that was largely due to the comparison against strong early holiday shopping in 2021.
Many eyes have focused on October’s inflation data, and a range of measures was better than expected.
The big questions are whether inflation has peaked, and will it be coming down? The Consumer Price Index was up 7.7% year over year, down from 8.2% in September for the lowest inflation level since January. At the same time, core inflation (which excludes food and energy) was at 6.3%, down from September’s 40-year high of 6.6%. Meanwhile, average hourly earnings for October were up 4.7% year over year compared with 5% in September, also sending a message that inflation may be receding.
While these changes were all in the right direction, it is too soon to see if they are the beginning of a stable downward trend.
Overall job growth has clearly slowed since the start of the year, but labor demand is not cooling as quickly as the Fed – and markets – would like. Additions are moderating but job openings bounced back in September to 10.7 million from 10.3 million in August. The labor market eased somewhat in October as payrolls increased by 261,000.
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2 It is hard to anticipate whether the Fed’s monetary tightening will lead to a recession or how bad one might be if it does occur. The risk is clearly elevated by the current framework of rate hikes, but the full effects remain to be seen and one key is how much slowing in the labor market is needed to bring wage growth in line with the Fed’s long-run inflation goals.
As the labor market slows further, as expected in 2023, income growth should slow with it. The good news is that slower job gains should sap momentum from both consumer spending and rising labor costs, hopefully reducing inflationary pressure.
Even though both may slow, employment will still be growing, and consumer spending should remain positive. There will be economic hardships, and some may feel like they are in a recession. But for those who have jobs and feel secure about their employment, careful spending will continue. The downside risk is that “sticky” wages and prices for services – both tend to stay up once they go up – will keep inflation aloft and push the Fed to hold rates higher for longer.
So, what does this all mean? The slowdown in economic growth in 2022 combined with the expansion in the labor market have clearly helped bring economic activity in better balance with labor. But there is a long journey ahead between where we are now and where we need to be. If inflation pressures continue to lessen, the Fed may not be inclined to persist with aggressive interest rate hikes, but that remains to be seen. In the meantime, if prices for gas, groceries and other products decelerate, we will all be able to breathe a little easier.
CONFERENCE BOARD GLOBAL ECONOMIC REPORT
Global real GDP growth is slowing rapidly, from 5 percent year over year in Q3 of 2021 to 3.3 percent in Q3 of 2022. As headwinds to global growth are intensifying, we expect yearly global GDP growth to moderate further to about 2 percent from Q4 2022 onward. Headwinds include persistent inflationary pressures limiting demand and production, very rapid tightening of global financial conditions, and low levels of business and consumer confidence in large economies around the world.
The Conference Board Global Leading Economic Index has contracted for a couple of months now, pointing to rising risks of a downturn. Our forecast for global GDP is for 3.2 percent growth in 2022 and
2.1 percent in 2023. Global growth of 2.1 percent does not formally constitute a global recession, but if achieved it would be the weakest growth rate since 2001 (outside of global recession years 2009 and 2020). In 2024, the global economy likely will experience a modest revival to 2.7 percent growth as shocks related to the pandemic, inflation, and monetary tightening fade. However, growth rates in 2024 After growing by an estimated 1.9 percent in 2022, real GDP is forecast to stagnate for the full year of 2023 and pick up again in 2024 with 1.7 percent growth.
Europe
Europe has likely entered into recession as of Q4 2022 and probably will remain so into the early part of 2023. European economies expected to experience recession include large economies such as Italy, Germany, and the UK, as well as smaller economies such as Czech Republic, Denmark, Hungary, Poland, Romania, Sweden, and Switzerland. CEO confidence fell to an all-time low in H2 2022, reflecting the Lynwood Successor Agency - Page 35 of 50
3 challenging outlook ahead. Still, a variety of factors including fading supply chain woes, a robust labor market, and fiscal stimulus portend a short and shallow recession.
After growing by an estimated 3.5 percent in 2022, real GDP is forecast to slow to 0.2 percent growth for the full year of 2023 and pick up again in 2024 with 1.1 percent growth.
China
The Chinese economy has been buffeted by significant challenges from the pandemic, housing, and external trade in 2022. Businesses and consumers chafed at mobility restrictions and lockdowns, and the government has responded by softening its dynamic zero-COVID-19 policies. Confidence among multinational company CEOs improved in H2 2022 in anticipation of better economic performance in 2023. Still, China is not ready to fully shift away from the polices, given low vaccination rates among the elderly and widespread fear of the virus among the general population. Even once restrictions are lifted, there will be an adjustment period as the fear factor subsides. This points to H2 2023 as the period for a resurgence of consumer spending on services, limiting full-year 2023 growth.
After growing by an estimated 2.7 percent in 2022, real GDP is forecast to pick up to 5.1 percent growth for the full year of 2023 and 4.8 percent for 2024.
Emerging Markets
Economic conditions for economies outside China, Europe, and the US are expected to be mixed. While Asian economies apart from China have fared well from reopening, postpandemic, slowing external demand as the US and Europe head toward recession is beginning to cloud growth prospects. The same is true for Latin American economies dependent upon trade with the US and in commodities, whose prices have retreated from early-year peaks. Tighter monetary policy and political instability threatening fiscal outlooks are also troubling select Latin American economies. Elsewhere, Turkey will experience materially slower growth in 2023, but it will avoid recession. Russia and Ukraine will remain in recession due to the ongoing conflict, sanctions (Russia), and widespread destruction (Ukraine).
Lynwood Successor Agency - Page 36 of 50
Agenda Item # 6.
AGENDA STAFF REPORT
DATE:
February 7, 2023
TO:
Honorable Mayor and Members of City Council, as Successor to Lynwood Redvelopment Board
APPROVED BY:
Ernie Hernandez, City Manager
PREPARED BY:
Sheila Harding, Deputy City Treasurer
SUBJECT:
TREASURER'S QUARTERLY REPORT
Recommendation:
It is recommended that the City of Lynwood receive and file the attached Quarterly Investment Report. The following information provided in this report highlights the investment activity for the 2nd quarter ending December 31, 2022.
Background:
Due to the crisis caused by the Orange County investment pool, the State Legislature in 1995 enacted SB564 and SB866. These laws were enacted as State Statutes to impose certain mandates regarding investments with public funds. The statutes have imposed the following mandates:
1. Annual adoption of an Investment Policy that incorporates changes mandated by the State.
2. Quarterly Investment Reports presented to the Legislative Body or Board Members.
3. Restriction on the use of certain investment instruments.
The purpose of the Treasurer’s report is to update the City Council and the public of the status of the City’s cash balances, investments and highlight changes from one period to another. This report includes reconciliation between cash and investment balances, a schedule of all investments, and a report providing information on all investment types, costs, interest rates, maturity dates and current market value.
Discussion and Analysis:
The market value of securities fluctuates, depending on how interest rates perform. When interest rates decrease, the market value of the securities in the City’s portfolio will likely increase and when the interest rates increase, the market value of the securities will likely decrease. The City’s practice is to buy and hold investments until maturity so changes in the market price do not affect the City’s investment principal.
Lynwood Successor Agency - Page 37 of 50
Short-term excess cash is primarily invested in the Local Agency Investment Fund (LAIF) administered by the State Treasurer. LAIF is a high quality investment available in terms of safety, liquidity and yield. The City’s cash and investment portfolio is sufficiently liquid to meet expected expenditures for the coming six months.
The majority of property tax revenues are received from the County in December and April and a portion of the revenue received is invested in the Local Agency Investment Fund and can be withdrawn at any time.
There are three petty cash funds totaling $3,300; City Manager's Office totaling $2,000, Finance Department totaling $1,000.00 and City Treasurer's Office totaling $300.00. There are two change funds totaling $640.00; Water Billing $600.00 and Recreation $40.00.
The total received from Urban Farming for the quarter reporting is $309,154.23 plus an additional $15,000.00 for cost recovery.
The total amount of Non-Sufficient Funds (NSF) from customers for the quarter reporting is $5,225.52 of which $1,142.74 has been collected. The remaining balance of Non-Sufficient Funds outstanding for the quarter is $4,082.78.
The market valuation is provided by FTN Main Street Capital Advisors and all of the investments are in compliance with California Government Code Sections 53600 et seq. and the City’s investment policy.
Reports prepared by FTN Main Street Capital Advisors are as follows:
Portfolio Summary - Dash Board (October - December)
Portfolio Summary (October - December)
Fiscal Impact:
There is no fiscal impact.
Coordinated With:
FTN Financial Main Street Advisors
ATTACHMENTS:
Description
QUARTERLY SUMMARY REPORT - DECEMBER 2022
FHN QUARTERLY REPORT - OCT - DEC 2022
Lynwood Successor Agency - Page 38 of 50
Schedule of City Cash & Investments: This schedule provides information on the cash and investments managed by the City.
Quarterly Interest Credit
Money Market/Custody Holdings Balance Interest F/Y to Date JP Morgan Chase ‐ Section 108 MMA 125,636.42$ 252.90$ 349.35$ JP Morgan Chase ‐ Money Market Account 1,887,425.34$ 3,799.29$ 5,248.31$ JP Morgan Chase ‐ Parking Enforcement 6,043,030.16$ 11,944.03$ 16,356.00$ US Bank ‐ City of Lynwood 4,539.88$ 0.09$ 0.19$ Total 8,060,631.80 $ 15,996.31$ 21,953.85$ Demand Deposits
General Account 33,338,891.35$
US Bank ‐ Economic Development 10,696.54$
US Bank ‐ Housing Authority A 71,789.46$
US Bank ‐ Housing Authority B 18,000.09$
US Bank ‐ City HCDA 150,518.11$
US Bank ‐ City Home Program 1,020,153.96$
US Bank ‐ Taxable Tabs 2,611,325.52$
US Bank ‐ Lyn Tr. Center Unf Wrkr 2,791.24$
US Bank ‐ Money Market Account 49,028.48$
US Bank ‐ US Dept. of HUD/Section 108 170,048.96$
US Bank ‐ RORF Successor Agency 3,352,215.35$
US Bank ‐ Low Mod Housing Trst Fnd/Rogel 7,632,058.42$
US Bank ‐ Lynwood Disaster Relief Fund 5,000.00 $
US Bank ‐ Settlement Remittance Fund 340,637.36$
US Bank ‐ Housing Authority 6,376.71$
Total 48,779,531.55 $
Money Market Fund ‐ A Money Market fund is a type of mutual fund that invest in short term debt securities of agenies of the U.S. Government, banks, corporations and U.S. Treasury Bills.
Some advantages of a money market fund over savings and CDs are high liquidity, low risk, and competive yields.
The City currently has a total of five MMA accounts within the City's investment portfolio.
Certificate of Deposit ‐ A Certificate of Deposit or CD, is a time deposit. They are similar to savings accounts in that they are insured and relatively risk‐free. They are different from savings accounts in that they usually are for a fixed term and a fixed interest rae. CDs are inteded to be held until maturity, at which time, the money may be withdrawn together with the accrued interest. The City currently has one CD within the City's investment portfolio
Demand Deposits ‐ Also known as "cash in the bank", this is the balance of the City's checking account with US Bank, from which virtually all obligations are paid.
CITY OF LYNWOOD
QUARTERLY INVESTMENT REPORT
December 31, 2022
Lynwood Successor Agency - Page 39 of 50
Quarter Ending Interest
Issuer Investment Balance Interest Rate
State of California LAIF 9,595,678.13 50,127.50 31‐Dec‐22 2.07% *As of Jan 13, 2023
Local Agency Investment Fund (LAIF):
The Local Agency Investment Fund is managed by the State Treasurer's Office Investment Division through the Pooled Money Investment Account (PIMA). The LAIF allows cities, counties and special districts to place money in a major portfolio and to use the expertise of their Investment Division staff, with no additional cost to taxpayers. Participating agencies can withdraw their funds from the LAIF at any time. The State Treasurer invests money safely and prudently while minimizing the service costs and maximizing the service costs and maximizing the investment yields. These investments help manage cash flow and enhance financial security. The interest earned from the LAIF is distribued quarterly. (See Chart Below) LAIF PARTICIPATION AS OF 9/30/2022
2,385 Agencies
MONEY POOLED INVESTMENT ACCOUNT
(chart dollars in millions)
CITY OF LYNWOOD
QUARTERLY REPORT
December 31, 2022
LAIF Daily Yield 1.60% ‐ Quarter to Date 1.28% ‐ Average Days to Maturity 303 Total $203.7 billion
MONTHLY PORTFOLIO COMPOSITION
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Agencies Certificate
of Deposits
Time
Deposits
Commercial
Paper
Corporate
Bonds
Loans Treasuries
Chart Title
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
54 COUNTIES 476 CITIES 1,440 SPECIAL
DISTRICTS
193 SCHOOL
DISTRICTS
166 TRUSTEES 56 BONDS
Chart Title
Dec. 2022.xlsLynwood Successor Agency - Page 40 of 50
PAR MARKET BOOK % OF
INVESTMENTS VALUE VALUE VALUE PORTFOLIO
*Money Market Funds 52,571.67 $ 52,571.67$ 52,571.67$ 0.14% LAIF 9,595,678.13 $ 9,595,678.13$ 9,595,678.13$ 26.30% Corporate Notes 3,500,000.00 $ 3,380,582.50$ 3,488,790.30$ 9.56% Commercial Paper 1,495,000.00 $ 1,477,457.96$ 1,478,968.63$ 4.05% Federal Agency 10,440,000.00$ 10,099,480.00$ 10,450,169.07$ 28.65% Treasury Coupon Securities 6,500,000.00 $ 6,010,295.00$ 6,499,374.86$ 17.82% CD‐FDIC 4,917,000.00 $ 4,728,173.87$ 4,915,622.91$ 13.47% TOTAL 36,500,249.80 $ 35,344,239.13$ 36,481,175.57$ 99.99% *Money Market Fund held at Goldman Sach
Schedule of City Cash & Investments: This schedule provides information on the cash and investments managed by the City.
Interest Credit
Time Deposit/MM/Certificate of Deposit Balance Maturity Date F/Y to Date JP Morgan Chase (Section 108) 125,636.42 $ N/A 349.35 $ JP Morgan Chase ‐ Money Market Account 1,887,425.34 $ N/A 3,799.29$ JP Morgan Chase ‐ Parking Enforcement 6,043,030.16 $ N/A 11,944.03$ US Bank ‐ City of Lynwood 4,539.88 $ N/A 0.09 $ TOTAL 8,060,631.80 $ 16,092.76$
Corporate Checking Accounts Balance
General Account 33,338,891.35 $
US Bank ‐ City HCDA 150,518.11 $
US Bank ‐ City Home Program 1,020,153.96 $
US Bank ‐ Economic Development 10,696.54 $
US Bank ‐ Housing Authority A 71,789.46 $
US Bank ‐ Housing Authority B 18,000.09 $
US Bank ‐ Lyn Tr. Center Unf Wrkr 2,791.24 $
US Bank ‐ City of Lynwood 49,028.48 $
US Bank ‐ RORF Successor Agency 3,352,215.35 $
US Bank ‐ Low Mod Housing Trst Fnd/Rogel 7,632,058.42 $ US Bank ‐ Taxable Tabs Housing Proj. 2,611,325.52$
US Bank ‐ US Dept. of HUD/Section 108 170,048.96 $
US Bank ‐ Lynwood Disaster Relief Fund 5,000.00 $
US Bank ‐ Settlement Remittance Fund 340,637.36 $
US Bank ‐ Housing Authority 6,376.71 $
TOTAL 48,779,531.55 $
CITY OF LYNWOOD
QUARTERLY REPORT
December 31, 2022
PORTFOLIO SUMMARY
Dec. 2022.xlsLynwood Successor Agency - Page 41 of 50
AVERAGE
MARKET PERCENTAGE (%) DAYS TO
DESCRIPTION VALUE PORTFOLIO MATURITY
INVESTMENTS* 35,344,239.13 100% *
MONEY MARKET/CUSTODY HOLDINGS 8,060,631.80
DEMAND DEPOSIT ACCOUNTS 48,779,531.55
TOTAL AVERAGES 56,840,163.35 $
TOTAL INVESTMENTS & AVERAGES 92,184,402.48 $
f{x|Ät [tÜw|Çz
Sheila Harding I certify that this report accurately reflects all pooled Deputy Treasurer investment policy statements adopted by the City Council on August 15, 1995. A copy of this policy is available at the office of the City Clerk. The Investment Program herein shown provides sufficient cash flow liquidy to meet 3 to 6 months estimated expenditures.
*See Report Prepared by Main Street Capital Advisors
CITY OF LYNWOOD
QUARTERLY REPORT
December 31, 2022
MASTER SUMMARY
Dec. 2022.xlsLynwood Successor Agency - Page 42 of 50
OCTOBER NOVEMBER DECEMBER
Market Value $35,094,932 $35,314,063 $35,344,239
Book Value $36,421,280 $36,466,189 $36,481,176
Variance
‐$1,326,348 ‐$1,152,126 ‐$1,136,937
Par Value $36,455,459 $36,492,754 $36,500,250
Net Asset Value $96.36 $96.84 $96.88
Book Yield 2.23% 2.35% 2.38%
Market Yield 3.89% 3.88% 3.95%
Years to Maturity 1.74 1.75 1.69
Effective Durantion 1.49 1.45 1.45
OCTOBER NOVEMBER DECEMBER
Total Earnings Per Month 53,557.01 53,521.65 55,715.04
F/Y Earnings to Date $198,597.60 $252,119.25 $307,834.28 Average Daily Balance $36,397,497.68 $36,436,111.42 $36,471,886.48 F/Y Average Daily Balance $33,672,126.38 $34,224,923.39 $34,599,417.24 Book Rate of Return 1.73% 1.79% 1.80%
F/Y Book Rate of Return 1.75% 1.76% 1.76%
OCTOBER NOVEMBER DECEMBER
CD-FDIC 4,917,000.00 4,917,000.00 4,917,000.00
Commercial Paper 1,995,000.00 1,495,000.00 1,495,000.00 Corporate Bonds 3,500,000.00 3,500,000.00 3,500,000.00
LAIF 9,595,678.13 9,595,678.13 9,595,678.13
Money Market Funds 7,780.71 45,076.33 52,571.67
U.S. Agencies 9,940,000.00 10,440,000.00 10,440,000.00
U.S. Treasuries 6,500,000.00 6,500,000.00 6,500,000.00
TOTAL 36,455,458.84 36,492,754.46 36,500,249.80
HOLDINGS
PORTFOLIO SUMMARY
AT A GLANCE
ACCOUNT SUMMARY
OCTOBER - DECEMBER 2022
Lynwood Successor Agency - Page 43 of 50
Jan ‐ Mar Apr ‐ June July ‐ Sept Oct ‐ Dec
Investments Managed by Main Street $25,697,469.19 $25,569,355.97 35,146,409.65 $35,344,239.13 Cash & Investments $58,014,897.72 $69,247,916.93 58,147,368.65 $56,840,163.35 Per Treasurer's Reports 83,712,366.91 $94,817,272.90 93,293,778.30 $92,184,402.48 Accounts
Balances per Statement Beginning Credits Debits Ending
US Bank ‐ General Account* 35,333,949.95 4,779,665.34$ 3,908,810.54$ 36,204,804.75$ *Local Agency Investment Fund 9,563,138.29$ 32,539.84 ‐$ 9,595,678.13$ US Bank ‐ RORF ‐ Successor Agency 3,758,551.71$ ‐ $ ‐ $ 3,758,551.71$ US Bank ‐ Low Mod Housing Trust 7,647,325.02$ ‐ $ 437.50$ 7,646,887.52$ TOTAL REVENUE & EXPENDITURE 4,812,205.18 $ 3,909,248.04$ Accounts
Balances per Statement Beginning Credits Debits Ending
US Bank ‐ General Account* 36,204,804.75$ 5,366,752.08$ 11,523,107.96$ 30,048,448.87$ *Local Agency Investment Fund 9,595,678.13$ ‐ $ ‐ $ 9,595,678.13$ US Bank ‐ RORF ‐ Successor Agency 3,758,551.71$ 406,336.36$ 3,352,215.35$ US Bank ‐ Low Mod Housing Trust 7,646,887.52$ 5,062.50$ 7,641,825.02$ TOTAL REVENUE & EXPENDITURE 5,366,752.08 $ 11,934,506.82$ Accounts
Balances per Statement Beginning Credits Debits Ending
US Bank ‐ General Account 30,048,448.87 $ 10,294,325.04$ 7,003,882.56$ 33,338,891.35$ *Local Agency Investment Fund 9,595,678.13$ ‐ $ 9,595,678.13$ US Bank ‐ RORF ‐ Successor Agency 3,352,215.35$ 3,352,215.35$ US Bank ‐ Low Mod Housing Trust 7,641,825.02$ 9,766.60 7,632,058.42$ TOTAL REVENUE & EXPENDITURE 10,294,325.04 $ 7,013,649.16 QUARTERLY TOTAL OF DEBITS/CREDITS 20,473,282.30 $ 22,857,404.02$ *Most Active Accounts
*Funds transferred from LAIF account to the general account to cover expenditures 2022
Oct‐22
Nov‐22
Dec‐22
CITY OF LYNWOOD
QUARTERLY REPORT
December 31, 2022
MONTHLY BALANCES PER STATEMENT
DEMAND DEPOSIT ACCOUNTS ‐ MOST ACTIVE
BALANCES PER QUARTER
Lynwood Successor Agency - Page 44 of 50
Run Date: 1/9/2023 - 2:24 PM
Amortizing Page 2
Portfolio Summary
City of Lynwood 12/31/2022
SECTOR ALLOCATION MATURITY DISTRIBUTION CREDIT QUALITY (MOODY'S)
ACCOUNT SUMMARY MONTH-END PORTFOLIO BOOK YIELD TOP ISSUERS 12/31/22 11/30/22 Issuer % Portfolio
Market Value $35,344,239 $35,314,063 LAIF 26.3%
Book Value $36,481,176 $36,466,189 FHLB 19.9%
Variance -$1,136,936 -$1,152,126 U.S. Treasury 17.8%
FFCB 4.7%
Par Value $36,500,250 $36,492,754 FHLMC 2.7%
JPMorgan 1.4%
Net Asset Value $96.88 $96.84 FNMA 1.4%
MetLife 1.4%
Book Yield 2.38% 2.36% Bedford Row Funding 1.4%
Apple 1.4%
Market Yield 3.95% 3.89% Procter & Gamble 1.3%
Royal Bank of Canada 1.3%
Years to Maturity 1.69 1.75 3M 1.3%
Exxon Mobil 0.7%
Effective Duration 1.45 1.45 Toyota 0.7%
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
2.00%
2.20%
2.40%
2.60%
0.1%
4.1%
9.6%
13.5%
17.8%
26.3%
28.6%
MMF
CP
CORP
CD
TSY
LAIF
AGY
100%75%50%25%0%
42.1%
16.7% 19.2%
10.9% 11.1%
0-1Y 1-2Y 2-3Y 3-4Y 4-5Y+
0%
10%
20%
30%
40%
50%
60%
70%
39.8%
0.7%
4.8%
1.4%
0.7%
45.9%
6.8%
NR
A3
A2
A1
Aa3
Aa2
Aa1
Aaa
P-1
100%75%50%25%0%
2 Lynwood Successor Agency - Page 45 of 50
Portfolio Summary
City of Lynwood December 31, 2022
Investments Par Value Book Value
% of
Portfolio YTMMaturity
Days to
Market Value
Book
Certificates of Deposit 4,917,000.00 4,915,622.91 13.47 2.70 947 4,728,173.87 Commercial Paper 1,495,000.00 1,478,968.63 4.05 4.17 86 1,477,457.96 Corporate Bonds 3,500,000.00 3,488,790.30 9.56 3.22 859 3,380,582.50 LAIF 9,595,678.13 9,595,678.13 26.30 2.17 1 9,595,678.13 Money Market Funds 52,571.67 52,571.67 0.14 4.13 1 52,571.67 U.S. Agencies 10,440,000.00 10,450,169.07 28.65 3.02 897 10,099,480.00 U.S. Treasuries 6,500,000.00 6,499,374.86 17.82 0.56 813 6,010,295.00 36,481,175.57 100.00 615 35,344,239.13 2.38 36,500,249.80 Investments
December 31 Month Ending Fiscal Year To DateTotal Earnings Current Year 55,715.04 307,834.28
Average Daily Balance 36,471,886.48 34,599,417.24
Book Rate of Return 1.80% 1.76%
Run Date: 1/9/2023 - 2:24 PM
Amortizing
15Lynwood Successor Agency - Page 46 of 50
Run Date: 12/6/2022 - 11:56 AM
Amortizing Page 2
Portfolio Summary
City of Lynwood 11/30/2022
SECTOR ALLOCATION MATURITY DISTRIBUTION CREDIT QUALITY (MOODY'S)
ACCOUNT SUMMARY MONTH-END PORTFOLIO BOOK YIELD TOP ISSUERS 11/30/22 10/31/22 Issuer % Portfolio
Market Value $35,314,063 $35,094,932 LAIF 26.3%
Book Value $36,466,189 $36,421,280 FHLB 19.9%
Variance -$1,152,126 -$1,326,348 U.S. Treasury 17.8%
FFCB 4.7%
Par Value $36,492,754 $36,455,459 FHLMC 2.7%
JPMorgan 1.4%
Net Asset Value $96.84 $96.36 FNMA 1.4%
MetLife 1.4%
Book Yield 2.35% 2.23% Bedford Row Funding 1.4%
Apple 1.4%
Market Yield 3.88% 3.89% Procter & Gamble 1.3%
Royal Bank of Canada 1.3%
Years to Maturity 1.75 1.74 3M 1.3%
Exxon Mobil 0.7%
Effective Duration 1.45 1.49 Toyota 0.7%
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
2.00%
2.20%
2.40%
2.60%
0.1%
4.0%
9.6%
13.5%
17.8%
26.3%
28.7%
MMF
CP
CORP
CD
TSY
LAIF
AGY
100%75%50%25%0%
42.1%
13.9%
19.3%
12.3% 12.5%
0-1Y 1-2Y 2-3Y 3-4Y 4-5Y+
0%
10%
20%
30%
40%
50%
60%
70%
39.8%
0.7%
4.8%
1.4%
0.7%
45.9%
6.8%
NR
A3
A2
A1
Aa3
Aa2
Aa1
Aaa
P-1
100%75%50%25%0%
2 Lynwood Successor Agency - Page 47 of 50
Portfolio Summary
City of Lynwood November 30, 2022
Investments Par Value Book Value
% of
Portfolio YTMMaturity
Days to
Market Value
Book
Certificates of Deposit 4,917,000.00 4,915,536.83 13.48 2.70 978 4,732,335.77 Commercial Paper 1,495,000.00 1,473,614.48 4.04 4.17 117 1,470,553.60 Corporate Bonds 3,500,000.00 3,488,583.58 9.57 3.22 890 3,384,290.00 LAIF 9,595,678.13 9,595,678.13 26.31 2.06 1 9,595,678.13 Money Market Funds 45,076.33 45,076.33 0.12 3.72 1 45,076.33 U.S. Agencies 10,440,000.00 10,447,960.11 28.65 3.02 929 10,085,469.00 U.S. Treasuries 6,500,000.00 6,499,739.57 17.82 0.56 844 6,000,660.00 36,466,189.03 100.00 638 35,314,062.83 2.35 36,492,754.46 Investments
November 30 Month Ending Fiscal Year To DateTotal Earnings Current Year 53,521.65 252,119.25
Average Daily Balance 36,436,111.42 34,224,923.39
Book Rate of Return 1.79% 1.76%
Run Date: 12/6/2022 - 11:57 AM
Amortizing
15Lynwood Successor Agency - Page 48 of 50
Run Date: 11/8/2022 - 1:39 PM
Amortizing Page 2
Portfolio Summary
City of Lynwood 10/31/2022
SECTOR ALLOCATION MATURITY DISTRIBUTION CREDIT QUALITY (MOODY'S)
ACCOUNT SUMMARY MONTH-END PORTFOLIO BOOK YIELD TOP ISSUERS 10/31/22 9/30/22 Issuer % Portfolio
Market Value $35,094,932 $35,146,410 LAIF 26.3%
Book Value $36,421,280 $36,360,355 FHLB 19.9%
Variance -$1,326,348 -$1,213,946 U.S. Treasury 17.8%
FFCB 4.7%
Par Value $36,455,459 $36,376,673 JPMorgan 1.4%
FNMA 1.4%
Net Asset Value $96.36 $96.66 MetLife 1.4%
Credit Agricole 1.4%
Book Yield 2.23% 2.11% FHLMC 1.4%
Bedford Row Funding 1.4%
Market Yield 3.89% 3.54% Apple 1.4%
Procter & Gamble 1.3%
Years to Maturity 1.74 1.79 Royal Bank of Canada 1.3%
3M 1.3%
Effective Duration 1.49 1.55 Exxon Mobil 0.7%
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
2.00%
2.20%
2.40%
0.0%
5.4%
9.6%
13.5%
17.8%
26.3%
27.3%
MMF
CP
CORP
CD
TSY
LAIF
AGY
100%75%50%25%0%
40.6%
16.7% 19.3%
12.3% 11.1%
0-1Y 1-2Y 2-3Y 3-4Y 4-5Y+
0%
10%
20%
30%
40%
50%
60%
70%
39.8%
0.7%
4.8%
1.4%
0.7%
44.5%
8.1%
NR
A3
A2
A1
Aa3
Aa2
Aa1
Aaa
P-1
100%75%50%25%0%
2 Lynwood Successor Agency - Page 49 of 50
Portfolio Summary
City of Lynwood October 31, 2022
Investments Par Value Book Value
% of
Portfolio YTMMaturity
Days to
Market Value
Book
Certificates of Deposit 4,917,000.00 4,915,453.53 13.50 2.70 1,008 4,687,721.16 Commercial Paper 1,995,000.00 1,967,987.21 5.40 3.86 114 1,964,461.35 Corporate Bonds 3,500,000.00 3,488,394.12 9.58 3.22 920 3,345,747.50 LAIF 9,595,678.13 9,595,678.13 26.35 1.77 1 9,595,678.13 Money Market Funds 7,780.71 7,780.71 0.02 3.05 1 7,780.71 U.S. Agencies 9,940,000.00 9,945,893.66 27.31 2.87 914 9,545,433.20 U.S. Treasuries 6,500,000.00 6,500,092.52 17.85 0.56 874 5,948,110.00 36,421,279.88 100.00 636 35,094,932.05 2.23 36,455,458.84 Investments
October 31 Month Ending Fiscal Year To DateTotal Earnings Current Year 53,557.01 198,597.60
Average Daily Balance 36,397,497.68 33,672,126.38
Book Rate of Return 1.73% 1.75%
Run Date: 11/8/2022 - 1:40 PM
Amortizing
15Lynwood Successor Agency - Page 50 of 50
This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda are on file in the Office of the City Clerk and are available for public inspection. Any person who has a question concerning any of the agenda items may call the City Manager at (310) 603-0220, ext. 200.
Procedures for Addressing the Council
IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE
COUNCIL SUBMIT YOUR COMMENTS IN ADVANCE TO
[email protected]
OR FILL OUT A FORM
PROVIDED AT THE PODIUM, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL.
AGENDA
Lynwood Public Financing Authority
TO BE HELD ON
February 7, 2023
COUNCIL CHAMBERS - 11350 BULLIS RD. LYNWOOD, CA 90262 or Web conference via ZOOM - To participate via Zoom or by telephone: 1-669-900-9128 or 1-253-215-8782 Meeting ID: 835 2029 8238
Duly Posted on 2/4/2023 by MQ
6:00 PM
1. CALL TO ORDER
2. CERTIFICATION OF AGENDA POSTING BY SECRETARY
3. ROLL CALL OF MEMBERS
Oscar Flores, President
Rita Soto
, Vice President
Gabriela Camacho, Member
Juan Munoz-Guevara
, Member
Jose Luis Solache, Member
4. GOVERNMENT CODE SECTION 54954.3
Members of the City Council are also members of Lynwood Public Financing Authority, which is concurrently convening with the City Council this evening and each Council Member is paid an Additional Stipend of $100 for Attending the Lynwood Public Financing Authority Meeting. Further, the Authority is scheduled to meet four (4) timer per year. If additional meetings are required beyond the scheduled four (4) meetings, the City Council will only get paid for the first four(4) meetings.
PUBLIC ORAL COMMUNICATIONS
(Regarding Agenda Items Only)
NON-AGENDA PUBLIC ORAL COMMUNICATIONS
Lynwood Public Financing Authority - Page 1 of 50
THIS PORTION PROVIDES AN OPPORTUNITY FOR THE PUBLIC TO ADDRESS THE LYNWOOD PUBLIC
FINANCING AUTHORITY ON ITEMS WITHIN THE JURISDICTION OF THE
LYNWOOD PUBLIC FINANCING
AUTHORITY
AND NOT LISTED ON THE AGENDA. IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO
SUBSTANTIAL DISCUSSION OF THE ISSUE BY
LYNWOOD PUBLIC FINANCING AUTHORITY
, BUT
LYNWOOD
PUBLIC FINANCING AUTHORITY
MAY REFER THE MATTER TO STAFF OR SCHEDULE SUBSTANTIVE
DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54954.2 (a).)
CONSENT CALENDAR
ALL MATTERS LISTED UNDER THE CONSENT CALENDAR WILL BE ACTED UPON BY ONE MOTION AFFIRMING THE ACTION RECOMMENDED ON THE AGENDA. THERE WILL BE NO SEPARATE DISCUSSION ON
THESE ITEMS PRIOR TO VOTING UNLESS MEMBERS OF THE COUNCIL OR STAFF REQUEST SPECIFIC ITEMS TO BE REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION.
5. PREVIOUS MEETING MINUTES
Comments:
Approving previous meeting minutes for the Lynwood Public Financing Authority (CC) October 18, 2022 Regular LPFA Meeting
Recommendation:
Staff recommends that the Lynwood Public Financing Authority approve the following minutes:
October 18, 2022 Regular LPFA Meeting
6. TREASURER'S MONTHLY INVESTMENT REPORT
Comments:
The purpose of this item is to have the Honorable President and Members of the Public Finance Authority review the Treasurer’s Monthly Investment Report as required by State Statutes. (CT)
Recommendation:
The following is the Investment Report for the month ending December 31, 2022. This report is provided to ensure City Council is informed of the Department’s investment activities. The report satisfies the recommended reporting requirements of the City of Lynwood, which addresses the City Council’s request for monthly financial information.
It is recommended that the City Council for the City of Lynwood receive and file the attached Monthly Investment Report.
7. TREASURER'S QUARTERLY REPORT
Comments:
The purpose of this item is to have the Honorable Mayor and the Lynwood City Council review the Treasurer’s Quarterly Investment Report as required by State Statutes. (CT)
Recommendation:
It is recommended that the City of Lynwood receive and file the attached Quarterly Investment Report.
The following information provided in this report highlights the investment activity for the 2nd quarter ending December 31, 2022.
ADJOURNMENT
THE LYNWOOD PUBLIC FINANCE AUTHORITY MEETINGS WILL BE POSTED AS NEEDED. THE NEXT MEETING WILL BE HELD IN THE COUNCIL CHAMBERS OF CITY HALL ANNEX, 11350 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA.
Lynwood Public Financing Authority - Page 2 of 50
Agenda Item # 5.
AGENDA STAFF REPORT
DATE:
February 7, 2023
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Ernie Hernandez, City Manager
PREPARED BY:
Maria Quinonez, City Clerk
Silvia Pineda, Assistant to the City Clerk
SUBJECT:
PREVIOUS MEETING MINUTES
Recommendation:
Staff recommends that the Lynwood Public Financing Authority approve the following minutes:
October 18, 2022 Regular LPFA Meeting
Background:
N/A
Discussion and Analysis:
N/A
Fiscal Impact:
N/A
Coordinated With:
N/A
ATTACHMENTS:
Description
LPFA Regular Meeting 10/18/2022
Lynwood Public Financing Authority - Page 3 of 50 Agenda Item # 2 1 Lynwood Public Financing Authority Meeting
Meeting Minutes
October 18, 2022
01. CALL TO ORDER
The Lynwood Public Financing Authority Meeting of the City of Lynwood met in the Council Chambers, 11350 Bullis Road Lynwood, CA 90262 or Web conference via ZOOM - To participate via Zoom or by telephone: 1-669-900-9128 or 1-253-215-8782 Meeting ID: 835 2029 8238 on the above date at 6:00 p.m.
Meeting called to order at 6:31 p.m.
President Casanova presiding.
02. CERTIFICATION OF AGENDA POSTING BY SECRETARY
Secretary Quiňonez announced the Agenda had been duly posted in accordance with the Brown Act.
03. ROLL CALL OF MEMBERS
PRESENT: MEMBERS FLORES, SANTANA, SOTO, VICE PRESIDENT
SOLACHE AND PRESIDENT CASANOVA
ABSENT: NONE
STAFF PRESENT:
Chief Administrative Officer Hernandez, City Attorney Tapia, City Treasurer Camacho, Secretary Quiňonez.
04. GOVERNMENT CODE SECTION 54954.3
Secretary Quiňonez stated the following:
Members of the City Council are also members of the Lynwood Public Financing Authority, which is concurrently convening with the City Council this evening and each Member is paid an additional stipend of $100 for attending the Lynwood Public Financing Authority Meeting. Further, the Authority is scheduled to meet four (4) times per year. If additional meetings are required beyond the scheduled four (4) meetings, the City Council will only get paid for the first four (4) meetings.
PUBLIC ORAL COMMENT
(Regarding Agenda Items Only)
NONE
NON-AGENDA PUBLIC ORAL COMMUNICATIONS
Lynwood Public Financing Authority - Page 4 of 50 Agenda Item # 2 2 NONE
CONSENT CALENDAR
All matters listed under the Consent Calendar will be acted upon by one motion affirming the action recommended on the agenda. There will be no separate discussion on these items prior to voting unless members of the Council or staff request specific items be removed from the Consent Calendar for separate action.
MOTION: It was moved by Member Santana, seconded by Member Soto to approve the consent calendar. Motion carried by 5-0 vote.
ROLL CALL:
AYES: MEMBERS FLORES, SANTANA, SOTO, VICE PRESIDENT
SOLACHE AND PRESIDENT CASANOVA
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
05. TREASURER’S MONTHLY INVESTMENT REPORT
Received & Filed Investment Report for the month ending September 30, 2022
ADJOURNMENT
Having no further discussion, it was moved by Member Santana, seconded by Vice President Solache to adjourn the Lynwood Public Financing Authority meeting at 6:33 p.m. Motion carried by unanimous consent.
____________________ ______________________
Maria Quiňonez, Secretary Jorge Casanova, President
Lynwood Public Financing Authority - Page 5 of 50 Agenda Item # 2 Agenda Item # 6.
AGENDA STAFF REPORT
DATE:
February 7, 2023
TO:
Honorable President and Members of the Public Finance Authority
APPROVED BY:
Ernie Hernandez, City Manager
PREPARED BY:
Sheila Harding, Deputy City Treasurer
SUBJECT:
TREASURER'S MONTHLY INVESTMENT REPORT
Recommendation:
The following is the Investment Report for the month ending December 31, 2022. This report is provided to ensure City Council is informed of the Department’s investment activities. The report satisfies the recommended reporting requirements of the City of Lynwood, which addresses the City Council’s request for monthly financial information.
It is recommended that the City Council for the City of Lynwood receive and file the attached Monthly Investment Report.
Background:
Government Code Section 53607, last amended 1996, with reference to the reporting of investment transactions states that the Treasurer
shall
make a monthly report of those transaction to the legislative body. Government Code Section 53646 (b) (1), last amended 2004, with reference to discussion related to establishment of an Investment Policy and investment reporting states that “the Treasurer may render a quarterly report”. To determine the applicable code inasmuch as reference to Government Code Section 53607 or non-compliance thereof has never been included in past audit findings. While Government Code Section 53646 (b) (1) which is the most current version related to Investment Reporting utilizes the word “may” indicating the reporting mechanism is optional, to err on the side of caution, and in order to ensure that we are in compliance with all Government Codes, a new procedure of submitting monthly reports to the Council/Agency agenda was implemented. Attached for Council/Agency review is the City’s/Agency’s Monthly Treasurer’s Report.
Discussion and Analysis:
The investment transactions were executed in accordance with the City's Investment Policy and the California State Government Code Section 5346(b)(3) that requires the general fund is able to meet its expenditure requirements for the next six months.
Lynwood Public Financing Authority - Page 6 of 50 Agenda Item # 3 Fiscal Impact:
The action recommended in this report will not have a fiscal impact on the City.
Coordinated With:
FHN Financial Main Street Advisors currently monitors the City’s investment activities.
ATTACHMENTS:
Description
ACTIVITY & PERFORMANCE SUMMARY - DEC 2022
FHN ECONOMIC REPORT - DECEMBER 2022
NRF & CONFERENCE BOARD GLOBAL - DECEMBER 2022
Lynwood Public Financing Authority - Page 7 of 50 Agenda Item # 3
ACTIVITY & PERFORMANCE SUMMARY
DECEMBER 2022
1 The following is the City’s cash flow and the monthly investment report. The monthly report includes a summary of the City’s investment portfolio, a monthly review of the investment market as prepared by the investment managers and detailed information on monthly transactions, cash flows and investments by issuer.
FHN Investment Advisors manage the portion of investments not invested by LAIF (State Local Agency Investment Fund).
The tables below provide key statistics regarding the City’s cash flow and investment portfolio as of December 31, 2022.
Type Balances Held
Cash - US Bank $48,689,265.10
Cash - JPMorgan Chase Bank $8,056,091.92
Local Agency Investment Fund $9,595,678.13
FHN Investment Advisors/BNY 25,744,440.91
TOTAL $92,085,476.06
FHN ACCOUNT SUMMARY
31-Dec 30- Nov
Market Value $35,344,239 $35,314,063
Book Value $36,481,176 $36,466,189
Variance (1,136,936) ($1,152,126)
Par Value $36,500,250 $36,492,754
Net Asset Value $96.88 $96.84
Book Yield 2.38% 2.35%
Market Yield 3.95% 3.88%
Years to Maturity 1.69 1.75
Effective Duration 1.45 1.45
FHN INVESTMENT COMPLIANCE
% %
Company Book Value of
Portfolio
Allowed
by Policy
US Treasuries 6,499,374.86 17.82% 100%
US Federal Agencies 10,450,169.07 28.65% 100%
Supranational Obligations $0.00 0% 30%
LAIF 9,595,678.13 26.30% 75%
Commercial Paper 1,478,968.63 4.05% 25%
Money Market Funds 52,571.67 0.14% 20%
Negotiable Certificates of Deposit 4,915,622.91 13.47% 30% Corporate Obligations 3,488,790.30 9.56% 30%
State and Local Governments $0.00 0% 100%
Total 36,481,175.57 100.00%
Lynwood Public Financing Authority - Page 8 of 50 Agenda Item # 3
ACTIVITY & PERFORMANCE SUMMARY
DECEMBER 2022
2 All of the City’s rated investments were rated “A” or higher by at least two rating agencies on December 2022. The City’s investments comply with its current investment policy, which emphasizes the safety, liquidity, and return of its investments, allowing the city to meet its expenditures for the next six months.
PURCHASES & MATURITIES
No Purchases or Redemptions for the month of December 2022.
FHN INCOME EARNED SUMMARY
December
Month End
Fiscal Year to
Date
INTEREST
Interest Received/Purchased. 7,495.34 191,919.53
Plus Accrued Interest at End of Period 165,558.38 165,558.38 Less Accrued Interest at Beginning of Period -124,829.88 -74,680.06 Interest Earned During Period 48,223.84 282,797.85
Total Adjustments for Amortization/Accretion 7,491.20 25,036.43 Total Capital Gains or Losses 0.00 0.00
Total Earnings During Period 55,715.04 307,834.28
Lynwood Public Financing Authority - Page 9 of 50 Agenda Item # 3 Quarterly Economic and Market Update
December 2022
Lynwood Public Financing Authority - Page 10 of 50 Agenda Item # 3 Economic and Market Update
*Estimates for the current quarter/month, some data are lagged Sources: FHN Main Street and Bloomberg Case-Shiller Home Prices YOY* 8.6% 16.0% (7.4%)
Consumer Confidence 108.3 103.2 5.1
Gold (per ounce) $1,824.02 $1,660.61 $163.41
Dollar Index 103.52 112.12 (8.60)
U.S. Avg Regular Unleaded $3.21 $3.80 ($0.59)
Retail Sales YOY* 8.7% 8.4% 0.3%
S&P 500 3,840 3,586 7.1%
Consumer Price Index YOY* 7.6% 8.2% (0.6%)
1-5 Yr A-AAA Corporate Spread 0.69% 0.81% (0.12%)
Dow Jones 33,147 28,726 15.4%
30 Year Mortgage Rate 6.66% 5.83% 0.83%
1-5 Yr Agency Spread 0.07% 0.03% 0.04%
10 Year T-Note 3.88% 3.83% 0.04%
U.S. Fed Debt Avg Yield* 2.30% 1.99% 0.31%
3 Year T-Note 4.23% 4.29% (0.06%)
5 Year T-Note 4.01% 4.09% (0.09%)
2 Year T-Note 4.43% 4.28% 0.15%
3 Month T-Bill 4.37% 3.27% 1.10%
Labor Force Participation 62.3% 62.3% 0.0%
Effective Fed Funds Rate 4.33% 3.08% 1.25%
U.S. Payrolls Monthly Change 223,000 269,000 (46,000)
Unemployment Rate 3.5% 3.5% 0.0%
12/31/2022
Item 12/31/2022 9/30/2022 Change
2 Lynwood Public Financing Authority - Page 11 of 50 Agenda Item # 3 Economic and Market Update
* Real Rate (Inflation Adjusted)
Source: Bureau of Economic Analysis
Estimate: Bloomberg's Survey of Economists
As of: 12/31/2022
12/31/2022
-1.4
5.2 4.7
1.8 3.3
2.3 1.3
0.6 2.4
1.2 2.4
2.0 1.7
2.0 3.4
4.1 2.8
2.8 2.9
0.7 2.2
2.7 3.6
1.8 -4.6
-29.9
35.3 3.9
6.3 7.0
2.7 7.0
-1.6
-0.6
3.2 1.1
0.0 -0.6
0.0 -45
-35
-25
-15
-5
5 15
25 35
45 Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Percent
U.S. GDP (Quarter over Quarter Annualized)*
Estimates
3 Lynwood Public Financing Authority - Page 12 of 50 Agenda Item # 3 Economic and Market Update
* Real Rate (Inflation Adjusted)
Source: Bureau of Economic Analysis
12/31/2022
Estimate: Bloomberg's Survey of Economists
As of: 12/31/2022
8.7 8.0
4.1 4.7
-0.6
7.1 2.1
2.1 -0.7
6.9 2.6
2.6 6.1
4.4 5.8
6.5 6.6
2.7 4.9
3.1 0.2
3.3 5.3
5.6 -0.5
-0.2
5.4 4.6
5.5 3.2
-0.3
2.5 -1.8
4.6 7.2
4.2 3.5
3.5 4.2
3.7 1.9
-0.1
3.5 2.8
4.0 2.7
3.8 4.4
4.5 4.8
4.1 1.0
1.7 2.8
3.9 3.5
2.8 2.0
0.1 -2.6
2.7 1.5
2.3 1.8
2.3 2.7
1.7 2.2
2.9 2.3
-2.8
5.9 1.9
-10
-9
-8
-7
-6
-5
-4
-3
-2
-1
0 1
2 3
4 5
6 7
8 9
10 1950
1952
1954
1956
1958
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
Percent
U.S. Annual GDP *
1980s 3.2% 1990s 3.2% 2000s 1.9% 2010s 2.3%1960s 4.5% 1970s 3.3%1950s 4.2% 4 Lynwood Public Financing Authority - Page 13 of 50 Agenda Item # 3 Economic and Market Update
Source: Bureau of Labor Statistics
12 Month Average Job Change 375,250
12/31/2022
-22
-20
-18
-16
-14
-12
-10
-8
-6
-4
-2
0 2
4 6
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Millions
U.S. Monthly Non-Farm Payrolls Change
-25.0
-20.0
-15.0
-10.0
-5.0
0.0 5.0
10.0 15.0
20.0 Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Millions
U.S. Monthly Non-Farm Payrolls YOY Change
5 Lynwood Public Financing Authority - Page 14 of 50 Agenda Item # 3 Economic and Market Update
Source: Bureau of Labor Statistics
12/31/2022
0 5
10 15
20 25
30 Jun-18
Aug-18
Oct-18
Dec-18
Feb-19
Apr-19
Jun-19
Aug-19
Oct-19
Dec-19
Feb-20
Apr-20
Jun-20
Aug-20
Oct-20
Dec-20
Feb-21
Apr-21
Jun-21
Aug-21
Oct-21
Dec-21
Feb-22
Apr-22
Jun-22
Aug-22
Oct-22
Dec-22
Percent
Unemployment Rates
U.S.A Nevada California Idaho Washington Hawaii Oregon Utah 6 Lynwood Public Financing Authority - Page 15 of 50 Agenda Item # 3 Economic and Market Update
Source: Bureau of Labor Statistics
12/31/2022
128
130
132
134
136
138
140
142
144
146
148
150
152
154
156
Dec-12
Jul-13
Feb-14
Sep-14
Apr-15
Nov-15
Jun-16
Jan-17
Aug-17
Mar-18
Oct-18
May-19
Dec-19
Jul-20
Feb-21
Sep-21
Apr-22
Nov-22
Millions
U.S. Number of Employed
Full-Time and Part-Time
60.0 60.5
61.0 61.5
62.0 62.5
63.0 63.5
64.0 Dec-12
Jul-13
Feb-14
Sep-14
Apr-15
Nov-15
Jun-16
Jan-17
Aug-17
Mar-18
Oct-18
May-19
Dec-19
Jul-20
Feb-21
Sep-21
Apr-22
Nov-22
Percent
U.S. Labor Force Participation Rate
7 Lynwood Public Financing Authority - Page 16 of 50 Agenda Item # 3 Economic and Market Update
Source: Department of Labor and Bloomberg
12/31/2022
Weekly Initial Jobless Claims is the actual number of people who have filed for Unemployment benefits for the first time. The following five eligibility criteria must be met in order to file for unemployment benefits: 1. Meet the requirements of time worked during a 1 year period (full time or not). 2. Become unemployed through no fault of your own (cannot be fired). 3. Must be able to work; no physical or mental holdbacks. 4. Must be available for work. 5. Must be actively seeking work.
0.0 0.5
1.0 1.5
2.0 2.5
3.0 3.5
4.0 4.5
5.0 5.5
6.0 1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Millions
Weekly Initial Jobless Claims
(4 Week Moving Average)
8 Lynwood Public Financing Authority - Page 17 of 50 Agenda Item # 3 Economic and Market Update
*Real: Inflation Adjusted
Source: U.S. Census Bureau Source: Conference Board
12/31/2022
-30
-20
-10
0 10
20 30
40 50
60 Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Percent
U.S. Real* Retail Sales YOY % Change
40 50
60 70
80 90
100
110
120
130
140
Jun-12
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
Jun-15
Dec-15
Jun-16
Dec-16
Jun-17
Dec-17
Jun-18
Dec-18
Jun-19
Dec-19
Jun-20
Dec-20
Jun-21
Dec-21
Jun-22
Dec-22
Index Value
U.S. Consumer Confidence
9 Lynwood Public Financing Authority - Page 18 of 50 Agenda Item # 3 Economic and Market Update
CPIX: Consumer Price Index, excluding food and energy PCEC: Personal Consumption Expenditure Core Source: Bureau of Labor Statistics and Bureau of Economic Analysis 12/31/2022
0.0 1.0
2.0 3.0
4.0 5.0
6.0 7.0
8.0 9.0
10.0 Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Percent
CPI and CPIX YOY % Change
CPI
CPIX
0.0 1.0
2.0 3.0
4.0 5.0
6.0 7.0
8.0 Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Percent
PCE and PCEC YOY % Change
PCE
PCEC
10 Lynwood Public Financing Authority - Page 19 of 50 Agenda Item # 3 Economic and Market Update
Sources: New (U.S. Census Bureau),Existing (National Assoc. of Realtors) Source: Case-Shiller Seasonally Adjusted Annual Rate
12/31/2022
0 2
4 6
8 10
12 14
16 18
20 22
24 Jul-14
Dec-14
May-15
Oct-15
Mar-16
Aug-16
Jan-17
Jun-17
Nov-17
Apr-18
Sep-18
Feb-19
Jul-19
Dec-19
May-20
Oct-20
Mar-21
Aug-21
Jan-22
Jun-22
YOY Percent
Case-Shiller 20 City U.S. Home Price Index
YOY % Increase
200
300
400
500
600
700
800
900
1,000
1,100
3.0 3.5
4.0 4.5
5.0 5.5
6.0 6.5
7.0 Jun-14
Dec-14
Jun-15
Dec-15
Jun-16
Dec-16
Jun-17
Dec-17
Jun-18
Dec-18
Jun-19
Dec-19
Jun-20
Dec-20
Jun-21
Dec-21
Jun-22
New-Thousands
Existing-Millions
U.S. New and Existing Home Sales
Existing-Left
New-Right
11 Lynwood Public Financing Authority - Page 20 of 50 Agenda Item # 3 Economic and Market Update
Source: U.S. Treasury
12/31/2022
$12
$13
$14
$15
$16
$17
$18
$19
$20
$21
$22
$23
$24
$25
$26
$27
$28
$29
$30
$31
$32
$33
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
Jun-15
Dec-15
Jun-16
Dec-16
Jun-17
Dec-17
Jun-18
Dec-18
Jun-19
Dec-19
Jun-20
Dec-20
Jun-21
Dec-21
Jun-22
Trillions
U.S. Federal Debt Outstanding
1.3 1.5
1.7 1.9
2.1 2.3
2.5 2.7
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
Jun-15
Dec-15
Jun-16
Dec-16
Jun-17
Dec-17
Jun-18
Dec-18
Jun-19
Dec-19
Jun-20
Dec-20
Jun-21
Dec-21
Jun-22
Percent
U.S. Treasury Interest Bearing Debt Avg Rate
12 Lynwood Public Financing Authority - Page 21 of 50 Agenda Item # 3 Economic and Market Update
Fed Funds Anticipated Rate from the September 21, 2022 FOMC Meeting Source: Bloomberg
12/31/2022
2.00 2.50
3.00 3.50
4.00 4.50
5.00 5.50
Dec-2022
Jan-2023
Feb-2023
Mar-2023
Apr-2023
May-2023
Jun-2023
Jul-2023
Aug-2023
Sep-2023
Oct-2023
Nov-2023
Dec-2023
Jan-2024
Feb-2024
Mar-2024
Apr-2024
May-2024
Jun-2024
Jul-2024
Aug-2024
Sep-2024
Oct-2024
Nov-2024
Dec-2024
Jan-2025
Feb-2025
Mar-2025
Apr-2025
May-2025
Jun-2025
Jul-2025
Aug-2025
Sep-2025
Oct-2025
Nov-2025
Dec-2025
Jan-2026
Percent
Fed Funds FuturesFed's Anticipated Rates
Fed Funds Futures
13 Lynwood Public Financing Authority - Page 22 of 50 Agenda Item # 3 Economic and Market Update
Source: Bloomberg
Figures may not total due to rounding
12/31/2022
3Y 4.23 4.29 -0.06
30Y 3.97 3.78 0.19
5Y 4.01 4.09 -0.09
10Y
4.37 3.88 3.83 0.04
Change9/30/2212/30/22
3M
Maturity
0.154.284.432Y
0.723.994.711Y
0.833.934.766M
1.103.27
0.0 0.5
1.0 1.5
2.0 2.5
3.0 3.5
4.0 4.5
5.0 3M 6M 1Y 2Y 3Yr 5Y 10Y 30Y
Percent
U.S. Treasury Yield Curve Change
12/30/22
9/30/22
-20
0 20
40 60
80 100
120
3M
6M
1Y
2Y
3Yr
5Y
10Y
30Y
Basis Points
Basis Point Change
14 Lynwood Public Financing Authority - Page 23 of 50 Agenda Item # 3 Economic and Market Update
Source: Bloomberg
12/31/2022
0.00 0.25
0.50 0.75
1.00 1.25
1.50 1.75
2.00 2.25
2.50 2.75
3.00 3.25
3.50 3.75
4.00 4.25
4.50 4.75
5.00 Dec-17
Mar-18
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Percent
U.S. Treasury Yields: 3M and 1Y
1Y
3M
0.00 0.25
0.50 0.75
1.00 1.25
1.50 1.75
2.00 2.25
2.50 2.75
3.00 3.25
3.50 3.75
4.00 4.25
4.50 4.75
Dec-17
Mar-18
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Percent
U.S. Treasury Yields: 2Y and 5Y
5Y
2Y
15 Lynwood Public Financing Authority - Page 24 of 50 Agenda Item # 3 Economic and Market Update
Source: Bloomberg
12/31/2022
0 1
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
Jan-54
Jan-56
Jan-58
Jan-60
Jan-62
Jan-64
Jan-66
Jan-68
Jan-70
Jan-72
Jan-74
Jan-76
Jan-78
Jan-80
Jan-82
Jan-84
Jan-86
Jan-88
Jan-90
Jan-92
Jan-94
Jan-96
Jan-98
Jan-00
Jan-02
Jan-04
Jan-06
Jan-08
Jan-10
Jan-12
Jan-14
Jan-16
Jan-18
Jan-20
Jan-22
Percent
U.S. Treasury Yields 2Yr and 5Yr - Fed Funds Target Rate 5Yr
2Yr
Fed Funds
16 Lynwood Public Financing Authority - Page 25 of 50 Agenda Item # 3 Economic and Market Update
Source: Bloomberg
12/31/2022
Global Treasury Rates
2 Year Yields 5 Year Yields 10 Year Yields
0.03%
1.22%
2.74%
2.77%
2.83%
2.89%
3.24%
3.40%
3.53%
4.05%
4.43%
-2.0% 0.0% 2.0% 4.0%
Japan
Switzlnd
Germany
Portugal
France
Spain
Italy
Australia
England
Canada
USA
0.23%
1.42%
2.57%
2.87%
2.95%
3.14%
3.41%
3.60%
3.68%
4.00%
4.00%
-1.0% 1.0% 3.0% 5.0%
Japan
Switzlnd
Germany
France
Portugal
Spain
Canada
England
Australia
Italy
USA
0.41%
1.58%
2.57%
3.11%
3.30%
3.58%
3.65%
3.66%
3.87%
4.05%
4.70%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0%
Japan
Switzlnd
Germany
France
Canada
Portugal
Spain
England
USA
Australia
Italy
17 Lynwood Public Financing Authority - Page 26 of 50 Agenda Item # 3 Economic and Market Update
ICE BofAML Index (option adjusted spread vs. Treasury) ICE BofAML Index (option adjusted spread vs. Treasury) 1-5Yr Non-Callable Agency (GVPB) Corporate A-AAA Excluding Yankee (CVAC) Source: ICE BofAML Indices
12/31/2022
Current Spread is 7 Current Spread is 69
-20
0 20
40 60
80 100
120
140
160
180
Nov-08
Nov-09
Nov-10
Nov-11
Nov-12
Nov-13
Nov-14
Nov-15
Nov-16
Nov-17
Nov-18
Nov-19
Nov-20
Nov-21
Nov-22
Basis Points
Spread: 1-5Yr Agency vs Treasury
0 50
100
150
200
250
300
350
400
450
500
550
600
650
Nov-08
Nov-09
Nov-10
Nov-11
Nov-12
Nov-13
Nov-14
Nov-15
Nov-16
Nov-17
Nov-18
Nov-19
Nov-20
Nov-21
Nov-22
Basis Points
Spread: 1-5Yr A-AAA Corporate vs Treasury
18 Lynwood Public Financing Authority - Page 27 of 50 Agenda Item # 3 Economic and Market Update
*ICE BofAML Index (option adjusted spread vs. Treasury) *ICE BofAML Index (option adjusted spread vs. Treasury) AAA Rated ABS (R0A1) CMO Agency 0-3Yr PAC (CM1P)
Source: ICE BofAML Indices
12/31/2022
Current Spread is 88 Current Spread is 71
0 50
100
150
200
250
300
350
400
450
500
550
600
650
700
750
800
Nov-08
Nov-09
Nov-10
Nov-11
Nov-12
Nov-13
Nov-14
Nov-15
Nov-16
Nov-17
Nov-18
Nov-19
Nov-20
Nov-21
Nov-22
Basis Points
Spread: AAA Asset Backed vs Treasury
-150
-100
-50
0 50
100
150
200
250
300
Nov-08
Nov-09
Nov-10
Nov-11
Nov-12
Nov-13
Nov-14
Nov-15
Nov-16
Nov-17
Nov-18
Nov-19
Nov-20
Nov-21
Nov-22
Basis Points
Spread: 0-3Yr Agency CMO vs Treasury
19 Lynwood Public Financing Authority - Page 28 of 50 Agenda Item # 3 Economic and Market Update
Source: Bloomberg
12/31/2022
-7.0
-1.9
-0.1
0.6 0.7 0.9 1.6 1.9 2.0 2.4
4.3 4.7 4.8
7.4 7.6
8.6 9.0 9.7
10.8 15.8 15.9
17.7 (10)
(5)
0 5
10 15
20 Percent
Selected Sector Quarterly Total Returns
20 Lynwood Public Financing Authority - Page 29 of 50 Agenda Item # 3 Economic and Market Update
Source: Bloomberg
12/31/2022
-32.6 -31.2
-26.2
-21.9 -21.2
-18.2 -18.0 -16.2 -15.2 -14.4 -13.1 -13.0 -12.2 -12.2
-7.0 -5.6 -3.9
-0.6
0.9 9.5
17.5 29.0
(40)
(30)
(20)
(10)
0 10
20 30
40 Percent
Selected Sector Year-Over-Year Total Returns
21 Lynwood Public Financing Authority - Page 30 of 50 Agenda Item # 3 Economic and Market Update
Sources: Bloomberg, FHN Main Street
12/31/2022
3.50 3.60
3.70 3.80
3.90 4.00
4.10 4.20
4.30 4.40
4.50 9/30/22
10/3/22
10/6/22
10/9/22
10/12/22
10/15/22
10/18/22
10/21/22
10/24/22
10/27/22
10/30/22
11/2/22
11/5/22
11/8/22
11/11/22
11/14/22
11/17/22
11/20/22
11/23/22
11/26/22
11/29/22
12/2/22
12/5/22
12/8/22
12/11/22
12/14/22
12/17/22
12/20/22
12/23/22
12/26/22
12/29/22
Percent
5 Year Treasury Note Yield
Yields Higher After
Bank Of Japan Raises
Cap On 10-Year Japan
Government Bonds
Core CPI Up 0.6%
Month Over Month
Fed Hikes Rates
75bpsUnemployment Rate
Dropped To 3.5%, The
Lowest Level In Decades
Q3 GDP Up 2.6%
Powell Says Fed May
Slow Down Pace Of
Rate Hikes
Treasuries Post Biggest
Annual Loss Ever, As
Inflation Takes Toll
CPI YoY Up 7.1% Versus
Expected 7.3%, Beating
Expectations
San Francisco Fed's Daly
Says Rate Pause Is Off
The Table
October CPI 0.4% MoM
Core 0.3%
22 Lynwood Public Financing Authority - Page 31 of 50 Agenda Item # 3 Economic and Market Update
Sources: Bloomberg, FHN Financial, FHN Main Street
12/31/2022
28,000
29,000
30,000
31,000
32,000
33,000
34,000
35,000
9/30/22
10/3/22
10/6/22
10/9/22
10/12/22
10/15/22
10/18/22
10/21/22
10/24/22
10/27/22
10/30/22
11/2/22
11/5/22
11/8/22
11/11/22
11/14/22
11/17/22
11/20/22
11/23/22
11/26/22
11/29/22
12/2/22
12/5/22
12/8/22
12/11/22
12/14/22
12/17/22
12/20/22
12/23/22
12/26/22
12/29/22
Dow Jones Industrial Average
Sales Forecast By Best Buy
Dampens Concerns High
Inflation Would Lead To
Poor Holiday Shopping
Season
Upbeat Corporate Earnings
And Economic Data Cause
Stocks To Rally
August Job
Openings Fall To 14-
Month Low
Powell Says Fed Could
Slow Down Pace Of
Interest Rate Hikes As
Early As December
University Of Michigan Inflation
Expectations Rise For First Time
In Seven Months
Lower Than Expected
October CPI Raises Hopes
For Slower Tightening
Apple Gains On Earnings
Help Push Stocks Higher
Smaller Than Expected
Increase In CPI Lifts
Investor Confidence
Pace Of Rate Hikes
Expected To Slow
23 Lynwood Public Financing Authority - Page 32 of 50 Agenda Item # 3 Disclosure
This report represents the opinions of FHN Financial Main Street Advisors, LLC and should not be considered predictive of any future market performance. Opinions are subject to change without notice. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered investment advice or a recommendation of any particular security, investment strategy, or investment product.
Although this information has been obtained from sources which we believe to be reliable, we do not guarantee its accuracy, a nd it may be incomplete or condensed.
This is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. All herein listed securities are subject to availability and change in price. Past performance is not indicative of future results, and changes in any assumpt ions may have a material effect on projected results. Ratings on all securities are subject to change.
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FHN Financial Municipal Advisors is a registered municipal advisor. FHN Financial Portfolio Advisors is a portfolio manager operating under the trust powers of First Horizon Bank. FHN Financial Main Street Advisors, LLC is a registered investment advisor. None of the other FHN entities, including FHN Financial Capital Markets, FHN Financial Securities Corp., or FHN Financial Capital Assets Corp. are acting as your advisor, and none owe a fiduciary duty under the securities laws to you, any municipal entity, or any obligated person with respect to, among other things, the information and material contained in this communica tion. Instead, these FHN entities are acting for their own interests. You should discuss any information or material contained in this communication with any and a ll internal or external advisors and experts that you deem appropriate before acting on this information or material.
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Source: ICE Data Indices, LLC ("ICE"), is used with permission. ICE, ITS AFFILIATES AND THEIR RESPECTIVE THIRD PARTY SUPPLIER S DISCLAIM ANY AND ALL WARRANTIES
AND REPRESENTATIONS, EXPRESS AND/OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, INCLUDING THE INDICES, INDEX DATA AND ANY DATA INCLUDED IN, RELATED TO, OR DERIVED THEREFROM. NEITHER ICE DATA, ITS AFFILIATES OR THEIR RESPECTIVE THIRD PARTY
PROVIDERS SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY WITH RESPECT TO THE QUALITY, ADEQUACY, ACCURACY, TIMELINESS OR COM PLETENESS OF THE INDICES OR THE INDEX DATA OR ANY COMPONENT THEREOF, AND THE INDICES AND INDEX DATA AND ALL COMPONENTS THEREOF ARE PROVIDED ON AN "AS IS" BASIS AND SUBSCRIBER'S USE IS AT SUBSCRIBER'S OWN RISK. ICE DATA, ITS AFFILIATES AND THEIR RESPECTIVE THIRD PARTY DO NOT SPONSOR, E NDORSE, OR RECOMMEND FHN FINANCIAL MAIN STREET ADVISORS, LLC, OR ANY OF ITS PRODUCTS OR SERVICES. 24 Lynwood Public Financing Authority - Page 33 of 50 Agenda Item # 3 1 MONTHLY ECONOMIC REVIEW
DECEMBER 2022
NATIONAL RETAIL FEDERATION
After two straight quarters of year-over-year decline, the third quarter’s 2.6% annualized growth in gross domestic product was a solid improvement and much better than expected. The third quarter’s results clearly dispelled the notion that the U.S. economy is in a recession, and the silver lining was the ongoing resiliency in consumption. Even though consumers made fewer purchases, they continued to spend on both goods and services and helped lift GDP. A strong labor market, rising wages and access to excess savings built up during the pandemic have given households strong balance sheets that have helped spending continue despite inflation and higher interest rates.
Nonetheless, the economy is cooling and interest-sensitive sectors, in particular, have seen a significant pullback in spending. This has been especially notable in housing, where the Federal Reserve's aggressive efforts to rein in inflation have resulted in a sharp rise in mortgage rates that have left many potential buyers unable to afford a home. Correspondingly, builder confidence in the market for newly built single-family homes posted its 11th straight monthly decline in November and builders are cutting back on single-family construction.
GDP is expected to grow very gradually in the closing months of 2022, at best about half of what was recorded in the third quarter. Consumers are stepping back to a degree and changing how they allocate their resources, spending more on food and less on other retail goods. At the same time, spending on services has been hearty in recent months and there is no reason to expect that it will moderate even with the continued upward pace of service sector inflation.
Even with inflation, the willingness to spend has been stable for the better part of this year, with retail sales growing 7.5% year over year for the first 10 months. That is on track with NRF’s forecasts that overall, 2022 retail sales and November-December holiday sales will both grow between 6% and 8% over 2021. The pace slowed to 6.5% in October, but that was largely due to the comparison against strong early holiday shopping in 2021.
Many eyes have focused on October’s inflation data, and a range of measures was better than expected.
The big questions are whether inflation has peaked, and will it be coming down? The Consumer Price Index was up 7.7% year over year, down from 8.2% in September for the lowest inflation level since January. At the same time, core inflation (which excludes food and energy) was at 6.3%, down from September’s 40-year high of 6.6%. Meanwhile, average hourly earnings for October were up 4.7% year over year compared with 5% in September, also sending a message that inflation may be receding.
While these changes were all in the right direction, it is too soon to see if they are the beginning of a stable downward trend.
Overall job growth has clearly slowed since the start of the year, but labor demand is not cooling as quickly as the Fed – and markets – would like. Additions are moderating but job openings bounced back in September to 10.7 million from 10.3 million in August. The labor market eased somewhat in October as payrolls increased by 261,000.
Lynwood Public Financing Authority - Page 34 of 50 Agenda Item # 3 2 It is hard to anticipate whether the Fed’s monetary tightening will lead to a recession or how bad one might be if it does occur. The risk is clearly elevated by the current framework of rate hikes, but the full effects remain to be seen and one key is how much slowing in the labor market is needed to bring wage growth in line with the Fed’s long-run inflation goals.
As the labor market slows further, as expected in 2023, income growth should slow with it. The good news is that slower job gains should sap momentum from both consumer spending and rising labor costs, hopefully reducing inflationary pressure.
Even though both may slow, employment will still be growing, and consumer spending should remain positive. There will be economic hardships, and some may feel like they are in a recession. But for those who have jobs and feel secure about their employment, careful spending will continue. The downside risk is that “sticky” wages and prices for services – both tend to stay up once they go up – will keep inflation aloft and push the Fed to hold rates higher for longer.
So, what does this all mean? The slowdown in economic growth in 2022 combined with the expansion in the labor market have clearly helped bring economic activity in better balance with labor. But there is a long journey ahead between where we are now and where we need to be. If inflation pressures continue to lessen, the Fed may not be inclined to persist with aggressive interest rate hikes, but that remains to be seen. In the meantime, if prices for gas, groceries and other products decelerate, we will all be able to breathe a little easier.
CONFERENCE BOARD GLOBAL ECONOMIC REPORT
Global real GDP growth is slowing rapidly, from 5 percent year over year in Q3 of 2021 to 3.3 percent in Q3 of 2022. As headwinds to global growth are intensifying, we expect yearly global GDP growth to moderate further to about 2 percent from Q4 2022 onward. Headwinds include persistent inflationary pressures limiting demand and production, very rapid tightening of global financial conditions, and low levels of business and consumer confidence in large economies around the world.
The Conference Board Global Leading Economic Index has contracted for a couple of months now, pointing to rising risks of a downturn. Our forecast for global GDP is for 3.2 percent growth in 2022 and
2.1 percent in 2023. Global growth of 2.1 percent does not formally constitute a global recession, but if achieved it would be the weakest growth rate since 2001 (outside of global recession years 2009 and 2020). In 2024, the global economy likely will experience a modest revival to 2.7 percent growth as shocks related to the pandemic, inflation, and monetary tightening fade. However, growth rates in 2024 After growing by an estimated 1.9 percent in 2022, real GDP is forecast to stagnate for the full year of 2023 and pick up again in 2024 with 1.7 percent growth.
Europe
Europe has likely entered into recession as of Q4 2022 and probably will remain so into the early part of 2023. European economies expected to experience recession include large economies such as Italy, Germany, and the UK, as well as smaller economies such as Czech Republic, Denmark, Hungary, Poland, Romania, Sweden, and Switzerland. CEO confidence fell to an all-time low in H2 2022, reflecting the Lynwood Public Financing Authority - Page 35 of 50 Agenda Item # 3 3 challenging outlook ahead. Still, a variety of factors including fading supply chain woes, a robust labor market, and fiscal stimulus portend a short and shallow recession.
After growing by an estimated 3.5 percent in 2022, real GDP is forecast to slow to 0.2 percent growth for the full year of 2023 and pick up again in 2024 with 1.1 percent growth.
China
The Chinese economy has been buffeted by significant challenges from the pandemic, housing, and external trade in 2022. Businesses and consumers chafed at mobility restrictions and lockdowns, and the government has responded by softening its dynamic zero-COVID-19 policies. Confidence among multinational company CEOs improved in H2 2022 in anticipation of better economic performance in 2023. Still, China is not ready to fully shift away from the polices, given low vaccination rates among the elderly and widespread fear of the virus among the general population. Even once restrictions are lifted, there will be an adjustment period as the fear factor subsides. This points to H2 2023 as the period for a resurgence of consumer spending on services, limiting full-year 2023 growth.
After growing by an estimated 2.7 percent in 2022, real GDP is forecast to pick up to 5.1 percent growth for the full year of 2023 and 4.8 percent for 2024.
Emerging Markets
Economic conditions for economies outside China, Europe, and the US are expected to be mixed. While Asian economies apart from China have fared well from reopening, postpandemic, slowing external demand as the US and Europe head toward recession is beginning to cloud growth prospects. The same is true for Latin American economies dependent upon trade with the US and in commodities, whose prices have retreated from early-year peaks. Tighter monetary policy and political instability threatening fiscal outlooks are also troubling select Latin American economies. Elsewhere, Turkey will experience materially slower growth in 2023, but it will avoid recession. Russia and Ukraine will remain in recession due to the ongoing conflict, sanctions (Russia), and widespread destruction (Ukraine).
Lynwood Public Financing Authority - Page 36 of 50 Agenda Item # 3 Agenda Item # 7.
AGENDA STAFF REPORT
DATE:
February 7, 2023
TO:
Honorable President and Members of the Public Finance Authority
APPROVED BY:
Ernie Hernandez, City Manager
PREPARED BY:
Sheila Harding, Deputy City Treasurer
SUBJECT:
TREASURER'S QUARTERLY REPORT
Recommendation:
It is recommended that the City of Lynwood receive and file the attached Quarterly Investment Report. The following information provided in this report highlights the investment activity for the 2nd quarter ending December 31, 2022.
Background:
Due to the crisis caused by the Orange County investment pool, the State Legislature in 1995 enacted SB564 and SB866. These laws were enacted as State Statutes to impose certain mandates regarding investments with public funds. The statutes have imposed the following mandates:
1. Annual adoption of an Investment Policy that incorporates changes mandated by the State.
2. Quarterly Investment Reports presented to the Legislative Body or Board Members.
3. Restriction on the use of certain investment instruments.
The purpose of the Treasurer’s report is to update the City Council and the public of the status of the City’s cash balances, investments and highlight changes from one period to another. This report includes reconciliation between cash and investment balances, a schedule of all investments, and a report providing information on all investment types, costs, interest rates, maturity dates and current market value.
Discussion and Analysis:
The market value of securities fluctuates, depending on how interest rates perform. When interest rates decrease, the market value of the securities in the City’s portfolio will likely increase and when the interest rates increase, the market value of the securities will likely decrease. The City’s practice is to buy and hold investments until maturity so changes in the market price do not affect the City’s investment principal.
Short-term excess cash is primarily invested in the Local Agency Investment Fund (LAIF) administered by the Lynwood Public Financing Authority - Page 37 of 50 Agenda Item # 4 State Treasurer. LAIF is a high quality investment available in terms of safety, liquidity and yield. The City’s cash and investment portfolio is sufficiently liquid to meet expected expenditures for the coming six months.
The majority of property tax revenues are received from the County in December and April and a portion of the revenue received is invested in the Local Agency Investment Fund and can be withdrawn at any time.
There are three petty cash funds totaling $3,300; City Manager's Office totaling $2,000, Finance Department totaling $1,000.00 and City Treasurer's Office totaling $300.00. There are two change funds totaling $640.00; Water Billing $600.00 and Recreation $40.00
The total received from Urban Farming for the quarter reporting is $309,154.23 plus an additional $15,000.00 for cost recovery.
The total amount of Non-Sufficient Funds (NSF) from customers for the quarter reporting is $5,225.52 of which $1,142.74 has been collected. The remaining balance of Non-Sufficient Funds outstanding for the quarter is $4,082.78.
The market valuation is provided by FTN Main Street Capital Advisors and all of the investments are in compliance with California Government Code Sections 53600 et seq. and the City’s investment policy.
Reports prepared by FTN Main Street Capital Advisors are as follows:
Portfolio Summary - Dash Board (October - December)
Portfolio Summary (October - December)
Fiscal Impact:
The action recommended in this report will not have a fiscal impact on the City.
Coordinated With:
FTN Financial Main Street Advisors.
ATTACHMENTS:
Description
QUARTERLY SUMMARY REPORT - DECEMBER 2022
FHN
QUARTERLY - OCT - DEC 2022
Lynwood Public Financing Authority - Page 38 of 50 Agenda Item # 4 Schedule of City Cash & Investments: This schedule provides information on the cash and investments managed by the City.
Quarterly Interest Credit
Money Market/Custody Holdings Balance Interest F/Y to Date JP Morgan Chase ‐ Section 108 MMA 125,636.42$ 252.90$ 349.35$ JP Morgan Chase ‐ Money Market Account 1,887,425.34$ 3,799.29$ 5,248.31$ JP Morgan Chase ‐ Parking Enforcement 6,043,030.16$ 11,944.03$ 16,356.00$ US Bank ‐ City of Lynwood 4,539.88$ 0.09$ 0.19$ Total 8,060,631.80 $ 15,996.31$ 21,953.85$ Demand Deposits
General Account 33,338,891.35$
US Bank ‐ Economic Development 10,696.54$
US Bank ‐ Housing Authority A 71,789.46$
US Bank ‐ Housing Authority B 18,000.09$
US Bank ‐ City HCDA 150,518.11$
US Bank ‐ City Home Program 1,020,153.96$
US Bank ‐ Taxable Tabs 2,611,325.52$
US Bank ‐ Lyn Tr. Center Unf Wrkr 2,791.24$
US Bank ‐ Money Market Account 49,028.48$
US Bank ‐ US Dept. of HUD/Section 108 170,048.96$
US Bank ‐ RORF Successor Agency 3,352,215.35$
US Bank ‐ Low Mod Housing Trst Fnd/Rogel 7,632,058.42$
US Bank ‐ Lynwood Disaster Relief Fund 5,000.00 $
US Bank ‐ Settlement Remittance Fund 340,637.36$
US Bank ‐ Housing Authority 6,376.71$
Total 48,779,531.55 $
Money Market Fund ‐ A Money Market fund is a type of mutual fund that invest in short term debt securities of agenies of the U.S. Government, banks, corporations and U.S. Treasury Bills.
Some advantages of a money market fund over savings and CDs are high liquidity, low risk, and competive yields.
The City currently has a total of five MMA accounts within the City's investment portfolio.
Certificate of Deposit ‐ A Certificate of Deposit or CD, is a time deposit. They are similar to savings accounts in that they are insured and relatively risk‐free. They are different from savings accounts in that they usually are for a fixed term and a fixed interest rae. CDs are inteded to be held until maturity, at which time, the money may be withdrawn together with the accrued interest. The City currently has one CD within the City's investment portfolio
Demand Deposits ‐ Also known as "cash in the bank", this is the balance of the City's checking account with US Bank, from which virtually all obligations are paid.
CITY OF LYNWOOD
QUARTERLY INVESTMENT REPORT
December 31, 2022
Lynwood Public Financing Authority - Page 39 of 50 Agenda Item # 4 Quarter Ending Interest
Issuer Investment Balance Interest Rate
State of California LAIF 9,595,678.13 50,127.50 31‐Dec‐22 2.07% *As of Jan 13, 2023
Local Agency Investment Fund (LAIF):
The Local Agency Investment Fund is managed by the State Treasurer's Office Investment Division through the Pooled Money Investment Account (PIMA). The LAIF allows cities, counties and special districts to place money in a major portfolio and to use the expertise of their Investment Division staff, with no additional cost to taxpayers. Participating agencies can withdraw their funds from the LAIF at any time. The State Treasurer invests money safely and prudently while minimizing the service costs and maximizing the service costs and maximizing the investment yields. These investments help manage cash flow and enhance financial security. The interest earned from the LAIF is distribued quarterly. (See Chart Below) LAIF PARTICIPATION AS OF 9/30/2022
2,385 Agencies
MONEY POOLED INVESTMENT ACCOUNT
(chart dollars in millions)
CITY OF LYNWOOD
QUARTERLY REPORT
December 31, 2022
LAIF Daily Yield 1.60% ‐ Quarter to Date 1.28% ‐ Average Days to Maturity 303 Total $203.7 billion
MONTHLY PORTFOLIO COMPOSITION
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Agencies Certificate
of Deposits
Time
Deposits
Commercial
Paper
Corporate
Bonds
Loans Treasuries
Chart Title
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
54 COUNTIES 476 CITIES 1,440 SPECIAL
DISTRICTS
193 SCHOOL
DISTRICTS
166 TRUSTEES 56 BONDS
Chart Title
Dec. 2022.xlsLynwood Public Financing Authority - Page 40 of 50 Agenda Item # 4 PAR MARKET BOOK % OF
INVESTMENTS VALUE VALUE VALUE PORTFOLIO
*Money Market Funds 52,571.67 $ 52,571.67$ 52,571.67$ 0.14% LAIF 9,595,678.13 $ 9,595,678.13$ 9,595,678.13$ 26.30% Corporate Notes 3,500,000.00 $ 3,380,582.50$ 3,488,790.30$ 9.56% Commercial Paper 1,495,000.00 $ 1,477,457.96$ 1,478,968.63$ 4.05% Federal Agency 10,440,000.00$ 10,099,480.00$ 10,450,169.07$ 28.65% Treasury Coupon Securities 6,500,000.00 $ 6,010,295.00$ 6,499,374.86$ 17.82% CD‐FDIC 4,917,000.00 $ 4,728,173.87$ 4,915,622.91$ 13.47% TOTAL 36,500,249.80 $ 35,344,239.13$ 36,481,175.57$ 99.99% *Money Market Fund held at Goldman Sach
Schedule of City Cash & Investments: This schedule provides information on the cash and investments managed by the City.
Interest Credit
Time Deposit/MM/Certificate of Deposit Balance Maturity Date F/Y to Date JP Morgan Chase (Section 108) 125,636.42 $ N/A 349.35 $ JP Morgan Chase ‐ Money Market Account 1,887,425.34 $ N/A 3,799.29$ JP Morgan Chase ‐ Parking Enforcement 6,043,030.16 $ N/A 11,944.03$ US Bank ‐ City of Lynwood 4,539.88 $ N/A 0.09 $ TOTAL 8,060,631.80 $ 16,092.76$
Corporate Checking Accounts Balance
General Account 33,338,891.35 $
US Bank ‐ City HCDA 150,518.11 $
US Bank ‐ City Home Program 1,020,153.96 $
US Bank ‐ Economic Development 10,696.54 $
US Bank ‐ Housing Authority A 71,789.46 $
US Bank ‐ Housing Authority B 18,000.09 $
US Bank ‐ Lyn Tr. Center Unf Wrkr 2,791.24 $
US Bank ‐ City of Lynwood 49,028.48 $
US Bank ‐ RORF Successor Agency 3,352,215.35 $
US Bank ‐ Low Mod Housing Trst Fnd/Rogel 7,632,058.42 $ US Bank ‐ Taxable Tabs Housing Proj. 2,611,325.52$
US Bank ‐ US Dept. of HUD/Section 108 170,048.96 $
US Bank ‐ Lynwood Disaster Relief Fund 5,000.00 $
US Bank ‐ Settlement Remittance Fund 340,637.36 $
US Bank ‐ Housing Authority 6,376.71 $
TOTAL 48,779,531.55 $
CITY OF LYNWOOD
QUARTERLY REPORT
December 31, 2022
PORTFOLIO SUMMARY
Dec. 2022.xlsLynwood Public Financing Authority - Page 41 of 50 Agenda Item # 4
AVERAGE
MARKET PERCENTAGE (%) DAYS TO
DESCRIPTION VALUE PORTFOLIO MATURITY
INVESTMENTS* 35,344,239.13 100% *
MONEY MARKET/CUSTODY HOLDINGS 8,060,631.80
DEMAND DEPOSIT ACCOUNTS 48,779,531.55
TOTAL AVERAGES 56,840,163.35 $
TOTAL INVESTMENTS & AVERAGES 92,184,402.48 $
f{x|Ät [tÜw|Çz
Sheila Harding I certify that this report accurately reflects all pooled Deputy Treasurer investment policy statements adopted by the City Council on August 15, 1995. A copy of this policy is available at the office of the City Clerk. The Investment Program herein shown provides sufficient cash flow liquidy to meet 3 to 6 months estimated expenditures.
*See Report Prepared by Main Street Capital Advisors
CITY OF LYNWOOD
QUARTERLY REPORT
December 31, 2022
MASTER SUMMARY
Dec. 2022.xlsLynwood Public Financing Authority - Page 42 of 50 Agenda Item # 4
OCTOBER NOVEMBER DECEMBER
Market Value $35,094,932 $35,314,063 $35,344,239
Book Value $36,421,280 $36,466,189 $36,481,176
Variance
‐$1,326,348 ‐$1,152,126 ‐$1,136,937
Par Value $36,455,459 $36,492,754 $36,500,250
Net Asset Value $96.36 $96.84 $96.88
Book Yield 2.23% 2.35% 2.38%
Market Yield 3.89% 3.88% 3.95%
Years to Maturity 1.74 1.75 1.69
Effective Durantion 1.49 1.45 1.45
OCTOBER NOVEMBER DECEMBER
Total Earnings Per Month 53,557.01 53,521.65 55,715.04
F/Y Earnings to Date $198,597.60 $252,119.25 $307,834.28 Average Daily Balance $36,397,497.68 $36,436,111.42 $36,471,886.48 F/Y Average Daily Balance $33,672,126.38 $34,224,923.39 $34,599,417.24 Book Rate of Return 1.73% 1.79% 1.80%
F/Y Book Rate of Return 1.75% 1.76% 1.76%
OCTOBER NOVEMBER DECEMBER
CD-FDIC 4,917,000.00 4,917,000.00 4,917,000.00
Commercial Paper 1,995,000.00 1,495,000.00 1,495,000.00 Corporate Bonds 3,500,000.00 3,500,000.00 3,500,000.00
LAIF 9,595,678.13 9,595,678.13 9,595,678.13
Money Market Funds 7,780.71 45,076.33 52,571.67
U.S. Agencies 9,940,000.00 10,440,000.00 10,440,000.00
U.S. Treasuries 6,500,000.00 6,500,000.00 6,500,000.00
TOTAL 36,455,458.84 36,492,754.46 36,500,249.80
HOLDINGS
PORTFOLIO SUMMARY
AT A GLANCE
ACCOUNT SUMMARY
OCTOBER - DECEMBER 2022
Lynwood Public Financing Authority - Page 43 of 50 Agenda Item # 4 Jan ‐ Mar Apr ‐ June July ‐ Sept Oct ‐ Dec
Investments Managed by Main Street $25,697,469.19 $25,569,355.97 35,146,409.65 $35,344,239.13 Cash & Investments $58,014,897.72 $69,247,916.93 58,147,368.65 $56,840,163.35 Per Treasurer's Reports 83,712,366.91 $94,817,272.90 93,293,778.30 $92,184,402.48 Accounts
Balances per Statement Beginning Credits Debits Ending
US Bank ‐ General Account* 35,333,949.95 4,779,665.34$ 3,908,810.54$ 36,204,804.75$ *Local Agency Investment Fund 9,563,138.29$ 32,539.84 ‐$ 9,595,678.13$ US Bank ‐ RORF ‐ Successor Agency 3,758,551.71$ ‐ $ ‐ $ 3,758,551.71$ US Bank ‐ Low Mod Housing Trust 7,647,325.02$ ‐ $ 437.50$ 7,646,887.52$ TOTAL REVENUE & EXPENDITURE 4,812,205.18 $ 3,909,248.04$ Accounts
Balances per Statement Beginning Credits Debits Ending
US Bank ‐ General Account* 36,204,804.75$ 5,366,752.08$ 11,523,107.96$ 30,048,448.87$ *Local Agency Investment Fund 9,595,678.13$ ‐ $ ‐ $ 9,595,678.13$ US Bank ‐ RORF ‐ Successor Agency 3,758,551.71$ 406,336.36$ 3,352,215.35$ US Bank ‐ Low Mod Housing Trust 7,646,887.52$ 5,062.50$ 7,641,825.02$ TOTAL REVENUE & EXPENDITURE 5,366,752.08 $ 11,934,506.82$ Accounts
Balances per Statement Beginning Credits Debits Ending
US Bank ‐ General Account 30,048,448.87 $ 10,294,325.04$ 7,003,882.56$ 33,338,891.35$ *Local Agency Investment Fund 9,595,678.13$ ‐ $ 9,595,678.13$ US Bank ‐ RORF ‐ Successor Agency 3,352,215.35$ 3,352,215.35$ US Bank ‐ Low Mod Housing Trust 7,641,825.02$ 9,766.60 7,632,058.42$ TOTAL REVENUE & EXPENDITURE 10,294,325.04 $ 7,013,649.16 QUARTERLY TOTAL OF DEBITS/CREDITS 20,473,282.30 $ 22,857,404.02$ *Most Active Accounts
*Funds transferred from LAIF account to the general account to cover expenditures 2022
Oct‐22
Nov‐22
Dec‐22
CITY OF LYNWOOD
QUARTERLY REPORT
December 31, 2022
MONTHLY BALANCES PER STATEMENT
DEMAND DEPOSIT ACCOUNTS ‐ MOST ACTIVE
BALANCES PER QUARTER
Lynwood Public Financing Authority - Page 44 of 50 Agenda Item # 4 Run Date: 1/9/2023 - 2:24 PM
Amortizing Page 2
Portfolio Summary
City of Lynwood 12/31/2022
SECTOR ALLOCATION MATURITY DISTRIBUTION CREDIT QUALITY (MOODY'S)
ACCOUNT SUMMARY MONTH-END PORTFOLIO BOOK YIELD TOP ISSUERS 12/31/22 11/30/22 Issuer % Portfolio
Market Value $35,344,239 $35,314,063 LAIF 26.3%
Book Value $36,481,176 $36,466,189 FHLB 19.9%
Variance -$1,136,936 -$1,152,126 U.S. Treasury 17.8%
FFCB 4.7%
Par Value $36,500,250 $36,492,754 FHLMC 2.7%
JPMorgan 1.4%
Net Asset Value $96.88 $96.84 FNMA 1.4%
MetLife 1.4%
Book Yield 2.38% 2.36% Bedford Row Funding 1.4%
Apple 1.4%
Market Yield 3.95% 3.89% Procter & Gamble 1.3%
Royal Bank of Canada 1.3%
Years to Maturity 1.69 1.75 3M 1.3%
Exxon Mobil 0.7%
Effective Duration 1.45 1.45 Toyota 0.7%
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
2.00%
2.20%
2.40%
2.60%
0.1%
4.1%
9.6%
13.5%
17.8%
26.3%
28.6%
MMF
CP
CORP
CD
TSY
LAIF
AGY
100%75%50%25%0%
42.1%
16.7% 19.2%
10.9% 11.1%
0-1Y 1-2Y 2-3Y 3-4Y 4-5Y+
0%
10%
20%
30%
40%
50%
60%
70%
39.8%
0.7%
4.8%
1.4%
0.7%
45.9%
6.8%
NR
A3
A2
A1
Aa3
Aa2
Aa1
Aaa
P-1
100%75%50%25%0%
2 Lynwood Public Financing Authority - Page 45 of 50 Agenda Item # 4 Portfolio Summary
City of Lynwood December 31, 2022
Investments Par Value Book Value
% of
Portfolio YTMMaturity
Days to
Market Value
Book
Certificates of Deposit 4,917,000.00 4,915,622.91 13.47 2.70 947 4,728,173.87 Commercial Paper 1,495,000.00 1,478,968.63 4.05 4.17 86 1,477,457.96 Corporate Bonds 3,500,000.00 3,488,790.30 9.56 3.22 859 3,380,582.50 LAIF 9,595,678.13 9,595,678.13 26.30 2.17 1 9,595,678.13 Money Market Funds 52,571.67 52,571.67 0.14 4.13 1 52,571.67 U.S. Agencies 10,440,000.00 10,450,169.07 28.65 3.02 897 10,099,480.00 U.S. Treasuries 6,500,000.00 6,499,374.86 17.82 0.56 813 6,010,295.00 36,481,175.57 100.00 615 35,344,239.13 2.38 36,500,249.80 Investments
December 31 Month Ending Fiscal Year To DateTotal Earnings Current Year 55,715.04 307,834.28
Average Daily Balance 36,471,886.48 34,599,417.24
Book Rate of Return 1.80% 1.76%
Run Date: 1/9/2023 - 2:24 PM
Amortizing
15Lynwood Public Financing Authority - Page 46 of 50 Agenda Item # 4 Run Date: 12/6/2022 - 11:56 AM
Amortizing Page 2
Portfolio Summary
City of Lynwood 11/30/2022
SECTOR ALLOCATION MATURITY DISTRIBUTION CREDIT QUALITY (MOODY'S)
ACCOUNT SUMMARY MONTH-END PORTFOLIO BOOK YIELD TOP ISSUERS 11/30/22 10/31/22 Issuer % Portfolio
Market Value $35,314,063 $35,094,932 LAIF 26.3%
Book Value $36,466,189 $36,421,280 FHLB 19.9%
Variance -$1,152,126 -$1,326,348 U.S. Treasury 17.8%
FFCB 4.7%
Par Value $36,492,754 $36,455,459 FHLMC 2.7%
JPMorgan 1.4%
Net Asset Value $96.84 $96.36 FNMA 1.4%
MetLife 1.4%
Book Yield 2.35% 2.23% Bedford Row Funding 1.4%
Apple 1.4%
Market Yield 3.88% 3.89% Procter & Gamble 1.3%
Royal Bank of Canada 1.3%
Years to Maturity 1.75 1.74 3M 1.3%
Exxon Mobil 0.7%
Effective Duration 1.45 1.49 Toyota 0.7%
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
2.00%
2.20%
2.40%
2.60%
0.1%
4.0%
9.6%
13.5%
17.8%
26.3%
28.7%
MMF
CP
CORP
CD
TSY
LAIF
AGY
100%75%50%25%0%
42.1%
13.9%
19.3%
12.3% 12.5%
0-1Y 1-2Y 2-3Y 3-4Y 4-5Y+
0%
10%
20%
30%
40%
50%
60%
70%
39.8%
0.7%
4.8%
1.4%
0.7%
45.9%
6.8%
NR
A3
A2
A1
Aa3
Aa2
Aa1
Aaa
P-1
100%75%50%25%0%
2 Lynwood Public Financing Authority - Page 47 of 50 Agenda Item # 4 Portfolio Summary
City of Lynwood November 30, 2022
Investments Par Value Book Value
% of
Portfolio YTMMaturity
Days to
Market Value
Book
Certificates of Deposit 4,917,000.00 4,915,536.83 13.48 2.70 978 4,732,335.77 Commercial Paper 1,495,000.00 1,473,614.48 4.04 4.17 117 1,470,553.60 Corporate Bonds 3,500,000.00 3,488,583.58 9.57 3.22 890 3,384,290.00 LAIF 9,595,678.13 9,595,678.13 26.31 2.06 1 9,595,678.13 Money Market Funds 45,076.33 45,076.33 0.12 3.72 1 45,076.33 U.S. Agencies 10,440,000.00 10,447,960.11 28.65 3.02 929 10,085,469.00 U.S. Treasuries 6,500,000.00 6,499,739.57 17.82 0.56 844 6,000,660.00 36,466,189.03 100.00 638 35,314,062.83 2.35 36,492,754.46 Investments
November 30 Month Ending Fiscal Year To DateTotal Earnings Current Year 53,521.65 252,119.25
Average Daily Balance 36,436,111.42 34,224,923.39
Book Rate of Return 1.79% 1.76%
Run Date: 12/6/2022 - 11:57 AM
Amortizing
15Lynwood Public Financing Authority - Page 48 of 50 Agenda Item # 4 Run Date: 11/8/2022 - 1:39 PM
Amortizing Page 2
Portfolio Summary
City of Lynwood 10/31/2022
SECTOR ALLOCATION MATURITY DISTRIBUTION CREDIT QUALITY (MOODY'S)
ACCOUNT SUMMARY MONTH-END PORTFOLIO BOOK YIELD TOP ISSUERS 10/31/22 9/30/22 Issuer % Portfolio
Market Value $35,094,932 $35,146,410 LAIF 26.3%
Book Value $36,421,280 $36,360,355 FHLB 19.9%
Variance -$1,326,348 -$1,213,946 U.S. Treasury 17.8%
FFCB 4.7%
Par Value $36,455,459 $36,376,673 JPMorgan 1.4%
FNMA 1.4%
Net Asset Value $96.36 $96.66 MetLife 1.4%
Credit Agricole 1.4%
Book Yield 2.23% 2.11% FHLMC 1.4%
Bedford Row Funding 1.4%
Market Yield 3.89% 3.54% Apple 1.4%
Procter & Gamble 1.3%
Years to Maturity 1.74 1.79 Royal Bank of Canada 1.3%
3M 1.3%
Effective Duration 1.49 1.55 Exxon Mobil 0.7%
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
2.00%
2.20%
2.40%
0.0%
5.4%
9.6%
13.5%
17.8%
26.3%
27.3%
MMF
CP
CORP
CD
TSY
LAIF
AGY
100%75%50%25%0%
40.6%
16.7% 19.3%
12.3% 11.1%
0-1Y 1-2Y 2-3Y 3-4Y 4-5Y+
0%
10%
20%
30%
40%
50%
60%
70%
39.8%
0.7%
4.8%
1.4%
0.7%
44.5%
8.1%
NR
A3
A2
A1
Aa3
Aa2
Aa1
Aaa
P-1
100%75%50%25%0%
2 Lynwood Public Financing Authority - Page 49 of 50 Agenda Item # 4 Portfolio Summary
City of Lynwood October 31, 2022
Investments Par Value Book Value
% of
Portfolio YTMMaturity
Days to
Market Value
Book
Certificates of Deposit 4,917,000.00 4,915,453.53 13.50 2.70 1,008 4,687,721.16 Commercial Paper 1,995,000.00 1,967,987.21 5.40 3.86 114 1,964,461.35 Corporate Bonds 3,500,000.00 3,488,394.12 9.58 3.22 920 3,345,747.50 LAIF 9,595,678.13 9,595,678.13 26.35 1.77 1 9,595,678.13 Money Market Funds 7,780.71 7,780.71 0.02 3.05 1 7,780.71 U.S. Agencies 9,940,000.00 9,945,893.66 27.31 2.87 914 9,545,433.20 U.S. Treasuries 6,500,000.00 6,500,092.52 17.85 0.56 874 5,948,110.00 36,421,279.88 100.00 636 35,094,932.05 2.23 36,455,458.84 Investments
October 31 Month Ending Fiscal Year To DateTotal Earnings Current Year 53,557.01 198,597.60
Average Daily Balance 36,397,497.68 33,672,126.38
Book Rate of Return 1.73% 1.75%
Run Date: 11/8/2022 - 1:40 PM
Amortizing
15Lynwood Public Financing Authority - Page 50 of 50 Agenda Item # 4 This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda are on file in the Office of the City Clerk and are available for public inspection. Any person who has a question concerning any of the agenda items may call the City Manager at (310) 603-0220, ext. 200.
Procedures for Addressing the Council
IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE
COUNCIL SUBMIT YOUR COMMENTS IN ADVANCE TO
[email protected]
OR FILL OUT A FORM
PROVIDED AT THE PODIUM, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL.
AGENDA
Lynwood Housing Authority
TO BE HELD ON
February 7, 2023
COUNCIL CHAMBERS - 11350 BULLIS RD. LYNWOOD, CA 90262 or Web conference via ZOOM - To participate via Zoom or by telephone: 1-669-900-9128 or 1-253-215-8782 Meeting ID: 835 2029 8238
Duly Posted on 2/4/2023 by MQ
6:00 PM
1. CALL TO ORDER
2. CERTIFICATION OF AGENDA POSTING BY SECRETARY
3. ROLL CALL OF MEMBERS
Oscar Flores, Chair
Rita Soto
, Vice Chair
Gabriela Camacho, Commissioner
Juan Munoz-Guevara, Commissioner
Jose Luis Solache, Commissioner
PUBLIC ORAL COMMUNICATIONS
(Regarding Agenda Items Only)
NON-AGENDA PUBLIC ORAL COMMUNICATIONS
THIS PORTION PROVIDES AN OPPORTUNITY FOR THE PUBLIC TO ADDRESS THE LYNWOOD HOUSING
AUTHORITY ON ITEMS WITHIN THE JURISDICTION OF THE LYNWOOD HOUSING AUTHORITY AND NOT LISTED ON THE AGENDA. IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL
DISCUSSION OF THE ISSUE BY LYNWOOD HOUSING AUTHORITY, BUT LYNWOOD HOUSING AUTHORITY MAY REFER THE MATTER TO STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54954.2 (a).) Lynwood Housing Authority - Page 1 of 10
CONSENT CALENDAR
ALL MATTERS LISTED UNDER THE CONSENT CALENDAR WILL BE ACTED UPON BY ONE MOTION AFFIRMING THE ACTION RECOMMENDED ON THE AGENDA. THERE WILL BE NO SEPARATE DISCUSSION ON
THESE ITEMS PRIOR TO VOTING UNLESS MEMBERS OF THE COUNCIL OR STAFF REQUEST SPECIFIC ITEMS TO BE REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION.
4. APPROVAL OF THE WARRANT REGISTER-LHA
Comments:
City of Lynwood Housing Authority warrant register dated February 7, 2023 for FY 2022-2023. (FIN)
Recommendation:
Staff respectfully recommends that the Lynwood Housing Authority approve the warrant register dated February 7, 2023 for FY 2022-2023.
5. PREVIOUS MEETING MINUTES
Comments:
Approving previous meeting minutes for Lynwood Housing Authority (CC) October 18, 2022 Regular LHA Meeting
Recommendation:
Staff recommends that the Lynwood Housing Authority approve the following minutes:
October 18, 2022 Regular LHA Meeting
ADJOURNMENT
THE LYNWOOD HOUSING AUTHORITY MEETINGS WILL BE POSTED AS NEEDED. THE
NEXT MEETING WILL BE HELD IN THE COUNCIL CHAMBERS OF THE CITY HALL ANNEX, 11350 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA.
Lynwood Housing Authority - Page 2 of 10
Agenda Item # 4.
AGENDA STAFF REPORT
DATE:
February 7, 2023
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Ernie Hernandez, City Manager
PREPARED BY:
Harry Wong, Director of Finance & Administration
Lilly Hampton, Senior Accounting Technician
SUBJECT:
APPROVAL OF THE WARRANT REGISTER-LHA
Recommendation:
Staff respectfully recommends that the Lynwood Housing Authority approve the warrant register dated February 7, 2023 for FY 2022-2023.
Background:
N/A
Discussion and Analysis:
N/A
Fiscal Impact:
FY 2022-2023
Coordinated With:
City Manager
City Attorney
ATTACHMENTS:
Description
WARRANT RUN 01 07 2023-LH
RESOLUTION
Lynwood Housing Authority - Page 3 of 10
vchlist
02/01/2023
Bank code:
Voucher
10298
S:47:32PM
lhaus2
Date Vendor
217/2023 007609 WILLDAN FINANCIAL SERVICES
1 Vouchers for bank code : lhaus2
Check List
Lynwood Housing Authority
Invoice PO#
--------- -------
010-63229 02-002654
Description/Account
PROF & CONTRACTUAL SERVICE
Total:
Bank total:
Page: 1
Amount
950.00
950.00
950.00
Page: 1
Lynwood Housing Authority - Page 4 of 10
vchlist
02/01/2023
Bank code :
Voucher
5527
S:47:32PM
sa usb
Date Vendor
217/2023 011027 PUBLIC COUNSEL
1 Vouchers for bank code : sa_usb
1 Vouchers in this report
Check List
Successor Agency of the Lynwood Redevelopment Agency
Invoice PO# --------- -------
011027-011823 02-002610
Description/Account
SETTLEMENT PAYMENT
Total:
Bank total:
Total vouchers :
Page: 2
Amount
103,484.00
103,484.00
103,484.00
103,484.00
Page: 2
Lynwood Housing Authority - Page 5 of 10
1 RESOLUTION NO. 2022.XXX
LHA - Warrant Register Dated 02-07-2023
PASSED, APPROVED and ADOPTED this 7th day of February, 2023.
Oscar Flores, Chair
ATTEST:
_________________________
Maria Quiňonez, Ernie Hernandez,
Secretary Executive Director
APPROVED AS TO FORM:
Noel Tapia,
Authority Counsel
Lynwood Housing Authority - Page 6 of 10
2 STATE OF CALIFORNIA )
) §
COUNTY OF LOS ANGELES )
I, Maria Quiňonez, the undersigned, City Clerk of the City of Lynwood/Secretary to the Lynwood Housing Authority, do hereby certify that the foregoing Resolution was passed and adopted by the Lynwood Housing Authority of the City of Lynwood at a regular meeting held on the _7th day of February, 2023, and passed by the following vote:
AYES: COMMISSIONERS MUNOZ, SOLACHE, CAMACHO VICE CHAIR SOTO
AND CHAIR FLORES
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
__________________________
Maria Quiňonez,
Secretary
STATE OF CALIFORNIA )
) §
COUNTY OF LOS ANGELES )
I, Maria Quiňonez, the undersigned, City Clerk of the City of Lynwood/Secretary to the Lynwood Housing Authority, do hereby certify that the above foregoing is a full, true and correct copy of Lynwood Housing Authority Resolution No. 2022.XXX on file in my office and that said Resolution was adopted on the date and by the vote therein stated.
Dated this __7h day of February 2023.
____________________________
Maria Quiňonez,
Secretary
Lynwood Housing Authority - Page 7 of 10
Agenda Item # 5.
AGENDA STAFF REPORT
DATE:
February 7, 2023
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Ernie Hernandez, City Manager
PREPARED BY:
Maria Quinonez, City Clerk
Silvia Pineda, Assistant to the City Clerk
SUBJECT:
PREVIOUS MEETING MINUTES
Recommendation:
Staff recommends that the Lynwood Housing Authority approve the following minutes:
October 18, 2022 Regular LHA Meeting
Background:
N/A
Discussion and Analysis:
N/A
Fiscal Impact:
N/A
Coordinated With:
N/A
ATTACHMENTS:
Description
LHA Regular Meeting 10/18/2022
Lynwood Housing Authority - Page 8 of 10
1 Lynwood Housing Authority Meeting
Meeting Minutes
October 18, 2022
01. CALL TO ORDER
The Lynwood Housing Authority Meeting of the City of Lynwood met in the Council Chambers, 11350 Bullis Road Lynwood, CA 90262 or Web conference via ZOOM - To participate via Zoom or by telephone: 1-669-900-9128 or 1-253- 215-8782 Meeting ID: 835 2029 8238 on the above date at 6:00 p.m.
Meeting called to order at 6:29 p.m.
Chair Casanova presiding.
02. CERTIFICATION OF AGENDA POSTING BY AUTHORITY SECRETARY Authority Secretary Quiňonez announced the Agenda had been duly posted in accordance with the Brown Act.
03. ROLL CALL OF MEMBERS
PRESENT: COMMISSIONER FLORES, SANTANA, SOTO, VICE CHAIR
SOLACHE AND CHAIR CASANOVA
ABSENCE: NONE
STAFF PRESENT:
Executive Director Hernandez, Authority Counsel Tapia, City Treasurer Camacho, Authority Secretary Quiňonez
PUBLIC ORAL COMMENT
(Regarding Agenda Items Only)
NONE
NON-AGENDA PUBLIC ORAL COMMUNICATIONS
NONE
CONSENT CALENDAR
All matters listed under the Consent Calendar will be acted upon by one motion affirming the action recommended on the agenda. There will be no separate discussion on these items prior to voting unless members of the Authority or staff request specific items be removed from the Consent Calendar for separate action.
MOTION: It was moved by Vice Chair Solache , seconded by Commissioner Santana to approve the consent calendar. Motion carried by 5-0 vote.
Lynwood Housing Authority - Page 9 of 10
2 ROLL CALL:
AYES: COMMISSIONERS FLORES, SANTANA, SOTO, VICE CHAIR
SOLACHE AND CHAIR CASANOVA
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
04. APPROVAL OF THE WARRANT REGISTER-LHA
Approved and Adopted RESOLUTION NO. 2022.017
ENTITLED: A RESOLUTION OF THE LYNWOOD HOUSING AUTHORITY OF
THE CITY OF LYNWOOD ALLOWING AND APPROVING THE DEMANDS AND WARRANTS REGISTER DATED OCTOBER 18, 2022
ADJOURNMENT
Having no further discussion, it was moved by Vice Chair Solache, seconded by Commissioner Flores to adjourn the Lynwood Housing Authority meeting at 6:31 p.m. Motion carried by unanimous consent.
________________________ _______________________
Maria Quiňonez, Authority Secretary Jorge Casanova, Chair
Lynwood Housing Authority - Page 10 of 10