Montebello City Council
March 22, 2023

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

91 Note 6 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

United States Department of Housing and Urban Development - CDBG

In November 2005, the City borrowed $6,500,000 from the United States Department of Housing and Urban Development (“HUD”) to provide for funds to pay for street improvements. The principals are due annually from August 1, 2019 to August 1, 2025. Interest are due on due August 1 and February 1 at rate of 2.6% to 2.7%.

The amount outstanding at June 30, 2022 was $1,569,000. Interest and principal are due as follows:

June 30, Principal Interest Total
2023 445,000$ 35,467$ 480,467$
2024 493,000 23,347 516,347
2025 548,000 9,583 557,583
2026 83,000 1,136 84,136
Total 1,569,000$ 69,533$ 1,638,533$
For the Year Ending

Southern California Edison (“SCE”) On-Bill Financing Loan

On March 13, 2017 and January 9, 2019, the City entere d into a zero-interest loan agreement with Southern California Edison (“SCE”) for the Ener gy Management Solutions Incentives A pplication for the installation of certain energy efficient equipment of which is to be repaid over ten years.

SCE may determine the loan to be breached and the City to be in default if the City (1) sells, assigns or otherwise transfers ownership, possession or title of the site or the equipment, (2) fails to pay the money payment when due, (3) closes, discontinues or otherwi se causes the termination of the service account(s), or (4) otherwise breaches this agreement, and the breach is not cured as specified therein. Following a breach, SCE shall have the right to declare the entire unpaid balance of the loan obligation due and payable.

The amount outstanding at June 30, 2022 was $20,759. The annual debt service requirements on this loan are as follows:

June 30, Principal Interest Total
2023 3,020$ -$ 3,020$ 2024 3,020 - 3,020 2025 3,020 - 3,020 2026 3,020 - 3,020 2027 3,020 - 3,020 2028-2029 5,659 - 5,659 Total 20,759$ -$ 20,759$ For the Year Ending

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

92 Note 6 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

Claims Payable

Refer to Note 7 for more information on these liabilities.

Compensated Absences

The compensated absences are to be liquidated primarily by the General Fund at June 30, 2022 was in the amount of $5,592,182.

B. Business-Type Activities

Balance Balance Due Within Due in M ore
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year Business-Type Activities
Bonds Payable, net:

Hilton Hotel 2019A Revenue Refunding Bonds 10,200,000$ - $ - $ 10,200,000$ 650,000 $ 9,550,000 $ Golf 2014A Revenue Refunding Bonds 1,635,000 - (180,000) 1,455,000 190,000 1,265,000 Golf 2014C Revenue Refunding Bonds 558,140 - (129,800) 428,340 135,700 292,640 Home2Suites 2016A Revenue Refunding Bonds 52,795,000 - (1,110,000) 51,685,000 1,165,000 50,520,000 Transit 2020 Pension Obligation Bonds 39,526,274 - (1,384,173) 38,142,101 1,412,177 36,729,924 Unamortized Premiums/(Discounts)
Hilton Hotel 2019A Revenue Refunding Bonds 1,277,978 - (94,665) 1,183,313 - 1,183,313 Golf 2014A Revenue Refunding Bonds 55,563 - (6,944) 48,619 - 48,619 Golf 2014C Revenue Refunding Bonds (599) 150 - (449) - (449) Home2Suites 2016A Revenue Refunding Bonds 5,239,841 - (206,836) 5,033,005 - 5,033,005 Finance Purchase:

Motorolla - Transit 137,229 - (137,229) - - - PNC Equipment - Golf 102,971 (53,105) 49,866 49,866 - Notes Payable:

ABM Notes Payable - Transit 715,000 - (78,214) 636,786 40,906 595,880 Southern California Edison - Golf 78,645 - (33,969) 44,676 33,969 10,707 Quiet Cannon - Golf 47,018 - (47,018) - - - Acuna Park Notes Payable - Water 257,864 - (76,307) 181,557 - 181,557 Compensated Absences 1,294,524 736,788 (756,424) 1,274,888 880,294 394,594 Total Business-Type Activities 113,920,448$ 736,938 $ (4,294,684)$ 110,362,702$ 4,557,912 $ 105,804,790$

Montebello Hilton Hotel Revenue Bonds

On December 19, 2019, the Financing Authority is sued $10.2 million 2019 Lease Revenue Refunding Bonds, Series A to refund 2004A Revenue Refunding Bonds, resulting in a net present value savings of approximately $1.4 million. The 2004A Revenue Refundi ng Bonds were fully redeemed on January 21, 2020. The prior bond proceeds were used to finance the acquisition, construction, and equipping of hotel facility (Project) located adjacent to the Montebello municipal golf course and the Quiet Cannon Restaurant and Conference Facility. The bonds are secured by the revenues of the hotel and mature in December 2034. Interest rate on the 2019 Lease Revenue Refunding Bonds, Series A is at 4.0%. Principal amounts are due December 1, 2022 through December 1, 2034. The outstanding balance at June 30, 2022 was $10,200,000.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

93 Note 6 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

The annual future debt service requirements are as follows:

For the Year Ending
June 30, Principal Interest Total
2023 650,000 $ 395,000 $ 1,045,000 $ 2024 685,000 368,300 1,053,300
2025 700,000 340,600 1,040,600
2026 715,000 312,300 1,027,300
2027 730,000 283,400 1,013,400
2028-2032 3,965,000 956,900 4,921,900 2033-2034 2,755,000 170,900 2,925,900 Subtotal 10,200,000 2,827,400 13,027,400 Add - premium 1,183,313 - 1,183,313 Total 11,383,313$ 2,827,400$ 14,210,713$

2014A Lease Revenue Refunding Bonds

On September 10, 2014, the Financing Authority i ssued 2014 Lease Revenue Refunding Bonds Series A of $2,755,000 which repaid the outstanding principal due on the 1999 COPs. The City received a premium on the bond issue in the amount of $104,175 and incurred a lo ss of $87,777 in the bond defeasance. The bond premium and loss on defeasance are amortized over the life of the refunded bonds. The Bonds are payable from payments made by the City to the Finance Authority pledging public fac ilities consisting of the City Hall and Police Department pursuant to the Agreement.

The City is required under the Agreement to make paymen ts in each fiscal year to pay the annual principal and interest due on the Bonds. Annual Installments are due from November 1, 2014 through November 1, 2028. Interest rates on the 2014 Series A Lease Revenue Refunding Bonds range from 0.30% to 3.5%. The outstanding balance at June 30, 2022 was $1,455,000.

The annual future debt service requirements are as follows:

For the Year Ending
June 30, Principal Interest Total
2023 190,000 $ 44,538 $ 234,538 $ 2024 195,000 37,813 232,813
2025 200,000 31,888 231,888
2026 205,000 25,813 230,813
2027 215,000 19,244 234,244
2028-2029 450,000 15,925 465,925 Subtotal 1,455,000 175,221 1,630,221 Add - premium 48,619 - 48,619 Total 1,503,619$ 175,221$ 1,678,840$

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

94 Note 6 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

2014C Lease Revenue Refunding Bonds

See Note 6A for disclosures. The outstanding balance for Golf Course Enterprise Fund at June 30, 2022 was $428,340.

2016A Lease Revenue Bonds

On October 18, 2016, the Financing Authority issued 2016 Series A Lease Revenue Bonds in the amount of $54,860,000. The bonds bear interest rate of 5% and will mature in 2046. The bonds were issued to (1) finance the acquisition, construction and equipping of the Home2Suites by Hilton Ho tel Project, (2) fund a reserve fund for the bonds, (3) fund interest accruing on the bonds through November 1, 2019, and (4) pay costs of issuance of the bonds. The bonds are payable from the pa yments made by the City to the Authority pledging the Home2Suites property pursuant to the Lease Agreement. The City is required under the Agreement to make payments in each fiscal year to pay the annual principal and interest due on the bonds.

Interest rate on the 2016 Lease Revenue
Refunding Bonds, Series A is at 5.0% Principals are due June 1, 2018 through June 1, 2046. The outstanding balance at June 30, 2022 was $51,685,000.

The annual future debt service requirements are as follows:

For the Year Ending
June 30, Principal Interest Total
2023 1,165,000 $ 2,483,450 $ 3,648,450 $
2024 1,225,000 2,425,200 3,650,200
2025 1,285,000 2,363,950 3,648,950
2026 1,350,000 2,299,700 3,649,700
2027 1,415,000 2,232,200 3,647,200
2028-2032 8,220,000 10,025,250 18,245,250 2033-2037 10,500,000 7,753,500 18,253,500 2038-2042 13,390,000 4,501,650 17,891,650 2043-2046 13,135,000 1,813,400 14,948,400 Subtotal 51,685,000 35,898,300 87,583,300 Add - premium 5,033,005 - 5,033,005 Total 56,718,005$ 35,898,300$ 92,616,305$

2020 Pension Obligation Bonds (“POB”)

See Note 6A for disclosures. The outstanding balance for Transit Fund at June 30, 2022 was $38,142,101.

Motorola Finance Purchase

The City entered into a financing agreement to finance the acquisition of certain communication equipment for the City’s Transit operation in November 2018. The securities for the agreement are the equipment themselves and to be surrendered to the lender in case of payment default or termination of the agreements. Annual payment is due on November 1 and matured on November 1, 2021. The finance agreement was fully paid off during the year ended June 30, 2022.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

95 Note 6 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

PNC Equipment Finance Purchase

The City entered into a financing agreement to finance the acquisition of certain transportation equipment for the City’s Golf Course. The securities for the lease are the equipment themselves and to be surrendered to the lessor in case of payment default or termination of the agreements. The outstanding balance at June 30, 2022 was $49,866.

The future debt service requirement is as follows:

June 30, Principal Interest Total
2023 49,866$ 2,169$ 52,035$
For the Year Ending

ABM Notes Payable

See note 6A for disclosures.

The outstanding balance of the note for Transit at June 30, 2022 was $636,786.

Southern California Edison (“SCE”)

In July 2013, the City entered into a zero percent On-Bill Financing Agreement with the Southern California Edison Company for the installation of certain energy efficient equipment at the Golf Course premises for a total amount of $327,213 payable over a period of 116 months (9 years and 8 months). At June 30, 2022, the total outstanding loans payable amounted to $44,676.

The annual future debt service requirements are as follows:

June 30, Principal Total
2023 33,969$ 33,969$
2024 10,707 10,707
Total 44,676$ 44,676$
For the Year Ending

Quiet Cannon

The City entered into two loan agreements with Quiet Cannon Montebello, Inc. (“Quiet Cannon”). Quiet Cannon leases a facility on the City’s golf course property. The loans were obtained by Quiet Cannon on behalf of the City from a financial institution payable in monthly installmen ts ranging from $5,969 to $6,658 at prime interest rate (currently 3.25%) until year 2021. The installment payments are deducted by Quiet Cannon from its lease payments to the City. The loan proceeds were used to finance the renovation of the facility and signage.

During the year ended June 30, 2014, the City entered into a Maintenance Loan Agreement with Quiet Cannon for $700,000. Under the agreement, Quiet Cannon borrowed th e amount from a financial institution payable over a period of 5 years at prime lending rate. The loan repayment shall be offset by Quiet Cannon from its rental obligation to the City. At June 30, 2022, the outstanding balance was fully paid off.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

96 Note 6 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

Acuna Park Notes Payable - Water

The City entered into an agreement with Central Basin M unicipal Water District (the “District’) to facilitate the use of the recycled water at Montebello Golf Course for constructing recycled water facilities for the amount of $615,000. The City may request drawdowns monthly up to the total loan amount after the submission of supporting documentation verifying the costs incurred to the District. The principal is subject to 2% interest and accrued on any drawn amounts. The loan shall be repaid in the form of $250 charge for every acre-foot of recycled water provided by the District to the City, until the balance is paid off. At June 30, 2022, the outstanding balance of the loan was $181,557.

Compensated Absences

All vested vacation and compensatory leave time is recognized as an expense and as a liability in the business- type funds at the time the liability vests. Transit Fund has been used to liquidate the liability. The balance outstanding at June 30, 2022 was $1,274,888.

The summary of changes in the Successor Agency long-term debts for the year ended June 30, 2022 is as follows:

Balance Balance Due Within Due in M ore
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year S uccessor Agency Activities
Bonds payable, net:
1999B Montebello Hills Tax Allocation
Parity Bonds 6,232,632 409,429 (2,350,000) 4,292,061 - 4,292,061 2007A Taxable South Montebello Industrial
Redevelopment Project Tax Allocation
Parity Bonds 1,310,000 - (635,000) 675,000 675,000 - 2007B Taxable Montebello Hills Tax
Allocation Parity Refunding Bonds 1,015,000 - (320,000) 695,000 335,000 360,000 2015A Tax-Exempt and 2015B Taxable
Subordinated Tax Allocation Bonds 13,855,000 - (2,910,000) 10,945,000 3,045,000 7,900,000 2002 Montebello Housing Tax Allocation
Parity Bonds 1,306,262 115,830 (490,000) 932,092 - 932,092 Unamortized premiums/(discounts):
2015A Tax-Exempt Tax Allocation Bonds 1,675,330 - (239,333) 1,435,997 239,333 1,196,664 Notes payable:

Ostrom Chevrolet 2,223,408 - (2,223,408) - - - Total Business-Type Activities 27,617,632$ 525,259$ (9,167,741)$ 18,975,150$ 4,294,333$ 14,680,817$

1999 Montebello Hill Tax Allocation Parity Bonds, Series B

In November 1999, the former Agency issued $5,593,888 Montebello Hills Redevelopment Project Tax Allocation Parity Bonds, 1999 Series B. The $1,370,000 current inte rest serial bonds and term bonds were fully matured as of November 1, 1999. The $2,918,888 capital appreciation bonds accrete interest from their dated date, and interest is compounded on March 1, 2000 and semiannually on each September 1 and March 1, thereafter, payable only at maturity at rates range from 6.2666% to 6.423%. The bonds are secured by incremental property taxes allocated to and received by the Successor Agency. The outstanding balance at June 30, 2022 was $4,292,061.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

97 Note 6 – Long-Term Liabilities (Continued)

C. Fiduciary Activities

1999 Montebello Hill Tax Allocation Parity Bonds, Series B (Continued)

The future annual debt service requirement is as follows:

For the Year Ending
June 30 Principal Accreted Interest Interest Total
2023 544,660$ 1,669,614$ 1,805,340$ 4,019,614 2024 505,273 1,572,514 1,844,727 3,922,514 Total 1,049,933$ 3,242,128$ 3,650,067$ 7,942,128$

2007 South Montebello Industrial Redevelopment Project Tax Allocation Parity Bonds, Series A (Taxable)

In October 2007, the former Agency issued $6,065,000 South Montebello Industrial Redevelopment Project Tax Allocation Parity Bonds, 2007 Series A (Taxable). Principal due annually through September 1, 2022 and interest on the bonds are due on March 1 and September 1 of each year at rate of 5.804%. The bonds are secured by incremental property taxes allocated to and receive d by the Successor Agency. The outstanding balance at June 30, 2022 was $675,000.

The future annual debt service requirement is as follows:

June 30, Principal Interest Total
2023 675,000$ 19,589$ 694,589$
For the Year Ending

2007 Montebello Hills Tax Allocation Parity Refunding Bonds, Series B (Taxable)

In October 2007, the former Agency issued $3,660,000 Montebello Hills Redevelopment Project Tax Allocation Parity Refunding Bonds, 2007 Series B (Taxable). Principa l due annually through March 1, 2024 and interest on the Bonds are due on March 1 and September 1 of each year at rate of 5.854%. The bonds are secured by incremental property taxes allocated to and received by the Successor Agency. The outstanding balance at June 30, 2022 was $695,000.

The future annual debt service requirement is as follows:

For the Year Ending
June 30, Principal Interest Total
2023 335,000 $ 20,343 $ 355,343 $ 2024 360,000 10,537 370,537
Total 695,000$ 30,880$ 725,880$

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

98 Note 6 – Long-Term Liabilities (Continued)

C. Fiduciary Activities (Continued)

2015 Subordinated Tax Allocation Refunding Bonds, Series A (Tax-exempt) and Series B (Taxable)

In August 2015, the Successor Agency issued Subordinate Tax Allocation Refunding Bonds, Series 2015 A (Tax Exempt) & Series B (Taxable), totaling $25,180,000 to re fund the following old bonds: 1997 Montebello Hills, 1998A Montebello Hills, 1999A Montebello Hills, 2009A Montebello H ills, 1999A South Montebello, 1999B South Montebello, 1998B Montebello Hills, and 2002 Housing ( non-accretion bonds only) with total outstanding principal as of June 30, 2015 of $28,355,000. The Series A bonds, with interest rate ranging from 2% to 5%, are due in annual installments of $1,220,000 to $3,045,0 00 through September 1, 2027. The Series B bonds, with interest rates ranging from 1.25% to 2.50%, are due in annual installments of $335,000 to $375,000 through September 1, 2019.

The outstanding balance at June 30, 2022 was $10,945,000.

The future annual debt service requirement is as follows:

For the Year Ending
June 30, Principal Interest Total
2023 3,045,000$ 444,425$ 3,489,425$
2024 2,195,000 313,425 2,508,425
2025 1,880,000 211,550 2,091,550
2026 1,220,000 134,050 1,354,050
2027 1,270,000 71,800 1,341,800
2028 1,335,000 20,025 1,355,025
Total 10,945,000$ 1,195,275$ 12,140,275$

2002 Montebello Housing Tax Allocation Parity Bonds

In April 2002, the former Agency issued $5,557,642 2002 Housing Tax Allocation Parity Bonds. The $4,910,000 current interest serial bonds and term bonds were fully ma tured as of September 1, 2024. Interest on the current interest bonds is payable on commencing on Septem ber 1, 2002 and semiannually thereafter on March and September 1 each year until maturity at rate of 5.25 %. The $647,642 capital appreciation bonds accrete interest from their dated date, and interest is compounded on Se ptember 1, 2002 and semiannua lly on each September 1 and March 1, thereafter, payable only at maturity, at rates range from 5.60% to 5.75%. The bonds are secured by incremental property taxes allocated to and receive d by the Successor Agency. The outstanding balance at June 30, 2022 was $932,092.

The future annual debt service requirement is as follows:

For the Year Ending
June 30 Principal Accreted Interest Interest Total
2023 157,549$ 324,106$ 337,450$ 819,105 2024 145,906 304,531 344,093 794,530 Total 303,455$ 628,637$ 681,543$ 1,613,635$

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

99 Note 6 – Long-Term Liabilities (Continued)

C. Fiduciary Activities (Continued)

2002 Montebello Housing Tax Allocation Parity Bonds (Continued)

The future annual debt service requirement is as follows:

For the Year Ending
June 30 Principal Accreted Interest Interest Total
2023 157,549$ 324,106$ 337,450$ 819,105 2024 145,906 304,531 344,093 794,530 Total 303,455$ 628,637$ 681,543$ 1,613,635$

Redevelopment Agency Note

The former redevelopment agency entered into an agr eement dated February 11, 2009 to purchase the property owned by Ostrom Chevrolet for $12,000,000. The Agency paid $5,000,000 in cash; $2,734,834 was from proceeds of a note owed by Ostrom Chevrolet to the Agency; and $4,265,166 was financed by a note payable to the seller.

The note payable has an interest rate of 5%. For the first 10 years, interest only payments are due each calendar quarter. Following the 10th anniversary of the note date, th e Agency is to make four quarterly payments in an amount sufficient to amortize and repay all accrued interest and principal by the date the last payment is due on the first day of the full calendar quarter following the 20th anniversary date of the note. The Agency made early principal payments in the current year as well as the prior fiscal years with total annual payment of $337,780 inclusive of interest. On November 23, 2021, this property was sold and the outstanding note was fully paid off.

D. Advances from City of Montebello

At June 30, 2022, the Successor Agency has a net liability to the City of $4,967,239, which is reported in the Statement of Fiduciary Net Position as due to other governments. This amount was due to the Housing Successor Special Revenue Fund pertaining to advances made by the former Low-and-Moderate Income Housing Fund to the former redevelopment agency. These advances were for payment of the Supplemental Educational Revenue Augmentation Fund (“SERAF”) a nd to finance the project expenses of one of the project areas of the former redevelopment agency.

Note 7 – Self Insurance

The City is partially self-insured for general liability and workers' compensation claims. The City pays up to $1 million per occurrence for general liability claims, and has excess insurance up to $10 million per occurrence. For workers' compensation, the City provides self-insurance up to a $1, 000,000 retention level and has acquired excess insurance coverage of $5 million for each claim. The City also purchases commercial insurance for other risks of loss, including property loss and vehicle physical damage. There have been no significant changes in insurance coverage as compared to last year. At June 30, 2022, the present value of the estim ated liability for claims payable, discounted at a 2% rate, is $27,444,611, based on an actuarial study. The liability includes an estimate for incurred, but not reported (IBNR), losses and is based on past experience, modified for current trends and information.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

100
Note 7 – Self Insurance (Continued)

Changes in the claims payable amount for the three years ended June 30, 2022 are as follows:

Balance Balance
Fiscal Year Beginning of Year Addition Deletion End of Year June 30, 2020 21,064,070$ 5,039,758$ (3,982,828)$ 22,121,000$ June 30, 2021 22,121,000 5,266,139 (3,785,909) 23,601,230 June 30, 2022 23,601,230 7,018,256 (3,174,875) 27,444,611

Note 8 – Hotel Management Agreements

Montebello Hilton Hotel (“Hilton Garden Inn”)

Pursuant to a Hotel Management Agre ement dated November 29, 2001, the M ontebello Hilton Hotel (Hilton Garden Inn) pays Hotel Adventures LLC (“HALLC”) an annual management fee which includes an operational amount and a projected franchise fee assessed by Hilton Hotels. The actual franchise fee amount is paid directly to Hilton Hotels from the City’s Hilton Garden Inn (Enterprise) Fund. The obligation of the City to pay the management fee is subordinated to the payment of operating expenses and debt service on the Bonds issued to finance Hotel construction.

Unpaid fees, consisting of the management fee and any franchise fee differential between projected franchise fees and actual franchise fees paid to Hilton Hotels, accrue interest at a prime lending rate established by Citibank, N.A.

On November 29, 2018, the City extended the Hotel Mana gement Agreement with HALLC for an additional 15 years until December 17, 2032. Under this new agreement, HALLC shall receive an annual management fee of $597,000. The franchise fee assessed by Hilton Hotels is included in the Hotel operating expenses. Unpaid management fees shall accrue interest at simple annual interest rate equal to that earned in the Local Agency Investment Fund (LAIF).

During the year ended June 30, 2022, the Hotel reported expense for management fees and interest on management fees of $1,039,573. Accrued unpaid expenses for management fees were $357,805 as of June 30, 2022.

Home2Suites

Pursuant to a Hotel Management Agre ement dated May 26, 2016, the Montebe llo Home2Suites Hotel (“H2S”) pays Hotel2Suites LLC an annual management fee of $700,000, as adjusted upward or downward based upon changes in the Annual CPI Index. The obligation of the City to pay the management fee is subordinated to the payment of operating expenses and debt service on the Bonds issued to finance H2S construction. The H2S accrued and unpaid management fees were $422,909 as of June 30, 2022.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

101
Note 9 – Defined Benefit Pension Plan

A. General Information About the Pension Plan

Plan Description

All qualified permanent and probationary employees are eligible to participate in the City’s Safety Plan (police and fire) and Miscellaneous Plan (all others), agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (“CalPERS”), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provi sions, assumptions and membership info rmation that can be found on the CalPERS website.

Benefits Provided

CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service.

The death benefit is one of the following: the Basic D eath Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustme nts for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plan’s provisions and benefits in effect at June 30, 2022, are summarized as follows:

Prior to On or after
Hire date 1-Jan-13 1-Jan-13
Benefit formula 2.7% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years of service Benefit payments Monthly for life Monthly for life
Retirement age 50 - 55 52 - 67
Benefit per year of service, as a percentage of salary 2.0% to 2.7% 1.0% to 2.5% Required employee contribution rates 8.000% 6.250%
Required employer contribution rates 11.129% 11.129%
Prior to On or after
Hire date 1-Jan-13 1-Jan-13
Benefit formula 3.0% @ 50 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life
Retirement age 50 - 55 50 - 57
Benefit per year of service, as a percentage of salary 2.0% to 3.0% 2.0% to 2.7% Required employee contribution rates 9.000% 12.750%
Required employer contribution rates 21.164% 21.164%
Miscellaneous
Safety

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

102
Note 9 – Defined Benefit Pension Plan (Continued)

A. General Information About the Pension Plan (Continued)

Employees Covered

At June 30, 2020, the valuation date, the following employees were covered by the benefit terms of the Plan:

Miscellaneous Safety
Active employees 333 112
Transferred and terminated employees 428 125
Retired employees and beneficiaries 463 282
Total 1224 519

Contributions

Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basi s by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contri butions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contri bute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2022, the employer contributions recognized as a reduction to the net pension liability for the Miscellaneous and Safety Plan were $2,061,508 and $2,913,777, respectively.

B. Pension Liability

Actuarial Methods and Assumptions Used to Determine Total Pension Liability

The June 30, 2020 valuation was rolled forward to determine the June 30, 2021 total pension liability, based on the following actuarial methods and assumptions:

Actuarial Cost M ethod
Actuarial Assumptions:

Discount Rate
Inflation
Payroll Growth
Projected Salary Increase
Investment Rate of Return
Morta l i ty Ra te Ta bl e
1 2.75%
Varies by Entry Age and Service

7.00% Net of pension plan investment and adminitrative
expenses; including inflation
Derived using CalPERS’ Membership Data for all Funds.

Entry Age Normal in accordance with the requirement of
GASB

7.15%

2.50%

1The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period fro m 1997 to 2015. Pre-retirement and Postretirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this tables please refer to the CalPERS experience study and Review of Actuarial Assumption report from December 2017 that can be found on the CalPERS website.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

103
Note 9 – Defined Benefit Pension Plan (Continued)

B. Pension Liability(Continued)

Changes of Assumptions

In 2021, there were no changes in assumptions.

Discount Rate

The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions fro m plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Long-Term Expected Rate of Return

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

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

The expected real rates of return by asset class are as follows:

Current Real Return Real Return
Asset Class1 Allocation Years 1-10 2 Years 11+3
Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 2.62%
Inflation Assets 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
100.00%
2 An expected inflation of 2.00% used for this period.
3 An expected inflation of 2.92% used for this period.
1 In the CalPERS's ACFR, Fixed Income is included in the Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

104
Note 9 – Defined Benefit Pension Plan (Continued)

C. Changes in the Net Pension Liability

The following table shows the changes in net pension liability recognized over the measurement period for the Miscellaneous agent multiple-employer plan:

Total Pension Plan Fiduciary Net Net Pension
L iability Position L iability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 (Valuation Date) 207,674,011$ 209,346,248$ (1,672,237)$ Changes recognized for the measurement period:

Service cost 3,191,506 - 3,191,506 Interest on the total pension liability 14,665,797 - 14,665,797 Changes of benefit terms - - - Difference between expected and actual experience 1,575,308 - 1,575,308 Changes of assumptions - - - Plan to plan resource movement - - - Contributions from the employer - 2,061,508 (2,061,508) Contributions from employees - 1,399,212 (1,399,212) Net investment income, net of administrative expense - 46,168,935 (46,168,935) Benefit payments, including refunds of employee
contributions (11,458,063) (11,458,063) - Administrative expense - (209,124) 209,124 Other miscellaneous income/ (expense) - - - Net Changes during July 1, 2020 to June 30, 2021 7,974,548$ 37,962,468$ (29,987,920)$ Balance at June 30, 2021 (Measurement Date) 215,648,559$ 247,308,716$ (31,660,157)$ Miscellaneous Plan
Increase (Decrease)

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

105
Note 9 – Defined Benefit Pension Plan (Continued)

C. Changes in the Net Pension Liability (Continued)

The following table shows the changes in net pension liability recognized over the measurement period for the Safety agent multiple-employer plan:

Total Pension Plan Fiduciary Net Net Pension
L iability Position L iability
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 (Valuation Date) 270,879,258 $ 271,648,136 $ (768,878) $ Changes recognized for the measurement period:

Service cost 3,827,398 - 3,827,398 Interest on the total pension liability 19,228,565 - 19,228,565 Changes of benefit terms - - - Difference between expected and actual experience 3,576,407 - 3,576,407 Changes of assumptions - - - Plan to plan resource movement - - - Contributions from the employer - 2,913,777 (2,913,777) Contributions from employees - 1,383,844 (1,383,844) Net investment income, net of administrative expense - 59,892,826 (59,892,826) Benefit payments, including refunds of employee
contributions (14,876,758) (14,876,758) - Administrative expense - (271,360) 271,360 Other miscellaneous income/ (expense) - - - Net Changes during July 1, 2020 to June 30, 2021 11,755,612$ 49,042,329$ (37,286,717)$ Balance at June 30, 2021 (Measurement Date) 282,634,870$ 320,690,465$ (38,055,595)$ Increase (Decrease)
Safety Plan

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following presents the net pension liability of the Pl an as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pens ion liability would be if it were calculated using a rate that is 1 percentage-point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate:

Discount Rate Current Discount Discount Rate
- 1% (6.15%) Rate (7.15%) + 1% (8.15%)
Miscellaneous Plan (4,178,565)$ (31,660,157) $ (54,444,142)$ Safety Plan (1,115,292)$ (38,055,595)$ (68,437,309)$ Plan's Net Pension L iability

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

106
Note 9 – Defined Benefit Pension Plan (Continued)

C. Changes in the Net Pension Liability (Continued)

Pension Plan Fiduciary Net Position

Detailed information about the plans' fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information.

D. Pension Expenses and Deferred Outflows and Inflows of Resources Related to Pensions

For the year measurement period ending June 30, 2021, the City recognized pension credit of ($3,254,790) and ($4,133,145) for the miscellaneous and safety plans, respectively.

As of June 30, 2022, the City has de ferred outflows and deferred inflows of resources related to pensions for the Miscellaneous Plan as follows:

Deferred outflows Deferred inflows
of Resources of Resources
Contributions made after the measurement date 1,942,722$ -$ Difference between expected and actual experience 991,861 (393,863) Net difference between projected and actual earning on
pension plan investments - (22,231,481) Total 2,934,583$ (22,625,344)$
Miscellaneous Plan

The amounts above are net of outflows and inflows recognized in the 2020-2021 measurement period expense.

The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for the Miscellaneous Plan, for the 2020-21 measurement period is 2.7 years, which was obtained by dividing the total service years of 3,277 (the sum of remaining service lifetimes of the active employees) by 1.224 (the total number of participants: active, inactive, and retired), respectively.

The $1,942,722 reported as deferred outflows represents contributions made after the measurement date of the net pension liability but before the end of the City's reporting period and will be recognized as a reduction of the net pension liability in the year ending June 30, 2023.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

107
Note 9 – Defined Benefit Pension Plan (Continued)

D. Pension Expenses and Deferred Outflows and Inflows of Resources Related to Pensions (Continued)

Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Deferred Outflows /
M easurement (Inflows)
Period of Resources
Ending June 30 Miscellaneous Plan
2022 (5,305,170)$
2023 (4,731,648)
2024 (5,296,491)
2025 (6,300,174)
2026 -
Thereafter -
(21,633,483)$

As of June 30, 2022, the City has de ferred outflows and deferred inflows of resources related to pensions for the Safety Plan as follows:

Deferred outflows Deferred inflows
of Resources of Resources
Contributions made after the measurement date 2,856,615 $ - $ Changes of assumptions - - Difference between expected and actual experience 2,086,237 (74,532) Net difference between projected and actual earning on
pension plan investments - (28,613,231) Total 4,942,852$ (28,687,763) $
Safety P lan

The amounts above are net of outflows and inflows recognized in the 2020-2021 measurement period expense.

The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for the Safety Plan for the 2020- 21 measurement period is 2.4 years, which was obtained by dividing the total service years of 1,259 (the sum of remaining service lifetimes of the active employees) by 519 (the total number of participants: active, inactive, and retired), respectively.

The $2,856,615 reported as de ferred outflows of resources represents c ontributions made after the measurement date of the net pension liability but before the end of the City's repor ting period and will be recognized as a reduction of the net pension liability in the year ending June 30, 2023.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

108
Note 9 – Defined Benefit Pension Plan (Continued)

D. Pension Expenses and Deferred Outflows and Inflows of Resources Related to Pensions (Continued)

Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Deferred Outflows /
M easurement (Inflows)
Period of Resources
Ending June 30 Safety Plan
2022 (5,615,957)$
2023 (6,011,542)
2024 (6,801,431)
2025 (8,172,596)
2026 -
Thereafter -
(26,601,526)$

Note 10 – Other Postemployment Benefits (“OPEB”)

A. General Information About the Other Postemployment Benefit Plan

Plan Description

The City provides postemployment healthcare benefits to eligible employees at retirement through a single- employer defined benefit other postemployment benefits (“OPEB”) plan administered by the City. Benefit provisions are established through agreements and memorandums of agreement between the City, its management employees, and unions representing the City's employees.

Benefits Provided

The City provides the minimum required employer contri butions under the CalPERS Health Plan for eligible retirees and surviving spouses in receipt of a pension benefit from PERS. An employee is eligible for this employer contribution provided they are vested in their PERS pension benefit and commence payment for their pension benefit when retiring from the City. The surv iving spouse of an eligible retiree who elected spouse coverage under CalPERS is eligible for the employer contribution upon the death of the retiree.

Additional Benefits for Miscellaneous Employees

The current retiree health benefit is a monthly allowance that is payable to the eligible retiree and will be reduced by any amounts paid by the City towards health insurance for the retiree. The monthly allowance is available only to the retired employee and does not continue to a surviving spouse. The retiree is not required to continue medical insurance through the City to receive the monthly allowance. The monthly allowance is currently $25 for each year of service with the City up to 25 years ($625 maximum per month).

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

109
Note 10 – Other Postemployment Benefits (“OPEB”) (Continued)

A. General Information About the Other Postemployment Benefit Plan (Continued)

Additional Benefits for Miscellaneous Employees (Continued)

The monthly allowance is payable up to Medicare eligibility age (currently age 65).

Eligibility from the monthly allowance requires retirement from the City on or after age 50 with at least 15 years of active City service at retirement. Disability retirement requires 10 years of active City service and has no age requirement. Montebello Mid- Mana gement Association (“MMMA”) and M ontebello Supervisors Association (“MSA”) employees are not eligible for this allowance unless they made a one-time election for this benefit in lieu of a City contribution to a 401 (a) plan.

Additional Benefits Safety (Fire and Police) Employees

The current retiree health benefit is a monthly allowance that is payable to the eligible retiree and will be reduced by any amounts paid by the City towards health insurance for the retiree. The monthly allowance is available only to the retired employee and does not continue to a surviving spouse. The retiree is not required to continue medical insurance through the City to receive the monthly allowance. The monthly allowance is currently $25 for each year of service with the City up to 25 years ($625 maximum pe r month). The monthly allowance is payable during the retiree’s lifetime for members of Montebello Police Officers Association (“MPOA”), Montebello Police Management Association (“MPMA”) and Montebello Fire Fighters Association (“MFFA”) and to Medicare eligibility age for all unrepresented Safety employees.

Eligibility from the monthly allowance requires retirement from the City on or after age 50 with at least 15 years of active City service at retirement. Disability retiremen t requires only 10 years of active City service and has no age requirement. Prior to August 2008, MFA employees recei ved a contribution to a 401 (a) (h) plan in lieu of retiree health benefits.

The City also pays 1% of payroll into a Health Reimbursement Account for MPOA, MPMA and, commencing in 2008 for MFA employees.

Employees Covered

At June 30, 2020, the valuation date, the following numbers of participants were covered by the benefit terms:

Inactive plan members or beneficiaries
currently receiving benefits 181
Active plan members 343
Total 524

Contributions

The plan is not funded. The City finances these benefits on a pay-as-you-go basis.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

110
Note 10 – Other Postemployment Benefits (“OPEB”) (Continued)

B. Net OPEB Liability

Actuarial Methods and Assumptions Used to Determine Total OPEB Liability

The City's total OPEB liability was measured as of June 30, 2021 for the measurement period July 1, 2020 through June 30, 2021. The total OPEB liability used to calculate the total OPEB liability was determined by an actuarial valuation dated June 30, 2020, based on the following actuarial assumptions:

Actuarial Cost M ethod
Actuarial Assumptions:

Inflation
Salary Increases
Discount Rate
Moratlity rates
Healthcare cost trend rate
Entry Age, Level Percent of Pay

2.66% as of June 30, 2020 and 1.92% as of June 30, 2021

2.75%
Based on the 2017 experience study for CalPERS pension
Scale MP-2020

6.25% for 2021 decreasing 0.25% per year to and ultimate rate of 4.50% for 2028 and later years

Discount Rate

The discount rate used to measure the total OPEB li ability are based on the S&P Municipal Bond 20 Year High Grade Index. This index indicates discount rates of 2.66% as of June 30, 2020 and 1.92% as of June 30, 2021.

C. Changes in the Net OPEB Liability

The changes in the total OPEB liability for the plan are as follows:

Total OPEB Plan Fiduciary Net Net OPEB
L iability Position L iability
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 30,359,256 $ - $ 30,359,256$ Changes recognized for the measurement period:

Service cost 1,192,947 - 1,192,947 Interest on the total OPEB liability 820,237 - 820,237 Changes of benefit terms - - - Difference between expected and actual experience - - - Changes of assumptions 2,766,372 - 2,766,372 Contributions from the employer - 1,441,914 (1,441,914) Contributions from employees - - - Net investment income, net of administrative expense - - - Benefit payments, including refunds of employee
contributions (1,441,914) (1,441,914) - Administrative expense - - - Net Changes during July 1, 2020 to June 30, 2021 3,337,642$ - $ 3,337,642$ Balance at June 30, 2021 (Measurement Date) 33,696,898 $ - $ 33,696,898$ Increase (Decrease)

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

111
Note 10 – Other Postemployment Benefits (“OPEB”) (Continued)

C. Changes in the Net OPEB Liability (Continued)

Sensitivity of the Net OPEB liability to Changes in the Discount Rate

The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is one percentage point higher or one percentage point lower than the current discount rate, for the measurement period June 30, 2021:

Discount Rate Current Discount Discount Rate
- 1% (0.92%) Rate (1.92%) + 1% (2.92%)
38,131,433$ 33,696,898 $ 30,046,135 $ Plan's Net OPEB Liability/(Asset)

Sensitivity of the Net OPEB liability to Changes in the Healthcare Cost Trend Rates

The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would it were calculated using healthcare cost trend rates that are one percentage point higher or one percentage point lower than the current healthcare cost trend rates:

1% Decrease Current Rate 1% Increase
(5.25% decreasing to

3.50%)
(6.25% decreasing to

4.50%)
(7.25% decreasing to

5.50%)
31,068,112$ 33,696,898 $ 36,643,907 $ Plan's Net OPE B L iability/(Asset)

D. OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB

For the year ended June 30, 2022, the City recognized OPEB expense of $2,054,726. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources re lated to OPEB from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Contributions made after the measurement date 1,514,821$ -$ Changes of assumptions 4,497,518 (438,515) Difference between expected and actual experience - (2,226,980) Total 6,012,339$ (2,665,495)$
OPE B Plan

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

112
Note 10 – Other Postemployment Benefits (“OPEB”) (Continued)

D. OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB (Continued)

The $1,514,821 reported as deferred outflows of resources represents cont ributions made after the measurement date of the OPEB liability but before the end of the C ity's reporting period and will be recognized as a reduction of the net pension liability in the fiscal year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB credit as follows:

Deferred Outflow s
M easurement Period /(Inflows)
Ending June 30, of Resources
2022 211,162 $
2023 211,161
2024 211,161
2025 211,161
2026 320,790
Thereafter 666,588
1,832,023$

Note 11 – Net Investment in Capital Assets

The net investment in capital assets for governmental activ ities, business-type activities, and enterprise funds is calculated as follows:

Governmental Business-Type
Activities Activities
Total capital assets, net 104,617,396 $ 106,336,638 $ Unspent capital debt proceeds 15,161,364 46,299 Deferred loss on refunding debt 134,111 40,963 Capital related debt (40,184,923) (70,945,713) Deferred gain on refunding debt - (529,498) Net investment in capital assets 79,727,948$ 34,948,689 $

Transit System Golf Montebello W ater
Fund Course Hilton Home2Suites Fund
Total capital assets, net 41,966,132$ 7,105,025$ 11,862,931$ 44,482,237$ 920,313$ Unspent capital debt proceed 46,299 - - - - Deferred loss on refunding debt - 40,963 - - - Capital related debt (636,786) (2,026,052) (11,383,313) (56,718,005) (181,557) Deferred gain on refunding debt - - (529,498) - - Net investment in capital assets 41,375,645$ 5,119,936$ (49,880)$ (12,235,768)$ 738,756$ Ente rpri se Fund

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

113
Note 12 – Fund Balance Classifications

Fund balances for the governmental funds at June 30, 2022 consisted of the following:

Transportation
and Street Public Nonmajor
Retirement Improvement Financing Governmental
General Fund Fund Funds Authority Fund Total
Nonspendable:

Advances to other funds 3,159,680$ -$ -$ -$ -$ 3,159,680$ Prepaid items 195,722 - 28,970 - 121,437 346,129 Property held for resale 682,538 - - - - 682,538 Total nonspendable 4,037,940 - 28,970 - 121,437 4,188,347 Restricted:

Retirement - 21,046,898 - - - 21,046,898 Community development - - - - 8,849,308 8,849,308 Public safety - - - - 965,996 965,996 Capital projects 374,594 - 14,786,770 - 214,580 15,375,944 Transportation - - 13,854,886 - - 13,854,886 Debt service - - - 371,706 - 371,706 Total restricted 374,594 21,046,898 28,641,656 371,706 10,029,884 60,464,738 Committed:

Encumbrances 459,491 - - - - 459,491 Total committed 459,491 - - - - 459,491 Unassigned:

Fund ba
lance (deficit) 9,844,229 - - - (262,960) 9,581,269 Total unassigned 9,844,229 - - - (262,960) 9,581,269 Total fund balances 14,716,254$ 21,046,898 $ 28,670,626 $ 371,706 $ 9,888,361$ 74,693,845$

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

114
Note 13 – Stewardship, Compliance and Accountability

The following expenditures for the year ended June 30, 2022, exceeded appropriations in the following funds and functions:

Funds Appropriation Expenditures
E xpenditures ov er
Appropriation
Major Governmental Funds:

General Fund
General government 7,203,177$ 7,508,181$ (305,004)$ Parks, recreation, and culture 4,489,521 4,711,686 (222,165) Debt service:

Principal retirement 1,012,235 1,254,815 (242,580) Interest and fiscal charges 170,500 397,418 (226,918) Retirement Special Revenue Funds
General government 126,400 191,001 (64,601) Transportation and Street Improvement
Special Revenue Funds
Public works 354,200 780,492 (426,292) Nonmajor Governmental Funds:

Supplemental Law Enforcement Special Revenue Fund
Capital Outlay - 1,794 (1,794) Grants Special Revenue Fund
Housing and community development 105,000 481,757 (376,757) George Miller Estate Donations Special Revenue Fund
Public safety 65,750 73,224 (7,474) M easure W Special Revenue Fund
Public works 298,447 869,375 (570,928) Housing Successor Agency Special Revenue Fund
Housing and community development 2,500 25,083 (22,583)

The following funds had deficit fund balances or net position at June 30, 2022. Management expects to eliminate the deficits with subsequent revenue in the funds or transfers from the General Fund.

Funds Amount
Enterprise Funds:

Montebello Hilton (83,562)$
Home2Suites (1,724,814)
Internal Service Fund:

Self-insurance (20,326,439)
Nonmajor Governmental Funds:

Supplemental Law Enforcement Special Revenue Fund (170,676) CDBG Special Revenue Fund (92,284)

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

115
Note 14 – Construction Commitments

The City had outstanding construction commitments in th e amount of $3,675,769 for governmental activities and $13,958,277 for business-type activities at June 30, 2022 as follows:

Gove rnme ntal Acti vi ti e s
General Fund 459,491$
Transportation and Street Improvement
Special Revenue Funds 3,012,401
Nonmajor governmental funds 203,877
Total Governmental Activities 3,675,769$
Business-type Activities
Golf Enterprise Fund 13,958,277$

Note 15 – Contingencies

The City is involved in several pending lawsuits of a nature common to many similar juri sdictions. City management estimates that potential claims against the City, not covered by insurance, will not have a material adverse effect on the financial statements of the City.

Note 16 – Prior Period Adjustments

The beginning net positions and fund balances were restated as following:

Governmental-
Wi de
Governmental
Activities
Beginning, as previously reported (20,800,935)$
Prior year revenue correction (102,725)
Notes payable 889,106
Beginning, as restated (20,014,554)$

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

116
Note 16 – Prior Period Adjustments (Continued)

CDBG HOM E Total Successor Agency
Special Revenue Special Revenue Governmental Private-Purpose Custodial Fund Fund Fund Trust Fund Fund
Beginning, as previously reported
as previously reported 17,256$ (125,342)$ (108,086)$ (366,104)$ -$ Unavailable revenue 543,530 145,000 688,530 - - Prior year revenue correction (202,140) 99,415 (102,725) - - Land held for resale - - - 10,400,000 - Capital assets - - - (246,853) - Deposits - - - - 1,280,426 Beginning, as restated 358,646$ 119,073$ 477,719$ 9,787,043$ 1,280,426$ Fiduciary FundsGovernmental Funds

Governmental activities beginning net position was restated to correct the reporting of unavailable revenue for loans receivable in CDBG Special Revenue Fund and HOME Special Revenue Fund and to correct notes payable to HUD in HOME Special Revenue Fund which repayment was completed in fiscal year 2020.

The beginning net position of Successor Agency Private-Purpose Trust Fund was restated to correct the land held for resale not reported previously and to catch up capital assets depreciation.

The beginning net position of custodial fund was restated to implement GASB 84, Fiduciary Activities.

Note 17 – Subsequent Events

Lease Revenue Bond, Series 2022A Issuance

On December 1, 2022, the City issued Taxable Lease Revenue Bonds, Series 2022A in the amount of $15,700,000 to fund for design, architectural, engineering, construction, and other related costs of the Golf Course Improvement Project. The bonds bear an interest rate of 5% and the principal matures in amounts ranging $230,000 to $975,000 through May 2053.

Lease Revenue Bond, Series 2022B Issuance

On December 1, 2022, the City issued Taxable Lease Revenue Bonds, Series 2022B in the amount of $55,965,000 to finance the costs to design and construct a driving range and entertainment venue to be operated by Topgolf USA MB, LLC. The bonds bear an interest rates of 5.15% to 6.50% and the principal matures in amounts ranging $805,000 to $4,785,000 through May 2043.

Sale of City’s Water System

On December 1, 2022, the California P ublic Utilities Commission authorized the sal e of the City’s water system and related assets to the San Gabriel Valley Water Company (“SGVWC”). The City received the sale proceeds of $16.411 million on February 13, 2023. The City retains certain water rights and will lease such rights to SGVWC.

REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
117

This page intentionally left blank.
118

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Taxes 37,831,100 $ 37,831,100 $ 42,505,700 $ 4,674,600 $ Intergovernmental 7,500 7,500 6,311,326 6,303,826 Licenses and permits 6,101,500 6,101,500 7,806,258 1,704,758 Fines and forfeitures 2,250,000 2,250,000 2,512,256 262,256 Use of money and property 225,000 225,000 (869,471) (1,094,471) Charges for services 7,807,350 7,807,350 8,077,509 270,159 Other revenue 557,500 557,500 560,220 2,720 Total revenues 54,779,950 54,779,950 66,903,798 12,123,848 EXPENDITURES:

Current:

General government 6,089,500 7,203,177 7,508,181 (305,004) Public safety 33,577,820 34,489,873 33,255,910 1,233,963 Public works 10,338,000 12,765,829 11,882,266 883,563 Parks, recreation, and culture 4,424,550 4,489,521 4,711,686 (222,165) Housing and community development 2,489,820 3,088,582 2,370,064 718,518 Capital outlay 481,500 3,025,000 2,073,997 951,003 Debt service:

Principal 997,800 1,012,235 1,254,815 (242,580) Interest 170,500 170,500 397,418 (226,918) Total expenditures 58,569,490 66,244,717 63,454,337 2,790,380

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (3,789,540) (11,464,767) 3,449,461 14,914,228 OTHER FINANCING SOURCES (USES):

Transfers in 4,100,000 4,100,000 3,637,348 (462,652) Proceeds from sale of asset - - 44,300 44,300 Total other financing sources (uses) 4,100,000 4,100,000 3,681,648 (418,352) NET CHANGE IN FUND BALANCE 310,460$ (7,364,767) $ 7,131,109 14,495,876 $ FUND BALANCE:

Beginning of year 7,585,145
End of Year 14,716,254$
Budgetary Comparison Schedule
General Fund
119

Variance with
Original Final Final Budget
Budget Budget Actual Over/(Under)

REVENUES
Taxes 15,046,000 $ 15,046,000 $ 14,569,128 $ (476,872) $ Use of money and property 125,000 125,000 98,079 (26,921) Total revenues 15,171,000 15,171,000 14,667,207 (503,793)

EXPENDITURES
Current:

General government 126,400 126,400 191,001 (64,601)

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES 15,044,600 15,044,600 14,476,206 (568,394)

OTHER FINANCING USES
Transfers out (11,521,700) (11,521,700) (11,040,588) 481,112 Total other financing (uses) (11,521,700) (11,521,700) (11,040,588) 481,112 NET CHANGE IN FUND BALANCE 3,522,900$ 3,522,900 $ 3,435,618 (87,282) $

FUND BALANCE
Beginning of year 17,611,280
End of year 21,046,898$
City of Montebello
Retirement Special Revenue Fund
For the Year Ended June 30, 2022
Budgetary Comparison Schedule (Continued)
120

Variance with
Original Final Final Budget
Budget Budget Actual Over/(Under)

REVENUES
Intergovernmental 6,790,200 $ 6,790,200 $ 7,799,136 $ 1,008,936 $ Use of money and property 48,000 48,000 84,531 36,531 Total revenues 6,838,200 6,838,200 7,883,667 1,045,467

EXPENDITURES
Current:

Public works 354,200 354,200 780,492 (426,292) Capital outlay 8,933,074 8,933,074 5,396,999 3,536,075 Total expenditures 9,287,274 9,287,274 6,177,491 3,109,783

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES (2,449,074) (2,449,074) 1,706,176 4,155,250

OTHER FINANCING USES
Transfers out (2,135,900) (2,135,900) (2,135,916) (16) Total other financing (uses) (2,135,900) (2,135,900) (2,135,916) (16) NET CHANGE IN FUND BALANCE (4,584,974)$ (4,584,974) $ (429,740) 4,155,234 $

FUND BALANCE
Beginning of year 29,100,366
End of year 28,670,626$
City of Montebello
Transportation and Street Improvement Special Revenue Fund For the Year Ended June 30, 2022
Budgetary Comparison Schedule (Continued)
121

This page intentionally left blank.
122

a. The annual budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and estimated revenues for all governmental fund types. b. The City Manager is authorized to transfer certain appropriations between activities within any department in accordance with the budget resolution.
c. The budget is formally integrated into the accounting system. d. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America. The modified accrual basis of accounting is employed in the preparation of the budget.
e. At fiscal year-end, operating budget appropriations lapse. Incomplete capital improvements are rolled over to the new fiscal year. Projects that are not started during the budget year are re-evaluated in the following year.

The budgetary comparison schedule is not presented for the Inmate Welfare Special Revenue Fund due to no approved budget for the year ended June 30, 2022.

The City follows these procedures in establishing the operating budgetary data reflected in the financial statements:

City of Montebello
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2022
Budget and Budgetary Accounting
123

Measurement period 2013-141 2014-15 2015-16 2016-17 2017-18 Total pension liability
Service cost 2,802,157 $ 2,918,611 $ 2,703,362 $ 2,932,068 $ 2,914,031 $ Interest 11,639,094 12,022,505 12,395,700 12,673,319 13,109,478 Differences between expected and actual experience - (2,072,412) (2,550,443) (2,393,873) 531,297 Changes of assumptions - (2,949,227) - 10,512,651 (1,078,751) Benefit payments, including refunds
of employee contributions (7,364,542) (7,653,087) (7,156,315) (9,080,226) (8,817,355) Net change in total pension liability 7,076,709 2,266,390 5,392,304 14,643,939 6,658,700 Total pension liability - beginning 157,469,110 164,545,819 166,812,209 172,204,513 186,848,452 Total pension liability - ending (a) 164,545,819$ 166,812,209 $ 172,204,513 $ 186,848,452 $ 193,507,152 $ Pension fiduciary net position
Contributions - employer 3,168,029 $ 3,123,518 $ 3,474,912 $ 3,893,457 $ 4,404,730 $ Contributions - employee 1,468,002 1,260,428 1,208,725 1,186,191 1,198,860 Net investment income2 19,352,467 2,844,663 665,613 13,752,535 11,334,145 Benefit payments, including refunds
of employee contributions (7,364,542) (7,653,087) (7,156,315) (9,080,226) (8,817,355) Plan to plan resources movement - - - (1,197) (334) Administrative expense - (144,043) (78,007) (186,195) (211,420) Other miscellaneous income/ (expense) - - - - (401,491) Net change in plan fiduciary net position 16,623,956 (568,521) (1,885,072) 9,564,565 7,507,135 Plan fiduciary net position - beginning 111,940,967 128,564,923 127,996,402 126,111,330 135,675,895 Plan fiduciary net position - ending (b) 128,564,923$ 127,996,402 $ 126,111,330 $ 135,675,895 $ 143,183,030 $ Plan net pension liability - ending (a) - (b) 35,980,896$ 38,815,807 $ 46,093,183 $ 51,172,557 $ 50,324,122 $ Plan fiduciary net position as a percentage 78.13% 76.73% 73.23% 72.61% 73.99% of the total pension liability
Covered payroll 15,828,716$ 16,304,182 $ 16,324,646 $ 16,116,462 $ 15,903,678 $ Plan net pension liability as a percentage of
covered payroll 227.31% 238.07% 282.35% 317.52% 316.43% 1 2 Net of administrative expenses for measurement period 2013-14.

Notes to Schedule:

Last Ten Fiscal Years
Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14.

Change of Assumptions: None in 2019 - 2021. In 2018, demographic assumptions and inflation rates were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65% to 7.15 %. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (w ithout a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.

City of Montebello
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30, 2022
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan Benefit Changes: There were no benefit changes.
124

Measurement period 2018-19 2019-20 2020-21
Total pension liability
Service cost 2,908,539$ 2,826,979 $ 3,191,506 $ Interest 13,768,761 14,108,298 14,665,797
Differences between expected and actual experience 2,360,490 (1,969,315) 1,575,308 Changes of assumptions - - - Benefit payments, including refunds
of employee contributions (9,503,625) (10,333,268) (11,458,063) Net change in total pension liability 9,534,165 4,632,694 7,974,548 Total pension liability - beginning 193,507,152 203,041,317 207,674,011 Total pension liability - ending (a) 203,041,317$ 207,674,011 $ 215,648,559 $ Pension fiduciary net position
Contributions - employer 5,051,169 $ 61,879,526 $ 2,061,508 $ Contributions - employee 1,198,617 1,324,939 1,399,212 Net investment income2 9,332,756 7,525,227 46,168,935 Benefit payments, including refunds
of employee contributions (9,503,625) (10,333,268) (11,458,063) Plan to plan resources movement - - Administrative expense (102,178) (210,279) (209,124) Other miscellaneous income/ (expense) 334 - Net change in plan fiduciary net position 5,977,073 60,186,145 37,962,468 Plan fiduciary net position - beginning 143,183,030 149,160,103 209,346,248 Plan fiduciary net position - ending (b) 149,160,103$ 209,346,248 $ 247,308,716 $ Plan net pension liability - ending (a) - (b) 53,881,214$ (1,672,237) $ (31,660,157) $ Plan fiduciary net position as a percentage 73.46% 100.81% 114.68% of the total pension liability
Covered payroll 16,045,340$ 15,953,606 $ 18,031,110 $ Plan net pension liability as a percentage of
covered payroll 335.81% -10.48% -175.59%
1 2 Net of administrative expenses for measurement period 2013-14.

Notes to Schedule:

California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14.

Benefit Changes: There were no benefit changes.

Change of Assumptions: None in 2019 - 2021. In 2018, demographic assumptions and inflation rates were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65% to 7.15 %. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (w ithout a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.

City of Montebello
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2022
Last Ten Fiscal Years
125

2013-141 2014-15 2015-16 2016-17 2017-18
Actuarially determined contribution 3,123,518 $ 3,474,912 $ 3,893,457 $ 4,395,719 $ 4,404,730 $ Contributions in relation to the
actuarially determined contribution (3,123,518) (3,474,912) (3,893,457) (4,395,719) (4,404,730) Contribution deficiency (excess) - $ - $ - $ - $ - $ Covered payroll2 16,304,182$ 16,324,646 $ 16,116,462 $ 16,116,462 $ 15,903,678 $ Contributions as a percentage of covered payroll 19.16% 21.29% 24.16% 27.27% 27.70% 1 2
Notes to Schedule:

Valuation date:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Fair value of assets
Inflation
Salary increases Varies by Entry age and Service
Payroll Growth
Investment rate of return 7.00% including inflation
Retirement age
Mortality
The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using Scale MP-2016 published by the Society of Actuaries.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were from the June 30, 2019 funding valuation report.

2.75%

2.50%
Include one year's payroll growth using 2.75 percent
City of Montebello
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2022
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14.

Last Ten Fiscal Years
126

2018-19 2019-20 2020-21 2021-22
Actuarially determined contribution 5,051,169 $ 5,980,507 $ 2,061,508 $ 1,942,722 $ Contributions in relation to the
actuarially determined contribution (5,051,169) (61,879,526) (2,061,508) (1,942,722) Contribution deficiency (excess) - $ (55,899,019)$ - $ - $ Covered payroll2 16,045,340$ 15,953,606 $ 18,031,110 $ 18,526,966 $ Contributions as a percentage of covered payroll 31.48% 37.49% 11.43% 10.49% 1 2
Notes to Schedule:

Valuation date:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Fair value of assets
Inflation
Salary increases Varies by Entry age and Service
Payroll Growth
Investment rate of return 7.00% including inflation
Retirement age
Mortality
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were from the June 30, 2019 funding valuation report.

The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using Scale MP-2016 published by the Society of Actuaries.

City of Montebello
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14.

Include one year's payroll growth using 2.75 percent

2.50%

2.75%
127

Measurement period 2013-141 2014-15 2015-16 2016-17 2017-18 Total pension liability
Service cost 3,199,355 $ 3,228,635 $ 3,178,292 $ 3,513,114 $ 3,422,176 $ Interest 15,059,257 15,555,154 16,109,903 16,587,154 17,067,923 Differences between expected and actual experience - (1,653,000) (831,534) (484,213) (273,569) Changes of assumptions - (3,773,844) - 13,789,932 (910,340) Benefit payments, including refunds
of employee contributions (10,199,284) (10,403,035) (10,947,880) (11,772,390) (12,521,308) Net change in total pension liability 8,059,328 2,953,910 7,508,781 21,633,597 6,784,882 Total pension liability - beginning 204,290,062 212,349,390 215,303,300 222,812,081 244,445,678 Total pension liability - ending (a) 212,349,390$ 215,303,300 $ 222,812,081 $ 244,445,678 $ 251,230,560 $ Pension fiduciary net position
Contributions - employer 6,437,996 $ 4,710,747 $ 5,153,218 $ 5,358,752 $ 6,104,047 $ Contributions - employee 1,627,017 1,207,244 1,193,160 949,049 1,070,001 Net investment income2 22,955,341 3,345,009 737,269 16,289,173 13,313,614 Benefit payments, including refunds
of employee contributions (10,199,284) (10,403,035) (10,947,880) (11,772,390) (12,521,308) Plan to plan resources movement - - - - (390) Administrative expense - (172,263) (93,329) (220,253) (248,987) Other miscellaneous income/ (expense) - - - - (472,831) Net change in plan fiduciary net position 20,821,070 (1,312,298) (3,957,562) 10,604,331 7,244,146 Plan fiduciary net position - beginning 133,628,287 154,449,357 153,137,059 149,179,497 159,783,828 Plan fiduciary net position - ending (b) 154,449,357$ 153,137,059 $ 149,179,497 $ 159,783,828 $ 167,027,974 $ Plan net pension liability - ending (a) - (b) 57,900,033$ 62,166,241 $ 73,632,584 $ 84,661,850 $ 84,202,586 $ Plan fiduciary net position as a percentage 72.73% 71.13% 66.95% 65.37% 66.48% of the total pension liability
Covered payroll 11,224,230$ 11,922,582 $ 11,768,402 $ 11,568,474 $ 11,280,908 $ Plan net pension liability as a percentage of
covered payroll 515.85% 521.42% 625.68% 731.83% 746.42% 1 2 Net of administrative expenses for measurement period 2013-14.

Notes to Schedule:

Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14.

Benefit Changes: There were no benefit changes.

Change of Assumptions: None in 2019 - 2021. In 2018, demographic assumptions and inflation rates were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65% to 7.15 %. In 2016,there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (w ithout a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.

For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Safety Plan City of Montebello
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios 128

Measurement period 2018-19 2019-20 2020-21
Total pension liability
Service cost 3,246,398$ 3,431,014 $ 3,827,398 $ Interest 17,893,099 18,421,868 19,228,565
Differences between expected and actual experience 4,006,198 (322,974) 3,576,407 Changes of assumptions - - - Benefit payments, including refunds
of employee contributions (13,213,664) (13,813,241) (14,876,758) Net change in total pension liability 11,932,031 7,716,667 11,755,612 Total pension liability - beginning 251,230,560 263,162,591 270,879,258 Total pension liability - ending (a) 263,162,591$ 270,879,258 $ 282,634,870 $ Pension fiduciary net position
Contributions - employer 6,932,392 $ 103,113,849 $ 2,913,777 $ Contributions - employee 1,076,975 1,411,375 1,383,844 Net investment income2 10,771,929 8,702,502 59,892,826 Benefit payments, including refunds
of employee contributions (13,213,664) (13,813,241) (14,876,758) Plan to plan resources movement - - - Administrative expense (119,195) (243,150) (271,360) Other miscellaneous income/ (expense) 390 - - Net change in plan fiduciary net position 5,448,827 99,171,335 49,042,329 Plan fiduciary net position - beginning 167,027,974 172,476,801 271,648,136 Plan fiduciary net position - ending (b) 172,476,801$ 271,648,136 $ 320,690,465 $ Plan net pension liability - ending (a) - (b) 90,685,790$ (768,878) $ (38,055,595)$ Plan fiduciary net position as a percentage 65.54% 100.28% 113.46% of the total pension liability
Covered payroll 10,934,684$ 11,486,487 $ 12,681,903 $ Plan net pension liability as a percentage of
covered payroll 829.34% -6.69% -300.08%
1 2 Net of administrative expenses for measurement period 2013-14.

Notes to Schedule:

Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14.

Benefit Changes: There were no benefit changes.

Change of Assumptions: None in 2019 - 2021. In 2018, demographic assumptions and inflation rates were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65% to 7.15 %. In 2016,there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (w ithout a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.

For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Safety Plan City of Montebello
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) 129

2013-141 2014-15 2015-16 2016-17 2017-18
Actuarially determined contribution 4,710,747 $ 5,153,218 $ 5,358,752 $ 6,096,263 $ 6,104,047 $ Contributions in relation to the
actuarially determined contribution (4,710,747) (5,153,218) (5,358,752) (6,096,263) (6,104,047) Contribution deficiency (excess) - $ - $ - $ - $ - $ Covered payroll2 11,922,582$ 11,768,402 $ 11,568,474 $ 11,568,474 $ 11,280,908 $ Contributions as a percentage of covered payroll 39.51% 43.79% 46.32% 52.70% 54.11% 1 2
Notes to Schedule:

Valuation date:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Fair value of assets
Inflation
Salary increases Varies by Entry age and Service
Payroll Growth
Investment rate of return 7.00% including inflation
Retirement age
Mortality The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using Scale MP-2016 published by the Society of Actuaries.

2.50%

2.75%
The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

Include one year's payroll growth using 2.75 percent
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were from the June 30, 2019 funding valuation report.

California Public Employees' Retirement System ("CalPERS") - Safety Plan Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14.

For the Year Ended June 30, 2022
Last Ten Fiscal Years
City of Montebello
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
130

2018-19 2019-20 2020-21 2021-22
Actuarially determined contribution 6,932,392 $ 8,312,339 $ 2,711,170 $ 2,856,615 $ Contributions in relation to the
actuarially determined contribution (6,932,392) (103,113,849) (2,711,170) (2,856,615) Contribution deficiency (excess) - $ (94,801,510)$ - $ - $ Covered payroll2 10,934,684$ 11,486,487 $ 12,681,903 $ 13,030,655 $ Contributions as a percentage of covered payroll 63.40% 72.37% 21.38% 21.92% 1 2
Notes to Schedule:

Valuation date:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Fair value of assets
Inflation
Salary increases Varies by Entry age and Service
Payroll Growth
Investment rate of return 7.00% including inflation
Retirement age
Mortality The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using Scale MP-2016 published by the Society of Actuaries.

2.50%

2.75%
The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

Include one year's payroll growth using 2.75 percent
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were from the June 30, 2019 funding valuation report.

California Public Employees' Retirement System ("CalPERS") - Safety Plan Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14.

For the Year Ended June 30, 2022
Last Ten Fiscal Years
City of Montebello
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
131

Measurement period 2016-2017* 2017-2018 208-2019 2019-2020 2020-2021 Total OPEB liability
Service cost 1,079,041 $ 1,115,728 $ 972,274 $ 1,000,546 $ 1,192,947 $ Interest 849,121 970,765 1,059,759 1,060,584 820,237 Changes of benefit terms - - - - - Differences between expected and actual experience - (59,573) - (2,969,308) - Changes of assumptions (2,111,032) 1,069,938 (767,402) 2,769,257 2,766,372 Benefit payments, including refunds
of employee contributions (1,039,463) (1,151,779) (1,301,168) (1,422,435) (1,441,914) Net change in total OPEB liability (1,222,333) 1,945,079 (36,537) 438,644 3,337,642 Total OPEB liability - beginning 29,234,403 28,012,070 29,957,149 29,920,612 30,359,256 Total OPEB liability - ending (a) 28,012,070$ 29,957,149 $ 29,920,612 $ 30,359,256 $ 33,696,898 $ OPEB fiduciary net position**
Contributions - employer 1,039,463 $ 1,151,779 $ 1,301,168 $ 1,422,435 $ 1,441,914 $ Contributions - member - - - - - Net investment income - - - - - Benefit payments, including refunds
(1,039,463) (1,151,779) (1,301,168) (1,422,435) (1,441,914) Plan to plan resources movement - - - - - Administrative expense - - - - - Other expense - - - - - Net change in plan fiduciary net position - - - - - Plan fiduciary net position - beginning - - - - - Plan fiduciary net position - ending (b) -$ - $ - $ - $ - $ Plan net OPEB liability - ending (a) - (b) 28,012,070$ 29,957,149 $ 29,920,612 $ 30,359,256 $ 33,696,898 $ Plan fiduciary net position as a percentage 0.00% 0.00% 0.00% 0.00% 0.00% of the total OPEB liability
Covered employee payroll 19,234,000$ N/A N/A N/A 31,317,575 $ Plan net OPEB liability as a percentage of
covered employee payroll 145.64% N/A N/A N/A 107.60%
Notes to Schedule:
***No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB 75. *Measurement period 2017 was the first year of implementation, therefore only five years are shown **The Plan is not funded and on a pay-as-you go basis
City of Montebello
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios For the Year Ended June 30, 2022
Last Ten Fiscal Years*
Other Postemployment Benefit Plan
of employee contributions
132

SUPPLEMENTARY INFORMATION
133

This page intentionally left blank.
134

Variance with
Original Final Final Budget
Budget Budget Actual Over/(Under)

REVENUES
Use of money and property - $ - $ 543 $ 543 $ Other revenue 1,507,000 1,507,000 1,506,936 (64) Total revenues 1,507,000 1,507,000 1,507,479 479

EXPENDITURES
Debt service:

Principal 5,876,200 5,876,200 5,876,027 173 Interest 5,171,300 5,171,300 5,170,131 1,169 Total expenditures 11,047,500 11,047,500 11,046,158 1,342

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES (9,540,500) (9,540,500) (9,538,679) (863)

OTHER FINANCING SOURCES
Transfers in 9,532,700 9,532,700 9,532,529 (171) Total other financing sources 9,532,700 9,532,700 9,532,529 (171) NET CHANGE IN FUND BALANCE (7,800)$ (7,800) $ (6,150) (1,034) $

FUND BALANCE
Beginning of year 377,856
End of year 371,706$
City of Montebello
Schedule of Revenues, Expenditure, and Change in Fund Balance - Budget and Actual Public Financing Authority Debt Service Fund
For the Year Ended June 30, 2022
135

This page intentionally left blank.
136

CDBG Fund – This fund was created to account for financial transactions relating to the Community Development Block Grant Program of the U.S. Department of Housing and Urban Development. Program income is currently used for low interest housing rehabilitation loans and for grants to non-profit organizations for community services.

HOME Fund – This fund was created to account for financial translations relating to the Federal HOME program. Program income from HOME funds is used to meet housing needs for low income households in accordance with federal guidelines.

NONMAJOR

GOVERNMENTAL FUNDS
Special Revenue Funds
Supplemental Law Enforcement Fund – The State legislature established a 0.15% Vehicle License Fee ("VLF") in 2009 (in addition to the 0.65% base VLF fee). Revenue from the 0.15% fee is deposited in the Local Safety and Public Protection Account and revenues are sued to fund a variety of law enforcement programs previously paid from the State General Fund. The County of Los Angeles distributes these funds to eligible cities through the property tax allocation process.

Park Development Fund - To account for new construction license fees received. These fees are used for the maintenance and improvement of the City's parks.

Grants Fund - The City receives numerous grants and records the revenues and related expenditures in this fund for grants not reported in other funds. This fund only reports non-Transit grants.

Justice Assistance Grants Fund – The Justice Assistance Grant program is the leading source of federal justice funding to state and local jurisdictions. The program provides local governments with critical funding to support law enforcement, prosecution, indigent defense, courts, crime prevention and education, corrections and community corrections, drug treatment and enforcement, planning, evaluation, technology improvement, and crime victim and witness initiatives and mental health programs and related law enforcement and corrections programs, including behavioral programs and crisis intervention teams.

Drug Enforcement Fund - This fund records proceeds from revenue sharing from various Federal and State asset forfeiture programs. Montebello Police Department personnel participate in Federal and State drug enforcement task force operations.

Depending on the operation, and the amount of assets (i.e., money, cars, homes, etc.) seized as part of the operation, a portion of proceeds from the assets are shared by participating law enforcement agencies. These funds have strict spending guidelines, and generally Montebello has utilized the funds to pay for dispatch and related software, as well as some equipment per the program guidelines.

Air Quality Fund - Assembly Bill 2766 was adopted in 1990 to provide revenue to reduce air pollution from motor vehicles and for related planning, monitoring, enforcement, and technical studies. The Department of Motor Vehicles collects a registration surcharge of $6 per vehicle to fund the AB 2766 program. Forty percent of the AB 2766 fund (approximately $20 million annually in the South Coast Air Basin) is returned to the cities and counties to fund transportation related projects that reduce air pollution. AB 2766 revenue is distributed on a quarterly basis to participating cities and counties based on the prorated share of their population. 137

NONMAJOR

GOVERNMENTAL FUNDS
TDA Article 3 Fund – Transportation Development Act (TDA), Article 3 funds are used by cities within Los Angeles County for the planning and construction of bicycle and pedestrian facilities. By ordinance, LA County Metro is responsible for administering the program and establishing its policies. TDA, Article 3 funds are allocated annually on a per capita basis to both cities and the County of Los Angeles.

Special Revenue Funds (Continued)
Measure A Local – The Los Angeles County Safe, Clean Neighborhood Parks and Beaches Measure of 2016 ("Measure A") was approved by Los Angeles County voters in 2016. This measure provides funding for local parks, beaches, open space, and water resources through the levy of an annual parcel tax of 1.5 cents per square foot of development. Local communities are allocated a portion of funding based on park needs.

Housing Successor – With the dissolution of redevelopment statewide effective January 31, 2012, the City of Montebello chose to become the Successor Agency for the former Redevelopment Agency. Included in that action was the former Housing Agency, with all assets, liabilities and revenue and expense activity now recorded in the Housing Successor Agency Fund.

George Miller Estate Donation Fund – This fund was set up per the instructions and directions of a settlement agreement reached between the City and the estate of George Miller. Mr. Miller was a long-time Montebello firefighter and left a portion of his estate to the City to be utilized for fire education and training opportunities. The settlement agreement directed the donation to be deposited and any expenditures related to the donation in a separate fund.

Measure W Fund – Approved by Los Angeles County voters in 2018, Measure W establishes a parcel tax (i.e., property tax assessment) which generates revenue for projects, infrastructure, and programs to capture, treat and recycle rainwater. Also known as the "Safe Clean Water Act,” parcels are taxed at a rate of $.025 (2.5 cents) per square foot of impermeable area (i.e., paved or built- on surfaces such as concrete patios or driveways).

Inmate Welfare Fund – This fund was created to record revenue previously recorded in a Trust and Agency fund account (Fund 500). The revenue comes from inmates incarcerated in the City of Montebello Jail and proceeds are utilized for inmate welfare related purposes.
138

Supplemental Justice
Law Park Drug Air Assistance
Enforcement Development Enforcement Quality Grants
ASSETS
Cash and investments 114,595 $ 21,098 $ 491,754 $ 159,256 $ 36,734 $ Accounts receivable - - 238,300 20,692 - Tax receivable - - - - - Notes receivable - - - - - Due from other funds - - - - - Due from other governments - - - - - Prepaid items - - 121,437 - - Property held for resale - - - - - Total assets 114,595$ 21,098 $ 851,491 $ 179,948 $ 36,734 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 7,169 $ - $ 891 $ 1,067 $ - $ Unearned revenue - - - - - Due to other funds 278,102 - - - - Total liabilities 285,271 - 891 1,067 - Deferred Inflows of Resources:

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

Nonspendable - - 121,437 - - Restricted - 21,098 729,163 178,881 36,734 Unassigned (deficit) (170,676) - - - - Total fund balances (deficit) (170,676) 21,098 850,600 178,881 36,734 Total liabilities and fund balances 114,595$ 21,098 $ 851,491 $ 179,948 $ 36,734 $ (Continued)
City of Montebello
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
Special Revenue Funds
139

George Miller
TDA Estate
Grants CDBG HOME Article 3 Donation
ASSETS
Cash and investments - $ - $ 111,940$ - $ 201,373$ Accounts receivable 1,412,489 487,205 38,764 446 - Tax receivable 1,818 - - - - Notes receivable - 350,693 145,000 - - Due from other funds - - - - - Due from other governments - - - - - Prepaid items - - - - - Property held for resale - - - - - Total assets 1,414,307$ 837,898 $ 295,704 $ 446 $ 201,373$

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 139,788 $ 80,685 $ 2,539 $ - $ 2,039$ Unearned revenue 310,021 - - - - Due to other funds 615,091 432,856 - 446 - Total liabilities 1,064,900 513,541 2,539 446 2,039 Deferred Inflows of Resources:

Unavailable revenue - 416,641 38,764 - - Total deferred inflows of resources - 416,641 38,764 - - Fund Balances:

Nonspendable - - - - - Restricted 349,407 - 254,401 - 199,334 Unassigned (deficit) - (92,284) - - - Total fund balances (deficit) 349,407 (92,284) 254,401 - 199,334 Total liabilities and fund balances 1,414,307$ 837,898 $ 295,704 $ 446 $ 201,373$ (Continued)
Special Revenue Funds
City of Montebello
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
140

Total
Inmate Nonmajor
Welfare Measure A Housing Governmental
Measure W Fund Local Successor Funds
ASSETS
Cash and investments - $ 765 $ 8,216 $ 632,655 $ 1,778,386 $ Accounts receivable 884,710 - 37,688 - 3,120,294 Tax receivable - - - - 1,818 Notes receivable - - - - 495,693 Due from other funds - - - 1,475,000 1,475,000 Due from other governments - - - 4,944,689 4,944,689 Prepaid items - - - - 121,437 Property held for resale - - - 996,830 996,830 Total assets 884,710$ 765 $ 45,904 $ 8,049,174 $ 12,934,147 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 69,375 $ - $ 45,904$ - $ 349,457$ Unearned revenue 15,335 - - - 325,356 Due to other funds 585,420 - - 3,653 1,915,568 Total liabilities 670,130 - 45,904 3,653 2,590,381 Deferred Inflows of Resources:

Unavailable revenue - - - - 455,405 Total deferred inflows of resources - - - - 455,405 Fund Balances:

Nonspendable - - - - 121,437 Restricted 214,580 765 - 8,045,521 10,029,884 Unassigned (deficit) - - - - (262,960) Total fund balances (deficit) 214,580 765 - 8,045,521 9,888,361 Total liabilities and fund balances 884,710$ 765 $ 45,904 $ 8,049,174 $ 12,934,147 $ (Concluded)
Special Revenue Funds
City of Montebello
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
141

Supplemental Justice
Law Park Drug Air Assistance
Enforcement Development Enforcement Quality Grants
REVENUES:

Intergovernmental 161,285 $ - $ 990,962$ 81,006 $ - $ Use of money and property - 104 1,449 650 182 Other revenue - - - - - Total revenues 161,285 104 992,411 81,656 182 EXPENDITURES:

Current:

Public safety 159,489 - 383,636 - - Public works - - - - - Housing and community development - - - 19,133 - Parks and recreation - - - - - Capital outlay 1,794 - 90,228 - - Debt service:

Principal payment - - - - - Interest and fiscal charges - - - - - Total expenditures 161,283 - 473,864 19,133 -

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES 2 104 518,547 62,523 182 NET CHANGES IN FUND BALANCES 2 104 518,547 62,523 182 FUND BALANCES (DEFICIT):

Beginning of year, as restated (Note 16) (170,678) 20,994 332,053 116,358 36,552 End of year (170,676) $ 21,098 $ 850,600 $ 178,881 $ 36,734 $ (Continued)
Special Revenue Funds
City of Montebello
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2022
142

George Miller
TDA Estate
Grants CDBG HOME Article 3 Donation
REVENUES:

Intergovernmental 2,112,105 $ 721,551 $ 173,938 $ - $ - $ Use of money and property - - - - 1,152 Other revenue 550 - 153 49,373 - Total revenues 2,112,655 721,551 174,091 49,373 1,152 EXPENDITURES:

Current:

Public safety 845,293 455,076 - - 73,224 Public works - - - - - Housing and community development 481,757 245,810 38,763 - - Parks and recreation 246,909 - - - - Capital outlay 81,560 - - 1,785 - Debt service:

Principal payment - 425,000 - - - Interest and fiscal charges - 46,595 - - - Total expenditures 1,655,519 1,172,481 38,763 1,785 73,224

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES 457,136 (450,930) 135,328 47,588 (72,072) NET CHANGES IN FUND BALANCES 457,136 (450,930) 135,328 47,588 (72,072) FUND BALANCES (DEFICIT):

Beginning of year, as restated (Note 16) (107,729) 358,646 119,073 (47,588) 271,406 End of year 349,407 $ (92,284) $ 254,401 $ - $ 199,334$ (Continued)
City of Montebello
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Special Revenue Funds
143

Total
Inmate Housing Nonmajor
Welfare Measure Successor Governmental
Measure W Fund A Fund Funds
REVENUES:

Intergovernmental 869,375 $ - $ 37,688$ - $ 5,147,910 Use of money and property - 49 - 10,361 13,947 Other revenue - 221 - 2,100 52,397 Total revenues 869,375 270 37,688 12,461 5,214,254 EXPENDITURES:

Current:

Public safety - - - - 1,916,718 Public works 869,375 - - - 869,375 Housing and community development - - - 25,083 810,546 Parks and recreation - - 37,688 - 284,597 Capital outlay - 16,943 - - 192,310 Debt service:

Principal payment - - - - 425,000 Interest and fiscal charges - - - - 46,595 Total expenditures 869,375 16,943 37,688 25,083 4,545,141

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES - (16,673) - (12,622) 669,113 NET CHANGES IN FUND BALANCES - (16,673) - (12,622) 669,113 FUND BALANCES (DEFICIT):

Beginning of year, as restated (Note 16) 214,580 17,438 - 8,058,143 9,219,248 End of year 214,580 $ 765 $ - $ 8,045,521$ 9,888,361 $ (Concluded)
Special Revenue Funds
City of Montebello
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2022
144

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental 150,000 $ 150,000 $ 161,285 $ 11,285 $ Total revenues 150,000 150,000 161,285 11,285 EXPENDITURES:

Current:

Public safety 347,100 347,100 159,489 187,611 Capital outlay - - 1,794 (1,794) Total expenditures 347,100 347,100 161,283 185,817 NET CHANGE IN FUND BALANCE (197,100)$ (197,100) $ 2 197,102$ FUND BALANCE (DEFICIT):

Beginning of year (170,678)
End of Year (170,676)$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual Supplemental Law Enforcement Special Revenue Fund
145

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Use of money and property 250$ 250 $ 104 $ (146) $ Total revenues 250 250 104 (146) NET CHANGE IN FUND BALANCE 250$ 250 $ 104 (146) $ FUND BALANCE:

Beginning of year 20,994
End of Year 21,098$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual Park Development Special Revenue Fund
146

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental 250,000 $ 250,000 $ 990,962 $ 740,962 $ Use of money and property 1,500 1,500 1,449 (51) Total revenues 251,500 251,500 992,411 740,911 EXPENDITURES:

Current:

Public safety 476,000 476,000 383,636 92,364 Capital outlay 40,000 101,084 90,228 10,856 Total expenditures 516,000 577,084 473,864 103,220 NET CHANGE IN FUND BALANCE (264,500)$ (325,584) $ 518,547 844,131 $ FUND BALANCE:

Beginning of year 332,053
End of Year 850,600$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual Drug Enforcement Special Revenue Fund
147

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental 82,000 $ 82,000 $ 81,006 $ (994) $ Use of money and property 2,000 2,000 650 (1,350) Total revenues 84,000 84,000 81,656 (2,344) EXPENDITURES:

Current:

Housing and community development 28,700 32,700 19,133 13,567 Capital outlay 200,000 196,000 - 196,000 Total expenditures 228,700 228,700 19,133 209,567 NET CHANGE IN FUND BALANCE (144,700)$ (144,700) $ 62,523 207,223 $ FUND BALANCE:

Beginning of year 116,358
End of Year 178,881$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual Air Quality Special Revenue Fund
148

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Use of money and property 500$ 500 $ 182 $ (318) $ Total revenues 500 500 182 (318) NET CHANGE IN FUND BALANCE 500$ 500 $ 182 (318) $ FUND BALANCE:

Beginning of year 36,552
End of Year 36,734$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual Justice Assistance Grants Special Revenue Fund
149

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental 2,177,200 $ 3,175,453 $ 2,112,105 $ (1,063,348) $ Other revenue - - 550 550 Total revenues 2,177,200 3,175,453 2,112,655 (1,062,798) EXPENDITURES:

Current:

Public safety 1,141,000 2,219,291 845,293 1,373,998 Parks, recreation, and culture 1,155,100 888,100 246,909 641,191 Housing and community development 105,000 105,000 481,757 (376,757) Capital outlay 719,658 757,917 81,560 676,357 Total expenditures 3,120,758 3,970,308 1,655,519 2,314,789 NET CHANGE IN FUND BALANCE (943,558)$ (794,855) $ 457,136 1,251,991 $ FUND BALANCE (DEFICIT):

Beginning of year (107,729)
End of Year 349,407$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual Grants Special Revenue Fund
150

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental 1,587,450 $ 1,587,450 $ 721,551 $ (865,899) $ Total revenues 1,587,450 1,587,450 721,551 (865,899) EXPENDITURES:

Current:

Public safety 50,000 893,976 455,076 438,900 Housing and community development 1,067,600 682,876 245,810 437,066 Debt service:

Principal 425,000 425,000 425,000 - Interest 46,600 46,600 46,595 5 Total debt service 471,600 471,600 471,595 5 Total expenditures 1,589,200 2,048,452 1,172,481 875,971 NET CHANGE IN FUND BALANCE (1,750)$ (461,002) $ (450,930) 10,072 $ FUND BALANCE (DEFICIT):

Beginning of year, as restated (Note 16) 358,646
End of Year (92,284)$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual CDBG Special Revenue Fund
151

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental - $ - $ 173,938$ 173,938 $ Other revenue 400,000 400,000 153 (399,847) Total revenues 400,000 400,000 174,091 (225,909) EXPENDITURES:

Current:

Housing and community development 502,400 505,987 38,763 467,224 Total expenditures 502,400 505,987 38,763 467,224 NET CHANGE IN FUND BALANCE (102,400)$ (105,987) $ 135,328 241,315 $ FUND BALANCE:

Beginning of year, as restated (Note 16) 119,073
End of Year 254,401$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual HOME Special Revenue Fund
152

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Other revenue 46,500 $ 46,500 $ 49,373 $ 2,873 $ Total revenues 46,500 46,500 49,373 2,873 EXPENDITURES:

Capital outlay 91,088 92,872 1,785 91,087 Total expenditures 91,088 92,872 1,785 91,087 NET CHANGE IN FUND BALANCE (44,588)$ (46,372) $ 47,588 93,960 $ FUND BALANCE (DEFICIT):

Beginning of year (47,588)
End of Year -$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual TDA Article 3 Special Revenue Fund
153

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Use of money and property 750$ 750 $ 1,152 $ 402 $ Total revenues 750 750 1,152 402 EXPENDITURES:

Current:

Public safety 65,750 65,750 73,224 (7,474) Total expenditures 65,750 65,750 73,224 (7,474) NET CHANGE IN FUND BALANCE (65,000)$ (65,000) $ (72,072) (7,072) $ FUND BALANCE:

Beginning of year 271,406
End of Year 199,334$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual George Miller Estate Donations Special Revenue Fund
154

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental 900,000 $ 900,000 869,375 $ (30,625) $ Total revenues 900,000 900,000 869,375 (30,625) Current:

Public works - $ 298,447$ 869,375 $ (570,928) $ Total expenditures - 298,447 869,375 (570,928) NET CHANGE IN FUND BALANCE -$ (298,447)$ - 298,447$ FUND BALANCE:

Beginning of year 214,580
End of Year 214,580$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual Measure W Special Revenue Fund
155

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental - $ - $ 37,688$ 37,688 $ Total revenues - - 37,688 37,688 EXPENDITURES:

Current:

Parks and recreation - $ 66,000 $ 37,688 $ 28,312 $ Total expenditures - 66,000 37,688 28,312 NET CHANGE IN FUND BALANCE -$ (66,000)$ - 66,000$ FUND BALANCE:

Beginning of year -
End of Year -$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual Measure A Special Revenue Fund
156

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Use of money and property -$ - $ 10,361$ 10,361 $ Other revenue - - 2,100 2,100 Total revenues - - 12,461 12,461 EXPENDITURES:

Current:

Housing and community development 2,500 2,500 25,083 (22,583) Total expenditures 2,500 2,500 25,083 (22,583) NET CHANGE IN FUND BALANCE (2,500)$ (2,500) $ (12,622) (10,122) $ FUND BALANCE:

Beginning of year 8,058,143
End of Year 8,045,521$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual Housing Successor Agency Special Revenue Fund
157

This page intentionally left blank.
158

Measure R Local Fund - Measure R was approved by Los Angeles County voters in November 2008. Measure R is an ordinance authorizing an additional half cent sales tax to fund traffic relief and rail expansion according to an expenditure plan contained in the ordinance. The sales tax became effective July 1, 2009 and will remain in effect for 30 years (expiring July 1, 2039).

Measure M Local Fund – Measure M was approved and imposes a retail transaction and use tax at the rate of one-half of one percent within Los Angeles County. The sales tax will increase to one percent (1%) on July 1, 2039, when the Measure R one-half of one percent (0.5%) tax expires (see description of Measure R above). The sales tax is in addition to any other taxes authorized by law.

The sales tax has no expiration date.

TRANSPORTATION AND STREET

IMPROVEMENT FUNDS
Gas Tax Fund - The State of California levies a per gallon gasoline tax. Cities and Counties receive revenue from the motor vehicle fuel taxes imposed pursuant to Revenue and Taxation Code Section 7360(a) and (b) through the Highway User Tax Account (HUTA) as outlined in the Streets and Highways Code Sections 2103, 2105, 2107, 2017.5.

Road Maintenance and Rehabilitation Fund - The Road Repair and Accountability Act of 2017 (SB 1) set new transportation taxes allocated to Cities and Counties through the Road Maintenance and Rehabilitation Account (RMRA): additional $0.12 per gallon increase to the gasoline excise tax (with annual inflation adjustments beginning July 1, 2020), additional $0.20 per gallon increase to the diesel fuel excise tax (with half of the revenue going to the RMRA), additional vehicle registration tax, and additional $100 per vehicle registration tax on zero emissions vehicles.

Prop A Local Fund - The Proposition A sales tax, approved by Los Angeles County voters in 1980, is a half cent tax on most retail sales in Los Angeles County. LA County Metro returns 25% of the Proposition A tax to the Cities in the County for transportation purposes. The balance of the tax revenue is restricted to 35% for rail development and 40% for discretionary purposes.

Prop C Local Fund - The Proposition C sales tax, approved by LA County voters in 1990, is an additional half cent tax on retail sales in Los Angeles County. LA County Metro returns 20% of the Proposition C tax to the cities in the County for transportation purposes. The balance of the Proposition C tax is restricted 40% for construction and operation of the bus transit and rail system; 5% to expand rail and bus security; 10% for commuter rail, construction of transit centers, park and ride lots and freeway bus stops; and 25% for transit-related improvements to freeways and state highways.

Special Revenue Funds
159

Road
Gas Maintenance Prop A Prop C
Tax & Rehabilitation Local Local
ASSETS
Cash and investments 1,801,645 $ 2,421,868 $ 6,054,012 $ 1,220,281 $ Restricted cash and investments:

Held by fiscal agent - - - 10,974,746 Accounts receivable 116,139 113,337 - - Prepaid items - - - 28,970 Total assets 1,917,784$ 2,535,205 $ 6,054,012 $ 12,223,997 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 170,556 $ 446,101 $ 355 $ 20,365 $ Total liabilities 170,556 446,101 355 20,365 Fund Balances:

Nonspendable - - - 28,970 Restricted 1,747,228 2,089,104 6,053,657 12,174,662 Total fund balances 1,747,228 2,089,104 6,053,657 12,203,632 Total liabilities and fund balances 1,917,784$ 2,535,205 $ 6,054,012 $ 12,223,997 $ (Continued)
City of Montebello
Combining Balance Sheet
Special Revenue Funds
Transportation and Street Improvement Special Revenue Funds June 30, 2022
160

Total
Transportation
and Street
Measure R Measure M Improvement
Local Local Funds
ASSETS
Cash and investments 1,280,767 $ 1,503,974 $ 14,282,547 $ Restricted cash and investments:

Held by fiscal agent 1,626,805 2,185,219 14,786,770 Accounts receivable - - 229,476 Prepaid items - - 28,970 Total assets 2,907,572$ 3,689,193 $ 29,327,763 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 155 $ 19,605 $ 657,137 $ Total liabilities 155 19,605 657,137 Fund Balances:

Nonspendable - - 28,970 Restricted 2,907,417 3,669,588 28,641,656 Total fund balances 2,907,417 3,669,588 28,670,626 Total liabilities and fund balances 2,907,572$ 3,689,193 $ 29,327,763 $ (Concluded)
City of Montebello
Combining Balance Sheet (Continued)
Special Revenue Funds
Transportation and Street Improvement Special Revenue Funds June 30, 2022
161

Road
Gas Maintenance Prop A Prop C
Tax & Rehabilitation Local Local
REVENUES:

Intergovernmental 1,474,746 $ 1,261,049 $ 1,604,678 $ 1,331,047 $ Use of money and property 8,912 13,705 27,493 17,753 Total revenues 1,483,658 1,274,754 1,632,171 1,348,800 EXPENDITURES:

Current:

Public works 372,718 9,700 32,620 116,904 Capital outlay 568,861 1,733,745 101,063 154,446 Total expenditures 941,579 1,743,445 133,683 271,350

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES 542,079 (468,691) 1,498,488 1,077,450 OTHER FINANCING (USES):

Transfers out (300,000) - - (708,779) Total other financing (uses) (300,000) - - (708,779) NET CHANGES IN FUND BALANCES 242,079 (468,691) 1,498,488 368,671 FUND BALANCES:

Beginning of year 1,505,149 2,557,795 4,555,169 11,834,961 End of year 1,747,228 $ 2,089,104 $ 6,053,657 $ 12,203,632 $ (Continued)
City of Montebello
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Special Revenue Funds
Transportation and Street Improvement Special Revenue Funds For the Year Ended June 30, 2022
162

Total
Transportation
and Street
Measure R Measure M Improvement
Local Local Funds
REVENUES:

Intergovernmental 998,124 $ 1,129,492 $ 7,799,136 Use of money and property 7,525 9,143 84,531 Total revenues 1,005,649 1,138,635 7,883,667 EXPENDITURES:

Current:

Public works 185,893 62,657 780,492 Capital outlay 1,102,096 1,736,788 5,396,999 Total expenditures 1,287,989 1,799,445 6,177,491

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES (282,340) (660,810) 1,706,176 OTHER FINANCING (USES):

Transfers out (527,844) (599,293) (2,135,916) Total other financing (uses) (527,844) (599,293) (2,135,916) NET CHANGES IN FUND BALANCES (810,184) (1,260,103) (429,740) FUND BALANCES:

Beginning of year 3,717,601 4,929,691 29,100,366 End of year 2,907,417$ 3,669,588 $ 28,670,626 $ (Concluded)
City of Montebello
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Special Revenue Funds
Transportation and Street Improvement Special Revenue Funds For the Year Ended June 30, 2022
163

Variance with
Original Final Final Budget
Budget Budget Actual Over/(Under)
REVENUES:

Intergovernmental 1,518,800 $ 1,518,800 1,474,746 $ (44,054) $ Use of money and property - - 8,912 8,912 Total revenues 1,518,800 1,518,800 1,483,658 (35,142) EXPENDITURES:

Current:

Public works 289,700 333,368 372,718 (39,350) Capital outlay 2,726,504 2,709,369 568,861 2,140,508 Total expenditures 3,016,204 3,042,737 941,579 2,101,158

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES (1,497,404) (1,523,937) 542,079 2,066,016 OTHER FINANCING USES:

Transfers out (300,000) (300,000) (300,000) - NET CHANGE IN FUND BALANCE (1,797,404)$ (1,823,937) $ 242,079 2,066,016 $

FUND BALANCE
Beginning of year 1,505,149
End of year 1,747,228$
City of Montebello
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual Gas Tax Special Revenue Fund
For the Year Ended June 30, 2022
164

Variance with
Original Final Final Budget
Budget Budget Actual Over/(Under)
REVENUES:

Intergovernmental 1,220,700 $ 1,220,700 $ 1,261,049 $ 40,349 $ Use of money and property 5,000 5,000 13,705 8,705 Total revenues 1,225,700 1,225,700 1,274,754 49,054 EXPENDITURES:

Current:

Public works 9,700 9,700 9,700 - Capital outlay 3,515,000 3,542,312 1,733,745 1,808,567 Total expenditures 3,524,700 3,552,012.00 1,743,445 1,808,567 NET CHANGE IN FUND BALANCE (2,299,000)$ (2,326,312) $ (468,691) 1,857,621 $ FUND BALANCE:

Beginning of year 2,557,795
End of year 2,089,104$
City of Montebello
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual (Continued) Road Maintenance and Rehabilitation Special Revenue Fund For the Year Ended June 30, 2022
165

City of Montebello
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental 1,283,200 $ 1,283,200 $ 1,604,678 $ 321,478 $ Use of money and property 16,000 16,000 27,493 11,493 Total revenues 1,299,200 1,299,200 1,632,171 332,971 EXPENDITURES:

Current:

Public works 9,700 29,336 32,620 (3,284) Capital outlay 1,785,000 1,883,985 101,063 1,782,922 Total expenditures 1,794,700 1,913,321 133,683 1,779,638 NET CHANGE IN FUND BALANCE (495,500)$ (614,121) $ 1,498,488 2,112,609 $ FUND BALANCE:

Beginning of year 4,555,169
End of year 6,053,657$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual (Continued) Prop A Local Special Revenue Fund
For the Year Ended June 30, 2022
166

City of Montebello
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental 1,064,400 $ 1,064,400 $ 1,331,047 $ 266,647 $ Use of money and property 16,000 16,000 17,753 1,753 Total revenues 1,080,400 1,080,400 1,348,800 268,400 EXPENDITURES:

Current:

Public works 19,700 19,700 116,904 (97,204) Capital outlay 385,000 428,870 154,446 274,424 Total expenditures 404,700 448,570 271,350 177,220

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES 675,700 631,830 1,077,450 445,620 OTHER FINANCING USES:

Transfers out (708,800) (708,800) (708,779) 21 NET CHANGE IN FUND BALANCE 675,700$ 631,830 $ 368,671 445,641 $ FUND BALANCE:

Beginning of year 11,834,961
End of year 12,203,632$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual (Continued) Prop C Local Special Revenue Fund
For the Year Ended June 30, 2022
167

City of Montebello
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental 798,300 $ 798,300 $ 998,124 $ 199,824 $ Use of money and property 5,500 5,500 7,525 2,025 Total revenues 803,800 803,800 1,005,649 201,849 EXPENDITURES:

Current:

Public works 15,700 15,700 185,893 (170,193) Capital outlay - 1,273,160 1,102,096 171,064 Total expenditures 15,700 1,288,860 1,287,989 871

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES 788,100 (485,060) (282,340) 202,720 OTHER FINANCING USES:

Transfers out (527,800) (527,800) (527,844) (44) NET CHANGE IN FUND BALANCE 260,300$ (1,012,860) $ (810,184) 202,676 $ FUND BALANCE:

Beginning of year 3,717,601
End of year 2,907,417$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual (Continued) Measure R Local Special Revenue Fund
For the Year Ended June 30, 2022
168

City of Montebello
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental 904,800 $ 904,800 $ 1,129,492 $ 224,692 $ Use of money and property 5,500 5,500 9,143 3,643 Total revenues 910,300 910,300 1,138,635 228,335 EXPENDITURES:

Current:

Public works 9,700 9,700 62,657 (52,957) Capital outlay 521,570 3,032,363 1,736,788 1,295,575 Total expenditures 531,270 3,042,063 1,799,445 1,242,618

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES 379,030 (2,131,763) (660,810) 1,470,953 OTHER FINANCING USES:

Transfers out (599,300) (599,300) (599,293) 7 NET CHANGE IN FUND BALANCE (220,270)$ (2,731,063) $ (1,260,103) 1,470,960 $ FUND BALANCE:

Beginning of year 4,929,691
End of year 3,669,588$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual (Continued) Measure M Local Special Revenue Fund
For the Year Ended June 30, 2022
169

This page intentionally left blank.
170

STATISTICAL SECTION
171

This page intentionally left blank.
172

Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. 174-184 Revenue Capacity
These schedules contain information to help the reader assess the City's most significant local revenue sources, the property tax. 185-189
Debt Capacity
These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. 190-195 Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. 196-198 Operating Information
These schedules contain service an d infrastructure data to help the reader understan d how the information in the City's financial report relates to the services the City provides and the activities it performs.
199-201
City of Montebello
Statistical Section Overview
(Unaudited)
This part of the City of Montebello's Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the Cit
y's overall financial health.
173

2012-13 2013-14 2014-15 2015-16 2016-17
Government Activities
Invested in capital assets, net of related debt 54,636,719$ 55,212,827 $ 56,943,195 $ 58,082,755 $ 58,372,453 $ Restricted 20,219,054 29,141,471 22,556,230 27,459,377 37,978,261 Unrestricted (4,370,518) (13,656,834) (93,615,680) (96,385,527) (152,645,842) Total governmental activities net assets 70,485,255 70,697,464 (14,116,255) (10,843,395) (56,295,128) Business-Type Activities
Invested in capital assets, net of related debt 55,753,529 53,562,215 51,644,871 49,943,300 62,240,064 Restricted 302,120 1,017,411 496,628 153,929 37,063,750 Unrestricted (8,619,600) (8,758,663) (29,367,364) (29,377,639) (26,856,332) 47,436,049 45,820,963 22,774,135 20,719,590 72,447,482 Primary Government
Invested in capital assets, net of related debt 110,390,248 108,775,042 108,588,066 108,026,055 120,612,517 Restricted 20,521,174 30,158,882 23,052,858 27,613,306 75,042,011 Unrestricted (12,990,118) (22,415,497) (122,983,044) (125,763,166) (179,502,174) 117,921,304$ 116,518,427 $ 8,657,880 $ 9,876,195 $ 16,152,354 $ Source: City Financial Statements
Fiscal Year
City of Montebello
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
174

2017-18 2018-19 2019-20 2020-21 2021-22
Government Activities
Invested in capital assets, net of related debt 60,131,857$ 56,932,832 $ 37,577,753 $ 76,850,718 $ 79,727,948 $ Restricted 30,870,850 36,227,927 40,673,199 59,934,222 45,666,495 Unrestricted (104,996,678) (114,003,833) (112,400,654) (156,799,494) (124,613,112) Total governmental activities net assets (13,993,971) (20,843,074) (34,149,702) (20,014,554) 781,331 Business-Type Activities
Invested in capital assets, net of related debt 50,936,245 51,863,185 45,101,842 30,182,517 34,948,689 Restricted 26,656,264 16,260,962 12,617,206 11,202,567 12,636,555 Unrestricted (70,241,601) (50,555,062) (40,685,697) (29,921,564) (17,882,728) 7,350,908 17,569,085 17,033,351 11,463,520 29,702,516 Primary Government
Invested in capital assets, net of related debt 111,068,102 108,796,017 82,679,595 107,033,235 114,676,637 Restricted 57,527,114 52,488,889 53,290,405 71,136,789 58,303,050 Unrestricted (175,238,279) (164,558,895) (153,975,457) (186,721,058) (142,495,840) (6,643,063)$ (3,273,989) $ (18,005,457) $ (8,551,034) $ 30,483,847 $ Source: City Financial Statements
Fiscal Year
City of Montebello
Net Position by Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
175

2012-13 2013-14 2014-15 2015-16 2016-17
Expenses:

Governmental Activities:

General government 3,397,386 $ 3,868,688 $ 8,214,000 $ 9,376,874 $ 5,800,255 $ Public safety 31,736,790 33,376,844 33,233,838 34,991,222 38,180,200 Public works 6,222,809 7,063,899 7,145,909 7,314,357 6,892,489 Parks, recreation, and culture 5,183,532 4,943,297 4,433,420 4,244,463 3,589,256 Housing and community development 2,042,906 4,045,684 3,662,170 4,149,321 4,625,548 Unallocated infrastructure depreciation 704,807 704,807 704,807 464,900 704,807 Interest on long-term debt 1,954,908 1,254,337 1,908,319 1,238,015 3,882,293 Total governmental activities and expenses 51,243,138 55,257,556 59,302,463 61,779,152 63,674,848 Business-Type Activities:

Transit system 28,190,745 30,850,208 29,557,024 28,530,818 28,540,085 Golf course 3,015,645 2,965,428 3,095,101 2,914,099 2,745,203 Montebello Hilton 3,558,013 4,302,388 4,600,977 4,742,125 4,866,766 Water utility 2,515,604 2,806,018 2,945,512 3,138,928 2,731,099 Hotel2Suites - - - - - Interest on long-term debt - - - - - Total business-type activities and expenses 37,280,007 40,924,042 40,198,614 39,325,970 38,883,153 Total primary government expenses 88,523,145 96,181,598 99,501,077 101,105,122 102,558,001 Program revenues:

Governmental Activities:

Charges for services:

General government 3,071,973 4,074,735 3,720,526 3,548,576 3,709,505 Public safety 2,103,502 2,767,256 2,644,432 3,167,766 3,311,979 Public works 5,377,463 5,427,918 5,391,630 5,565,885 5,515,371 Parks, recreation, and culture 665,468 533,575 527,346 414,018 471,348 Housing and community development ---- - Operating grants and contributions 8,519,753 8,292,687 9,522,821 10,109,717 7,382,419 Capital grants and contributions - - - - - Total governmental activities program revenues 19,738,159 21,096,171 21,806,755 22,805,962 20,390,622 Business-Type Activities:

Charges for services:

Transit system 6,078,505 5,985,798 5,838,678 5,680,227 5,086,810 Golf course 2,389,101 2,385,213 2,312,095 2,294,518 2,091,410 Montebello Hilton 4,316,746 5,522,384 6,270,196 6,579,766 6,834,772 Water utility 1,325,834 2,121,732 2,505,234 2,295,158 2,409,339 Hotel2Suites - - - - - Operating grants and contributions 18,834,317 19,726,264 20,914,063 19,314,666 20,593,875 Capital grants and contributions 7,777,911 2,764,857 1,780,967 1,726,259 5,540,308 Total business-type activities program revenues 40,722,414 38,506,248 39,621,233 37,890,594 42,556,514 Primary government program revenues 60,460,573 59,602,419 61,427,988 60,696,556 62,947,136 Net (Expense) Revenue:

Governmental activities: (31,504,979) (34,161,385) (37,495,708) (38,973,190) (43,284,226) Business-type activities: 3,442,407 (2,417,794) (577,381) (1,435,376) 3,673,361 Total primary government net (expense) revenue (28,062,572)$ (36,579,179) $ (38,073,089) $ (40,408,566) $ (39,610,865) $ (Continued)
Source: City Financial Statements
Fiscal Year
City of Montebello
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
176

2017-18 2018-19 2019-20 2020-21 2021-22
Expenses:

Governmental Activities:

General government 10,590,425 $ 15,966,059 $ 15,829,352 $ 2,478,196 $ 13,983,490 $ Public safety 39,719,749 37,512,859 41,005,310 54,764,550 31,790,604 Public works 9,824,917 8,765,502 10,062,947 2,737,856 16,052,469 Parks, recreation, and culture 3,948,193 4,298,740 5,382,393 1,367,331 5,406,906 Housing and community development 2,923,175 2,960,143 3,401,688 643,492 2,346,627 Unallocated infrastructure depreciation 704,807 700,608 700,607 713,200 700,608 Interest on long-term debt 356,579 605,163 5,307,866 5,251,771 5,548,594 Total governmental activities and expenses 68,067,845 70,809,074 81,690,163 67,956,396 75,829,298 Business-Type Activities:

Transit system 34,587,386 35,629,180 37,053,009 41,718,320 29,280,305 Golf course 3,169,377 2,699,786 2,378,067 2,779,651 2,735,232 Montebello Hilton 4,590,912 4,720,613 4,306,465 3,096,193 5,088,673 Water utility 2,697,085 2,293,908 2,358,938 2,290,649 2,343,193 Hotel2Suites 30,205 5,674,308 6,167,195 5,612,342 9,782,114 Interest on long-term debt 3,409,286 3,077,709 2,983,151 4,307,914 - Total business-type activities and expenses 48,484,251 54,095,504 55,246,825 59,805,069 49,229,517 Total primary government expenses 116,552,096 124,904,578 136,936,988 127,761,465 125,058,815 Program revenues:

Governmental Activities:

Charges for services:

General government 3,921,684 5,847,466 3,755,079 4,745,318 4,823,331 Public safety 3,227,705 3,372,826 3,473,591 3,711,080 4,576,406 Public works 4,421,025
4,793,062 4,962,127 5,159,387 4,680,288 Parks, recreation, and culture 486,274 533,344 329,834 25,763 220,152 Housing and community development 1,018,644 497,300 509,089 757,819 4,111,335 Operating grants and contributions 9,759,068 9,955,275 11,105,930 10,941,780 32,242,999 Capital grants and contributions - - - 1,206,941 2,162,028 Total governmental activities program revenues 22,834,400 24,999,273 24,135,650 26,548,088 52,816,539 Business-Type Activities:

Charges for services:

Transit system 4,728,570 4,056,307 2,999,561 1,376,710 2,201,947 Golf course 2,194,976 2,219,790 2,051,607 2,966,791 2,945,485 Montebello Hilton 7,197,488 6,436,430 4,446,750 2,072,868 5,357,504 Water utility 3,070,381 3,190,460 2,558,986 2,590,903 2,607,898 Hotel2Suites - 7,628,131 8,881,650 8,357,846 12,050,342 Operating grants and contributions 23,014,664 27,205,168 29,238,210 23,232,583 26,342,293 Capital grants and contributions 5,994,885 4,802,972 3,275,168 11,801,668 15,879,414 Total business-type activities program revenues 46,200,964 55,539,258 53,451,932 52,399,369 67,384,883 Primary government program revenues 69,035,364 80,538,531 77,587,582 78,947,457 120,201,422 Net (Expense) Revenue:

Governmental activities: (45,233,444) (45,809,800) (57,554,513) (41,408,308) (23,012,759) Business-type activities: (2,283,287) 1,443,754 (1,794,893) (7,405,700) 18,155,366

Total primary government net (expense) revenue (47,516,731)$ (44,366,046) $ (59,349,406) $ (48,814,008) $ (4,857,393) $ (Continued)
Source: City Financial Statements
(accrual basis of accounting)
Fiscal Year
City of Montebello
Changes in Net Position (Continued)
Last Ten Fiscal Years
177

2012-13 2013-14 2014-15 2015-16 2016-17
General Revenues and Other Changes in Net Assets:

Governmental Activities:

Property taxes, levied for general purposes 15,449,858$ 14,931,613 $ 13,759,217 $ 15,988,925 $ 16,507,389 $ Franchise taxes 1,158,219 1,303,603 1,410,918 1,405,229 1,493,956 Sales tax 11,363,067 11,725,818 12,563,805 13,992,347 13,267,373 Transient occupancy tax 271,153 355,404 357,896 365,290 401,852 Unrestricted intergovernmental revenue 5,299,230 5,513,018 5,746,091 5,373,715 6,099,771 Other revenues 2,239,898 2,036,142 2,897,684 4,401,115 7,062,983 Investment earnings 54,393 49,705 54,391 86,920 172,515 Transfers 602,070 (792,325) (4,948,058) 632,509 (47,976,779) Total governmental activities 36,437,888 35,122,978 31,841,944 42,246,050 (2,970,940) Business-Type Activities:

Investment earnings - 10,383 6,433 13,340 135,411 Transfers (602,070) 792,325 4,948,058 (632,509) 47,976,779 Total business-type activities (602,070) 802,708 4,954,491 (619,169) 48,112,190 Total primary government 35,835,818 35,925,686 36,796,435 41,626,881 45,141,250 Change in Net Position:

Governmental Activities: 4,932,909 212,209 (56,537,964) 3,272,860 (46,255,166) Business-Type Activities: 2,840,337 (1,615,086) 4,377,110 (2,054,545) 51,785,551 Total primary government 7,773,246 $ (1,402,877) $ (52,160,854) $ 1,218,315 $ 5,530,385 $ (Continued)
Source: City Financial Statements
For TOT amount from GL, For Other Revenue amount from CAFR Change in Net position for Ten Years Fiscal Year
City of Montebello
Changes in Net Position (Continued)
Last Ten Fiscal Years
178

2017-18 2018-19 2019-20 2020-21 2021-22
General Revenues and Other Changes in Net Assets:

Governmental Activities:

Property taxes, levied for general purposes 16,961,038$ 18,385,624 $ 18,662,270 $ 21,414,087 $ 6,565,336 $ Franchise taxes 2,141,450 2,224,087 2,199,915 2,316,250 2,300,508 Sales tax 13,118,981 14,031,972 12,817,884 22,270,247 25,378,979 Transient occupancy tax 414,198 421,412 376,424 223,620 340,195 Unrestricted intergovernmental revenue 6,322,299 6,708,639 7,055,984 7,238,433 7,920,682 Other revenues 2,626,065 2,270,785 2,327,446 3,542,120 2,071,400 Investment earnings 665,702 743,557 761,960 459,066 (761,829) Transfers (1,634,476) (529,493) (843,106) (517,833) (6,627) Total governmental activities 40,615,257 44,256,583 43,358,777 56,945,990 43,808,644 Business-Type Activities:

Investment earnings 448,876 461,704 416,053 18,226 77,003 Transfers 1,634,476 529,493 843,106 517,833 6,627 Total business-type activities 2,083,352 991,197 1,259,159 536,059 83,630 Total primary government 42,698,609 45,247,780 44,617,936 57,482,049 43,892,274 Change in Net Position:

Governmental Activities: (4,618,187) (1,553,217) (14,195,734) 15,537,683 20,795,885 Business-Type Activities: (199,935) 2,434,951 (535,734) (6,869,641) 18,238,996 Total primary government (4,818,122) $ 881,734 $ (14,731,468)$ 8,668,042 $ 39,034,881 $ (Concluded)
Source: City Financial Statements
For TOT amount from GL, For Other Revenue amount from CAFR Change in Net position for Ten Years Fiscal Year
City of Montebello
Changes in Net Position (Continued)
Last Ten Fiscal Years
179

2012-13 2013-14 2014-15 2015-16 2016-17
General Fund
Nonspendable 187,730 $ 142,394 $ 64,038 $ 122,474 $ 1,380,282 $ Restricted - - - - 4,666,731 Committed - - - - - Assigned - - - - - Unassigned 7,879,020 8,387,981 8,934,094 9,325,124 7,995,872 Total general fund 8,066,750 $ 8,530,375 $ 8,998,132 $ 9,447,598 $ 14,042,885 $ All Other Governmental Funds:

Nonspendable 2,288,508 $ 2,057,207 $ 10,719,195 $ 10,258,543 $ 8,533,222 $ Restricted
Debt service 6,116,124 7,960,932 3,070,688 3,865,331 13,162,936 Special revenue funds 22,034,631 18,000,779 7,814,447 12,882,023 15,951,357 Capital projects funds 1,445,551 1,090,991 1,093,640 453,480 330,746 Committed - - - - - Assigned - - - - - Unassigned (80,230) - (111,631) (682,268) (318,397) Total all other governmental funds 31,804,584$ 29,109,909 $ 22,586,339 $ 26,777,109 $ 37,659,864 $ Source: City Financial Statements
Fiscal Year
City of Montebello
Fund Balances - Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
180

2017-18 2018-19 2019-20 2020-21 2021-22
General Fund
Nonspendable 1,383,212 $ 823,582 $ 811,985 $ 788,954 $ 4,037,940 $ Restricted 4,666,731 4,827,601 2,408,850 1,921,304 374,594 Committed - - - - 459,491 Assigned - - - - - Unassigned 11,287,858 14,542,796 6,226,719 4,874,887 9,844,229 Total general fund 17,337,801 $ 20,193,979 $ 9,447,554 $ 7,585,145 $ 14,716,254 $ All Other Governmental Funds:

Nonspendable 8,157,472 $ 6,928,947 $ 6,585,577 $ 6,178,711 $ 150,407 $ Restricted
Debt service 366,492 361,922 397,402 377,856 371,706 Special revenue funds 17,557,949 22,634,731 51,427,988 46,952,191 59,718,438 Capital projects funds 122,206 1,195,998 2,255,946 2,557,795 - Committed - - - - - Assigned - - - - - Unassigned (157,153) (165,424) (125,245) (343,608) (262,960) Total all other governmental funds 26,046,966$ 30,956,174 $ 60,541,668 $ 55,722,945 $ 59,977,591 $ Source: City Financial Statements
Fiscal Year
City of Montebello
Fund Balances - Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
181

2012-13 2013-14 2014-15 2015-16 2016-17

REVENUE
Taxes
Property taxes 15,449,858 $ 14,931,613 $ 13,759,217 $ 15,988,925 $ 16,507,389 $ Sales and use taxes 11,363,067 11,725,818 12,563,805 13,992,347 13,267,373 All other taxes 1,522,644 1,777,248 1,900,914 1,908,402 2,047,418 Licences and permits 4,664,830 4,617,905 4,640,365 4,733,752 4,374,761 Fines & forfeitures 1,802,114 1,774,912 1,589,536 1,912,729 2,251,384 Investments income (loss) 54,392 49,705 54,391 86,920 172,515 Intergovernmental 12,496,970 13,115,067 15,461,503 14,853,360 13,330,580 Charges for services 6,656,927 6,410,667 6,054,033 6,611,348 6,382,058 Other Revenue 313,175 3,286,142 2,897,684 2,432,902 2,396,252 Total revenues 54,323,977 57,689,077 58,921,448 62,520,685 60,729,730

EXPENDITURES
General government 2,728,805 6,672,386 8,003,938 7,294,109 6,763,294 Public safety 29,387,879 30,989,230 31,844,365 34,595,741 32,678,899 Public works 6,005,418 6,594,303 6,551,707 6,824,093 6,812,050 Park and recreation 4,310,058 4,412,105 4,026,983 3,889,366 3,658,338 Housing and community development 1,917,976 3,918,011 3,625,767 4,136,607 4,774,847 Capital outlay 3,916,328 3,168,579 4,189,487 1,703,214 2,449,286 Debt services:

Principal retirement 1,590,580 1,664,040 1,849,995 1,305,760 1,757,500 Interest and fiscal charges 1,525,140 1,454,943 1,995,352 1,367,401 2,849,428 Bond issuance costs 1,130,167
Interfund charges (revenue) (1,991,200) (646,790) (641,466) 130,090 Total expenditures 51,382,184 56,882,397 61,440,804 60,474,825 63,003,899 Excess (Deficienc
y) of Revenues
Over (Under) Expenditures 2,941,793 806,680 (2,519,356) 2,045,860 (2,274,169)

OTHER FINANCING SOURCES (USES)
Transfer in 10,703,941 14,503,082 14,596,612 12,225,284 14,476,752 Transer out (10,944,871) (17,039,134) (16,844,670) (11,599,121) (62,456,346) Issuance of debts - - 28,916,923 - 61,065,074 Settlement of unfunded actuarial accrued liability - - - - - Defeasance of debts - - (30,387,860) - - Unspent bond proceeds from Successor Agency - - - - 4,666,731 Other financing uses - - (295,155) - - Other financing sources - - 477,693 1,968,213 - Net other financing sources (uses) (240,930) (2,536,052) (3,536,457) 2,594,376 17,752,211 Change of fund balances
before extraordinary item 2,700,863 (1,729,372) (6,055,813) 4,640,236 15,478,042 Extraordinary gain (loss)
RDA dissolution transactions - (501,678) - - - Total Extraordinary gain (loss) - (501,678) - - - Change in fund balances
after extraordinary item 2,700,863 (2,231,050) (6,055,813) 4,640,236 15 ,478,042 Fund balances - July 1 37,170,471 39,871,334 37,640,284 31,584,471 36,224,707 Fund balances - June 30 39,871,334$ 37,640,284 $ 31,584,471 $ 36,224,707 $ 51,702,749 $

DEBT SERVICE AS A PERCENTAGE
OF NONCAPITAL EXPENDITURES 6.56% 5.81% 6.72% 4.55% 7.61% Fiscal Year
City of Montebello
Change in Fund Balance of Gevernmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
182

2017-18 2018-19 2019-20 2020-21 2021-22

REVENUE
Taxes
Property taxes 16,961,038 $ 18,385,624 $ 18,662,270 $ 21,414,087 $ 21,134,464 $ Sales and use taxes 13,118,981 14,031,972 12,817,884 22,270,247 25,378,979 All other taxes 2,727,410 2,838,572 2,732,920 10,031,642 10,561,385 Licences and permits 4,452,210 6,220,483 4,790,211 5,769,474 7,806,258 Fines & forfeitures 2,185,022 2,165,922 2,186,401 2,312,454 2,512,256 Investments income (loss) 665,702 743,557 761,960 459,066 (672,371) Intergovernmental 15,909,605 15,752,312 18,035,332 12,148,721 19,258,372 Charges for services 6,438,100 6,657,594 6,053,109 6,317,440 8,077,509 Other Revenue 2,626,065 2,270,785 2,327,446 3,288,781 2,119,553 Total revenues 65,084,133 69,066,821 68,367,533 84,011,912 96,176,405

EXPENDITURES
General government 6,791,444 12,175,179 13,768,246 8,853,719 7,699,182 Public safety 32,345,080 30,964,740 33,398,835 33,643,089 35,172,628 Public works 7,592,311 7,356,232 7,667,791 11,526,775 13,532,133 Park and recreation 3,813,599 3,827,559 4,392,532 4,514,120 5,522,232 Housing and community development 3,005,203 2,756,438 2,899,455 2,467,252 2,654,661 Capital outlay 4,749,316 4,934,643 12,785,876 23,341,025 7,663,306 Debt services:

Principal retirement 1,325,340 1,419,180 2,433,971 6,869,371 7,555,842 Interest and fiscal charges 674,338 640,162 912,684 5,280,939 5,614,144 Bond issuance costs 2,422,237 -
Interfund charges (revenue) (231,650) (366,046) (361,160) (536,079) - Total expenditures 60,064,981 63,708,087 80,320,467 95,960,211 85,414,128 Excess (Deficiency) of Revenues
Over (Under) Expenditures 5,019,152 5,358,734 (11,952,934) (11,948,299) 10,762,277

OTHER FINANCING SOURCES (USES)
Transfer in 12,257,329 6,934,943 32,790,225 13,109,570 13,169,877 Transer out (13,898,975) (6,066,053) (33,210,652) (13,627,403) (13,176,504) Issuance of debts - 1,547,962 141,710,928 - - Settlement of unfunded actuarial accrued liability - - (110,508,698) 5,785,000 - Defeasance of debts - - - - - Unspent bond proceeds from Successor Agency - - - - - Other financing uses - - - - - Other financing sources - - - - 44,300 Net other financing sources (uses) (1,641,646) 2,416,852 30,781,803 5,267,167 37,673 Change of fund balances
before extraordinary item 3,377,506 7,775,586 18,828,869 (6,681,132) 10,799,950 Extraordinary gain (loss)
RDA dissolution transactions - - - - - Total Extraordinary gain (loss) - - - - Change in fund balances
after extraordinary item 3,377,506 7 ,775,586 18 ,828,869 (6,681,132) 10,799,950 Fund balances - July 1 (as restated) 40,007,261 43,384,767 51,160,353 69,989,222 63,893,895 Fund balances - June 30 43,384,767$ 51,160,353 $ 69,989,222 $ 63,308,090 $ 74,693,845 $

DEBT SERVICE AS A PERCENTAGE
OF NONCAPITAL EXPENDITURES 3.62% 3.50% 4.96% 16.73% 17.00% Fiscal Year
City of Montebello
Change in Fund Balance of Gevernmental Funds (Continued) Last Ten Fiscal Years
(modified accrual basis of accounting)
183

Transient
Fiscal Property Sales and Occupancy Franchise Other Total Year Tax Use Tax Tax Tax Taxes Taxes
2011-12 23,636,827 10,847,400 297,679 1,221,311 1,765,267 37,768,484 2012-13 20,655,816 11,363,067 271,153 1,158,219 93,272.00 33,541,527 2013-14 20,078,684 11,725,818 355,404 1,303,603 118,241 33,581,750 2014-15 19,373,208 12,563,805 357,896 1,410,918 132,100 33,837,927 2015-16 21,224,757 13,992,347 365,290 1,405,229 137,883 37,125,506 2016-17 16,507,389 13,267,373 401,852 1,493,956 151,611 31,822,180 2017-18 16,961,038 13,118,981 414,198 2,141,450 171,762 32,807,430 2018-19 18,385,625 14,031,972 421,412 2,224,088 193,073 35,256,170 2019-20 18,662,270 12,817,884 376,424 2,199,915 156,581 34,213,073 2020-21 21,414,087 22,270,247 223,620 2,316,250 253,339 46,477,543 2021-22 28,764,256 25,378,979 340,195 2,300,508 290,890 57,074,828 Source: City Financial Statements
Governmental Activities Tax Revenues By Source
Last Ten Fiscal Years
City of Montebello
184

Taxable Taxable
Fiscal Less: Assessed Less: Assessed
Year Secured Unsecured Exemptions Value Secured Unsecured Exemptions Value 2010-11 3,009,280$ 93,206 $ 100,372 $ 3,002,114 $ 1,565,508 $ 139,738 $ 39,759 $ 1,659,537 $ 2011-12 3,081,874 95,765 99,789 3,077,850 1,578,855 139,820 41,746 1,676,929 2012-13 3,166,417 87,265 104,467 3,149,215 1,591,142 135,785 42,457 1,684,470 2013-14 4,938,771 220,911 146,649 5,013,033 1,671,422 133,318 40,811 1,763,929 2014-15 3,420,628 99,344 110,362 3,409,610 1,701,294 129,735 41,886 1,789,143 2015-16 3,317,644 82,016 113,073 3,286,587 1,168,508 129,094 44,039 1,253,564 2016-17 3,693,850 82,228 99,747 3,676,331 1,734,850 141,080 26,411 1,849,518 2017-18 3,845,241 76,621 103,168 3,818,695 1,789,082 144,402 42,088 1,891,396 2018-19 4,033,298 83,389 63,264 4,053,424 1,878,833 155,004 33,832 2,000,005 2019-20 4,183,599 85,986 66,377 4,203,208 1,952,461 171,050 33,065 2,090,446 2020-21 4,529,900 90,240 118,765 4,501,375 2,092,563 181,836 62,233 2,212,166 2021-22 4,691,478 90,364 120,075 4,661,767 2,248,588 177,313 55,269 2,370,632 Source: MuniServices an Avenu Insights & Analytics Company Source: Los Angeles County Assessor Data
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
City Redevelopment Agency
City of Montebello
(rate per $1,000 of assessed value)
185

2012-13 2013-14 2014-15 2015-16 2016-17
City Direct Rate:

City basic rate 1.00000 1.00000 1.00000 1.00000 1.00000 Retirement 0.19788 0.19788 0.19788 0.19788 0.19788
Total City Direct Rate 1.19788 1.19788 1.19788 1.19788 1.19788 Overlapping Rates:

L.A. County General 0.00000 0.00000 0.00000 0.00000 0.00000 Montebello USD 0.09630 0.09457 0.08750 0.08715 0.14705
L.A. County Flood Control 0.00000 0.00000 0.00000 0.00000 0.00000 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 0.00350 Community College 0.03756 0.04454 0.04017 0.03575 0.03596 Totals 1.33524 1.34049 1.32905 1.32428 1.38439
Source: Los Angeles County Assessor Data, Avenu Insights & Analytics Source: City of Montebello, ACFR Fiscal Year Ended June 30, 2021 TRA 6-323 IS REPRESENTED FOR THIS REPORT
Fiscal Year
(rate per $100 of taxable value)
City of Montebello
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
186

2017-18 2018-19 2019-20 2020-21 2021-22
City Direct Rate:

City basic rate 1.00000 1.00000 1.00000 1.00000 1.00000 Retirement 0.197875 0.197875 0.197875 0.19788 0.19788
Total City Direct Rate 1.19788 1.19788 1.19788 1.19788 1.19788 Overlapping Rates:

L.A. County General 0.00000 0.00000 0.00000 0.00000 0.00000 Montebello USD 0.13514 0.13921 0.09306 0.09706 0.09031
L.A. County Flood Control 0.00000 0.00000 0.00000 0.00000 0.00000 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 0.00350 Community College 0.04599 0.04621 0.02717 0.04016 0.04376 Totals 1.38251 1.38680 1.32161 1.33860 1.33545
Source: Los Angeles County Assessor Data, Avenu Insights & Analytics Source: City of Montebello, ACFR Fiscal Year Ended June 30, 2021 TRA 6-323 IS REPRESENTED FOR THIS REPORT
Fiscal Year
City of Montebello
Direct and Overlapping Property Tax Rates (Continued)
Last Ten Fiscal Years
(rate per $100 of taxable value)
187

Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Metro Heights Montebello LLC 199,193,858 $ 1 2.93% 0.00% Montebello Town Center 197,535,451 2 2.90% 189,070,962 1 3.90% Bimbo Bakeries USA Inc 84,085,787 3 1.23% 65,183,503 3 1.34% Brixmor Montebello Plaza LP 79,404,434 4 1.17% 63,388,910 4 1.31% KK 3A CORP 51,122,306 5 0.75% 32,557,977 10 0.67% Somerset Apts LLC 48,622,876 6 0.71% 41,901,806 6 0.86% Comref So CA Industrial 46,718,982 7 0.69%
M and M At Montebello LLC 41,650,000 8 0.61%
Rreef America Reit II Corp 41,240,079 9 0.61% 35,539,454 9 0.73% Macys West Stores Inc. 37,522,886 10 0.55% 36,764,459 8 0.76% Plains Exploration and Production Company 122,557,911 2 2.53% Southern California Gas Company 53,261,916 5 1.10% Excel Realty Partners LP
KIR Montebello LP 36,878,698 7 0.76%
TOTAL TOP 10 TAXPAYERS 827,096,659 12.15% 677,105,596 13.95% TOTAL CITY TAXABLE VALUE 6,809,731,075$ 4,852,655,387 $ Source: HDL
2012-13
City of Montebello
Principal Property Tax Payers
Current Fiscal Year and Nine Fiscal Years Ago
2021-22
188

Fiscal Total Tax Collections in
Year Levy Amount % of Levy Subsequent Years Amount % of Levy 2012-13 6,975,325$ 11,293,837 $ 161.91% - $ 11,293,837$ 161.91% 2013-14 7,279,631 7,275,179 99.94% 338,473 7,613,652 104.59% 2014-15 7,504,080 7,092,120 94.51% 330,553 7,422,673 98.92% 2015-16 7,616,230 10,352,514 135.93% 385,447 10,737,961 140.99% 2016-17 7,923,442 10,685,828 134.86% 579,837 11,265,665 142.18% 2017-18 8,159,530 11,032,559 135.21% 659,322 11,691,881 143.29% 2018-19 8,638,639 11,032,570 127.71% 439,208 11,471,778 132.80% 2019-20 9,133,355 12,528,093 137.17% 348,671 12,876,764 140.99% 2020-21 9,446,262 13,318,638 140.99% 352,908 13,671,546 144.73% 2021-22 9,967,851 13,653,488 136.98% 909,913 14,563,401 146.10% Source: Los Angeles County Auditor - AF91 Report and City Remittance Advice Summary http://auditor.lacounty.gov/property-tax-report-central/ City of Montebello
Property Tax Levies and Collections
Note (1) Negative number not included
Last Ten Fiscal Years
Collected Within the
Fiscal Year of the Levy Total Collections to Date
189

Certificates Capitalized Unamortized Total
Fiscal of Lease Sales Tax Pension Finance Notes Bond Discount/ Governmental Year Participation Revenue Revenue Obligation Purchase Payable Premium Activities 2012-13 17,447,900$ 14,800,000 $ - $ - $ - $ 5,624,106$ (96,673) $ 37,775,333 $ 2013-14 16,502,860 14,370,000 - - - 5,335,106 (88,143) 36,119,823 2014-15 - 25,728,200 - - 422,278 5,334,974 2,035,323 33,520,775 2015-16 - 24,738,440 - - 452,197 5,018,974 1,890,503 32,100,114 2016-17 - 78,171,940 - - 972,060 4,387,106 7,950,757 91,481,863 2017-18 - 10,409,600 (1) - - 902,071 4,042,886 923,106 16,277,662 2018-19 - 9,356,420 - - 2,083,910 3,702,914 820,646 15,963,890 2019-20 - 8,261,780 24,945,000 112,506,552 1,993,247 3,314,900 4,071,461 155,092,940 2020-21 - 7,111,860 24,115,000 108,678,727 1,402,552 7,802,779 3,787,104 153,787,128 2021-22 - 5,911,660 23,245,000 104,872,900 783,658 6,741,933 3,502,747 145,947,004 Source: City Financial Statements
Note: (1) In 17-18 Home2suites bond ($ 54.8 million) and Hilton hotel bond ($11.9 miilion ) were transferred from Governmental Activities to Business-type Activities
Governmental Activities
City of Montebello
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
190

Percentage Total
Certificates Capitalized Unamortized Total of Debt
Fiscal of Lease Pension Finance Notes Discount/ Total Business Primary Personal per Year Participation Revenue Obligation Purchase Payable Premium Activities Government Income Capita 2012-13 4,407,100$ 843,294 $ 5,250,394 $ 43,025,727 $ 3.24% 685 2013-14 4,197,140 1,668,734 5,865,874 41,985,697 3.26% 661 2014-15 3,771,800 214,691 1,333,531 95,735 5,415,757 38,936,532 2.95% 613 2015-16 3,546,560 176,037 1,007,244 88,940 4,818,781 36,918,895 2.78% 578 2016-17 3,313,060 457,321 686,116 82,144 4,538,641 96,020,504 7.26% 1,502 2017-18 69,840,400 (1) 414,495 484,434 6,613,454 77,352,782 93,630,444 6.96% 1,456 2018-19 69,305,400 820,202 919,051 6,357,464 77,402,117 93,366,007 6.60% 1,491 2019-20 88,987,220 40,918,448 423,055 527,707 6,881,076 137,737,506 292,830,446 20.13% 4,608 2020-21 65,188,140 39,526,274 240,200 1,098,527 6,572,783 112,625,924 266,413,052 15.04% 4,235 2021-22 63,768,340 38,142,101 49,867 863,018 6,264,486 109,087,812 255,034,816 12.69% 4,102 Source: City Financial Statements
Note: (1) In 17-18 Home2suites bond ($ 54.8 million) and Hilton hotel bond ($11.9 miilion ) were transferred from Governmental Activities to Business-type Activities
Business Activities
City of Montebello
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
191

Tax
Fiscal Certificates of Allocation Lease Sales Tax Pension Total Primary Total Debt Year Participation Bonds Revenue Revenue Obligation Other Government Per Capita 2012-13 17,447,900$ - $ 14,800,000$ - $ - $ - $ 32,247,900$ 513 $ 2013-14 16,502,860 - 14,370,000 - - - 30,872,860 486 2014-15 - - 25,728,200 - - - 25,728,200 405 2015-16 - - 24,738,440 - - - 24,738,440 387 2016-17 - - 78,171,940 - - - 78,171,940 1,223 2017-18 - - 10,409,600 - - - 10,409,600 162 2018-19 - - 9,356,420 - - - 9,356,420 149 2019-20 - - 8,261,780 24,945,000 112,506,552 - 145,713,332 2,293 2020-21 - - 7,111,860 24,115,000 108,678,727 - 139,905,587 2,224 2021-22 - - 5,911,660 23,245,000 104,872,900 - 134,029,560 2,156 Source: City Financial Statements
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
Governmental Activities
City of Montebello
192

Tax Unamortized Percent of
Fiscal Certificates of Allocation Sales Tax Pension Bond Discount/ Assessed Per Year Participation Bonds Revenue Revenue Obligation Premium Total Value(1) Capita 2012-13 17,448$ - 14,800 $ - $ - $ (97) $ 32,151 $ 0.65% 511 $ 2013-14 16,503 - 14,370 - - (88) 30,785 0.62% 486 2014-15 - - 25,728 - - 2,035 27,763 0.54% 405 2015-16 - - 24,738 - - 1891 26,629 0.50% 417 2016-17 - - 78,172 - - 795 78,967 1.43% 1,235 2017-18 - - 10,410 - - 923 11,333 0.20% 176 2018-19 - - 9,356 - - 82 9,438 0.16% 151 2019-20 - - 8,262 24,945 112,507 4,071 149,784 2.34% 2,357 2020-21 - - 7,112 24,115 108,679 3,787 143,693 2.14% 2,284 2021-22 - - 5,912 23,245 104,873 3,504 137,534 1.95% 2,212 (1) Assessed value has been used because the actual value of taxable property is not readily available in the State of California.

Source: City Finance Department
Outstanding General Bonded Debt
City of Montebello
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
(Dollar amounts in thousands, except per capita)
193

2021-22 Assessed Valuation: $7,054,531,080
City's
Total Share of
Outstanding Percentage Overlapping
Debt 6/30/22 Applicable (1) Debt 6/30/22
20,175,000$ 0.208% 41,964 $
4,146,515,000 0.705% 29,232,931
99,377,736 0.004% 3,975
10,770,060,000 0.001% 107,701
155,962,323 36.14% 56,369,462
85,756,034$
Less: Los Angeles Unified School District General Obligation Bonds,Election of 2005 Series J (2010) Qualified School Construction Bonds: Amount accumulated in Interest and Sinking Fund and Set Aside for Repayment 2,253$
TOTAL NET OVERLAPPING TAX AND ASSESSMENT DEBT 85,753,781$ DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT:
2,698,357,105$ 0.398% 10,739,461 $
Los Angeles County Superintendent of Schools Certificates of Participation 3,972,227 0.398% 15,809 1,517,904 9.085% 137,902
1,553,760 0.702% 10,907
120,710,000 0.001% 1,207
5,295,000 36.143% 1,913,772
29,156,660 100.000% 29,156,660
City of Montebello Capital Lease Obligations 783,656 100.000% 783,656 104,872,900 100.000% 104,872,900
147,632,275
OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 13,668,389$ 100% 13,668,389 $ (2) 134,813,216$
TOTAL NET OVERLAPPING DEBT 112,241,227$
NET COMBINED TOTAL DEBT 247,054,443$
1) The percentage of overlappng debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. 2) Excludes accreted value
Ratios to 2021-22 Assessed Valuation:

Total Net Overlapping Tax and Assessment Debt
Total Net Direct Debt
Net Combined Total Debt
Ratios to Redevelopment Successor Agency Incremental Valuation ($ 2,259,537,762):

Total Overlapping Tax Increment D
e 0.88%
Source: Avenu Insights & Analytics
California Municipal Statistics, Inc.

TOTAL DIRECT DEBT
Los Angeles County Sanitation District No. 2 Authority
Los Angeles County Sanitation District No. 15 Authority Los Angeles Unified School District Certificates of Participation Montebello Unified School District Certificates of Participation City of Montebello General Fund Obligation
City of Montebello Pension Obligation Bonds

1.22%

1.91%

3.50%

0.60%
City of Montebello
Direct and Overlapping Debt
El Rancho Unified School District
Los Angeles Unified School District
OVERLAPPING TAX AND ASSESSMENT DEBT:

Metropolitan Water District
Los Angeles Community College District
Montebello Unified School District

TOTAL GROSS OVERLAPPING TAX AND ASSESSMENT D
E
Los Angeles County General Fund Obligation

TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUN
194

2012-13 2013-14 2014-15 2015-16 2016-17
Assessed valuation 19,404,069,772 $ 19,864,600,740 $ 20,609,967,972 $ 21,223,501,036 $ 22,103,394,800 $ Conversion Percentage 25.00% 25.00% 25.00% 25.00% 25.00% Adjusted assessed valuation 4,851,017,443 4,966,150,185 5,152,491,993 5,305,875,259 5,525,848,700 Debt limit percentage 15.00% 15.00% 15.00% 15.00% 15.00% Total net debt applicable to limit 727,652,616 744,922,528 772,873,799 795,881,289 828,877,305 Legal debt margin 727,652,616 744,922,528 772,873,799 795,881,289 828,877,305 2017-18 2018-19 2019-20 2020-21 2021-22
Assessed valuation 22,840,364,556 24,213,713,652 25,572,386,248 26,854,163,688 28,218,124,320 Conversion Percentage 25.00% 25.00% 25.00% 25.00% 25.00% Adjusted assessed valuation 5,710,091,139 6,053,428,413 6,393,096,562 6,713,540,922 7,054,531,080 Debt limit percentage 15.00% 15.00% 15.00% 15.00% 15.00% Total net debt applicable to limit 856,513,671 908,014,262 958,964,484 1,007,031,138 1,058,179,662 Legal debt margin 856,513,671 $ 908,014,262 $ 958,964,484 $ 1,007,031,138 $ 1,058,179,662 $ Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel).The computations shown above reflect a conversion of assessed valuation data for each fiscal year that was in effect at the time that the legal debt margin was enacted by the State of California for local governmenets located with in the state.

Source: Los Angeles County Assessor and HdL, Coren & Cone City of Montebello
Legal Debt Margin Information
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed. However, this provision was enacted when assessed valuation was based upon 25% of market value.

Last Ten Fiscal Years
Fiscal Year
Fiscal Year
195

Fiscal Gross Less Operating Net Available
Year Revenue Expenses Revenue Principal Interest Total Coverage

2012-13 2,389,101$ (2,826,082) $ (436,981) $ 201,420 $ 200,594 $ 402,014 $ -108.70% 2013-14 2,385,213 (2,748,196) (362,983) 209,960 175,667 385,627 -94.13% 2014-15 2,312,095 (2,992,640) (680,545) 256,420 67,650 324,070 -210.00% 2015-16 2,294,518 (2,753,607) (459,089) 225,240 134,526 359,766 -127.61% 2016-17 2,091,410 (2,535,564) (444,154) 233,500 116,281 349,781 -126.98% 2017-18 2,194,976 (3,103,858) (908,882) 257,660 110,341 368,001 -246.98% 2018-19 2,219,791 (2,711,992) (492,201) 276,820 102,463 379,283 -129.77% 2019-20 2,051,607 (2,383,223) (331,615) 285,360 92,742 378,102 -87.71% 2020-21 2,964,027 (2,779,657) 184,370 300,080 82,176 382,256 48.23% 2021-22 2,945,484 (2,663,662) 281,822 309,800 70,776 380,576 74.05% Source: City Finance Department
Last Ten Fiscal Years
Golf Revenue Bonds
Debt Service
City of Montebello
Pledged-Revenue Bond Coverage
196

Calendar Personal Income Per Capita Unemployment
Year Population (in millions) Personal Income Rate
2012-13 63,184 1,328 21,013 10.40% 2013-14 63,527 1,288 20,269 8.50% 2014-15 63,555 1,321 20,783 7.10% 2015-16 63,924 1,329 20,784 5.70% 2016-17 63,917 1,323 20,693 4.50% 2017-18 64,327 1,346 20,916 4.30% 2018-19 64,247 1,415 22,027 5.00%
2019-20 63,544 1,455 22,895 4.80%
2020-21 62,914 1,771 28,143 13.93%
2021-22 62,180 2,010 32,326 4.30%
Source: HdL, Coren & Cone
City of Montebello
Demographic and Economic Statistics
Last Ten Calendar Years
197

Employer Employees
Percent of Total
Employment * Employees
Percent of Total
Employment *
Montebello Unified School District* 1,407 4.99% Beverly Hospital 961 3.41%
City of Montebello 482 1.71%
Bimbo Bakery 315 1.12%
Macy's Department Store 308 1.09% Rio Hondo Convalescent Hospital 218 0.77% JCPenney Department Store 215 0.76% 343 3.80% Monarch Litho Inc. 171 0.61% 199 2.20% Wilbur Curtis CO 149 0.53% 265 2.93% R+L Carriers 153 0.54%
Katzkin Leather, Inc 400 4.43%
Costco Wholesale 237 2.62%
Forever 21 155 1.72%
B J's Restaurant & Brewhouse 145 1.61% All Access Apparel Corp. 131 1.45%
Lifeline Ambulance 130 1.44%
Minson Corporation 120 1.33%
Total 10 Top Employers 4,379 15.53% 2,125 23.53% Total City Employment (1) 28,200 9,030 Results based on direct correspondence with city’s local businesses. *Includes ONLY schools within Montebello city limits.
** Costco now located in the City of Monterey Park, since 2018. 2012-13
Source: MuniServices, LLC / Avenu Insights & Analytics
(1) Total City Labor Force provided by EDD Labor Force Data. 2021-22
City of Montebello
Principal Employers
Current Fiscal Year and Nine Years Ago
198

Function 2012-13** 2013-14** 2014-15 2015-16 2016-17
General Government 24 23 23
Public Safety 157 151 162
Public Works 12 13 13
Parks and Recreation 35 33 33
Community Development 14 12 11
Transit 159 155 154
Totals 401 387 396
Function 2017-18 2018-19 2019-20 2020-21 2021-22
General Government 18 24 37 38 43
Public Safety 142 153 163 168 175
Public Works 12 11 13 13 23
Parks and Recreation 28 30 29 22 21
Community Development 9 9 11 16 21
Transit 169 164 165 174 199
Totals 378 391 418 431 482
Source: City Finance Department
**Reliable data is unavailable
City of Montebello
Full-Time Employees by Function
Last Ten Fiscal Years
Fiscal Year
Fiscal Year
199

Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Police:

Arrests 2,093 1,896 1,642 2,005 2,037 1,648 1,466 1,360 1,179 1,347 Traffic violations 2,773 2,682 2,505 1,418 2,191 2,096 2,446 2,864 4,029 5,894 Parking violations 20,448 18,950 16,446 16,767 17,507 17,346 15,037 13,617 8,950 10,783 Fire:

Number of calls answered 4,800 5,100 5,686 6,051 6,494 6,661 6,509 6,071 6,010 6,724 Inspections conducted 625 988 1,248 1,094 809 1,271 1,237 900 155 875 Public Works:

Street resurfacing (miles) 0.51 2.28 1.42 5.96 0.47 3.20 0.76 1.03 0.16 2.61 Sidewalk repairs (sq ft) 11,100 35,435 29,632 7,942 3,600 15,042 12,580 11,793 22,118 9,858 Potholes repaired 3,325 3,876 3,774 4,009 7,163 7,317 7,315 8,943 5,232 Storm drains cleaned 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A Parks and Recreation:

Number of recreation classes 137 153 160 192 214 268 284 214 10 226 Number of facility rentals 708 2,156 3,180 3,438 3,428 3,589 3,589 3,437 0 1,083 Source: City Finance Department
Fiscal Year
City of Montebello
Operating Indicators by Function
Last Ten Calendar Years
200

Function 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Police:

Police Stations 111111111 1
Fire:

Fire Stations 333333333 3
Public Works:

Street (miles) 125 125 125 125 125 125 125 125 125 125
Street Lights 3,682 3,682 3,682 3,682 3,683 4,718 4,725 4,725 4,725 4,725 Traffic Signals 81 81 81 79 79 79 80 80 80 80
Parks and Recreation:

Parks 7777777 1 2 * 1 2 * 1 2 *
Community Centers - 443333 6 * * 6 * * 6 * *
Source: City Finance Department
*Includes "mini parks" which were not counted in previous years

INFORMATION PROVIDED BY DEPARTMENTS
Fiscal Year
City of Montebello
Capital Asset Statistics by Function
Last Ten Fiscal Years
**Includes Grant Rea Recreation Center and Holifield Community Center which were not counted in previous years and Recreation Main Office which closed in 2015 and reopened in 2020 201

This page intentionally left blank.
202

ITEM # 13

CITY OF MONTEBELLO

CITY COUNCIL AGENDA STAFF REPORT

TO: Honorable Mayor and City Council Members

FROM: Arnold M. Alvarez-Glasman, City Attorney

BY: Arnold Glasman, City Attorney

SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 2463 AMENDING SECTIONS 2.30.010 AND 2.30.130 OF THE MONTEBELLO

MUNICIPAL CODE TO REINSTATE THE CIVIL SERVICE COMMISSION AND CHAPTER 2.44 OF THE MONTEBELLO MUNICIPAL CODE TO

REINSTATE THE TRAFFIC AND SAFETY COMMISSION

DATE: March 22, 2023

RECOMMENDATION(S):

It is recommended that the City Council:

1. Conduct a second reading and adopt Ordinance No. 2463, with waiver of a full reading, to amend Sections 2.30.010 and 2.30.130 of the Montebello Municipal Code to reinstate the Civil Service Commission and Chapter 2.44 of the Montebello Municipal Code to reinstate the Traffic and Safety Commission; and

2. Take such additional, related, action that may be desirable.

FISCAL IMPACT:

There will be a fiscal impact to the General Fund related to staffing each meeting (i.e., additional staff time), stipends paid to each commission member, providing third-party legal and traffic engineering consultant services, and supplies (i.e., copies of agenda packets, studies, related hand-outs, etc.). In addition, there will be impacts on current staffing as additional time will be required to support each commission – creating and posting agendas, taking minutes, follow up on commission direction, and other necessary tasks. The total annual fiscal impact will be based on the number of meetings conducted for each commission and the scope of review for each issue presented to the commissions.

For the Traffic Commission, annual support costs will be approximately $225,000 for a traffic engineer. In addition, an additional $300,000 may be necessary to pay for the cost of the various traffic studies needed based on commission direction. The $525,000 in estimated annual expenses will be borne by the General Fund.

CITY COUNCIL AGENDA REPORT - MEETING OF MARCH 22, 2023

The Civil Service Commission will add approximately $300,000 annually, to provide third- party legal services for both the City and the Civil Service Commission, as needed language translation services, commission stipends, and additional dedicated staff time.

BACKGROUND/DISCUSSION:

At its meeting of November 18, 2020, the City Council adopted an Ordinance changing the title of Section 2.30.130 of the Montebello Municipal Code from “Duties – Civil service commission” to read as “Duties – Personnel advisory commission,” in effect, changing the name of the Civil Service Commission set forth in Chapter 2.60 to the Personnel Advisory Commission. On January 13, 2021, the City Council adopted an Ordinance amending Chapter 2.44 of the City of Montebello Municipal Code (MMC) relative to the then-existing Traffic and Safety Commission and transforming it into a Traffic and Safety Committee.

At its first meeting in January 2023, the City Council expressed a consensus to reinstate the Traffic and Safety Commission and Civil Service Commission to its full form. Pursuant to this consensus, the City Attorney’s office drafted the Ordinance No. 2463 and presented it to the City Council at its meeting on March 8, 2023. On March 8, 2023, the City Council introduced Ordinance No. 2463.

If adopted, this Ordinance will revert the name of the Personal Advisory Commission to the Civil Service Commission and will amend Chapter 2.44 of the MMC to revert the Traffic Committee back to a Traffic and Safety Commission, as it once was, and will be made up of five (5) members of the public, with each member being appointed by the City Council.

ENVIRONMENTAL:

N/A

ANALYSIS:

N/A

SUMMARY:

It is recommended that the City Council conduct a second reading and adopt, with waiver of a full reading, Ordinance No. 2463 to amend Sections 2.30.010 and 2.30.130 of the Montebello Municipal Code to reinstate the Civil Service Commission and Chapter 2.44 of the Montebello Municipal Code to reinstate the Traffic and Safety Commission.

ATTACHMENT(S)

1. Attachment A - Ordinance No. 2463, Amending Chapters 2.30.010 and 2.30.130

NEXT STEPS:

N/A

ORDINANCE NO. 2463

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
MONTEBELLO, CALIFORNIA, AMENDING SECTIONS 2.30.010 AND

2.30.130 OF THE MONTEBELLO MUNICIPAL CODE TO REINSTATE
THE CIVIL SERVICE COMMISSION AND CHAPTER 2.44 OF THE

MONTEBELLO MUNICIPAL CODE TO REINSTATE THE TRAFFIC AND

SAFETY COMMISSION
WHEREAS, the City of Montebello (“City”) is a general law city, incorporated under the laws of the State of California, with the power to make and enforce within its jurisdictional limits all local, police, sanitary, land use, and other ordinances and regulations not in conflict with general laws of the state; and WHEREAS, Ordinance No. 2322 was passed and approved by the City Council of the City of Montebello (“City Council”) in 2008, and amended the Montebello Municipal Code requiring that the City Council establish various Commissions to help advise the City; and
WHEREAS, on November 18, 2020, the City Council adopted an Ordinance changing the name of the Civil Service Commission to the Personnel Advisory Commission; and
WHEREAS, on January 13, 2021, the City Council adopted an Ordinance amending Chapter 2.44 of the City of Montebello Municipal Code relative to the then- existing Traffic and Safety Commission and transforming it into a Traffic and Safety Committee; and
WHEREAS, At its first meeting in January 2023, the City Council provided direction via City Council consensus to reinstate the Traffic and Safety Commission and Civil Service Commission to its full form as previously established; and WHEREAS, the City Council desires to amend the Montebello Municipal Code to reinstate the Civil Service Commission and the Traffic and Safety Commission.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MONTEBELLO HEREBY ORDAINS AS FOLLOWS:

SECTION 1.RECITALS. The above recitals are true and correct and made part of this Ordinance.

ORDINANCE NO. 2463

SECTION 2. AMENDMENT. Section 2.30.010 – Advisory commissions established and 2.30.130 – Duties – Personnel advisory commission of Chapter 2.30 – Advisory Commissions of the Montebello Municipal Code are hereby amended to read as follows (deletions in strikethrough and additions in double underline):

2.30.010 – Advisory commissions established.

A. The city council establishes the following commissions or committees to serve the city, identified as follows and collectively referred herein as the “commissions” or “committees”:

1. Personnel advisory Civil service commission;

2. Parks and recreation commission;

3. Planning commission;

4. Traffic committee and safety commission;

5. Youth and Education commission.

B. Nothing in this chapter shall be construed as restricting or curtailing any of the powers of the city council, or as a delegation to the commissions, of any authority or discretionary powers vested and imposed by law in the city council. The city council declares that the public interest, convenience, welfare and necessity require the establishment of the commissions to act in a purely advisory capacity, for the purposes set forth herein this chapter.

2.30.130 – Duties – Personnel advisory Civil service commission.

The powers and duties of the personnel civil service advisory commission shall be:

A. Pursuant to the rules set forth in Chapter 2.60 herein, to hear appeals submitted by any person in the classified service relative to any disciplinary action, dismissal, demotion or alleged violation of Chapter 2.60 or the civil service rules, and to certify its finding and recommendations.

B. In any investigation or hearing conducted by the commission, it shall have the power to examine witnesses under oath and compel their attendance or production of evidence by subpoenas issued in the name of the city and attested by the city clerk. It shall be the duty of the police chief to cause all such subpoenas to be served, and refusal of a person to attend or to testify in answer to such subpoena shall subject the person to prosecution in the same manner as set forth by law for failure to appear before the city council in response to a subpoena issued by the city council. Each member of the

ORDINANCE NO. 2463

commission shall have the power to administer oaths to witnesses. The commission shall afford every witness the opportunity to be heard.

C. To publish or post notices of tests for positions in the classified service; to receive application therefore; to conduct and grade tests (this duty and function may be contracted as provided in Section 2.60.280 of this title); to certify to the appointing authority a list of all persons eligible for appointment in the appropriate position in the classified service. The commission shall cause the duties imposed upon it by this subsection to be performed by the personnel office for the commission. In the performance of such duties so delegated by the provisions of this subsection, the personnel officer shall be subject to the direction and control of the civil service commission.

D. When required by the city council, the commission shall hold hearings and make recommendations on any matter of personnel administration, within the limits of such request.

E. To advise the city council on all matters and problems concerning personnel administration.

F. From time to time other duties may be directed by the city council.

A. To advise the city council on all matters concerning termination of personnel.

B. Any proceeding before this commission shall be a de novo hearing.

C. The employee may appear through an attorney or other qualified person at the level of commission appeal.

SECTION 3.AMENDMENT. Chapter 2.44 – Traffic Committee of the Montebello Municipal Code is hereby amended to read as follows.

Chapter 2.44 TRAFFIC COMMITTEE AND SAFETY COMMISSION

2.44.010 Created.

There is created a traffic committee and safety commission for the city as follows.

2.44.020 Members – Appointments – Removal.

ORDINANCE NO. 2463

The traffic committee and safety commission of this city shall consist of five (5) members of the public. Members shall be appointed for terms not to exceed four (4) years each; provided, that the city council shall stagger terms of office or portions of terms of office at such times as it shall be deemed necessary, so as to provide continuity in the membership of the commission. An individual shall be eligible for appointment to the commission as long as he or she is a resident within the city at the time of his or her appointment and at all times during his or her term.

Each member shall serve until his or her successor is appointed and qualified, or until he or she is removed from office, by not less than a majority vote of the total voting membership of the city council, with or without cause. shall consist of the following designated officers and employees of the city, or their duly authorized deputies or assistants, who are hereby appointed and directed to serve thereon without additional compensation therefor during their respective terms of office or employment.
(A) The city manager;
(B) The police chief;
(C) The city engineer;
(D) The city attorney; and
(E) Two resident members of the city who will be selected by the entire city council by a four-fifths vote of the then seated members of the city council.

2.44.030 Meetings Officers
The meetings of this committee shall be:

A. Officers. The commission shall select one of its members as chairperson and one of its members as vice chairperson of the commission for a term, respectively, of one year. Notices. Meetings of the traffic committee shall be held whenever necessary to properly and expeditiously carry out the powers and duties delegated to the traffic committee. At least three members collectively of the traffic committee shall have the power to call a meeting thereof, and each member shall receive a notice of every such meeting.

B. Meetings. The commission may normally hold at least one regular meeting each calendar month, at such time and place as the secretary of the commission shall designate for the commission. The commission shall adopt such rules as it deems to be necessary for the transaction of its business, and shall keep appropriate records thereof. Quorum. Three members shall constitute a quorum for the conduct of any business of the traffic committee and safety commission. All actions or recommendations of the traffic committee which are consistent with the

ORDINANCE NO. 2463

powers and duties delegated by the provisions of this chapter or otherwise shall be presumed valid if such actions or recommendations are approved or ratified by any three members thereof.

C. Absence from Meetings. If any member of the commission shall be absent from three (3) successive regular meetings of the commission, without cause, the office of such member shall be deemed to be vacant. The secretary of the commission shall immediately inform the city council of such vacancy. Time of Meetings. Unless otherwise needed to conduct the business of the traffic committee, all meetings shall be conducted during regular city business hours.

D. Absence for Cause. An absence due to illness, an unavoidable absence from the city, or provided that written notice thereof is given to the secretary of the commission in advance of such regular meeting, shall be deemed an absence for cause. Minutes. The traffic committee shall maintain a minute record of its proceedings in which shall be recorded the date, time, and place of each meeting, the name of each member present, and the action, if any, taken on each item of request or referral. A copy of such record shall be filed with the city clerk.

2.44.040 Powers and Duties.

The traffic and safety commission of the city shall perform such duties as may be provided for in this code or other applicable law. In addition, the commission shall perform such functions as may be specifically delegated to it from time to time by the city council. In addition to such powers as may be otherwise specified by the provisions of this chapter or any applicable law, ordinance, or resolution, the traffic committee shall serve as the hearing body for appeals filed by applicants whose request for a traffic control device, traffic calming device, parking restriction, or painted curb has been denied by the director of public works in accordance with adopted policy.

2.44.050 Compensation standards for exercising powers and duties.

Members of the traffic and safety commission shall be entitled to such compensation as may, by resolution, be determined by the city council. The powers, functions, and duties set forth in this chapter shall be exercised or performed only after the traffic committee has determined that such exercise or performance is necessary to prevent or relieve traffic congestion, to insure the orderly and safe movement of vehicular or pedestrian traffic, or to insure public safety and convenience. In each instance, such determination shall consider the

ORDINANCE NO. 2463

professional opinion of the city traffic engineer based upon one or more of the following:
(A) Available traffic information or studies;
(B) Field observations;
(C) Vehicular traffic or pedestrian counts;
(D) Established traffic engineering principles, standards, and practices; and (E) Traffic engineering surveys or studies.

2.44.060 Appeals from decision of commission.

A. Filing. Any person aggrieved by any decision or action of the traffic and safety commission committee, not later than fifteen (15) days following the rendering of the decision by the traffic and safety commission, file a written letter of appeal with the city clerk, appealing the decision of the traffic and safety commission to the council; or, the council, may upon motion, determine to review the decision of the traffic and safety commission in the same manner as if an appeal had been filed by a person aggrieved by such a decision.

B. Upon notification by the clerk of such appeal, the secretary of the traffic and safety commission shall transmit to the clerk of the traffic and safety commission the file with the matter appealed. The clerk shall place the matter on the council’s agenda as soon as possible thereafter, and shall give appellant, and any other interested person requesting such notice, ten day’s written notice of the time and place of such hearing. The council shall at the time of such hearing, review the matter and, shall affirm, modify or reverse the traffic safety commission’s decision.

The determination of the council shall be final and conclusive. or of any person charged with carrying out the orders of the traffic committee may appeal such decision or action by filing a written protest with the city clerk who shall submit such protest to the council at its next regular meeting.

B. Council action. Upon the receipt of any protest, or upon its own motion, the council may take such action regarding any decision, recommendation, or action of the traffic committee or concerning any matter referred to it as the council may determine to be in the best public interest. The decision of the council concerning any action, decision, or recommendation of the traffic committee shall be final and determinative of the issues. If any specific action, decision, or recommendation of the traffic committee, or any person charged by the provisions of this article with carrying out its orders, is subsequently reviewed and set aside by the council, no further action shall be taken thereon except upon a direct order of the council.

ORDINANCE NO. 2463

2.44.070 Hearings—Form.

Neither the city traffic and safety commission committee nor the council shall be required to hold formal noticed public hearings upon matters referred to in this chapter or Title 10 of this code. The city traffic and safety commission and the council shall hear any relevant evidence offered by any interested person, and shall consider the files and any staff report therein included.

2.44.080 Temporary powers and duties of the Police Chief.

Notwithstanding any other provisions of this chapter, the police chief shall have the power and authority to temporarily exercise any powers delegated by the provisions of this chapter to the traffic committee when such temporary action shall be necessary to provide for an emergency or for the orderly movement and control of pedestrian or vehicular traffic or vehicle parking or whenever such action is deemed by him or her to be necessary for the protection of life or property or the public safety. All such actions by the police chief shall be deemed lawful unless and until superseded by further action of the traffic committee or the council.

SECTION 4.SEVERABILITY. If any action, subsection, line, sentence, clause, phrase, or word of this Ordinance is for any reason held to be invalid or unconstitutional, either facially or as applied, by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance, and each and every individual section, subsection, line, sentence, clause, phrase, or word without regard to any such decision.

SECTION 5. EFFECTIVE DATE. This Ordinance shall become effective thirty (30) days after adoption by the City Council.

SECTION 6. PUBLICATION. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be published or posted according to law.

PASSED, APPROVED, AND ADOPTED 22ND DAY OF MARCH 2023.
_______________________________
David N. Torres, Mayor

ORDINANCE NO. 2463

ATTEST:
_______________________________
Christopher Jimenez, City Clerk
APPROVED AS TO FORM:
_______________________________
Arnold M. Alvarez-Glasman, City Attorney
I HEREBY CERTIFY that the foregoing Ordinance was introduced at the regular meeting of the City Council on the 8th day of March, 2023, and was adopted by the City Council of the City of Montebello at its meeting held on the 22nd day of March, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_______________________________
Christopher Jimenez, City Clerk

ITEM # 14

CITY OF MONTEBELLO

CITY COUNCIL AGENDA STAFF REPORT

TO: Honorable Mayor and City Council Members

FROM: René Bobadilla, P.E., City Manager

BY: James Enriquez, Director of Public Works

SUBJECT: NOTICE OF COMPLETION – ANNUAL CONCRETE REPAIR
PROGRAM CDBG PROJECT (FY 2020-21), CP NO. 885

DATE: March 22, 2023

RECOMMENDATION(S):

It is recommended that the City Council:

1. Accept the Annual Concrete Repair Program, Community Development Bock Grant (CDBG) Project (CP No. 885), as completed by CT&T Concrete Paving Inc.; and

2. Approve recommended “Changes in Work” for the project (Attachment A) in the amount of $193,069; with the final contract amount with CT&T Concrete Paving, Inc. of $373,320; and

3. Approve the Final Total Project Budget and Expenditures including change orders (Attachment B); and

4. Authorize the City Clerk to execute, verify and file the Notice of Completion with Los Angeles County Registrar-Recorder (Attachment C); and

5. Authorize the City Manager to release the retention payment of $18,666 due to CT&T Concrete Paving Inc. following the mandatory waiting period from the date the Notice of Completion is recorded; and

6. Take such additional, related action that may be desirable.

FISCAL IMPACT:

The Final Total Project Budget (Attachment B) lists the total funding and sources that were previously approved by the City Council throughout the life of the project in the total amount of $373,402. The Final Total Project Budget also lists the total expenditures for the project in the amount of $373,320. The project was completed with a remaining balance of $82, therefore no budget amendments are necessary as the project came in under budget. These funds will be available for reprogramming for other projects.

CITY COUNCIL AGENDA REPORT - MEETING OF MARCH 22, 2023

BACKGROUND/DISCUSSION:

On April 14, 2021, the City Council awarded the Annual Concrete Repair Program - CDBG Project (CP No.885) to CT & T Concrete Paving Inc. in the amount of $180,828.

The Project includes removal and reconstruction of existing concrete sidewalks, curb and gutters, driveway approaches, and curb ramps including root pruning and tree removals on various streets city-wide.

On May 4, 2021, the Public Works Department was notified that a balance of the CDBG Fiscal Year 2014 funds were at risk of cancellation if they were not disbursed by September 11, 2021. Therefore, additional concrete repairs were added to the contract at the contract unit bid prices, increasing the total allocated budget to $373,402. The additional work was identified from the City’s inventory of reported concrete damage.

Construction started on May 17, 2021 and was completed on December 16, 2022.

NOTICE OF COMPLETION

Pursuant to Civil Code Section 3093, when a Capital Improvement Project is completed, a Notice of Completion must be prepared and filed with the County Recorder’s Office for recordation within 10 days after completion of the improvement. In compliance with this section of the Civil Code, the City Engineer has prepared the required Notice of Completion for the City Council to accept the project as complete; and to authorize the City Clerk to file the Notice of Completion for recordation with the County Recorder’s Office.

Concurrent with the preparation of the Notice of Completion, the City Engineer approved the final progress payment based on the agreed upon scope of work, with a five percent (5%) retention being withheld from the progress payments. The final retention payment is released to the contractor sixty (60) days after recordation of the Notice of Completion.

ENVIRONMENTAL:

N/A

ANALYSIS:

City staff performed the design and construction management services for the project. In addition, the City Engineer has performed field review and has reviewed the inspection reports and has concluded that the Project was completed satisfactorily and in accordance with the Project specifications. The total Construction cost was $373,320 as shown in Attachments A and B.

SUMMARY:

The City Council is requested to accept as complete the Annual Concrete Repair Program, FY 2020-21 - (C.P. No. 885) and authorize the City Clerk to process the Notice

CITY COUNCIL AGENDA REPORT - MEETING OF MARCH 22, 2023

of Completion.

ATTACHMENT(S)

1. Attachment A - Changes in Work Summary

2. Attachment B - Final Total Project Budget

3. Attachment C - Notice of Completion

NEXT STEPS:

N/A

CHANGES IN WORK SUMMARY
March 22, 2023

ANNUAL CONCRETE REPAIR PROGRAM CDBG PROJECT
CP NO. 885

Project Description:

The Annual concrete repair program (CDBG) project includes removal and reconstruction of existing concrete sidewalks, curb and gutters, d riveway approaches, and curb ramps including root pruning and tree removals on various streets City-wide.

Changes in Work:
(1) Additional work added due to additional CDBG fu nding $ 182,369 (2) Additional work added due to additional CDBG fu nding $ 10,700 Total Changes in Work $ 193,069

Description of Changes:

(1) Additional concrete repairs from the city’s inventory of reported concrete damage was added due to the availability of additional CDBG funding. Added work was at the contract unit bid price.
(2) Additional concrete repairs from the city’s inventory of reported concrete damage was added due to the availability of additional CDBG funding. Added work was at the contract unit bid price.

Revised Contract Amount :

Original contract amount $ 180,828
Adjustment for Final Quantities $ -577
Actual contract work completed $ 180,251
Changes in work to be authorized $ 193,069

Revised contract amount $ 373,320
Percent total change to original contract amount 20 6.5 %

ATTACHMENT A

ATTACHMENT B

ANNUAL CONCRETE REPAIR PROGRAM CDBG PROJECT
C.P. NO. 885

FINAL TOTAL PROJECT BUDGET

Project Expenses Final Cost
Original Construction Contract (CT&T Concrete Paving) – (Awarded 04/14/21) $ 180,828
Adjustment for Final Quantities Measured $ -577 Construction Change Order No.1 – (Recommended) $ 182,369 Construction Change Order No.2 – (Recommended) $ 10,700 Total Project Cost: $ 373,320

Project Funding Budget Amount
Gas Tax (Fund 200) - (Appropriated on Agenda 04/14/21) $ 38,339 Gas Tax (Fund 200) - (Appropriated FY 20/21 CIP) $ 62,715 TDA-3 Funds (Fund 223) – (Appropriated FY 20/21 CIP) $ 47,472 CDBG Funds (Fund 255) – (FY 20/21 Annual Action Plan) $ 77,988 Additional 2014 CDBG Funds $ 146,888
Total Project Budget: $ 373,402

Note: The project was completed with $82.00 remaining balance. These funds will be available for reprogramming for other projects.

ATTACHMENT C

RECORDING REQUESTED BY

CITY OF MONTEBELLO

AND WHEN RECORDED MAIL TO

NAME CITY OF MONTEBELLO

CITY CLERK
STREET 1600 W Beverly Blvd.

ADDRESS
CITY Montebello,

STATE CA
ZIP 90640

SPACE ABOVE LINE FOR RECORDERS USE
________________________________________________________________________________________________________________________________________________

NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion. (See reverse side for complete requirements.) Notice is hereby given that:

1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:

2. The full name of the owner is City of Montebello

3. The full address of the owner is 1600 W Beverly Bl vd., Montebello, CA 90640

4. The nature of the interest or estate of the owner is: in fee.

(if other than Fee, strike “In fee” and insert, for example, “purchaser under contract of purchase”, or “lessee”)

5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are:

NAMES ADDRESSES

__________________________________________________ _____________________________________________

6. The full names and addresses of the predecessors in interest of the undersigned, if the property was transferred subsequent to the commencement of the work or improvements herein referred to:

NAMES ADDRESSES
__________________________________________________ __________________________________________

7. A work of improvement on the property hereinafter d escribed was completed on January 13, 2021. The gen eral scope of work consisted of the removal and reconstruction of existing sidewalks, curb and gutters, drive app roaches, curb ramps, cold milling and repaving the existing stree ts, adjustments of utility covers, installation of pavement markings and striping, curb painting, installation of traffic detection loops and installation of a Bio-swell retention basin.

8. The name of the contractor, if any, for such work of improvement was CT & T Concrete Paving Inc.

April 14, 2021
(If no contractor for work of improvement as a whole, insert “None”) (Date of Contract)

9. The property on which said work of improvement was completed is in the City of Montebello County of Lo s Angeles, State of CA, and is described as follows : City-Wide

Director of Public Works / City Engineer, City of Montebello (Signature of Owner or corporate officer of Owner named in paragraph 2, or his agent)

VERIFICATION

I, the undersigned, say: I am the City Clerk of the City of Montebello , the declarant of the foregoing Notice of Completion:

I have read said Notice of Completion and know the contents thereof; the same is true to my own knowle dge. I declare under penalty of perjury that the foregoing is true and correct.

Executed on_________________ , 2022 at City of Mont ebello, Montebello, CA _______________________________________________ (Personal signature of the individual who is swearing that the contents of the Notice of Completion are true)

DO NOT RECORD

REQUIREMENTS AS TO NOTICE OF COMPLETION

A notice of completion must be filed for record WIT HIN 10 DAYS after completion of the work of improvement (to be computed exclusive o f the day of completion), as provided in Civil Code Section 3093.

The “owner” who must file for record a notice of co mpletion of a building or other work of improvement means the owner (or his successor in -interest at the date the notice is filed) on whose behalf the work was done, though hi s ownership is less than the fee title.

For example, if A is the owner in fee, and B, lesse e under a lease, causes a building to be constructed, then B, or whoever has succeeded to hi s interest at the date the notice is filed, must file the notice.

If the ownership is in two or more persons as joint tenants or tenants is common, the notice may be signed by any one of the co-owners (i n fact, the foregoing form is designed for giving of the notice by only one cotenant), but the names and addresses of the other co-owners must be stated in paragraph 5 of the form.

Note that any Notice of Completion signed by a succ essor in interest shall recite the names and addresses of his transferor or transferors.

In paragraphs 3, 5 and 6, the full address called f or should include street number, city, county and state.

As to paragraphs 7 and 8, this form should be used only where the notice of completion covers the work of improvement as a whol e. If the notice is to be given only of completion of a particular contract, where the work of improvement is made pursuant to two or more original contracts, then this form must be modified as follows: (1) Strike the words “A work of improvement” from paragraph 6 and insert a general statement of the kind of work done or materials furnished pursuant t o such contract (e.g., “The foundations for the improvements”); (2) Insert the name of the contractor under the particular contract in paragraph 7.

In paragraph 8 of the notice, insert the name of th e contractor for the work of improvement as a whole. No contractor’s name need be given if there is no general contractor, e.g., on so-called “owner-builder jobs.”

In paragraph 9, insert the full, legal description, not merely a street address or tax description. Refer to deed or policy of title insu rance. If the space provided for description is not sufficient, a rider may be attached.

In paragraph 10, show the street address, if any, a ssigned to the property by any competent public or governmental authority.

This standard form covers most usual problems in th e field indicated. Before you sign, read it, fill in all blanks, and make changes proper to your transaction. Consult a lawyer if you doubt the form’s fitness for your purpose.

ITEM # 15

CITY OF MONTEBELLO

CITY COUNCIL AGENDA STAFF REPORT

TO: Honorable Mayor and City Council Members

FROM: René Bobadilla, P.E., City Manager

BY: James Enriquez, Director of Public Works

SUBJECT: TOLA STREET PREFERENTIAL PARKING DISTRICT – SET PUBLIC

HEARING DATE

DATE: March 22, 2023

RECOMMENDATION(S):

It is recommended that the City Council:

1. Set the Public Hearing Date for the City Council meeting on April 10, 2023 to consider the designation of a Preferential Parking District; and

2. Take such additional, related action that may be desirable.

FISCAL IMPACT:

The recommended action will have no fiscal impact, other than the staff time required to process the request to establish a Preferential Parking District.

BACKGROUND/DISCUSSION:

A total of 13 residents of Tola Street submitted a petition requesting designation of Tola Street from Montebello Boulevard to its westerly terminus as a Preferential Parking District. Tola Street is a cul-de-sac street west of Montebello Boulevard. The petition was filed on 1/3/22 along with a required fee of $790 and signatures of residents (one signature per household). The residents have indicated that their street is being used for parking by non-residents during weekday daytime hours. The petition requests establishing preferential parking to be enforced from Sunday 8:00 p.m. to Friday 6:00 p.m., excluding holidays.

Engineering staff conducted a site investigation per direction of the City Traffic Engineer to observe existing parking conditions. The observation indicated that over 60% of the cars parked during the survey were non-residents.

CITY COUNCIL AGENDA REPORT - MEETING OF MARCH 22, 2023

ENVIRONMENTAL:

N/A

ANALYSIS:

N/A

SUMMARY:

It is recommended that City Council set a Public Hearing date to consider designating Tola Street from South Montebello Boulevard to its westerly terminus as a Preferential Parking District.

ATTACHMENT(S)
None
NEXT STEPS:

N/A

ITEM # 16

CITY OF MONTEBELLO

CITY COUNCIL AGENDA STAFF REPORT

TO: Honorable Mayor and City Council Members

FROM: René Bobadilla, P.E., City Manager

BY: Joseph Palombi, Director of Planning & Community Development

SUBJECT: AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSALS (RFP NO. 23-9) FOR AN ENVIRONMENTAL ENGINEER TO CONDUCT A

COMPREHENSIVE REVIEW OF THE BROWNFIELD AREA/CHAPIN

ROAD LANDFILL AND PERFORM ADDITIONAL ANALYSIS AS
NEEDED

DATE: March 22, 2023

RECOMMENDATION(S):

It is recommended that the City Council:

1. Approve Issuing a Request for Proposals ("RFP") and authorize solicitation of proposals for a qualified Environmental Engineer or firm to conduct a comprehensive review of the Brownfield Area/Chapin Road Landfill and perform additional analysis as needed; and

2. Take such additional, related action that may be desirable.

FISCAL IMPACT:

There are no significant expenses associated with approving and circulating the RFP. The City Council is not obligated to approve a contract by soliciting proposals. Actual project costs will be determined through the consultant selection process. At the time of award of a professional services agreement, Staff will recommend necessary (if needed) budget amendments.

BACKGROUND/DISCUSSION:

Based on direction received from the City Council at its Special Study Session on February 27, 2023, the Planning and Community Development Department is requesting authorization to issue a Request for Proposals (“RFP”) to seek a qualified Environmental Engineer or Environmental firm to conduct a comprehensive review of the existing

CITY COUNCIL AGENDA REPORT - MEETING OF MARCH 22, 2023

Brownfield Area/Chapin Road Landfill and perform additional analysis as needed to provide an accurate assessment of the closed landfill. The qualified vendor should have extensive experience in ground water contamination and landfill remediation.

The Brownfield Area/Chapin Road Landfill is comprised of approximately 55-acres and identified in the map contained in this report under Attachment B (collectively referred to as the “Brownfield Area”). The Chapin Road Landfill operated from 1940 until its closure in the mid-1950s. Prior to 1940, the Brownfield Area was used for agricultural purposes.

Subsequent to its closure, the Brownfield Area was used for industrial chemical blending and mixing from 1960 to 1987 (Source: State Department of Toxic Substance Control, https://dtsc.ca.gov/your-envirostor/). The Chapin Road Landfill is currently recognized as a pre-regulation closed landfill and given its date of closure and documented measurements of hazardous material, any required remediation/mitigation is unknown without further analysis.

Generally bounded by Bluff Road on the east, Maynard Way/Slauson Avenue on the north and south respectively. The Rio Hondo Spreading Grounds and Channel are immediately to the east. Depth to groundwater beneath the site varies from 40 to 80 feet below grade. Groundwater flows generally to the southwest and there are several additional water supply wells located within one (1) mile of the site, including one in the northeast corner of the project area (Source: State Water Resources Control Board, https://geotracker.waterboards.ca.gov/).

There are approximately 27 operating businesses on 25 parcels within the Brownfield Area. Three satellite parcels bring the total parcels affected to 28. The area is populated with commercial/industrial uses including a concentration of heavy trucking businesses.

Existing hard infrastructure consists of Chapin Road which serves as a loop road joining Maynard Way and Bluff Road. The hard infrastructure is currently deteriorated and substandard. There are limited traffic control devices with one controlled signal at Chapin Road and Slauson Avenue. There is electric power, water and phone service throughout the subject area. Sewer lines run along Bluff Road and the railroad tracks; however, the majority of businesses are served by septic tanks. There are no storm water drains or storm water controls within the Brownfield Area.

The City was awarded two U.S. Environmental Protection Agency (EPA) grants in 1998 and 2004 to conduct Phase I and Phase II studies to evaluate soil, soil gas and the groundwater condition at the site. Studies were conducted including soil borings and the use of ground water monitoring wells throughout the Brownfield Area. Properties within the Brownfield Area are regularly inspected by the Local Enforcement Agency (Los Angeles County Department of Public Health - Environmental Protection Branch, Solid Waste Inspection and Enforcement).

There has been much discussion about the Brownfield Area, its potential hazards and suggestions on what next steps should be taken. Because the most recent analysis is somewhat dated and there has been a significant change in personnel since the origination of previous studies, there is not a clear understanding of what potential contaminants and/or hazardous materials may exist and what the level of risk is to the

CITY COUNCIL AGENDA REPORT - MEETING OF MARCH 22, 2023

public, including adjacent residents and businesses that occupy the site. While the site is periodically inspected by the Local Enforcement Agency, it is the City's understanding that the inspections appear to be limited to general testing for methane in certain areas and not holistically or related to other areas such as soil or groundwater sampling.

Furthermore, none of the properties within the Brownfield Area have methane monitors or protections.

To better understand the current condition of the Brownfield Area and ensure the safety of residents, visitors, employees, businesses as well as groundwater resources, the City Council directed staff to engage an environmental engineer, The environmental engineer would -- among other tasks -- conduct research and establish an informed analysis that would allow staff to have a comprehensive status of the subject area, as well as determine if there is any risk of contamination exposure and suggest additional investigation, mitigation, and/or remediation activities, if any are warranted. In addition, engineers would be asked to opine on the viability of repairing the road network and developing a storm water masterplan to ensure run-off water from the area is being appropriately controlled using adequate infrastructure and/or best management practices.

Therefore, through the RFP process, environmental engineers and firms would be invited to submit a proposal for consideration. If approved by City Council, the RFP (see Attachment A) will be circulated beginning March 27 through April 27, 2023. Staff will screen the proposals and present the City Council with a recommended engineer or firm.

The action to release an RFP to solicit proposals as described in this report is exempt under the California Environmental Quality Act (“CEQA”); however, it is important to note that there may be activities in the future resulting from this RFP that require an adequate level of environmental review in accordance with CEQA.

ENVIRONMENTAL:

Pursuant to the California Environmental Quality Act (CEQA), this action is exempt from CEQA under the common sense rule that CEQA applies only to projects which have the potential to cause a significant effect on the environment. Because it can be seen with certainty that there is no possibility that the solicitation of proposals for a qualified Environmental Engineer or firm related to the Brownfield Area/Chapin Road Landfill through the RFP process will have a significant effect on the environment, this action is not subject to CEQA pursuant to State CEQA Guidelines Section 15061(b)(3).

ANALYSIS:

The purpose of this RFP is to solicit and select proposals from highly qualified environmental engineers and firms to perform a holistic and comprehensive analysis of the Brownfield Overlay District and Chapin Road Landfill. Recommendations will be based on a scoring criteria including completeness of proposals, experience, qualifications, past performance and cost. The selected environmental engineer or firm will be expected to prepare and implement a comprehensive overview of the landfill and propose additional testing to fully understand the presence of any potential environmental contamination in the soil, air or groundwater.

CITY COUNCIL AGENDA REPORT - MEETING OF MARCH 22, 2023

Specifically, engineers and firms will be asked to:

1. Review all relevant reports and data related to the subject site.

2. Develop recommendations (and justification) for further study and investigation, if necessary.

3. Develop recommendations for remediation, if necessary.

4. Review compliance with existing legislation.

5. Review viability and requirements to repair public roads within the project site.

6. Develop a Storm Water Master Plan for the area.

7. Identify funding sources for additional study, remediation and brownfield development.

As previously mentioned, it is anticipated that the RFP will be circulated beginning March 27, 2023 and it is anticipated that staff will be prepared to recommend a consultant for City Council consideration by June 2023. Therefore, it is recommended that the City Council approve issuing a RFP. At the time of award of a professional services agreement, Staff will recommend -- if needed -- the necessary budget amendments to appropriate funds to carry out the environmental analysis.

Anticipated Timeline:

ACTION DATE/TIMEFRAME
Circulation of the RFP March 27, 2023 through April 27, 2023 Deadline for Submission April 27, 2023 - No later than 5:00 p.m.

Interviews Begin Week of May 8, 2023
Council award of contract Anticipated on June 9, 2023

SUMMARY:

N/A

ATTACHMENT(S)

1. Attachment A - Brownfield Area Chapin Road Landfill Engineering Services (RFP 23-9 Draft)

NEXT STEPS:

N/A

ITEM # 17

CITY OF MONTEBELLO

CITY COUNCIL AGENDA STAFF REPORT

TO: Honorable Mayor and City Council Members

FROM: René Bobadilla, P.E., City Manager

BY: David Sosnowski, Director of Recreation and Community Services

SUBJECT: AWARD PROFESSIONAL SERVICES AGREEMENT NO. 4079 FOR PARKS AND RECREATION GUIDE PRODUCTION (RFP NO. 23-5) TO MCGREGOR SHOTT, INC.

DATE: March 22, 2023

RECOMMENDATION(S):

It is recommended that the City Council:

1. Award Professional Services Agreement No. 4079 to McGregor Shott, Inc. in an amount not-to-exceed Thirty Thousand Dollars ($30,000) annually for Parks and Recreation Guide production; and

2. Authorize the City Manager to take actions necessary to execute and finalize an agreement on behalf of the City of Montebello; and

3. Take such additional, related action that may be desirable.

FISCAL IMPACT:

The total not-to-exceed annual cost for Parks and Recreation Guide production under the proposed agreement is Thirty Thousand Dollars ($30,000) for the first year of a one-year (1-year) term, with the option to extend up to three (3) additional years. The annual cost includes design, digital web hosting, and printing of the Recreation guide in limited quantities. The awarded agreement will be managed by the Recreation and Community Services Department. The adopted Fiscal Year 2022-23 General Fund and Transit Funds' Advertising and Printing Accounts (100-70-700-6025, 100-70-710-6025, and 600- 90-900-6025) have sufficient monies available to produce the first edition guide in late spring of 2023. Future Fiscal Year budget requests will incorporate projected Recreation Guide expenditures for additional publishing dates.

CITY COUNCIL AGENDA REPORT - MEETING OF MARCH 22, 2023

BACKGROUND/DISCUSSION:

On December 23, 2022, the City issued Request for Proposals No. 23-5 ("RFP No. 23- 5") seeking proposals for Parks and Recreation Guide production. The scope of work includes design, web hosting, limited printing, and publication of three (3) program guides per year for the Recreation and Community Services Department. The guide aims to enhance the City's branding and marketing efforts, as well as improve effective communication with residents and stakeholders on a consistent and advanced basis.

RFP No. 23-5 was advertised on the City website, Planet Bids and the Montebello News newspaper. Interested bidders were provided the opportunity to submit questions and corresponding answers were published using the City's online advertising platform, Planet Bids. RFP No. 23-5 closed on January 26, 2023 and the City received eight (8) responsive proposals.

ENVIRONMENTAL:

N/A

ANALYSIS:

An Evaluation Committee was comprised of five (5) City employees. The Committee assessed the qualifications and expertise of each proposer in performing the services and scope of work called for in RFP No. 23-5. Each proposal was scored based upon various criteria assigned weighted scores (out of a total of 100 points possible) and ranked as follows:

From this evaluation process, McGregor Shott, Inc. has been selected as the most responsive and responsible bidder based upon scored proposals. McGregor Shott, Inc. not only has an abundance of experience in the development, design, and production of municipal recreation guides, but also received favorable references. This company has produced guides for several cities including, but not limited to, Santa Clarita, Fontana, Barstow, Lodi, Apple Valley, and Montclair. They also work with businesses and universities including the Los Angeles Economic Development Corporation, Mount Saint

CITY COUNCIL AGENDA REPORT - MEETING OF MARCH 22, 2023

Mary's University, University of California Irvine, Shared Space Atlanta, and the Georgia Institute of Technology. McGregor Shott, Inc. is a woman-owned small business certified by the United State's Small Business Administration, and is certified as a Disadvantaged and Small Business Enterprise by the State of California. Staff are confident that McGregor Shott, Inc. has the qualifications and experience that best meets the needs of the City.

SUMMARY:

Staff recommends that the City Council approve Agreeement No. 4079 with McGregor Shott, Inc. for a total not-to-exceed amount of Thirty Thousand Dollars ($30,000) per year, for an initial one (1) year term with the option to renew for three (3) additional years, for the production of a Parks and Recreation Guide (attached hereto in substantial form); authorize the City Manager to take actions necessary to execute and finalize the City Attorney approved agreement on behalf of the City; and direct staff to take such additional, and related, actions that may be desirable.

ATTACHMENT(S)

1. Attachment A - Draft Agreement No. 4079

NEXT STEPS:

N/A

CITY OF MONTEBELLO

PROFESSIONAL SERVICES AGREEMENT NO. 4079
WITH MCGREGOR SHOTT, INC.
(RFP No. 23-5)

THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into on March 8, 2023 (“Effective Date”) , by and between the CITY OF MONTEBELLO, a California municipal corporati on ( the “CITY”) and MCGREGOR SHOTT, INC. (the “CONSULTANT”). The CITY and the CONSULTANT are sometimes referred to herein individual as the “Party,” and jointly as the “Parties.”

RECITALS

WHEREAS, the CITY desires to ret ain a qualified professional consultant to provide a recreational guide for the CITY; and

WHEREAS, the CONSULTANT represents that it is fully qualified to perform such services 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:

SECTION 1. INCORPORATION OF RECITALS AND OTHER CONTRACT DOCUMENTS

a. The above -referenced Recita ls c onstitute a material part hereof and shall hereby be incorporated by reference. Moreover, this Agreement consists of the following documents, in order of precedence, all of which are incorporated herein and made part of this Agreement, as though fully set forth herein:

1. This Agree ment and its Exhibits, including Request for Proposal (RFP ) #23-5, McGregor Shott, In c. proposal, fee schedules, and any and all addenda or supplemental agreements.

2. All other documents, including but not limite d to all applica ble bonds, insurance certificates, permits, notices, schedules, forms, certifications, and affidavits.

b. These documents shall be collectively referred to herein as the “Contract Documents.” In the event of a conflict among the Contract Do cuments, the ord er of precedence list above shall apply.

SECTION 2. SERVICES / COMPENSATION.

a. To the extent of a conflict between the terms of this Agreement and that set forth in any exhibits or attachments hereto, the terms of this Agreement shall govern.

b. The CONSULTANT shall provide to the CITY all labor, equipm ent, materials and incidental necessary to conduct a feasibility study as set forth fully in RFP #23-5 and the McGregor Shott, Inc. proposal as such is set forth fully in Exhibit “A ” attached hereto and incorporated fully herein by this reference (hereinafter “Professional Services”).

PROFESSIONAL SERVICES AGREEMENT NO. 4079

c. The CONSULTANT shall be co mpensated an annual amount not -to-exceed Thirty Thousand Do llars ($30,000) for performance of the Professional Services as set fort h in the Schedule of Compensation attached hereto as Exhibit “B” and incorporated fully herein by this reference (“Compensation”). The CONSULTANT shall provide an itemized billing statement to the CITY each month for Professional Services performed. The CONSULTANT shall no incur fees or costs which exceed the Compensation without the prior written consent of the CITY.

SECTION 3. TERM.

a. This Agreement shall comm ence upon issuance of a written “Notice to Proceed ” (as further defined below) by the CITY and shall expire one (1) year from the Effective Date, unless terminated earlier as hereinafter provided. This Agreement may be extended for up to three (3), one-year extensions upon such term s and conditions mutually agreed upon by the Parties in writing.

b. Notice to Proceed. Any work or service contemplated under this Agreement shall no t commence until the CITY has issued a written Notice to Proceed issued by CITY’s applicable, department head.

SECTION 4. PERFORMANCE.

a. The CONSULTANT shall at all times, faithfully, competently, and to the best of its ability, experience, and talent, perform all tasks described herein.

b. The CONSULTANT shall employ, at a minimu m, g enerally accepted standa rds and practices utilized by companies engaged in providing simila r services, as are required of Consultant hereunder, in meeting its obligations under this Agreement.

c. The CONSULTANT shall be knowledgeable of and subject to al l CITY ordinances, rules and regulations, standard operating procedures, and the supervisory chain of command.

d. The CONSULTANT shall have the right to retain, subject to the CITY's approval, additional individuals, consultants or sub consultants to assist i n the completion of services as herein defined. Compensation for additional individuals, consul tants or subconsultants shall be the sole and exclusive responsibility of the CONSULTANT.

e. The CONSULTANT shall retain all original reports, field and of fice notes, correspondence, calculations, maps, and other documents specifically related to the services provided by the CONSULTANT pursuant to this Agreement, other tha n documents which are exempt from disclosure pursuant to the attorney-client privilege or any other law. Said documents shall be made available for inspection by the CITY upon request.

SECTION 5. WORK PRODUCT.

a. The CONSULTANT hereby agrees that all non-proprietary work p roduct produced pursuant to this Agreement, and provided to the CITY during and upon completion of this Agreement, shall be the property of the CITY , and owner ship of said work product shall be retained by the CITY. The CONSULTANT may take and retain copie s of such written products as desired, but no such written products shall be the subject of a copyright appl ication by the CONSULTANT.

b. All data, documents, di scussion, or other information developed or received by the

PROFESSIONAL SERVICES AGREEMENT NO. 4079

CONSULTANT or provided for performanc e of this Agreement are deemed confidential and shall not be disclosed by the CONSULTANT without prior writt en consent by the CITY. The CITY shall grant such consent if disclosure is legally required. All such written products shall be returned to the CI TY upon the termination or expiration of this Agreement. The CONSULTANT agrees that the covenants contained in this Section shall survive the expiration or termination of this Agreement.

SECTION 6. EXTRA SERVICES.

No extra services over and above the Com pensation shall be rendered by the CONSULTANT under this Agreement unless such extra services first shall have been duly authorized in writing by the CITY’s City Manager (the “City Manager”).

SECTION 7. CITY SUPERVISION.

The City Manager shall have th e right of general supervision of all work performed by the CONSULTANT and shall be the CITY ’s agent with re spect to obtaining the CONSULTANT’s compliance hereunder. No payment for services rendered under this Agreement shall be made without the prior approval of the City Manager.

SECTION 8. TERMINATION.

In the event that either Party hereto fails or refus es to perform any of the provisions of this Agreement at the time and in the manner required, the non -defaulting party shall give the defaulting par ty written notice of the default, the nature of the default, and of the steps necessary to cure the default.

a. Termination for Cause . In the event that any of t he provisions of the Agreement are violated by either party, the non -defaulting Party may termina te the Agreement by serving written notice upon the other Party, listing the vio lation(s) and its intent to terminate such Agreement unless within ten (10) day s after the serving of such notice, such violation shall cease or be rectified, the contract shal l upon the expiration of an additional thirty (30) days cease and terminate. Vi olations by the CONSULTANT which cannot be corrected within ten (10) days, said contract shall at the option of the C ITY cease and terminate upon the giving of like notice. In the event of any such termination for default by the CONSULTANT, the C ITY may take over the work and prosec ute the same to completion by contract or otherwise for the account and at the expense of the CONSULTANT. The CONSULTANT and his sureties shall be liable to the CITY for any excess cost occasioned in the event of any such termi nation. This change shall not be construed to prevent the termination, for othe r causes authorized by law or other provisions of this contract. In the event of a termination f or cause, the CONSULTANT shall only be entitled to the Compensation for those Pr ofessional Services satisfac tory performed on or before the effective date of termination.

b. Termination for Convenience. The CITY shall have the option, at its sole discretion and without cause, to terminate this Agreement in whole, or in part, by giving ten (30) business days’ written notice to the CONSULTANT. Upon the termination of this Agreement as provided herein, the CITY shall provide to the CONSULTANT the part of Compe nsation which would otherwise be payable to the CONSULTANT for services the CONSULTANT had completed as of t he date of termination, less the amount of all prev ious payment with respect to the Compensation. Further, upon such a termination for convenience by the CITY, the Parties agree that the CONSULTANT shall be reimbursed for a ny “non-refundable” costs that the CONSULTANT has incurred for its services under this Agreement, provided that: (1) such “non-

PROFESSIONAL SERVICES AGREEMENT NO. 4079

refundable” costs were incurred by the CONSULTANT prior to the date of termination, and (2) that the CONSULTANT provides the CITY with adequate proof that the CONSULTANT incurred the costs, and is una ble to be seek a refund for such costs. Such “non -refundable” costs may include, but are not lim ited to, travel reservations incurred by the CONSULTANT for its performance of services under this Agreement. The CONSULTANT agrees to cease all work under this Agreement on or before the effective date of any notice of termination.

SECTION 9. EMPLOYMENT OF CITY EMPLOYEES.

No regular employee of the CITY shall be employed by the CONSULTANT during the term of this Agreement.

SECTION 10. NON-LIABILITY OF CITY OFFICIALS AND EMPLOYEES.

No official or employee of the CITY shall be personally liable to the CONSULTANT in the event of any default or breach by the CITY, or for any amount wh ich may become due to the CONSULTANT.

SECTION 11. INDEPENDENT CONSULTANT.

a. The CONSULTANT is and shall, at all times, remain as to the CITY a wholly independent consultant. Neither the CITY nor any of its elected officials, officers, employees, or agents shall have control over the conduct of the CONSULTANT except as expressly set forth in this Agreement. The CONSULTANT shall not at any time or in any manner represent that he or she is in any manner an elected official, officer, employee, or agent of the CITY. No employee benefits shall be available to the CONSULTANT in connection with the performance of this Agreement. Except as provided in this Agreement, the CITY shall not pay salary, wages, or other compensation to the CONSULTANT for performance hereunder for the CITY, the CITY shall not be liable for compensa tion to the CONSULTANT, the CONSULTANT’s employees or the CONSULTANT’s subconsultants for injury or sickness arising out of performing services hereunder.

b. The parties further acknowledge and agree that nothing in this Agreement shall create or be construe d to create a partnership, joint venture, employment relationship or any other relationship except as set forth in this Agreement.

c. The CITY shall not deduct from the Compensation paid to the CONSULTANT any sums required for Social Security, withholding ta xes, FICA, state disability insurance or any other federal, state or local tax or charge which ma y or may not be in effect or hereinafter enacted or required as a charge or withholding on the compensation paid to the CONSULTANT. The CITY shall have no responsibility to provide the CONSULTANT, its employees or subconsultants with workers’ compensation insurance or any other insurance.

SECTION 12. CALPERS ANNUITANTS AND ELIGIBILITY INDEMNITY.

a. If the CONSULTANT is a California Public Employees’ Retirement System (“CalPERS”) annuitant, the CONSULTANT must provide the City with written notification of s uch fact a minimum of 14 calendar days prior to commencement of services under t his Agreement.

Failure to p rovide such notification may result in termination of the Agreement, and any penalties or other costs relating thereto shall be borne by the CONSULTANT. If this Agreement remains in place, the CONSULTANT shall execute any amend ment(s) to this Agreement requested by the City in order to comply with all law s and regulations applicable to CalPERS

PROFESSIONAL SERVICES AGREEMENT NO. 4079

annuitants.

b. In the event that the CONSULTANT or any em ployee, agent, or sub consultant of the CONSULTANT providing services under this Agreement claims or is deter mined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the CITY, the CONSULTANT shall inde mnify, defend, and hold harmless the CITY for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of the CONSULTANT or its employees, agents, or sub consultants, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the CITY.

c. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, the CONSULTANT and any of its employees, agents, and subconsultants providing service under this Agreement shall not qualify for or become ent itled to, and hereby agree t o waive any claims to, any compensation, benefit, or any incident of employment by the CITY, including but not limited to eligibility to en roll in PERS as an employee of the CITY and entitlement to any contribution to b e paid by the CITY for employer contribution and/or employee contributions for PERS benefits.

SECTION 13. LEGAL RESPONSIBILITIES.

The CONSULTANT shall at all times observe a nd comply with all applicable laws, ordinances, codes, and regulations of the fe deral, state, and local governments including, but not limited to the Montebello Municipal Code. The CITY, and its appointed or elected officers, employees, or agents, shall n ot be liable at law or in equity occasioned by failure of the CONSULTANT to comply with this section.

SECTION 14. INDEMNIFICATION.

The CONSULTANT agrees to, and shall defend, indemnify, protect and hold harmless, the CITY, its elected and appointed boar ds, officers, officials, employees, agents and volunteers from and against any a nd a ll claims, demands, laws uits, defense costs, civil, penalties, expenses, causes of action, and judgments at law or in equity, or liability of any kind or nature which the C ITY, its elected and appointed boards, officers, officials, employees, agents an d volunteers may sustain or incur or which may be imposed upon them for injurie s or deaths of persons, or damage to property arising out of the CONSULTANT’s negligent or wrongful act, or omission under the terms of this Agreement, except only liability ari sing out of the sole negligence of the CITY.

SECTION 15. INSURANCE COVERAGE.

a. During the term of this Agreement, the CONSULTANT shall carry, maintain, and keep in full force and effect insurance against claims for death or injuries to persons or damages to property that may arise f rom or in connection with CONSULTANT’s performance of this Agreement. Such insurance shall be of the types and in the amounts as set forth below:

• Commercial General Liability (CGL) : Insurance Services Office Form C G 00 01 covering CGL on an “occurrenc e” basis for bodily injury and property damage, including products-completed operations, personal injury, and advertising injury, with limits no les s than $2,000,000 per occurrence. If a general aggregate limit applies, the limit shall be twice the required occurrence limit.

PROFESSIONAL SERVICES AGREEMENT NO. 4079

• Automobile Liability Insurance: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if CONSULTANT has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.
• Worker's Compensation insurance as required by the laws of the State of California, with Statutory Limits, and E mployer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.

• Professional Lia bility insurance appropriate to the CONSULTANT’S profession, with limit no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate.

b. If the CONSULTANT maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher limits maintained by the CONSULTANT.

c. The CONTACTOR shall require each of its sub consultants, if any, to maintain insurance coverage that meets all of the requirements of this Agreement.

d. The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a current rating of at least A:VII in the latest edition of Best's Insurance Guide.

e. Each insurance policy required above shall state that coverage shall not be canceled, except after thirty (30) days’ prior written notice (ten [10] days for non -payment) has been given to the CITY. The CONSULTANT agrees that if it does not keep the aforesaid insurance in full force and effect the CITY may either (i) immediately termi nate this Agreement for Cause; or (ii) take out the necessary insurance and pay, at the CONSULTANT’s expense, the premium thereon.

f. Evidence of Insurance prior to commencement . The Contractor shall provide to the CITY Certificate(s) of Insurance evidencing such coverage together with copies of the required policy endorsements no later than five (5) business days prior to commencement of service and at least fifteen (15) business days prior to the expiration of any policy. Unreasonable failure to provide such evidence may be cause for termination of the Agreement as provided herein or delay the services’ commencement date. The evidence of insurance shall be U.S. mail or email to:

City of Montebello
Attn: Risk Manager
1600 West Beverly Boulevard
Montebello, CA 90640
Email: [email protected]

Coverage shall not be susp ended, voided, cancelled, reduced in coverage or in limits, non - renewed, or materially changed for any reason, without thirty (30) days prior written notice thereof given by the insurer to the CITY by U.S. mail, or by personal delivery, except for nonpayment of premiums, in which case ten (10) days prior notice shall be provided.

g. Evidence of Insurance during the entire term of the Agreement. At all times during the term of this Agreement, the CONSULTANT shall maintain on file with the CITY’s Risk Manager a certificate or certificates of insurance showing that the aforesaid policies are in effect in the required amounts and naming t he CITY as an additional insured. The CONSULTANT shall, prior to commencement of work under this Agreement, file with the CITY’s Risk Manager

PROFESSIONAL SERVICES AGREEMENT NO. 4079

such certificate(s).

h. The CONSULTANT shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished at least two (2) weeks prior to the expiration of the coverages.

i. The general liability and automobile polici es of insurance required by this Agreement shall contain an endorsement naming the CITY, its officers, employees, agents and v olunteers as additional insureds. All of the policies required under this Agreement shall contain an endorsement providing that th e policies cannot be canceled or reduced except on thirty days’ prior written notice to the CITY. The CONSULTANT agrees to req uire its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.

j. The insurance provided by the CONSULTANT shall be primary to any coverage available to the CITY. Any insurance or self -insurance maintained by the CITY, its officers, employees, agents, or volunteers, shall be in excess of CONSULTANT’s insurance and shall not contribute with it.

k. All insurance coverage provided pursuant to this Agreement shall not prohibit the CONSULTANT, and CONSULTANT’s employees, agents or sub consultants, from waiving the right of subrogation prior to a loss. The CONSULTANT hereby waives all rights of subrogation against the CITY.

l. Any deductibles or self -insured retentions must be declared to and approved by the CITY. At the option of the CITY, the CONSULTANT shall either reduce or eliminate the deductibles or self -insured retenti ons with respect to the CITY, or the CONSULTANT shall procure a bond guaranteeing payment of losses and expenses.

m. Procurement of insurance by the CONSULTANT shall not be construed as a limitation of the CONSULTANT'S liability or as full performance of CONSULTANT’s duties to indemnify, hold harmless and defend under the indemnity covenants of this Agreement.

SECTION 16. SUBCONTRACT, ASSIGNMENT OR DELEGATION.

The CONSULTANT shall not subcontract, delegate, or assign its duties or rights hereunder, either i n whole or in part, without the prior written consent of the CITY. Any proposed subcontract, delegation, or assignment shall provide a description of the services to be covered, identification of the proposed sub-consultant, delegee, or assignee, and an e xplanation of why and how the same was selected, including the degree of competition involved.

Any subcontract, delegation or ass ignment shall be made in the name of the CONSULTANT and shall not bind or purport to bind the CITY and shall not release the CONSULTANT from any obligations under this Agreement including, but not limited to, the duty to properly supervise and coordinate t he work of employees, assignees, delegees or sub-consultants. No such subcontract, delegation or assignment shall result in a ny increase in the amount of total compensation payable to the CONSULTANT under the Agreement.

SECTION 17. NO WAIVER.

PROFESSIONAL SERVICES AGREEMENT NO. 4079

Waiver by any party hereto of any term, condition or covenant of this Agreement shall not constitute the waiver of any other term, condition, or covenant hereof.

SECTION 18. DISPUTE RESOLUTION; GOVERNING LAW.

Disputes regarding the interpretation or application o f any provision(s) of this Agreement shall, to the extent reasonably feasible, be resolved through good faith negotiations bet ween the Parties. If any action at law or in equity is brought to enforce this Agreement or because of alleged dispute, breach, d efault or misrepresentation in connection with the provisions of this Agreement, the prevailing party in such action shall be entitled to reasonable attorney’s fees, expert fees, costs and necessary disbursements incurred in that action or proceeding, in addition to such other relief as may be sought and awarded. The venue for any litigation shall be County of Los Angeles, Calif ornia. The Parties agree that the covenants contained in this Section shall survive the expiration or termination of this Agreement.

SECTION 19. ATTORNEY’S FEES AND COSTS.

If litigation is reasonably required to enforce or interpret the provisions of th is Agreement, the prevailing party in such litigation shall be entitled to an award of reasonable attorney's fees and costs in addition to any other relief to which it may be entitled.

SECTION 20. WARRANTIES.

Each of the parties represents and warrants to one another as follows:

a. It has received independent legal advice from its attorneys with respect to the advisability of entering into and executing this Agreement;

b. In executing this Agreement, it has carefully read this Agreement, knows the contents thereof, and has relied solely on the statements expressly set forth herein and has placed no reliance whatsoever on any statement, representation, or promise of any other party, or any other person or entity, not expressly set forth herein, nor upon the fa ilure of any other party or any other person or entity to make any statement, representation or disclosure of any matter whatsoever; and

c. It is agreed that each party has the full right and authority to enter into this Agreement, and that the per son executing this Agreement on behalf of either party has the full right and authority to fully commit and bind such party to the provisions of this Agreement.

SECTION 21. MISCELLANEOUS.

a. The descriptive paragraph headings of this Agreement are included for purposes of convenience only and shall not control or affect the construction of interpretation of any of its provisions.

b. Whenever the context hereof shall so require, the singular shall include the plural, the male gender shall include the female gender, and the neuter and vice versa.

c. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not aff ect any other provision hereof and this Agreement shall be construed as if such invalid, illegal, or unenforceable provisions had never been contained

PROFESSIONAL SERVICES AGREEMENT NO. 4079

herein.

d. The representations and warranties made by the parties to this Agreement shall survive the consummation of the transaction herein described.
e. This Agreement may be signed in any one or more counterparts all of which taken together shall be but one and the same Agreement. Any signed copy of this Agreement or of any other document or agreement referred to herein, or copy or counterpart thereof, delivered by facsimile transmission, shall for all purposes be treated as if it were de livered containing an original manual signature of the party whose signature appears in the facsimile and shall be binding upo n such party in the same manner as though an originally signed copy had been delivered.

f. Each of the parties acknowledges tha t it has been represented by independent counsel of its own choosing, or if it has not been so represented, it has bee n admonished to obtain independent counsel and has freely and voluntarily waived and relinquished the right to counsel. Eac h party who has not obtained independent counsel acknowledges that the failure to have independent legal counsel will not excuse such party’s failure to perform under this Agreement or any agreement referred to in this Agreement.

SECTION 22. NOTICE.

All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusiv ely shall be deemed served when delivered via e-mail (an “ Electronic Notice” as further defined below), personally or on the secon d (2nd) business day after the deposit thereof in the United States mail, postage prepaid, registered or certified, addressed as hereinafter provided. All notices, demands, requests, or approvals hereunder shall be given to the following addresses or such other addresses as the Parties may designate by written notice:

If to CITY: City of Montebello
Attn: René Bobadilla, City Manager
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 887-1200
Email: [email protected]

With a copy to: City of Montebello – Recreation & Community Services Attn: David Sosnowski, Director
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 887-4540
Email: [email protected]

If to Consultant: McGregor Shott, Inc.

Attn: Beth Shott, Principal
24325 Main Street #101
Newhall, CA 91321
(661) 702-0765
[email protected]

An electronic communication (“Electronic Notice”) shall be deemed written notice for purposes of this section if sent to the electronic mail address specified above. Electronic Notice shall be