Ripon City Council
November 8, 2022

Ripon City Council Minutes
TUESDAY, NOVEMBER 08, 2022 – 6:00 PM

REGULAR MEETING
CLOSED SESSION AT 5:30 PM
CLOSED SESSION: The closed session meeting was called to order at 5:30 PM.

PUBLIC DISCUSSION ON CLOSED SESSION MATTERS: No one from the public wished to speak at this time.

ROLL CALL: Council Members Gary Barton, Daniel de Graaf, Leo Zuber, Vice Mayor Michael Restuccia, Mayor Dean Uecker.

OTHERS PRESENT: City Administrator Kevin Werner, City Attorney Tom Terpstra, City Clerk Lisa Roos, Planning Director Ken Zuidervaart.

IN THE MATTER OF:
(1)Real Property Negotiations pursuant to Section 54956.8 of the California Government Code - APN: 259-070-10
Return to open session
City Attorney Terpstra said Council met in closed session to receive a report on a potential downtown affordable housing project. Staff was given direction and no reportable action was taken.

PLEDGE OF ALLEGIANCE:

The meeting was called to order at 6:00 PM with Council Member Gary Barton leading in the Pledge of Allegiance to the Flag.

INVOCATION:

Pastor Brett Dood gave the invocation.

ROLL CALL:

Attendee Name Title Status Arrived
Dean Uecker Mayor Present
Michael Restuccia Vice Mayor Present
Leo Zuber Council Member Present
Daniel de Graaf Council Member Present
Gary Barton Council Member Present
City Council Page 2 November 8, 2022
OTHERS PRESENT:

City Administrator Kevin Werner, City Attorney Tom Terpstra, Planning Director Ken Zuidervaart, Recreation Director Kye Stevens, Police Chief Ed Ormonde, City Clerk Lisa Roos, Deputy City Clerk Jane Kilgore, Information Systems Technician Hunter Crosby, Kelly Donohue, Brett Dood, Steven Verver, Connie Jorgenson.

PUBLIC DISCUSSION:

Michelle Townsend, President of Ripon Little League, said she wanted to give an update on Ripon Little League. She said the program provides an opportunity for kids to play player-pitch baseball and currently enrolls over 220 players per season. Townsend said they work closely with Recreation Director Kye Stevens to rent the fields at the Community Center, Stouffer Park and even Mistlin Park sometimes. She is here to request help from the City to update the fields at the Community Center by adding new fencing, expanding the dugouts, installing aluminum bleachers and building an overhead shelter with storage. Townsend said they have raised $14,000 for the project and would like the City to commit funds to complete the upgrades. She said she would send her proposal including general estimates for bleachers, fence and construction of the structure to the Council. Vice Mayor Restuccia said he agrees that something needs to be done.

APPROVAL OF MINUTES:

Motion to approve the minutes of the Regular City Council Meeting of October 11, 2022.

RESULT: ADOPTED [UNANIMOUS]
MOVER: Michael Restuccia, Vice Mayor
SECONDER: Gary Barton, Council Member
AYES: Uecker, Restuccia, Zuber, de Graaf, Barton

1. CITY COUNCIL - REGULAR MEETING - OCT 11, 2022 6:00 PM APPROVAL OF AGENDA AS POSTED (OR AMENDED):

Motion to approve the agenda as posted.

RESULT: ADOPTED [UNANIMOUS]
MOVER: Michael Restuccia, Vice Mayor
SECONDER: Daniel de Graaf, Council Member
AYES: Uecker, Restuccia, Zuber, de Graaf, Barton

1. CONSENT CALENDAR
Motion to approve the Consent Calendar as posted.

RESULT: ADOPTED [UNANIMOUS]
MOVER: Michael Restuccia, Vice Mayor
SECONDER: Gary Barton, Council Member
AYES: Uecker, Restuccia, Zuber, de Graaf, Barton
City Council Page 3 November 8, 2022

1.1. Income
A. STATE OF CALIFORNIA
Sales Tax
(October 2021 $254,148.27)
FY 2022-23 YTD: $1,629,158
FY 2021-22 YTD: $1,355,099
Highway Users Tax
(September 2021 $36,035.14)
FY 2022-23 YTD: $113,421
FY 2021-22 YTD: $114,448
SB1 Street & Road Tax
(October 2021 $30,606.39)
FY 2022-23 YTD: $115,450
FY 2021-22 YTD: $112,070
$342,926.89
$35,601.09
$29,968.91
TOTAL $408,496.89
B. CCATT HOLDINGS
Monthly Acacia Avenue Cell Tower Lease Payment
October 2022 $1,212.72
C. T-MOBILE
Monthly Acacia Avenue Cell Tower Lease Payment
October 2022 $1,077.81
D. WASTE MANAGEMENT
Monthly Franchise Fee Payment – September 2022 $6,548.52 E. GILTON SOLID WASTE MANAGEMENT, INC.

Quarterly Franchise Fee Payment – September 2022 $12,112.85

1.2. Bills, Invoices, Payments
A. ASSOCIATED PENSION CONSULTANTS
Annual Administration Services for
Non-Public Safety Retirement Plan $8,045.00
B. PRICE PAIGE & COMPANY
Audit Services
Progress Payment – Invoice #22574 $11,000.00
C. HARRIS & ASSOCIATES
Proposition 218 Fire Suppression Assessment Study
Progress Payment – Invoice #54618 $18,406.25
City Council Page 4 November 8, 2022
D. SAN JOAQUIN REGIONAL TRANSIT DISTRICT
Blossom Express Driver
September Invoice #AR113310 $1,561.37
E. SOUTH SAN JOAQUIN GROUNDWATER SUSTAINABILITY AGENCY
SSJGSA Expenses
3 rd Quarter 2022 - Invoice #Ripon 22Q3 $3,834.00
F. LAW OFFICE OF THOMAS H. TERPSTRA
General Matters
Police Matters
Fire District Coordination
Padilla Accessory Dwelling Unit
$7,227.50
$442.50
$590.00
$3,687.50

TOTAL $11,947.50
G. SORACCO, INC.

Well 19 Pump Station Project
Progress Payment – Invoice #12 $87,208.69
H. RIPON UNIFIED SCHOOL DISTRICT
Pool Operations Shared Cost
Invoice #ARR23-00007 $34,839.41
I. WGR SOUTHWEST, INC.

City Storm Water Permit Assistance
Progress Payment – Invoice #27552 $5,234.00

1.3. Miscellaneous Items
A. AGRICULTURAL LEASE AGREEMENT
Daniel S. Eavenson Approve and authorize the Mayor to
sign the Agricultural Lease Agreement
with Daniel S. Eavenson for the
property located at 752 S. Mohler Road
(APN: 257-270-79).

B. QUARTERLY INVESTMENT REPORT REVIEW
July 1, 2022 - September 30, 2022 Accept the City’s quarterly investment report for the period ending September
30, 2022.

C. REIMBURSEMENT AGREEMENT
Store More Express Mini-Storage Approve and authorize the Mayor to sign the Store More Express
Reimbursement Agreement that
provides reimbursement for staff time to
respond to an application for a proposed
project located at 615 and 659 W.

Milgeo Road.

City Council Page 5 November 8, 2022
D. CLAIM
Diane Giles Deny the claim filed by Diane Giles.

E. PROFESSIONAL SERVICES AGREEMENT - AMENDMENT NO. 1
LDA Partners Approve and authorize the Mayor to
sign Amendment No. 1 to the
Professional Services Agreement with
LDA Partners to provide Bidding
Assistance and Construction
Administration for the new Corporation
Yard to be located on Doak Boulevard
in the not to exceed amount of $144,875
(funding source: AB1600 Corporation
Yard Capital Fund).
**END OF CONSENT CALENDAR**

2. DISCUSSION ITEMS
A. FINANCIAL AUDITS - FISCAL YEAR 2021-2022
Discussion/No Action Price Paige & Company has completed the audit of the City of Ripon’s Financial
Statements and the Money Purchase Thrift
Pension Plan for the fiscal year ending
June 30, 2022. Resolutions will be
presented in December for City Council
acceptance.

City Clerk Roos said the audits for the City of Ripon and the Money Purchase Thrift Pension Plan for the fiscal year ended June 30, 2022 have been completed by Price Paige & Company. These audits are completed to fulfill requirements place on us by State agencies and our bonding agencies. She said the City uses an independent third party audit firm to ensure we are in compliance with the laws and regulations. The City of Ripon audit is a combination of all of the finances of the City. As noted in the audit committee letters from our auditors, Price Paige & Company, there were no significant audit findings, no difficulties encountered between the auditors and staff, and no disagreements between management and the auditors.

Roos said in order to make the audit easier to understand, she provided a staff report in the City Council packet that gives a high-level financial summary of the fiscal year ending June 30, 2022.

Roos said there is no action required tonight and resolutions to accept these audits will be on the Consent Calendar of our December meeting.

City Council Page 6 November 8, 2022
B. GRAND JURY REPORT NO. 0321 - CYBERSECURITY RESPONSE
Discussion/No Action Discuss response to Grand Jury Case No. 0321 for Superior Court of California,
County of San Joaquin regarding
Cybersecurity: Local Defense Against a
Global Threat and provide direction to
staff.

Chief Ormonde said the San Joaquin County Civil Grand Jury conducted surveys regarding cybersecurity of all County law enforcement agencies and prepared a report.

Staff has drafted a response to the report and will bring it back with Council’s recommendations for approval next month.

Vice Mayor Restuccia said the Disaster Recovery Plan was very thoroughly written.

Council Member Zuber said he had some concerns regarding clarification about some of the language. He said the draft response addresses most of the report, but not the ransomware item. He said he feels that this is not information that should be discussed in public, but something needs to be in the report regarding the fact that we have a plan.

Ormonde said they made some changes today to better address that and they will be in the response for Council to approve in December.

REPORTS
Department Heads:

Chief Ormonde said the Police Department is celebrating active duty and military Veterans during the month of November with Salute to Service patches. The patches are available in the Police Department lobby for $10.00 and all proceeds go to VFW Post 1051 and American Legion Post 190 in Ripon to help with Veterans Services.

Vice Mayor Restuccia asked if the Police Department had any events for Veterans Day.

Ormonde said the Police Department will not have any events. Mayor Uecker said the VFW will host a lunch and a dinner. Ormonde said there will be a Veterans service at 10:30 AM at the Veterans Wall and Museum.

Planning Director Zuidervaart said there is a Planning Commission meeting on Monday, November 14, 2022. The Commission will be reviewing a project on Pine and Acacia.

City Attorney Terpstra thanked the incumbents for their service.

City Council:

Council Member Barton said he is grateful to be here tonight and thankful to the people who reached out to him during a challenging time.

City Council Page 7 November 8, 2022
Council Member de Graaf asked Kelly Donohue if the Chamber of Commerce has any events coming up. Donohue said the Christmas Tree Lighting is on Monday, November 28 at 6:00 PM at the Veterans Wall and the Christmas Parade is on December 8.

Stephanie Hobbs said the ribbon cutting for the Grand Completion of the Ripon High Stadium is on Monday, December 12 from 4:00 PM to 5:00 PM.
de Graaf said he wanted to thank everyone who is in attendance and he appreciates the comments. He said it is a good reminder that if things are not brought to the attention of the Council, then they do not know about it.

Restuccia said Donohue did a wonderful job with Main Street Day. He said he has never seen so many people. Council echoed his sentiments.

There being no further business, the meeting was adjourned at 6:21 PM. (Signed) Dean Uecker
Mayor
ATTEST:
(Signed) Lisa Roos
City Clerk
Ripon City Council Minutes
TUESDAY, OCTOBER 11, 2022 – 6:00 PM

REGULAR MEETING
CLOSED SESSION AT 5:30 PM
CLOSED SESSION: The closed session meeting was called to order at 5:30 PM.

PUBLIC DISCUSSION ON CLOSED SESSION MATTERS: No one from the public wished to speak at this time.

ROLL CALL: Council Members Gary Barton, Daniel de Graaf, Leo Zuber, Vice Mayor Michael Restuccia, Mayor Dean Uecker.

OTHERS PRESENT: City Administrator Kevin Werner, City Attorney Tom Terpstra, City Clerk Lisa Roos, Planning Director Ken Zuidervaart.

IN THE MATTER OF:
(1) Potential or Pending Litigation pursuant to Section 54956.9(e)(1) of the California Government Code – 2 cases.
(2) Real Property Negotiations pursuant to Section 54956.8 of the California Government Code – APN: 245-180-27
Planning Director Zuidervaart left the meeting at 5:41 PM.

Return to open session
City Attorney Terpstra said Council met in closed session to receive updates on pending matters.

Staff was given direction and no reportable action was taken.

PLEDGE OF ALLEGIANCE:

The meeting was called to order at 6:00 PM with Vice Mayor Michael Restuccia leading in the Pledge of Allegiance to the Flag.

INVOCATION:

Pastor Luke Jones gave the invocation.
1 Packet Pg. 8
Minutes Acceptance: Minutes of Oct 11, 2022 6:00 PM (Approval of Minutes) City Council Page 2 October 11, 2022
ROLL CALL:

Attendee Name Title Status Arrived
Dean Uecker Mayor Present
Michael Restuccia Vice Mayor Present
Leo Zuber Council Member Present
Daniel de Graaf Council Member Present
Gary Barton Council Member Present
OTHERS PRESENT:

City Administrator Kevin Werner, City Attorney Tom Terpstra, Planning Director Ken Zuidervaart, Recreation Director Kye Stevens, Police Chief Ed Ormonde, City Clerk Lisa Roos, Deputy City Clerk Jane Kilgore, Information Systems Technician Hunter Crosby, Information Systems Technician Alex Arias, Kelly Donohue, Connie Jorgensen.

PUBLIC DISCUSSION:

On behalf of the public, City Clerk Lisa Roos read the following public comment received via email.

Durriya Syed, Outreach Analyst in the California Department of Insurance, wanted to introduce the California Low Cost Auto (CLCA) Insurance Program. Syed said this Program was established by the Legislature in 1999 and is sponsored by the California Department of Insurance as a program designed to provide income-eligible, good drivers with liability insurance at affordable rates as a way to meet California’s mandatory auto insurance law, regardless of immigration status. Syed said the annual premiums in California vary by County.

Syed said in order to be eligible for the CLCA, consumers must meet certain requirements including having a valid California driver’s license, owning a vehicle valued at $25,000 or less, meeting income eligibility guidelines, be at least 16 years of age and have a good driving record.

Syed provided information on how to apply for the program.

Kelly Donohue, Chamber of Commerce wanted to remind the Council and the community that this Saturday, October 15, 2022 is Main Street Day from 9:00 AM to 3:00 PM. The day’s festivities will start with the Ripon Consolidated Fire District pancake breakfast at 7:00 AM and will include many different vendors, a color run, car show and a pet parade at 10:00 AM.

APPROVAL OF MINUTES:

Motion to approve the minutes of the Regular City Council Meeting of September 13, 2022.

RESULT: ADOPTED [UNANIMOUS]
MOVER: Michael Restuccia, Vice Mayor
SECONDER: Gary Barton, Council Member
AYES: Uecker, Restuccia, Zuber, de Graaf, Barton

1. CITY COUNCIL - REGULAR MEETING - SEP 13, 2022 6:00 PM 1 Packet Pg. 9
Minutes Acceptance: Minutes of Oct 11, 2022 6:00 PM (Approval of Minutes) City Council Page 3 October 11, 2022
APPROVAL OF AGENDA AS POSTED (OR AMENDED):

Motion to approve the agenda as posted.

RESULT: ADOPTED [UNANIMOUS]
MOVER: Leo Zuber, Council Member
SECONDER: Michael Restuccia, Vice Mayor
AYES: Uecker, Restuccia, Zuber, de Graaf, Barton

1. CONSENT CALENDAR
Motion to approve the Consent Calendar as posted.

RESULT: ADOPTED [UNANIMOUS]
MOVER: Daniel de Graaf, Council Member
SECONDER: Michael Restuccia, Vice Mayor
AYES: Uecker, Restuccia, Zuber, de Graaf, Barton

1.1. Income
A. STATE OF CALIFORNIA
Sales Tax
(September 2021 $209,773.89)
FY 2022-23 YTD: $1,286,231
FY 2021-22 YTD: $1,100,951
Highway Users Tax
(August 2021 $35,178.44)
FY 2022-23 YTD: $77,820
FY 2021-22 YTD: $78,413
SB1 Street & Road Tax
(September 2021 $27,648.03)
FY 2022-23 YTD: $85,481
FY 2021-22 YTD: $81,464
$318,026.99
$38,749.41
$29,236.70
TOTAL $386,013.10
B. CCATT HOLDINGS
Monthly Acacia Avenue Cell Tower Lease Payment
September 2022 $1,212.72
C. WASTE MANAGEMENT
Monthly Franchise Fee Payment – August 2022 $3,484.47
1 Packet Pg. 10
Minutes Acceptance: Minutes of Oct 11, 2022 6:00 PM (Approval of Minutes) City Council Page 4 October 11, 2022

1.2. Bills, Invoices, Payments
A. SAN JOAQUIN PARTNERSHIP
Annual Membership Fee - Invoice #10963 $5,000.00
B. LAW OFFICE OF THOMAS H. TERPSTRA
General Matters
Police Matters
Meadowood
Padilla Accessory Dwelling Unit
Bethany Home Society
$9,440.00
$1,608.75
$368.75
$1,917.50
$120.00

TOTAL $13,455.00
C. PRICE PAIGE & COMPANY
Audit Services
Progress Payment – Invoice #22399 $29,838.00
D. SAN JOAQUIN REGIONAL TRANSIT DISTRICT
Blossom Express Driver
August Invoice #AR113267 $1,612.39
E. CENTRAL SAN JOAQUIN VALLEY RISK MANAGEMENT AUTHORITY 2022-2023 2nd Quarter Deposits
Liability Program
Workers’ Compensation Program
Crime Shield Program
$90,520.00
$139,987.00
$2,657.00

TOTAL $233,164.00
F. BANC OF AMERICA LEASING
Ripon Public Financing Authority
2011 Waste Water Bonds $185,120.00
G. HALPIN COMPLIANCE SOLUTIONS
Solid Waste/Recycling Regulatory Compliance Assistance
Invoice #22-R-0056
Invoice #22-R-0070
$904.88
$1,157.66
TOTAL $2,062.54
H. SORACCO, INC.

Well 19 Pump Station Project
Progress Payment – Invoice #11 $156,750.00
I. STANTEC
Wastewater Discharge Permit Groundwater Monitoring
Progress Payment
2nd Quarter 2022 - Invoice #1981641 $2,370.00
1 Packet Pg. 11
Minutes Acceptance: Minutes of Oct 11, 2022 6:00 PM (Approval of Minutes) City Council Page 5 October 11, 2022
J. BASECAMP ENVIRONMENTAL, INC.

Lower Stanislaus River Multi-Use Trail Project
Environmental Assessment
Progress Payment – Invoice #51958 $725.00
K. DIRT DYNASTY, INC.

Asphalt Repair Project
Progress Payment - Invoice #2205 $53,100.00
L. VAUGHAN CONSTRUCTION
Sidewalk Trip Hazard Repairs
Progress Payment
Invoice #4237
Invoice #4238
Invoice #4239
Invoice #4240
$1,194.75
$1.052.50
$5,817.00
$2,614.75
TOTAL $10,679.00
M. WOOD RODGERS, INC.

Well 12 Phase 2 Groundwater Pumping Analysis
Required by Water Quality Board
Progress Payment – Invoice #160367 $179.65

1.3. Resolutions
A. RESOLUTION NO. 22-40

A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF RIPON

ADOPTING AN INCREASE IN THE

COST OF HEALTH AND WELFARE

BENEFITS TO BE PROVIDED TO

NON-REPRESENTED EMPLOYEES

AND CITY COUNCIL MEMBERS
IN CALENDAR YEAR 2023
This resolution adopts the health and
welfare plans for all City employees
during the calendar year 2023 and an
increase in the cost of health and welfare
benefits to be provided to NonRepresented Employees and City Council Members for calendar year 2023.

B. RESOLUTION NO. 22-41

A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF RIPON
ADOPTING AMENDMENT NO. 2

TO THE MEMORANDUM OF

UNDERSTANDING FOR FISCAL
YEARS 2021 - 2024 FOR ALL

EMPLOYEES OF THE CITY OF

RIPON POLICE OFFICERS'

ASSOCIATION
This resolution adopts Amendment No. 2
of the 2021 - 2024 Memorandum of
Understanding for all employees of the
City of Ripon Police Officers’
Association that increases the baseline
premium for Blue Shield participants
from $1,650 to $1,755 per month.
1 Packet Pg. 12
Minutes Acceptance: Minutes of Oct 11, 2022 6:00 PM (Approval of Minutes) City Council Page 6 October 11, 2022
C. RESOLUTION NO. 22-42

A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF RIPON
ADOPTING AMENDMENT NO. 2

TO THE MEMORANDUM OF

UNDERSTANDING FOR FISCAL
YEARS 2021 - 2024 FOR ALL

EMPLOYEES OF THE CITY OF

RIPON POLICE SERGEANTS'

ASSOCIATION
This resolution adopts Amendment No. 2
of the 2021 - 2024 Memorandum of
Understanding for all employees of the
City of Ripon Police Sergeants’
Association that increases the baseline
premium for Blue Shield participants
from $1,650 to $1,755 per month.

D. RESOLUTION NO. 22-43

A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF RIPON
ADOPTING AMENDMENT NO. 2

TO THE MEMORANDUM OF

UNDERSTANDING FOR FISCAL
YEARS 2021 - 2024 FOR ALL

EMPLOYEES OF THE CITY OF

RIPON WORKING IN THE

CLASSIFICATIONS OF PUBLIC

WORKS MAINTENANCE, PUBLIC

WORKS FOREMAN AND PUBLIC

WORKS SUPERVISING FOREMAN
This resolution adopts Amendment No. 2
to the Memorandum of Understanding for
all employees of the City working in the
classification of Public Works
Maintenance, Public Works Foreman and
Public Works Supervising Foreman for
Fiscal Years 2021 – 2024 that increases
the baseline premium for Blue Shield
participants from $1,650 to $1,755 per
month.

1.4. Miscellaneous Items
A. MEASURE K RENEWAL COOPERATIVE AGREEMENT (C-18-001 A-4) Blossom Express Transit Service
Reimbursement
Approve and authorize the Mayor to
sign the Fourth Amendment to the
Measure K Renewal Cooperative
Agreement (C-18-001 A-4) with San
Joaquin Council of Governments
(SJCOG) in order to receive funding to
operate the Blossom Express transit
service over a one year period from July
1, 2022 through June 30, 2023.

B. METAL ROOF SHADE STRUCTURE FOR THE RIPON SENIOR CENTER

REHABILITATION PROJECT
Landmark Shade Shelter by Park Planet Approve the purchase of one (1) Landmark Shade Shelter through Park
Planet in the not to exceed cost of
$34,677.90 (funding source: CDBG
grant funds allocated for the Ripon
Senior Center Rehab project).
1 Packet Pg. 13
Minutes Acceptance: Minutes of Oct 11, 2022 6:00 PM (Approval of Minutes) City Council Page 7 October 11, 2022
**END OF CONSENT CALENDAR**

2. PUBLIC HEARINGS
Council will take action on the following items at the conclusion of each Public Hearing.

A. SAN JOAQUIN COUNTY MULTI-SPECIES HABITAT CONSERVATION AND OPEN SPACE PLAN 2023 FEE UPDATE
RESOLUTION NO. 22-44

A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF RIPON

AMENDING THE SAN JOAQUIN

COUNTY MULTI-SPECIES HABITAT

CONSERVATION AND OPEN SPACE

PLAN (SJMSCP) DEVELOPMENT FEE
This is a public hearing to consider the
Development Fee amendment (decrease)
for the San Joaquin County Multi-Species
Habitat Conservation and Open Space Plan
(SJMSCP) for all new development
pursuant to the SJMSCP within the City of
Ripon.

Recommended Action: Adopt the
resolution amending the San Joaquin
County Multi-Species Habitat
Conservation and Open Space Plan 2023
Development Fee.

Planning Director Zuidervaart said this is the annual public hearing to consider the Development Fee amendment for the San Joaquin County Multi-Species Habitat Conservation and Open Space Plan (SJMSCP) for all new development pursuant to the SJMSCP within the City of Ripon and said the rates went down slightly this year.

Council Member Barton said this is a tax on landowners, developers and ultimately, consumers. He said he is not necessarily saying this is not a good program, but the reasons for the program are dubious. Barton said he was the Chair for the Agriculture subcommittee for San Joaquin County when this passed and said this is a good deal for developers because it streamlines the process. He said the parcels on which the easements have been obtained are fairly scattered and do not appear to be cohesive. He said there is the potential to introduce the possibility of an endangered species environment adjacent to active farming operations and ultimately to develop a property. Barton said this is not as easy a decision as some people might think, the SJMSCP Plan does have issues.

Mayor Uecker asked if they have choice in the matter. Zuidervaart said developers have the choice to use this streamlined process or go through the Department of Fish and Game and U.S. Wildlife directly.

Council Member Zuber said if developers do not want to pay the fee, they have to buy an equivalent piece of property that would address the issues and then donate it.

PUBLIC HEARING OPENED
No one from the public wished to speak at this time.

PUBLIC HEARING CLOSED
1 Packet Pg. 14
Minutes Acceptance: Minutes of Oct 11, 2022 6:00 PM (Approval of Minutes) City Council Page 8 October 11, 2022
Motion to adopt Resolution 22-44 amending the 2023 San Joaquin County MultiSpecies Habitat Conservation and Open Space Plan Development Fees.

RESULT: ADOPTED [UNANIMOUS]
MOVER: Leo Zuber, Council Member
SECONDER: Michael Restuccia, Vice Mayor
AYES: Uecker, Restuccia, Zuber, de Graaf, Barton

3. ORDINANCES
Second Reading and Adoption
A. ORDINANCE NO. 918

AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF RIPON

APPROVING PLANNED

DEVELOPMENT OVERLAY DISTRICT
(PUD21-79) FOR THE “TERRACES AT
BETHANY” SENIOR HOUSING

PROJECT
This ordinance establishes the Planned
Development Overlay District for the
“Terraces at Bethany Home” project that
was approved at the August 9, 2022 City
Council meeting, subject to and based on
the findings in the August 9, 2022 staff
report.

Planning Director Zuidervaart said this is the second reading and adoption of Ordinance 918 establishing the Planned Development Overlay District for the Terraces at Bethany Home project.

Motion to waive the second reading and adopt Ordinance 918 establishing the Planned Development Overlay District for the Terraces at Bethany Home project subject to and based on the findings in the August 9, 2022 staff report.

RESULT: ADOPTED [UNANIMOUS]
MOVER: Leo Zuber, Council Member
SECONDER: Daniel de Graaf, Council Member
AYES: Uecker, Restuccia, Zuber, de Graaf, Barton

REPORTS
Department Heads:

Chief Ormonde said the Police Department will be participating in the Downtown Trick or Treat on October 28, 2022 at the library from 2:00 PM to 5:00 PM.

Planning Director Zuidervaart said there is Planning Commission meeting on October 17, 2022 to review a potential hotel near Flying J and a possible project on Doak Boulevard.

City Administrator Werner provided a summary of current Engineering projects for Council. He said the Corporation Yard Project is going out to bid this week and should be on the November or December Council meeting agenda for approval.
1 Packet Pg. 15
Minutes Acceptance: Minutes of Oct 11, 2022 6:00 PM (Approval of Minutes) City Council Page 9 October 11, 2022
City Council:

Council Member Barton said he is excited for Main Street Day.

Barton said we live in an extraordinary time in our country and wanted to share a quote from the book 1984 from the lead character Winston Smith: "Freedom is the freedom to say that two plus two make four." He said people may recall that in the end Smith scrawls "two plus two makes five." Barton said in the United States there are a lot of people who will try to convince us that two plus two does not equal four. They will shame people and use any number of cultural elements to convince people that the reality seen is not reality. He said he is grateful to live in a town where reality continues to be reality, that the people who work for this town share in that and as long as the people continue to see reality as it is instead of how we think it might be, it will continue to be a great place to live.

Council Member de Graaf said he is excited for the events coming up and thanked Donohue for all her work. He said the City Council Candidate forum went very well. de Graaf invited Ormonde to share information regarding the Pink Patch Project. Ormonde said the Police Department received a number of donations from members of the community several years ago to purchase the pink patches and participate in the Pink Patch Project as a fundraiser for the American Cancer Society. He said there were no City or Governmental funds used to purchase these patches. The Police Department sells them and all the money goes to the local American Cancer Society facility in Modesto. This project helps bring awareness to breast cancer.

Mayor Uecker said the Chamber did a wonderful job on the City Council Candidate forum.

There being no further business, the meeting was adjourned at 6:21 PM. (Signed) Dean Uecker
Mayor
ATTEST:
(Signed) Lisa Roos
City Clerk
1 Packet Pg. 16
Minutes Acceptance: Minutes of Oct 11, 2022 6:00 PM (Approval of Minutes)

1.1.A.a
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Attachment: 2022 08 advance (3616 : State of California) State Controller's Office
Remittance AdviceHighway Users Tax CitiesClaim Schedule: 2200070 and 2200070AIssue Date: October 07, 2022Fiscal Year: 2022-2023Collection Period: August 24, 2022 - September 23, 2022Description: Streets & Highways Code sections 2103, 2105, 2106, 2107 and 2107.5.For assistance, please contact Rhodora Bravo at 916-324-8361 or at [email protected].

City Population Section 2103 Section 2105 Section 2106 Section 2107 Section 2107 Snow
(Included in Section
2107 Amount) Section 2107.5 Gross Claim
Perform Payee by
Apportionment Claim
Adjustment Payment Amount Year To Date
Ripon City Treasurer 15,979 $12,561.81 $7,653.18 $4,877.11 $10,508.99 $0.00 $0.00 $35,601.09 $0.00 $35,601.09 $113,421.47

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Attachment: fy2223_09hwycityra (3616 : State of California) State Controller's Office
Remittance Advice
Road Maintenance and Rehabilitation Account (RMRA) - Cities Claim Schedule: 2200084 and 2200084A
Issue Date: October 21, 2022
Fiscal Year: 2022-2023
Collection Period: September 01, 2022 - September 30, 2022 Description: Streets & Highways Code section 2032(h)(2), Road Maintenance and Rehabilitation Account allocation to cities.

For assistance, please contact John Bodolay at 916-323-2154 or at [email protected].

City Population Payment Amount Year To Date
Ripon City Treasurer 15,979 $29,968.91 $59,205.61
1 of 1

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Attachment: rmra_cities_remit_2223_Oct22 (3616 : State of California)

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Attachment: CCATT (3636 : CCATT Holdings)

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Attachment: T-MOBILE (3637 : T-MOBILE)

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Attachment: Waste Management (3634 : Waste Management)

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Attachment: Waste Management (3634 : Waste Management)

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Attachment: Gilton (3640 : Gilton Solid Waste Management, Inc.)

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Attachment: Gilton (3640 : Gilton Solid Waste Management, Inc.)

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Attachment: Associated Pension Consultants (3617 : Associated Pension Consultants)

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Attachment: Associated Pension Consultants (3617 : Associated Pension Consultants)

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Attachment: Price Paige (3619 : Price Paige & Company)

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Attachment: Invoice 54618_Harris & Associates (3622 : Harris & Associates) 10/24/22

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Attachment: Invoice AR113310_SJRTD (3623 : SJRTD)

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Attachment: SSJGSA (3627 : South San Joaquin Groundwater Sustainability Agency)

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Attachment: Terpstra Invoices (3638 : Law Office of Thomas H. Terpstra)

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Attachment: Terpstra Invoices (3638 : Law Office of Thomas H. Terpstra)

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Attachment: Terpstra Invoices (3638 : Law Office of Thomas H. Terpstra)

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Attachment: Terpstra Invoices (3638 : Law Office of Thomas H. Terpstra)

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Attachment: Invoice 12_Soracco, Inc (3621 : Soracco, Inc.) (209)599-2131 FAX (209)599-6271
Ripon Unified School District
304 North Acacia Avenue
Ripon, CA 95366
Business Services Revolving

CUSTOMER INVOICE
Direct any questions to the Business Services Revolving at (209)599-2131 Customer # 000028
Invoice # ARR23-00007
Invoice Date 09/30/2022
City of Ripon
259 N. Wilma Avenue
Ripon, CA 95366
Due Date
Contract/Reference #
Contact Kye Stevens
2021-2022 50% Pool
Description Qty Unit Unit Price Amount
Salaries .50 27,586.38 13,793.19
Benefits .50 3,528.23 1,764.12
Materials and Supplies .50 28,434.64 14,217.32
Services and Repairs .50 56,914.18 28,457.09
2021-2022 Income .50 46,784.61- 23,392.31-
Non-Taxable Total 34,839.41
BALANCE DUE $34,839.41
01- 0011- 0- 0000- 0000- 8689- 000- 0000
District Account Number Account Amount
2023 34,839.41
-----------------------------Detach this portion or make a copy of the invoice and mail it with the payment----------------------------- Please make checks payable to: Ripon Unified School District/Business Services Revolving Customer # 000028
Amount Due $34,839.41
Mail to: Invoice # ARR23-00007
Ripon Unified School District
Business Services Revolving
304 North Acacia Avenue
Ripon, CA 95366
Business Services Copy

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Attachment: 21-22 Aquatics Center Full Packet (3612 : Ripon Unified School District Pool Operations) Aquatics Center Summary
2021/2022
Category PO # Comment Vendor Name Account Number Fiscal Year Paid Totals Salaries Direct Pay Salaries Salaries 01-0011-0-8100-5100-2200-859-9859 2022 $ 27,586.38 $ 27,586.38 Benefits Direct Pay Benefits Benefits 01-0011-0-8100-5100-3***-859-9859 2021 $ 3,528.23 $ 3,528.23 PO22-00187 Pool Chemicals Knorr Systems Inc. 01-0011-0-8100-5100-4300-859-9859 2022 28,300.08 $ PO22-00198 Pool Supplies Schemper Corporation 01-0011-0-8100-5100-4300-859-9859 2022 $ 134.56 PO22-00189 Pool Parts and Repairs Knorr Systems Inc. 01-0011-0-8100-5100-5680-859-9859 2022 11,404.11 $ PO22-01033 Primus Cylinders for Aquatic Center Midstate Builders Specialties 01-0011-0-8100-5100-5680-859-9859 2022 2,387.07 $ PO22-00182 Pool Plumbing Repairs and Service Johnny's Plumbing 01-0011-0-8100-5100-5800-859-9859 2022 1,426.57 $ PO22-00188 Pool Service Knorr Systems Inc. 01-0011-0-8100-5100-5800-859-9859 2022 12,661.22 $ PO22-00268 Mandatory Testing/Serv.& Repair on Cogen Valley Air Conditioning/Repair 01-0011-0-8100-5100-5800-859-9859 2022 6,519.03 $ PO22-00210 Operating Fees for Cogen Plant San Joaquin Valley Air 01-0011-0-8100-5100-5800-859-9859 2022 354.00 $ Direct Pay Pool Water/Sewage City of Ripon 01-0011-0-8100-8200-5510-859-9859 2022 5,751.70 $ Direct Pay 21-22 Electric Service PG & E 01-0011-0-8100-8200-5520-859-9859 2022 $ 16,410.48 Salaries (Object 2xxx) $ 27,586.38
Benefits (Object 3xxx) $ 3,528.23
Materials and Supplies (Object 4xxx) $ 28,434.64
Services and Repairs (Object 5xxx) $ 56,914.18
Total $ 116,463.43
Total $ 46,784.61
Total Expenses $ 116,463.43
Total Revenues $ 46,784.61
Net $ 69,678.82
50% Billed to City of Ripon $ 34,839.41
Revenues
Materials
and $ 28,434.64
Services
and
Repairs
$ 56,914.18
Summary
Expenditures

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Attachment: 21-22 Aquatics Center Full Packet (3612 : Ripon Unified School District Pool Operations) Aquatics Center Revenues
Receipt # Received Receipt Amt Customer Name Receipt Type Comment CRR22-000061 7/28/2021 $ 31,419.16 Ripon Aquatic Center C {Check } Swim Lessons - July 2021 CRR22-000094 8/12/2021 $ 1,365.00 Ripon Aquatic Center $ {Cash } Public Swim CRR22-000123 8/20/2021 $ 1,000.00 Ripon Aquatic Center C {Check } Rent -Aug 2021 CRR22-000212 9/20/2021 $ 1,000.00 Ripon Aquatic Center C {Check } Rent - Sep 2021 CRR22-000276 10/13/2021 $ 1,000.00 Ripon Aquatic Center C {Check } Rent- Oct 2021 CRR22-000431 12/16/2021 $ 2,000.00 Ripon Aquatic Center C {Check } Rent - Nov 2021 CRR22-000432 12/16/2021 $ 2,000.00 Ripon Aquatic Center C {Check } Rent- Dec 2021 CRR22-000535 2/10/2022 $ 2,000.00 Ripon Aquatic Center C {Check } Rent - Jan 2022 CRR22-000536 2/10/2022 $ 1,000.00 Ripon Aquatic Center C {Check } Rent - Feb 2022 CRR22-000622 3/15/2022 $ 1,000.00 Ripon Aquatic Center C {Check } Rent - March 2022 CRR22-000827 6/14/2022 $ 1,000.00 Ripon Aquatic Center C {Check } Rent - April 2022 CRR22-000828 6/14/2022 $ 1,000.00 Ripon Aquatic Center C {Check } Rent - May 2022 CRR22-000829 6/14/2022 1,000.00 $ Ripon Aquatic Center C {Check } Rent- June 2022 $ 46,784.16

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Attachment: 21-22 Aquatics Center Full Packet (3612 : Ripon Unified School District Pool Operations) MEMO
To: Honorable City Council
From: Director of Recreation, Kye Stevens
Date: November 8, 2022
Subject: Ripon Aquatic Center Invoice – 2021-22
RECOMMENDED ACTION:

Approve the current invoice in the amount of $34,839.41 representing the City of Ripon’s half of operating the Ripon Aquatic Center for Fiscal Year 2021-22.

BACKGROUND:

The City of Ripon and the Ripon Unified School District (RUSD) have a joint powers agreement in place to operate and share costs (50/50) for the Ripon Aquatic Center.

Description 2020-21 2021-22 Difference % Change
Salaries and Benefits $4,527.38 $15,557.31 $11,029.93 244% Materials and Supplies $11,441.64 $14,217.32 $2,775.68 24% Services and Repairs $33,416.59 $28,457.09 ($4,959.50) -15% Total Expenses $49,385.61 $58,231.72 $8,846.11 18%
Income ($7,250.00) ($23,392.31) ($16,142.31) 223%
Total Ripon Share $42,135.61 $34,839.41 ($7,296.20) -17% DISCUSSION/ANALYSIS:

Salaries and Benefits: The Aquatic Center Director’s salary, custodian salaries, lifeguards and instructors are charged to this account. Salaries and benefits in the 2021-22 year increased by $11,029.93 because the 2020-21 salaries and benefits were significantly reduced due to shutdowns caused by COVID-19.

Materials and Supplies: This includes pool chemicals and supplies.

Services and Repairs: This includes pool parts, pool plumbing, pool service, testing, repair service, operating fees for the cogen plant, City of Ripon water fees and PG&E electric service.

City Council
259 N. Wilma Avenue
Ripon, CA, 95366

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Attachment: RUSD Staff Report (3612 : Ripon Unified School District Pool Operations) Pacific Gas & Electric has raised an issue related to electric service billing during a 36-month period, starting in September 2017. PG&E is requesting reimbursement for lost revenue during this time period while the electric meter was not reading correctly. City staff is continuing to work with PG&E and the school district to better understand this situation and the amount the City of Ripon will be responsible to pay. Once this issue has been resolved, staff will bring back a second invoice that would include this expense for the City Council’s approval.

Income: Income for FY 2020-21 was down due COVID-19 lock downs. Income for FY 2021-22 increased as the Aquatic Center began to open up after restrictions were lifted. Programs that were previously impacted saw increases in revenue. These programs included open swim, swim lessons, Sea Lions Swim, club swim and club water polo programs. Revenue is not back to preCOVID-19 numbers but is steadily increasing.

FISCAL IMPACT:

The invoice amount of $34,839.41 will be paid out of the City’s General Fund.

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Attachment: RUSD Staff Report (3612 : Ripon Unified School District Pool Operations)

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Attachment: Invoice 27552_WGR (3635 : WGR Southwest, Inc.) City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Ken Zuidervaart, Planning Director
Date: 11/08/2022
Subject: Eavenson Lease Agreement
RECOMMENDED ACTION:

Approve and authorize the Mayor to sign the Agricultural Lease Agreement with Daniel S.

Eavenson for the property located at 752 S. Mohler Road (APN: 257-270-79).

BACKGROUND:

The property in question resides just south of the City’s Lan Park storm basin. The property was originally owned by Les Eastburg, who owned the entire 19.71 acres. In December of 2009, the City of Ripon acquired 6 acres from Les Eastburg, in conjunction with an Irongate East Development Agreement requirement, for future expansion of the Lan Park storm basin for future residential growth in the S. Mohler Road area.

When the City took ownership of the property, the entire 19.71 acres was being farmed by Weststeyn Farms, who farmed the property for Les Eastburg and continued farming the property until the property was sold in 2020 to Daniel S. Eavenson (Eavenson Construction). Daniel S.

Eavenson is now desiring to remove the entire orchard and plant row crops for the next few years, including the 6 acres owned by the City of Ripon, which he has been maintaining since he purchased the property in 2020.

DISCUSSION/ANALYSIS:

Staff has put together a very basic year-to-year lease agreement, whereas Daniel S. Eavenson will lease the property for $1.00 per year on a year-to-year basis. Either party may terminate the lease at any time with 90 days written notice. Daniel S. Eavenson will be required to maintain the property and any improvements in good order and repair and in safe and clean condition pursuant to the lease requirements.

FISCAL IMPACT:

Moving forward, the City’s general fund revenue would remain as is since the lease of the

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property is $1.00 per year, however the City would not be incurring any expense to maintain the parcel.

Attachments:

1. 10-24-22 Eavenson - City of Ripon Lease - Final

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1 AGRICULTURAL LEASE
The City of Ripon, a Municipal corporation (hereinafter collectively referred to as “Lessor”) hereby lease to Daniel S. Eavenson, (hereinafter referred to as “Lessee”) the real property, herein called “Leased Premises,” in the County of San Joaquin, State of California, described as follows:

The property at 752 S. Mohler Road, Ripon, San Joaquin County, identified as Assessor’s Parcel Number 257-270-79 (the “Property”) consisting of approximately 6 acres, more or less. (See Exhibit “A” for a map of the property).

Subject to the following terms and conditions:

1. Term of the Lease. This lease shall be for an initial term of one-year (the “Initial Term”), commencing on November 9, 2022 and ending on November 8, 2023. Upon the expiration of the initial term of this Lease, provided this Lease has not been previously terminated pursuant to the provisions of this Lease as may be set forth elsewhere herein, this Lease shall automatically renew for another one (1) year term, unless on or before 90 days prior to the then current Expiration Date of this Lease, either party has given notice of such party’s intention not to renew this Lease for an additional one (1) year Renewal Term.

2. Use of Leased Premises. The Leased Premises are demised to Lessee for the planting, growing and harvesting of crops, and for no other purpose except with the prior written consent of the Lessor.

3. Rent. As rental for the Leased Premises, Lessee hereby agrees to pay to Lessor, the sum of $1.00 US dollars annually, beginning on November 9, 2022 until the end of the lease.

4. Expenses of Lessee. During the term of this Lease and any extensions thereof, Lessee shall at Lessee’s own cost and expense:
a. Furnish all labor and equipment necessary to properly cultivate, grow, and harvest on the Leased Premises, in a manner consistent with good farming practices and husbandry during the term of the Lease or any renewal thereof;
b. Furnish one hundred percent (100%) of all trees, seed, etc.; one hundred percent (100%) of all fertilizers; and one hundred percent (100%) of all other supplies necessary to properly plant, cultivate, grow, and harvest on the Leased Premises in a manner consistent with good farming practices and husbandry the crops that are to be planted, grown, cultivated, and harvested on the Leased Premises pursuant to this Lease; c. Pay all charges, promptly as they become due, for the furnishing of gas, electricity and other public utilities; and

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Attachment: 10-24-22 Eavenson - City of Ripon Lease - Final (3614 : Eavenson Lease Agreement) 2 d. Provide and pay for adequate water for the proper irrigation of any and all crops that may be planted, cultivated, grown and harvested on the Leased Premises pursuant to this Lease.

5. Expenses of Lessor. During the term of this Lease and any renewals or extensions thereof, Lessee shall pay those taxes levied or assessed against the crop planted by Lessee and/or Lessee’s personal property, trade fixtures and/or possessory interest taxes upon or about the Leased Premises.

6. Operations on Leased Premises.
a. Lessee shall carry on all of Lessee’s activities specified under Paragraph 2 in accordance with good husbandry and the best practices of the farming community in which the Leased Premises are situated. Should Lessee fail to take any action required by the best course of husbandry practiced in the farming community surrounding the Leased Premises, or should Lessee fail to conduct any operation undertaken by Lessee on the Leased Premises in accordance with the best course of husbandry practiced in the farming community surrounding the Leased Premises, Lessor may, after serving sixty (60) days written notice of the failure on Lessee in the manner prescribed in Paragraph 21 of this Lease, enter the Leased Premises and take any reasonable action Lessor may deem necessary to protect Lessor’s interest in this Lease and the Leased Premises.

Lessee agrees to reimburse Lessor on demand for the cost of any reasonable actions taken by the Lessor pursuant to the provisions of this paragraph.
b. Lessee shall, at Lessee’s cost and expense, comply with any and all present or future laws, ordinances, rules, regulations, requirements, and orders of federal, state, county, or municipal governments that may in any way apply to the use, maintenance, operations, or production of crops on the Leased Premises, or the sale or disposition of those crops.

7. Ownership of Improvements at Lease Expiration. On the expiration of the initial lease term herein, and any extensions or renewals thereof, all trees, crop, irrigation wells and pumps shall become the property of Lessor and Lessee shall have no further rights therein.

8. Weeds and Pests. Lessee shall prevent noxious weeds from going to seed on the Leased Premises, destroy them, and keep the weeds and grass cut. Lessee shall make and keep the Leased Premises reasonably free and clear of all rats, gophers, squirrels, and other pests.

9. Disease or Blight. Should any disease or blight of any character appear on the Leased Premises or in or on any crop grown on the Leased Premises, Lessee, at Lessee’s own cost and expense, shall employ the best-known methods for eradicating the disease of blight, consult with and follow the advice of any and all experts on the subject.

10. Waste or Nuisance. Lessee shall not commit, or permit others to commit, any waste upon the Leased Premises. Lessee shall not maintain, commit, or permit the maintenance of commission of any nuisance as defined by California Civil Code Section 3479 on the Leased Premises. Lessee shall not use or permit the use of the Leased Premises for any unlawful purpose.

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Attachment: 10-24-22 Eavenson - City of Ripon Lease - Final (3614 : Eavenson Lease Agreement) 3 11. Insurance Coverage. Lessee shall, at all times during the term of this Lease, maintain and keep in force insurance coverage with insurers approved by Lessor that will adequately protect both Lessee and Lessor against public liability and property damage upon the Leased Premises.

The minimum coverage required by this paragraph shall be One Million and no/100 Dollars ($1,000,000.00) single limit.

11.1 General Requirements.

11.1.1 The insurance maintained under Section 11 shall name Lessor, any beneficiary under a deed of trust, mortgagee and/or ground or underlying lessor as additional insureds and shall provide that, Lessor and any additional insureds shall receive thirty (30) days’ written notice from the insurer prior to any cancellation or change of coverage, and shall contain a cross liability or severability clause.

11.1.2 All insurance required to be carried by Lessee hereunder shall be written only as primary insurance and non-contributing and shall be effected with only companies doing business in California, and in any event not with any company of less repute than those having a general policy rating of A and a financial rating of XII as rated in the most current available “Best’s Insurance Reports.” In the event “Best’s Insurance Reports” is not currently published, such minimum standard shall be that published by any other nationally recognized publisher of such information.

11.1.3 Lessee shall deliver certificates of insurance required hereunder to Lessor on or before the Commencement Date, and thereafter prior to the expiration dates of expiring policies.

11.1.4 In the event Lessee shall fail to procure such insurance, or to deliver such certificates, Lessor may, fifteen (15) days after written notice to Lessee and failure by Lessee to cure, at its option, procure same for the account of Lessee, and the cost thereof shall be paid to Lessor within ten (10) days after delivery to Lessee of bills therefor. Nothing contained in this Article 14 shall be construed as a limitation of Lessee’s liability hereunder.

11.2 Lessor’s Insurance. At Lessor’s expense, Lessor shall obtain and keep in force during the Term of this Lease and any other period of occupancy hereof the following insurance:
(a) Property Damage insurance insuring the Project.
(b) Any other form or forms of insurance as Lessor or any mortgagees of Lessor may reasonably require from time to time in form, in amounts and for insurance risks against which Lessor wishes to insure itself.

11.3 Waiver of Subrogation. Each party obtaining such insurance shall have its insurer under such policies of insurance, except Worker’s Compensation insurance, waive in writing any and all rights of subrogation that such insurer might otherwise have against the other party to this Lease. Each party to this Lease waives any and all rights of recovery against the other party for losses covered or normally covered by fire and extended coverage insurance, and vandalism and malicious mischief insurance.

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Attachment: 10-24-22 Eavenson - City of Ripon Lease - Final (3614 : Eavenson Lease Agreement) 4 12. Maintenance. Lessee at its own expense, shall keep and maintain the Leased Premises and all improvements in good order and repair and in as safe and clean a condition as they were when received from Lessor, reasonable wear and tear excepted.

13. Alterations and Mechanics’ Liens.
a. Lessee shall not make or permit any alterations or improvements to the Leased Premises without the prior written consent of Lessor. Upon termination or expiration of this Lease, all improvements and alterations other than trade fixtures shall be the property of Lessor, and no reimbursement to Lessee shall be required. Lessee shall remove all trade fixtures placed by Lessee on the Leased Premises within thirty (30) days after the expiration of this Lease. b. Lessee shall keep the premises free and clear of any and all liens arising out of any work performed or materials furnished at the request of Lessee, or obligations incurred by Lessee.

14. Indemnification of Lessor. Lessee, throughout the term of this Lease, shall indemnify and hold Lessor harmless from all damages, injuries, or claims arising in or about the Leased Premises or arising from Lessee’s operations on the Leased Premises except those arising from the gross negligence or intentional conduct of Lessor.

15. Assignment and Subleasing. Lessee shall not assign, transfer, or encumber this Lease or any interest herein without the prior written consent of Lessor. Lessor’s consent to one assignment, sublease, occupation, or use by another person shall not be deemed to be a consent to any subsequent assignment, sublease, occupation, or use by any other person. Any assignment or subleasing without the prior written consent of Lessor shall be void. The consent of Lessor to the assignment or subleasing of any interest in this Lease by Lessee shall not be unreasonably withheld.

16. Insolvency of Lessee. The insolvency of Lessee, as evidenced by the appointment of a receiver to take possession of all or substantially all of the assets of Lessee, the making of a general assignment by Lessee for the benefit of creditors, or an action taken or suffered by Lessee under any bankruptcy or insolvency act, shall terminate this Lease and entitle Lessor to re-enter and regain possession of the Leased Premises. The levying of any writ of attachment of writ of execution against Lessee’s interest in the Leased Premises or any crops thereon, which shall not be satisfied or discharged by Lessee within thirty (30) days from the date of levy or execution, shall terminate this Lease and entitle Lessor to re-enter and regain possession of the Leased Premises.

17. Default by Lessee. All covenants and agreements contained in the Lease are conditions to this Lease. Should Lessee default in the performance of any covenant, condition, or agreement contained in the Lease, Lessor may terminate this Lease and re-enter and regain possession of the Leased Premises in the manner then provided by the unlawful detainer laws of the State of California.

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Attachment: 10-24-22 Eavenson - City of Ripon Lease - Final (3614 : Eavenson Lease Agreement) 5 18. Force Majeure Clause. Should the performance of the obligations of either party under this Lease be prevented or delayed by an act of God, war, civil insurrection, fire, flood, storm, strikes, lockouts, or by any law regulation, or order of any federal, state, county, or municipal authority, or by any other cause beyond the control of the party to be excused that party’s performance under this Lease, to the extent it is prevented or delayed shall be excused.

Lessee

19. Expenses of Enforcement. Should any litigation be commenced between the parties to this Lease for the enforcement of any rights of either party against the other pursuant to the provisions of this Lease, or by reason of any alleged breach of any of the provisions of this agreement, the party prevailing in the litigation shall be entitled to receive from the unsuccessful party all costs incurred in connection with the litigation, including a reasonable allowance for attorneys’ fees incurred by the prevailing party.

20. Notices. Wherever in the Lease is shall be required or permitted that notice and demand be given or served by either party to this Lease to or on the other, such notice or demand shall be given or served and shall not be deemed to have been duly given or served unless in writing and either personally delivered, or delivered to overnight courier service charges prepaid, or forwarded by certified mail, return receipt requested, addressed as follows:

To Lessor: City of Ripon
259 N Wilma Ave
Ripon, CA 95366
To Lessee: Daniel S. Eavenson
P.O. Box 944
Ripon, CA 95366

21. Effect on Heirs and Successors. This Lease and each of its provisions shall be binding on and shall inure to the benefit of the respective heirs, devisees, legatees, executors, administrators, trustees, successors and assigns of the parties to this Lease. Nothing contained in this paragraph shall be construed as a consent by lessor to any assignment of this Lease or any interest therein by Lessee except as provided in Paragraph 19 of this Lease.

22. Time of Essence. Time is of the essence of this Lease and of each provision contained within, and each provision is made and declared to be a material, necessary, and essential part of this Lease.

23. Amendments to the Lease. This Lease, and any additional agreement for a renewal period subsequently entered into pursuant to Paragraph 1, may be amended only by a writing signed by the party against whom or against whose successors and assigns enforcement of the change is sought.

24. Termination of the Lease. At any time, the Lessor or the Lessee may terminate and cancel this Lease upon ninety (90) days written notice, in which event this Lease shall terminate as of the date specified in such Termination Notice.

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Attachment: 10-24-22 Eavenson - City of Ripon Lease - Final (3614 : Eavenson Lease Agreement) 6 24. Partial Invalidity. If any term of provision of this Lease or any application hereof shall be held invalid or unenforceable, the remainder of this Lease and any application of the terms and provisions shall not be affected thereby but shall be valid and enforceable pursuant to this Lease or California law.

25. Governing Law. This agreement shall be governed by and construed in accordance with the laws of California.

26. Waiver. The waiver of any breach of any of the provisions of this Lease by Lessor shall not constitute a continuing waiver or a waiver of any subsequent breach by Lessee, either of the same or any other provisions of this Lease.

27. No Partnership. Nothing contained in this Lease shall create a partnership, joint venture, or employment relationship between Lessor and Lessee. Neither Lessor nor Lessee shall be liable, except as otherwise expressly provided for in this Lease, for any obligations or liabilities incurred by the other.

28. Mediation. Before initiating litigation relating to any dispute between the parties concerning this Lease, the parties shall first participate in mediation of any dispute as set forth herein.

The mediator shall be a person mutually agreed upon by the parties, or, if the parties are unable to agree, then the parties shall apply to the American Arbitration Association of JAMS for appointment of a mediator. Mediation shall be held at Modesto, California, according to the rules of the American Arbitration Association or JAMS, as agreed upon by the parties, or as directed by the organization appointing the mediator. The cost of mediation shall be borne by the parties equally.

At least ten (10) business days before the date of the mediation, each side shall provide the mediator with a statement of its position and copies of all supporting documents. Each party shall send to the mediation a person who has authority to bind the party. If a subsequent dispute will involve third parties, such as insurers or subcontractors, they shall also be asked to participate in the mediation.

29. Construction. This Lease and any documents or instruments delivered pursuant thereto shall be construed without regard to the identity of the person who drafted the various provisions thereof. Moreover, each and every provision of this Lease and such other documents and instruments shall be construed as though all parties hereto participated equally in the drafting thereof. As a result of the foregoing, any rule of construction that a document is to be construed against the drafting parties shall not be applicable.

30. Recording of the Lease. A Memorandum of Lease shall be recorded by the Parties in the office of the County Recorder in and for San Joaquin County.

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Attachment: 10-24-22 Eavenson - City of Ripon Lease - Final (3614 : Eavenson Lease Agreement) 7 31. Counterparts. This Agreement may be signed upon any number of counterparts with the same effect as if the signature to each counterpart were upon the same instrument.

Executed on ______________________, at Ripon, San Joaquin County, California.

LESSOR: LESSEE:

City of Ripon, a Municipal corporation Daniel S. Eavenson By: ____________________________ By: ____________________________ Its: ____________________________ Its: _____________________________

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Attachment: 10-24-22 Eavenson - City of Ripon Lease - Final (3614 : Eavenson Lease Agreement) 8 Exhibit “A”

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Attachment: 10-24-22 Eavenson - City of Ripon Lease - Final (3614 : Eavenson Lease Agreement) City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Lisa Roos, City Clerk & Finance Director
Date: 11/08/2022
Subject: Quarterly Investment Report Review
RECOMMENDED ACTION:

Accept the City’s quarterly investment report for the period ending September 30, 2022.

BACKGROUND:

The following report is the City’s quarterly investment report for the period ending September 30, 2022. This report summarizes the City’s investment policy that was adopted by the Council in 1996 and amended in 2003, shows the average interest rate for the last 12 months, and lists individual investments with their balances and interest rates as of the end of the period. The interest rates that are shown on the report are for the 12 month period or quarter then ended.

The City maintains money in both shorter-term daily liquidity investments, such as LAIF, and longer-term investments held at the Bank of New York. The LAIF investment allows the City to earn interest, which is normally lower than the interest from longer-term investments, while the funds remain liquid and can quickly be transferred from time to time to cover operational costs of the City throughout the year. The investments held at The Bank of New York have longer durations, as such, our goal is to not access the funds for liquidity purposes. It is not uncommon during federal tightening cycles for money market funds and pools similar to LAIF to have yields that surpass longer duration portfolios such as the investments held at the Bank of New York. Nevertheless, this occurrence is typically transitory in nature and although market dependent, we expect the longer-term investments to eventually pass the LAIF yield in the near future.

Section 115 Trust
As of September 30, 2022, Staff is in the process of depositing $1.3 million approved by the City Council into the City’s Section 115 Trust with PARS. When these funds are invested, the return on these investments will be shown as part of this report in the future.

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Attachments:

1. Investment report for Council 09.2022

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1 $31,456,896
2 $30,052,303
Ratings
Investments: Agency 21.7% AA+
US Corporate 26.0% A+
US Treasury 27.9% AA+
Money Market Fund 0.2% AAA
ABS 12.9% AAA
Supranational 4.2% AAA
Muni Bonds 0.8% AA‐
CMO 6.3% AAA
3 365,953
4 86
1 This quarterly review complies with all of the elements required by California Government Code Section 53646(b).

CITY OF RIPON
Investment Policy
Quarterly Report
July 01, 2022 ‐ September 30, 2022
The City of Ripon’s investment policy was adopted by Resolution 96‐63 on June 18, 1996 and it has been amended by Resolution 03‐68 on August 19, 2003.  This policy provides for the legislative body of a local agency to invest all money belonging to or in the custody of the local agency in accordance with the provisions of California Government Code Sections 5922, 53601 et seq., and 53635.

Based upon the Treasurer’s report, the entire investment of the City of Ripon is in FULL COMPLIANCE with the 2003 City of Ripon Investment Policy and the California Government Code.

As of September 30, 2022, the City’s average interest rate for the last 12 months is 0.97%.

At the end of September 2022, City funds are held in the following investments as listed:

INVESTMENTS
State Treasurer  ‐  LAIF ‐ (fair value basis 1.0)
Water revenue bonds ‐ 2006
CSJVRMA Pool ‐ fair value
Bank of New York (book value ‐ $31,531,311)
Interest rate 1.18% at 09/30/22
U S Treasury ‐ (fair value basis 1.0)
Interest rate 1.35% at 09/30/22
Interest rate 0.53% at 09/30/22
Bank of Stockton
U S Treasury ‐ (fair value basis 1.0)
Interest rate 2.81% at 09/30/22
U S Bank
Water revenue bonds ‐ 2012

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Attachment: Investment report for Council 09.2022 (3618 : Quarterly Investment Report Review) Investment Report
September 30, 2022

5 1
Total Investments $61,875,240
Lisa Roos
Respectfully Submitted,
Lisa Roos
City Clerk/Finance Director
U S Treasury ‐ (fair value basis 1.0)
Interest rate 0.00% at 09/30/22
U S Bank
Redevelopment agency 2020 tax allocation bonds
This report certifies that all investment actions executed prior to this report have been made in full C:\Users\lroos\Documents\Investment Reports\Investment report for Council.xlsx ‐ 2022.09.30

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Attachment: Investment report for Council 09.2022 (3618 : Quarterly Investment Report Review) City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Ken Zuidervaart, Planning Director
Date: 11/08/2022
Subject: Reimbursement Agreement - Store More Express Mini-Storage RECOMMENDED ACTION: Approve and authorize the Mayor to sign the Store More Express Reimbursement Agreement that provides reimbursement for staff time to respond to an application for a proposed project located at 615 and 659 W. Milgeo Road (N/E corner of Milgeo Road and Arc Way).

BACKGROUND: Store More Express Ripon, LLC is seeking to develop a mini-storage project on two (2) parcels (approximately 2.4 acres) located at 615 and 659 W. Milgeo Road. The reimbursement agreement provides an opportunity for the City to get reimbursed for staff time and consultant management during the application process for this project.

Attachments:

1. Store More Express Reimbursement Agreement

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1 REIMBURSEMENT AGREEMENT
This agreement (“Agreement”) is made, and entered into this 8th day of November, 2022 (“Effective Date”) by and between the City of Ripon (“CITY”) and Store More Express Ripon LLC, a California Limited Liability Company (“DEVELOPER”).

WHEREAS, DEVELOPER intends to apply for various land use entitlements pursuant to Ripon Municipal Code Title 16 in connection with the proposed 38,150 square foot mini-storage project. The subject property consists of approximately 2.39 acres located at 615 and 659 W. Milgeo Road in the City of Ripon, consisting of those Assessor’s Parcel Numbers listed on Exhibit “A” (the “Property”). In addition, DEVELOPER has requested that CITY act as “Lead Agency” with respect to the requirements of the California Environmental Quality Act (“CEQA”) pertaining to the Project. For purposes of this Agreement, reviewing and processing DEVELOPER’S applications, including, but not limited to, all activities related to the entitlement processing, development, and construction of the above-referenced project and related uses shall be referred to as the “Project.” WHEREAS, DEVELOPER and CITY expect that the Project will require CITY to expend resources in working with DEVELOPER after DEVELOPER’S submission of applications for approval of the Project, including, but not limited to, processing of DEVELOPER’S applications, permits, maps and other entitlements related to the Project.

WHEREAS, CITY and DEVELOPER have agreed that DEVELOPER shall be responsible for reimbursing CITY for all costs and expenses incurred by CITY with respect to the Project, including costs of staff time, consultants’, and attorneys’ fees in accordance with the terms of this Agreement.

NOW, THERFORE, in consideration of the foregoing promises and in order to carry on the intent and purpose of applicable codes, ordinances, resolutions and regulations, DEVELOPER and CITY agree as follows:

SECTION 1. THE SECURITY DEPOSIT.

1.1 Posting of the Security Deposit. Upon execution of this Agreement, DEVELOPER shall deposit with CITY in a manner reasonably satisfactory to CITY the total amount of Ten Thousand Dollars ($10,000) hereafter referred to as the “Security Deposit.” The Security Deposit shall be held by the CITY as security for the full and faithful performance by the DEVELOPER of all the terms and conditions of this Agreement.
(a) In the event that this Agreement is terminated in accordance with Section 6 below, the CITY and DEVELOPER shall meet in good faith to negotiate the form and amount of security, if any, that will be required to meet any post-termination indemnification obligations of the DEVELOPER. If no Agreement can be reached as to the amount of post-termination security required, the CITY and DEVELOPER shall use the alternative dispute resolution procedures set forth in SECTION 10 of this Agreement to resolve this issue.
(b) Withdrawal of and Maintenance of Security Deposit. If DEVELOPER defaults on its obligations to provide and maintain any deposit required by this Agreement or to timely pay for any Project Costs as defined in SECTION 2 below, then CITY shall be entitled to draw upon the Security Deposit to recover any and all sums in default. The Security Deposit shall be required for as long as the DEVELOPER is bound by any financial obligation(s) under this Agreement. If CITY is required to draw upon the Security Deposit, DEVELOPER shall immediately replenish the Security Deposit and maintain DocuSign Envelope ID: CBC09BAB-E2BB-483B-908A-05BC3AAEF19F

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Attachment: Store More Express Reimbursement Agreement (3628 : Reimbursement Agreement - Store More Express Mini-Storage) 2 with the CITY at all times a Security Deposit in the amount of the Ten Thousand Dollars ($10,000) to secure payment to the CITY for Project Costs.
(c) Investment. CITY shall maintain the Security Deposit in an interest-bearing dedicated account for the benefit of DEVELOPER. DEVELOPER acknowledges and agrees that it shall not receive any interest on the Security Deposit, in lieu of paying staff costs for account maintenance and interest tracking. CITY shall at all times maintain records as to the expenditure of the Security Deposit; provided, however, CITY may use the Security Deposit only as set forth herein. The Security Deposit may be invested by CITY in lawful investments, in accordance with CITY’S established investment policies.
(d) Return of Deposit after CITY Approval. CITY shall return to DEVELOPER any funds remaining on deposit after one hundred and eighty (180) days have passed since CITY’S approval of the last discretionary permit or entitlement for full build-out of the Project, and the CITY has received from DEVELOPER payment of all Project Costs accrued, as required under Section 2 of the Agreement except to the extent that DEVELOPER has not satisfied its indemnification obligations per Section 7 of this Agreement.
(e) Subsequent Replenishment of Security Deposit. In the event DEVELOPER seeks another discretionary permit(s) or entitlement(s) related to the Project after CITY returns any remaining funds on deposit pursuant to Section 1(e) of the Agreement, DEVELOPER shall replenish the Security Deposit in the total amount of Ten Thousand Dollars ($10,000) or such other amount as CITY, in consultation with DEVELOPER, may determine to be reasonably necessary to secure payment of Project Costs as contemplated under the Agreement. DEVELOPER agrees to replenish the Security Deposit at the time DEVELOPER submits the application for such subsequent discretionary permit(s) or entitlement(s). DEVELOPER further agrees that any such application shall not be determined complete by CITY until the Security Deposit is replenished as required under this Section 1(f).

SECTION 2. PROJECT COSTS TO BE REIMBURSED. DEVELOPER shall be responsible for payment of all reasonable direct and indirect costs incurred by CITY as a result of the Project (“Project Costs”), which are incurred by the CITY after the date of this Agreement. During the term of this Agreement, so long as DEVELOPER is fulfilling its obligations hereunder, CITY shall process DEVELOPER’S application(s) for the Project until such time as CITY approves or denies such application(s). Project Costs shall include, but are not limited to:
(a) All actual CITY staff time, including, but not limited to, the Planning Department, Public Works Department, Engineering Department, Administration, City Clerk, City Attorney (Law Office of Thomas H. Terpstra) expended on Project-related activities and/or litigation.

Such staff time includes direct labor costs as well as departmental and indirect overhead costs. A schedule of all individuals anticipated to be working on the Project, and their hourly rates, is shown on the attached Exhibit B.
(b) All actual costs, not specified in Section 2(a) above, expended on Project-related activities (e.g., costs of telephone, mileage, supplies, postage, etc.). Such costs shall not include general overhead, but shall be limited to costs incurred solely because of the Project. Any travel that will be in excess of twenty-five (25) miles must be approved in advance by DEVELOPER, which approval shall not be unreasonably withheld.
(c) All actual costs of any outside consultants hired to assist CITY with Projectrelated activities and/or litigation, including, but not limited to, attorneys, planning and design consultants, engineers, hydrologists, traffic consultants, biologists, archeologists, CEQA consultants and DocuSign Envelope ID: CBC09BAB-E2BB-483B-908A-05BC3AAEF19F

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Attachment: Store More Express Reimbursement Agreement (3628 : Reimbursement Agreement - Store More Express Mini-Storage) 3 other technical and professional consultants as deemed necessary by CITY in processing the Project.

CITY shall use its best efforts to use CITY staff in lieu of outside consultants when CITY staff is available and can perform the same task for less cost than an outside consultant.

With respect to any consultants to be retained by CITY in connection with review of the Project pursuant to CEQA, CITY will meet and confer with DEVELOPER in order to obtain input regarding the consultants under consideration. In selecting a consultant, CITY shall consider the following factors, at a minimum: proposed price to complete work; extent of relevant experience; strength of references; strength of individual team members who would be tasked with key analyses; general reputation; and for any environmental consultant, its track record for preparing documents that have survived judicial challenge under the California Environmental Quality Act (CEQA). While CITY agrees to meet and confer with DEVELOPER prior to selecting any outside consultant and to consider the above factors, the CITY retains the sole discretion to select or hire any outside consultant.

SECTION 3. PROCESS FOR REIMBURSEMENT OF PROJECT COSTS.
(a) CITY shall prepare and provide DEVELOPER (by regular mail, electronic mail or facsimile) monthly summaries reflecting all Project Costs set forth in Sections 2(a)-(c) above incurred during each month.
(b) Following execution of this Agreement, DEVELOPER shall deposit with the CITY in a separate account (hereinafter the “Cost Deposit”) the amount of Thirty Thousand Dollars ($30,000) to pay for all costs set forth in Sections 2 (a)-(c) and any other Project Cost(s). DEVELOPER agrees to replenish and maintain at all times a Cost Deposit balance of at least Ten Thousand Dollars ($10,000). Failure by DEVELOPER to maintain a Cost Deposit balance of $10,000 shall be considered a default by DEVELOPER of the terms and conditions of this Agreement. CITY shall maintain the Cost Deposit in an interest-bearing dedicated account for the benefit of DEVELOPER. DEVELOPER acknowledges and agrees that in lieu of paying staff costs for maintenance and tracking of interest, DEVELOPER elects to waive any interest on the Cost Deposit. CITY shall at all times maintain records as to the expenditure of the Cost Deposit; provided, however, CITY may use the Cost Deposit only as set forth herein. The Cost Deposit may be invested by CITY in lawful investments, in accordance with CITY'S established investment policies.
(c) For those Project Costs set forth in Sections 2(a)-(c), CITY shall provide a written, monthly summary to DEVELOPER of all Project Costs charged by CITY against the Cost Deposit. The written summary shall be supported by appropriate documentation such as timesheets, invoices, and receipts. For those Project Costs set forth in Section 2(c) above, CITY shall pay said costs directly to the outside consultants, list those payments on the monthly summary, and provide appropriate documentation indicating the name of each outside consultant and the services provided. In addition, CITY shall provide DEVELOPER on a monthly basis (by regular mail, electronic mail, or facsimile) a copy of any and all consultant invoices paid directly by CITY during the preceding month. CITY shall have the right to redact from such documentation any information that CITY reasonably determines is privileged, confidential, or not otherwise subject to release pursuant to the California Public Records Act (Gov’t Code § 54950 et seq.).

SECTION 4. FEES, PERMITS AND CITY REGULATIONS. This Agreement replaces any discretionary land use permit application fees normally collected by the CITY at the time an application for a proposed project is made. Notwithstanding the foregoing, DEVELOPER shall be responsible to pay any fee not expressly abrogated by this Agreement, including, but not limited to, development impact fees, any ministerial fee(s) on required Project permits such as building permits, grading permits, and the like, and any fees or expenses approved by the Planning Commission and/or City Council that are made DocuSign Envelope ID: CBC09BAB-E2BB-483B-908A-05BC3AAEF19F

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Attachment: Store More Express Reimbursement Agreement (3628 : Reimbursement Agreement - Store More Express Mini-Storage) 4 part of the Project’s conditions of approval. Nothing in this Agreement shall be deemed to abrogate the responsibility of DEVELOPER to obtain any required permit(s) or comply with any laws associated with any applications, permits, studies, or construction activities related to the Project. This Agreement does not apply to any fees DEVELOPER is required to pay to any entity other than the CITY of Ripon, any state or federal agency, or on any new application or project.

SECTION 5. TERM. Subject to Section 6, the term of this Agreement shall commence on the Effective Date and terminate upon the later of: one (1) year from the issuance of a certificate of completion for the last of the Project-related improvements; or (b) one (1) year from the last date that DEVELOPER is required to maintain Project-related improvements(s) set forth in any applicable improvement or development agreements related to the Project; or (c) one (1) year from the approval of the final phase of the Project. Nothing herein shall be deemed to abrogate DEVELOPER’S responsibility to pay for ongoing expenses, including litigation expenses, incurred by CITY as a result of Project-related activities, which activities occurred during the term of this Agreement. Nothing in this Agreement shall be construed to vest any rights to develop the Project or require CITY approval of the Project.

SECTION 6. TERMINATION. Developer may, at its option, terminate this Agreement at any time on thirty (30) days’ prior written notice to CITY (“Termination Notice”) if DEVELOPER determines not to proceed with the Project. In the event of termination, DEVELOPER shall be responsible for the payment of all Project Costs incurred up to and including the date of termination. CITY shall apply the sums maintained in the Security and Cost Deposit to any unreimbursed Project Costs through the termination date, and CITY shall then refund any remaining Security and Cost Deposit funds to DEVELOPER within thirty (30) days of the date of termination.

SECTION 7. INDEMNIFICATION. In addition to Project Costs, DEVELOPER shall defend, indemnify, and hold CITY free and harmless from any and all suits, fees, claims, demands, causes of action, proceedings (hereinafter collectively referred to as “Legal Actions”), costs, losses, damages, liabilities and expenses (including, but not limited to, an award of attorneys’ fees, expert witness fees, and court costs) incurred by CITY arising (directly or indirectly) or resulting from the review, processing, consideration, or from the approval of DEVELOPER’S Project or action taken by CITY thereon.

DEVELOPER’S obligations pursuant to this SECTION 7 shall survive suspension or termination of this Agreement.
(a) In the event the CITY’S processing of the Project results in any Legal Action being initiated, the CITY shall notify DEVELOPER promptly of any such action. DEVELOPER will provide and take primary responsibility for the legal defense of itself and the CITY (hereinafter referred to as the “Joint Legal Defense”) to the fullest extent possible. DEVELOPER shall defend CITY'S actions with competent legal counsel of DEVELOPER'S choice without charge to CITY, subject to CITY approval. For purposes of this Agreement, a complaint including the recovery of attorney fees and costs will be considered a request for “monetary damages.” CITY and DEVELOPER shall cooperate in good faith in the defense of any Legal Action that names the CITY as a party and for which the DEVELOPER undertakes the primary responsibility for the Joint Legal Defense of in accordance with the terms of this Section 7. CITY, through the CITY Attorney's Office, shall be kept apprised by the DEVELOPER and retained counsel of significant dates and hearings, shall receive copies of all pleadings filed in the matter by any party, and shall be allowed to participate in strategic decisions regarding the development of any applicable defense strategies and in preparing pleadings, prior to filing. DEVELOPER and CITY may enter into a “Joint Legal Defense Agreement” amending any terms hereto. (b) In the event of any Legal Action against CITY and/or DEVELOPER, CITY will protect from public disclosure to the fullest extent possible, any communications between its attorneys and those representing DEVELOPER in said action. The parties intend that communications between DocuSign Envelope ID: CBC09BAB-E2BB-483B-908A-05BC3AAEF19F

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Attachment: Store More Express Reimbursement Agreement (3628 : Reimbursement Agreement - Store More Express Mini-Storage) 5 CITY Counsel, retained counsel, and/or CITY staff, for purposes of the joint defense of a legal action, are entitled to the attorney-client privilege and/or work product privilege and are to be protected from disclosure through the exemption contained in Cal. Gov’t. Code § 6254(b) and/or (k), Evidence Code section 954 and/or Code of Civil Procedure section 2018.030. Similarly, communications between City Attorney and the City Council will be held in Closed Session pursuant to Cal. Gov’t. Code §54956.9 to the maximum extent possible. Any Legal Action seeking to compel disclosure of privileged communications shall be defended by DEVELOPER in accordance with the terms and conditions set forth in this Section 7.
(c) Nothing contained in this Section 7, however, shall be construed to limit the discretion of CITY, in the interest of the public welfare, to settle, defend, or appeal, or to decline settlement or to terminate or forego defense or appeal of a Legal Action at its own expense. In no event shall CITY have any obligation or liability to DEVELOPER in connection with CITY'S defense or prosecution of litigation related to the Project (including, but not limited to, the outcome thereof) or in the event CITY elects not to prosecute a case or defend litigation brought against it. The failure of DEVELOPER to undertake the defense of any Legal Action within the scope of this Section 7 or the decision of DEVELOPER to terminate, forego, or abandon the defense or appeal of a Legal Action may be treated by CITY as an abandonment of the Project by DEVELOPER and will relieve CITY from any further duty, legal or otherwise, to continue to process DEVELOPER’S Project. (d) If either CITY or DEVELOPER determines in good faith that common counsel presents a bona fide conflict of interest, then CITY may employ separate counsel to represent or defend the CITY, and DEVELOPER shall pay the reasonable attorneys’ fees and costs of such counsel within thirty (30) days of receiving an itemized billing statement. Failure by the DEVELOPER to reimburse CITY for its separate counsel may be treated as an abandonment of the Project by the DEVELOPER.

SECTION 8. NOTICES. All notices called for in this Agreement shall be given in writing by personal delivery, or electronic mail (with copy of such notice sent not later than the next day by mail or overnight private courier in accordance with the provision herein) or by overnight mail or overnight private courier.

Electronic mail notices shall be deemed received on the day sent if sent prior to 6:00 p.m. Pacific Time or if sent after 6:00 p.m. Pacific Time, then deemed received on the next day. Overnight mail or couriered notices shall be deemed received the next business day following deposit into the U.S. mail or delivery to the private courier. First class mail, postage prepaid, shall be deemed received three days after postmark.

Mailed or couriered notices shall be addressed as set forth below, but either party may change its contact information by giving written notice thereof to the other in accordance with the provisions of this Section

8. To the CITY: Ken Zuidervaart
CITY of Ripon
259 N. Wilma Avenue
Ripon, CA 95366
e-mail: [email protected]
To DEVELOPER: Eli May
117 Miramonte Drive
Santa Cruz, CA 95065
SECTION 9. DEFAULT BY DEVELOPER. If DEVELOPER defaults in its obligations to provide and maintain the deposits required by this Agreement or to timely pay for any Project Costs as required under this Agreement, then CITY, at CITY’S option, may suspend any activities related to the Project upon thirty (30) days’ written notice to DEVELOPER. During the pendency of any notice period, whether for monetary or non-monetary default(s), CITY, at CITY'S option, may suspend processing and/or DocuSign Envelope ID: CBC09BAB-E2BB-483B-908A-05BC3AAEF19F

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Attachment: Store More Express Reimbursement Agreement (3628 : Reimbursement Agreement - Store More Express Mini-Storage) 6 consultant activities related to the Project until such default is cured by DEVELOPER. CITY shall give DEVELOPER written notice of such default and any decision by the CITY to suspend processing and/or consulting activities related to the Project activities. Subject to Section 10 below, CITY may terminate this Agreement and institute legal proceedings, with no further notice to DEVELOPER, if such default is not remedied by DEVELOPER within thirty (30) days after such notice is given by CITY to DEVELOPER. Upon such termination, CITY shall not be obligated to expend any additional funds on Project-related matters; however, CITY may, in its discretion (such discretion to be exercised in good faith), expend Deposit funds after termination of this Agreement as necessary to complete Project-related activities already commenced or for which monetary obligations have already been incurred.

Maintenance of any deposit required by this Agreement shall be made a condition of any Tentative or Final Map for the Project, or, if no map is required, of the first discretionary approval. Subject to Section 10, DEVELOPER consents and agrees not to object to, appeal, or protest any of the conditions and/or payments referenced in this Section 9.

SECTION 10. DISPUTE RESOLUTION. If a dispute arises related to the interpretation or enforcement of, or compliance with, the terms and provisions of this Agreement (“Dispute”), CITY and DEVELOPER shall first attempt to resolve it through informal discussions. In the event a Dispute cannot be resolved in this manner within sixty days (60) days after the Dispute arises, then CITY and DEVELOPER shall engage in the following Alternative Dispute Resolution procedures:
(a) Mediation: The CITY and DEVELOPER agree that any and all disputes, claims, or controversies between CITY and DEVELOPER and arising of or related to this Agreement shall be submitted to the Sacramento, California office of Judicial Arbitration and Mediation Services, Inc. (“JAMS”) for mediation, and if the matter is not resolved through mediation, then it shall be submitted to JAMS for final binding arbitration pursuant to the arbitration clause set forth below. Either CITY or DEVELOPER may commence mediation by providing to JAMS and the other party a written request for mediation setting forth the subject of the dispute and the relief requested. CITY and DEVELOPER will cooperate with JAMS and with one another in selecting a mediator from JAMS’ panel of neutrals and in scheduling the mediation proceedings. If the parties cannot agree on the appointment of a mediator or the date of the mediation within thirty (30) days after the written request for mediation, then JAMS shall appoint the mediator at its discretion and/or set a mediation date. CITY and DEVELOPER covenant that they will participate in the mediation in good faith, and that they will share equally in its costs. All offers, promises, conduct, and statements, whether oral or written, made in the course of the mediation by any of the parties, their agents, employees, experts, and attorneys, and by the mediator and any JAMS employees, are confidential, privileged, and inadmissible for any purpose, including impeachment, in any litigation or other proceedings involving the parties, provided that evidence that is otherwise admissible or discoverable shall not be rendered inadmissible or non-discoverable as a result of its use in mediation.

Either party may seek equitable relief prior to the mediation to preserve the status quo pending the completion of that process. Except for an action to obtain equitable relief, neither party may commence civil litigation. Either CITY or DEVELOPER may initiate arbitration with respect to the matters submitted to mediation by filing a written demand for arbitration at any time following completion of the initial mediation session or sixty (60) days after the date of the written request for mediation, whichever occurs last. Mediation may continue after the commencement of arbitration, if CITY and DEVELOPER so desire. Unless otherwise agreed to by CITY and DEVELOPER, the mediator shall be disqualified from serving as the arbitrator in the case. The provisions of this clause may be enforced by any Court of competent jurisdiction, and the party seeking enforcement shall be entitled to an award of all costs, fees, and expenses, including attorney’s fees, to be paid by the party against whom enforcement is ordered. (b) Arbitration: Any dispute, claim or controversy between CITY and DEVELOPER arising out of this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this Agreement to arbitrate, not resolved by the DocuSign Envelope ID: CBC09BAB-E2BB-483B-908A-05BC3AAEF19F

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Attachment: Store More Express Reimbursement Agreement (3628 : Reimbursement Agreement - Store More Express Mini-Storage) 7 mediation process set forth above, shall be determined by arbitration to be held in San Joaquin County before one arbitrator. Neither party may request an arbitration hearing in conformity with this arbitration clause until after the matter has been submitted to mediation in conformity with the mediation clause set forth above and the initial mediation session has been completed or sixty (60) days has passed since the date of the initial written request for mediation, whichever occurs last. The arbitration shall be administered by the Sacramento, California office of JAMS pursuant to its Streamlined Arbitration Rules and Procedures, which rules shall govern the commencement of the arbitration and the selection of the arbitrator among other things. Judgment on the Arbitrator’s Award may be entered in the San Joaquin County Superior Court or any court having jurisdiction. This clause shall not preclude CITY or DEVELOPER from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction.

The costs and fees of arbitration (including those fees and expenses set forth in JAMS’ fee schedule in effect at the time of commencement of the arbitration) shall be borne equally by CITY and DEVELOPER, and each side shall be responsible for its own attorney’s fees and expert witness’ fees.

The dispute resolution process shall be undertaken in good faith. A mediator or arbitrator other than JAMS may be agreed to by CITY and DEVELOPER in writing. By agreeing to this dispute resolution process, neither CITY nor DEVELOPER hereby loses or waives its right to assert the operation of any applicable statute of limitations as an affirmative defense. The arbitration award shall be final and binding upon CITY and DEVELOPER and each agrees that it will accept such decision and award as binding and conclusive and will abide thereby.

SECTION 11. NO WAIVER OF IMMUNITIES. Nothing in this Agreement shall be construed as a waiver by CITY of any of the immunities granted to it under Federal, State or local law, including the provisions of Sections 818.6, 830.6 and 831.3 of the California Government Code.

SECTION 12. COMPLETE AGREEMENT. Except as may otherwise be explicitly set forth herein, this Agreement constitutes the final, complete, and exclusive statement of the terms hereof between CITY and DEVELOPER related to the subject matter set forth herein. Neither party is relying on any representation or warranty outside those expressly set forth in this Agreement. Any and all amendments to this Agreement shall be in writing, shall be stated as an amendment to this Agreement and shall be executed by both parties.

SECTION 13. EXHIBITS. The Exhibits attached to this Agreement are part of this Agreement and are incorporated into this Agreement by reference.

SECTION 14. UNENFORCEABILITY; SEVERABILITY. If a court of competent jurisdiction holds any Agreement clause to be invalid or unenforceable in whole or in part for any reason, the validity and enforceability of the remaining clauses, or portions of them, shall not be affected unless an essential purpose of this Agreement would be defeated by loss of the invalid or unenforceable provision. To that end, this Agreement shall be construed as not containing such clause and the provisions of this Agreement are declared to be severable.

SECTION 15. SUCCESSORS AND ASSIGNS. This Agreement shall bind and benefit DEVELOPER and CITY and their successors-in-interest, whether voluntary or involuntary. DEVELOPER agrees to require any successor to assume all duties and obligations set forth herein. DEVELOPER shall provide CITY with notice of any transfer of ownership interest in the Project or subject property.

SECTION 16. APPLICABLE LAW. This Agreement shall be construed and enforced in accordance with the laws of the State of California. Every provision of law and clause required by law to be inserted DocuSign Envelope ID: CBC09BAB-E2BB-483B-908A-05BC3AAEF19F

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Attachment: Store More Express Reimbursement Agreement (3628 : Reimbursement Agreement - Store More Express Mini-Storage) 8 in this Agreement shall be deemed to be inserted, and this Agreement shall be read and enforced as though it were included, and if through mistake or otherwise any provision is not inserted or is not correctly inserted, upon application of either party this Agreement shall be amended to make the insertion or correction. All references to statutes and regulations shall include all amendments, replacements, and enactments on the subject as of the Effective Date and any later changes which do not materially and substantially alter the positions of CITY and DEVELOPER.

SECTION 17. NO THIRD PARTY RIGHTS. This Agreement is not intended to be, and shall not be, construed to create any third party beneficiary rights in any person or entity who is not a party, unless expressly provided herein.

SECTION 18. NO JOINT VENTURE OR PARTNERSHIP. The parties specifically acknowledge that each party is an independent entity with respect to the terms contained in this Agreement. None of the terms of this Agreement shall be deemed to create a partnership between the parties in the businesses of DEVELOPER or the affairs of CITY, or otherwise, or cause them to be considered joint venturers or members of any joint enterprise.

SECTION 19. CONSTRUCTION. Each party hereto declares and represents that in entering into this Agreement, it has relied and is relying solely upon its own judgment, belief, and knowledge of the nature, extent, effect, and consequence relating thereto. Each party further declares and represents that this Agreement is made without reliance upon any statement or representation not contained herein of any other party or any representative, agent, or attorney of the other party. The parties agree that they are aware they have the right to be advised by counsel with respect to the negotiations, terms, and conditions of this Agreement and that the decision of whether or not to seek the advice of counsel with respect to this Agreement is a decision which is the sole responsibility of each of the parties. Accordingly, no party shall be deemed to have been the drafter hereof, and the principle of law set forth in Civil Code § 1654 that contracts are construed against the drafter shall not apply.

SECTION 20. TIME IS OF THE ESSENCE. For the purpose of this Agreement and of each provision of this Agreement, time is of the essence.

SECTION 21. COOPERATION. DEVELOPER and CITY shall cooperate fully in the execution of any and all other documents and in the completion of any additional actions that may be necessary or appropriate to give full force and effect to the terms and intent of this Agreement.

SECTION 22. JURISDICTION AND VENUE. This Agreement is executed and is to be performed in the CITY of Ripon, California, and any action or proceeding brought relative to this Agreement shall be heard in the appropriate court in the County of San Joaquin. CITY and DEVELOPER each consent to the personal jurisdiction of the court in any such action or proceeding.

SECTION 23. REPRESENTATIONS OF AUTHORITY. Each party signing this Agreement represents and warrants to the other party that all necessary legal prerequisites to that party’s execution of this Agreement have been satisfied and that the signatory has been authorized to sign this Agreement and bind the party on whose behalf the signatory signs.

SECTION 24. NO PROMISE OR REPRESENTATION. DEVELOPER and CITY agree that nothing in this Agreement is to be construed as a representation, promise, or commitment on the part of CITY to give special treatment to, or exercise its discretion favorably for, the Project or DEVELOPER.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written.

DocuSign Envelope ID: CBC09BAB-E2BB-483B-908A-05BC3AAEF19F

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Attachment: Store More Express Reimbursement Agreement (3628 : Reimbursement Agreement - Store More Express Mini-Storage) 9 “CITY” “DEVELOPER”
City of Ripon Store More Express Ripon LLC, a California Limited Liability Company
By: ___________________________ By: ___________________________ Date: __________________________ Date: __________________________ ATTEST
Lisa Roos, City Clerk
By: ___________________________
Date: __________________________

APPROVED AS TO LEGAL FORM
City Attorney
By: ___________________________
Date: __________________________
DocuSign Envelope ID: CBC09BAB-E2BB-483B-908A-05BC3AAEF19F 10/20/2022
Eli May

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Attachment: Store More Express Reimbursement Agreement (3628 : Reimbursement Agreement - Store More Express Mini-Storage) 10 Exhibit A
 APN 261-630-15  APN 261-630-16
DocuSign Envelope ID: CBC09BAB-E2BB-483B-908A-05BC3AAEF19F

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Attachment: Store More Express Reimbursement Agreement (3628 : Reimbursement Agreement - Store More Express Mini-Storage) 11 Exhibit B
2022-2023 Staff
Hourly
Rates
City Administrator $164.42
Planning Director $141.02
City Engineer $164.42
Public Works Director $123.90
Parks & Recreation Director $106.13
Chief of Police $189.54
Associate Engineer $60.10
Planning Secretary $59.86
City Clerk/Finance Director $139.12
Information Systems Tech II $47.99
City Attorney $295
DocuSign Envelope ID: CBC09BAB-E2BB-483B-908A-05BC3AAEF19F

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Attachment: Store More Express Reimbursement Agreement (3628 : Reimbursement Agreement - Store More Express Mini-Storage) City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Lisa Roos, City Clerk & Finance Director
Date: 11/08/2022
Subject: Claim - Diane Giles
RECOMMENDED ACTION:

The City’s claim adjustor has investigated the submitted claim and is recommending the City Council reject the claim.

BACKGROUND:

Individuals who believe a municipality such as the City of Ripon is responsible for a loss that they have experienced may file a claim with that municipality. The City Clerk is responsible to process any claim received in a manner that is consistent with the Government Code. The following summarizes how a typical claim is processed:

1. City Clerk reviews the claim to determine if the claim submitted is complete. If it is found to be complete, the claim is forwarded to the City’s claims adjustor for processing. If the claim is determined not to be complete, the City Clerk returns to the individual as incomplete.

2. The City of Ripon is a member of the Central San Joaquin Valley Risk Management Association (CSJVRMA), which consists of 54 cities in the Central Valley that selfinsure liability losses through a pool. The CSJVRMA claims adjustor reviews all liability claims for the facts of the incident including videos, police report, interviews all individuals involved in the incident, etc. The adjustor will also review applicable local, state and federal laws to determine the City’s liability in the incident.

3. If the claims adjustor finds the City is responsible for the damages filed in the claim, he or she will submit those findings to the City Clerk for processing. If the amount of damages is less than $5,000, the City Administrator has the authority to approve the payment of the damage. If the amount of damages is greater than $5,000, the City Clerk will place on the City Council agenda for approval to pay the claim.

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4. If the claims adjustor finds the City is not responsible for the damages filed in the claim, he or she will submit those findings to the City Clerk and recommend the City Council reject the claim.

5. If the claim is rejected by the City Council, the City Clerk sends a “notice of rejection” to the claimant, which advises the claimant they have six months to file a court action.

6. After the claimant has been paid or 6 months has passed since the rejection, the City’s claim adjuster issues a “closing report” to staff and staff closes the claim and files it.

DISCUSSION/ANALYSIS:

Diane Giles submitted a claim to the City of Ripon on October 6, 2022 for the cost to move her air conditioner condenser to allow appropriate clearance. She claims that because the City approved this inadequate clearance and the condenser was placed too close to the fence and now needs to be moved. She is seeking $2,300.00 to relocate the condenser.

The CSJVRMA claims adjustor has reviewed the claim submitted. California Government Code Section 818.6 states that public entities are not liable for injury caused by its failure to make inspection, or by reason of making an inadequate or negligent inspection, or any property for the purpose of determining whether the properties complies with or violates any enactment or contains or constitutes a hazard to health or safety.

Accordingly, it is the claims adjustor’s recommendation that this matter be submitted to the City Council for the claim to be rejected.

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City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Christiana Giedd,
Date: 11/08/2022
Subject: LDA Partners
RECOMMENDED ACTION:

Approve and authorize the Mayor to sign Amendment No. 1 to the Professional Services Agreement with LDA Partners to provide Bidding Assistance and Construction Administration for the new Corporation Yard to be located on Doak Boulevard in the not to exceed amount of $144,875 (funding source: AB1600 Corporation Yard Capital Fund).

BACKGROUND:

At the December 10, 2019 City Council meeting, Council approved the Professional Services Agreement with LDA Partners in the not to exceed amount of $415,000 to provide Engineering and Architectural Design Services for the Corporation Yard Project. At this time, there are no contract funds remaining.

DISCUSSION/ANALYSIS:

The new Corporation Yard is currently in the bidding phase with bid opening scheduled for November 17, 2022. Construction is anticipated to begin early 2023. The attached proposal is an amendment to the original Professional Services Agreement with LDA Partners to add Bidding Assistance and Construction Administration to the scope of work.

The following is a summary of the tasks to be completed by LDA Partners as part of Amendment No. 1:
 Bidding Assistance
 Review/Response to RFIs
 Submittal Review
 Review Potential Change Orders
 Issue RFIs or Construction Bulletins if Necessary
 Punchlist/Project Closeout Assistance

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FINANCIAL IMPACT:

The first Amendment to the Professional Services Agreement has a not to exceed amount of $144,875 and will be funded through the AB1600 Corporation Yard Capital Fund. The current balance of this fund is $440,604.21.

Attachments:

1. 1st Amendment Services Agreement_LDA Partners-signed

2. Exhibt A_LDA Partners Proposal

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Professional Services Agreement - Page 1 of 1
Corporation Yard
LDA Partners
AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT BETWEEN

THE CITY OF RIPON AND

LDA PARTNERS
This Amendment to the Professional Services Agreement dated December 10, 2019 (“Amendment”) is made and entered into on, November 8, 2022 (the “Effective Date”) between the City of Ripon, a California municipal corporation (“City”) and LDA (“Consultant”), (together sometimes referred to as the “Parties”).

Section 1. SERVICES. In accordance with the terms and conditions set forth in this Agreement, Consultant agrees to perform all services described in the Consultant’s Scope of Services attached hereto as Exhibit A. In the event of a conflict in or inconsistency between the terms of this Agreement and said scope of services, this Agreement shall prevail.

1.1 Term of Services. This Agreement shall begin upon signature by all Parties and shall end when Consultant completes the work described in said scope of work, or no later than two (2) years from the date this Agreement was signed by City, whichever is longer, unless the term of the Agreement is otherwise terminated or modified, as provided for herein. Notwithstanding the foregoing,

1.2 Standard of Performance. Consultant shall diligently perform all services required in connection with this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices its profession.

Section 2. COMPENSATION.

City hereby agrees to pay Consultant an amount NOT TO EXCEED ONE HUNDRED FORTYFOUR THOUSAND, EIGHT HUNDRED SEVENTY-FIVE DOLLARS ($144,875.00) for all work described within the Cost Proposal set forth in Exhibit A and made a part of this Agreement.

REMAINING TERMS AND CONDITIONS NOT AFFECTED. Unless expressly amended herein, the remaining terms and conditions of the General Services Agreement dated December 10, 2019, shall remain in full force and effect.

The Parties have executed this Agreement as of the date signed by the City.

CITY OF RIPON CONSULTANT
Dean Uecker, Mayor Eric Wohle, Partner

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Attachment: 1st Amendment Services Agreement_LDA Partners-signed (3629 : LDA Partners) 26 October 2022
Mr. Kevin Werner, City Manager
City of Ripon
259 N. Wilma Avenue
Ripon, CA. 95366
Re: Ripon Corporation Yard and Fleet Facility
Dear Mr. Werner:

Thank you for the opportunity to assist you, and the City, with the Bidding & Construction Administration portion of the proposed corporation yard and fleet facility. The following represents our understanding of the project as discussed:

Project Scope:

I. Additional Service from Design & Construction Documents Geotechnical Analysis: $2,875
Civil Engineering Pavement Modifications: $1,200
Mechanical Hood Venting: $ 800
II. Bidding Assistance & Construction Administration (to be billed hourly)

1. Support during the Construction Phase to include:
• Review/respond to RFI’s
• Submittal review
• Review Potential Change Orders
• Issue any RFIs or Construction Bulletins if necessary • Punchlist / Project Closeout

2. Construction Administration Services to include up to 400 hours. (Allowance) Phase I- Additional Services: $ 4,875
Phase II- Construction Administration T&M Allowance $135,000 Reimbursable Allowance: $ 5,000
Total: $ 144,875
Our services will not include:

1. Any Civil Engineering, Mechanical & Plumbing Engineering, Electrical Engineering, or Fire Sprinkler documents, specification, or services.

2. Site utility investigation or potholing to determine location and/or elevation of underground utilities.

3. All reproduction costs.

4. Any fees required by this work.

5. Any offsite improvements or easement acquisition.

6. Revisions to construction documents, beyond the initial bidding RFI, Addenda response contemplated herein. Any revisions beyond those contemplated will be performed on an hourly basis, in accordance with the schedule listed herein.

7. LDA Partners cannot assume responsibility for construction means, methods, techniques, sequences or procedures, safety precautions, programs connected with the work, or for acts and omissions by the Contractor, subcontractors, or others.

8. LDA Partners will not be providing inspections or testing before, during or after construction.

9. Asbestos and/or hazardous materials surveys and/or removal of asbestos or other hazardous materials.

10. Construction administration or other services beyond those listed herein. (Additional services to be billed hourly)

11. Additional services caused by project delays or interruption, or those listed herein.

12. Additional services caused by Contractor errors or default in executing the construction project in a proper or timely manner.

EXHIBIT A 1.3.E.b
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Attachment: Exhibt A_LDA Partners Proposal (3629 : LDA Partners) City of Ripon Corporation Yard- Construction Administration 26 October 2022

13. Non- Building Code Required Signage.

14. LEED documentation or design.

15. Cal Green Commissioning

16. Detailed material take-offs and costs estimates.

17. Completion of NRCA and NRCX forms.

18. Joint Trench Plans/Dry Utility Design/Underground Electrical Design/Site Lighting Design/Gas Design.

19. Gas, Electric, telephone, cable service plans. To be prepared by the Utility

20. Preparing as-built documents.

Should our services be required in addition to these allocations, all additional services will be provided on an hourly basis, in accordance with the following schedule:

Principal Architect $275/hour
Project Architect/Manger $225/hour
Planner: $195/hour
Designer / Interiors: $195/hour
Draftsperson: $150/hour
Clerical $95/hour
Should the project be terminated or extended beyond sixty days from the date of this proposal, the Architect shall be compensated for all services performed to date. All work will be billed on a monthly basis for service performed to date.

Reimbursable expenses are in addition to the compensation for basic services and shall include the actual expenditures made by the Architect and his employees in the interest of the project, at cost plus 15%, which are itemized as follows:

Reproduction Costs
Shipping/Postage
Telephone Charges
Computer Plotting
Mileage outside of San Joaquin County
All monthly billings not paid within 30 days shall be considered past due, and shall accrue interest from the 31th day at a rate of 1-1/2% per month or 18% per annum. The Architect may at his discretion terminate services if payments are not made within 30 days. Changes to the scope of work shall be subject to renegotiation. This proposal is subject to renegotiation if not agreed upon within sixty (60) days. Services provided by the Architect and his Consultants will be performed in a manner consistent with that degree of care and skill ordinarily exercised by members of the same profession currently practicing under similar circumstances. Architects are licensed and regulated by the California Architects Board located at 2420 Del Paso Road, Suite 105, Sacramento, CA 95834.

The Owner agrees to defend, indemnify, and hold the Architect, his employees, and consultants harmless from any claim or third party claim related to services for the Investigation of or remedial work related to asbestos, toxic, hazardous, and/or dangerous materials resulting from the services provided by the Architect pursuant to this Agreement. Should any litigation be commenced between the parties hereto concerning any provision of this Agreement or the rights and obligations of either in relation thereto, the party, the Owner, or the Architect prevailing in such litigation shall be entitled, in addition to such other relief as may be granted, to a reasonable sum as and for attorney's fees and court costs as incurred in such litigation, as determined by a court of competent jurisdiction.

Our office looks forward to the opportunity to work with you and the City, as an effective team, and complete yet another successful project. If you have any questions, please let me know.

Cordially,
Eric Wohle, A.I.A.

President, LDA Partners, Inc.

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Attachment: Exhibt A_LDA Partners Proposal (3629 : LDA Partners) City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Lisa Roos, City Clerk & Finance Director
Date: 11/08/2022
Subject: Audited financial statements
RECOMMENDED ACTION:

No action is required at this time. Resolutions will be presented in December for acceptance of the City of Ripon Financial Statements and the Money Purchase Thrift Pension Plan Financial Statements and the Independent Auditors Reports for the fiscal year end June 30, 2022.

BACKGROUND:

The City utilizes a number of funds to track revenue and expenses used to conduct the business of the various City departments. These funds are classified by three categories - “Operating Funds”, “Capital Funds”, and “Restricted Funds”. Attached is a flowchart showing each of these fund categories along with the breakdown of the different funds within each of these categories.

The City of Ripon’s Financial Statements and Independent Auditor’s Report as of June 30, 2022 has specific requirements and verbiage that must be used based upon auditing standards, which does not necessarily match the City’s day-to-day terminology. The terms used within the audit to refer to our funds are Governmental Funds, Proprietary Funds (also referred to as BusinessLike Activities) and Fiduciary Funds. Below is a description of these funds and how they relate to our flowchart of fund categories.
 Governmental Funds – Most of the City’s basic services are reported in governmental funds that focus on how money flows in and out of those funds and the balances left at year end that are available for spending. These funds are noted on our flowchart as General Fund Operating Funds, Capital Funds and also the Restricted Funds except for Redevelopment.
 Proprietary Funds – The City charges customers for the services it provides.

Sometimes throughout the audit these funds are also noted as Business-Type Activities.

These funds are noted on our flowchart as Enterprise Operating Funds.

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 Fiduciary Funds – These funds are established to serve as the custodian for assets held in a trustee or agency capacity for others and, therefore, cannot be used to support the City’s own programs. These funds are our Successor Redevelopment Agency Funds noted on our flowchart under Restricted funds.

The term “restricted” on our fund category flowchart and within the audit have different meanings. On our fund category flowchart, restricted funds are funds that we have restricted internally for different needs, as noted. In the audit, restricted funds are restricted because of constraints placed on the resources either externally imposed by creditors, grantors, contributors or laws or regulations of other governments, or imposed by law through constitutional provisions or enabling legislation. This may be because of grants or different funding sources that have not yet been expended.

DISCUSSION/ANALYSIS:

The audits for the City of Ripon and for the Money Purchase Thrift Pension Plan for the fiscal year ending June 30, 2022 were completed by Price Paige & Company. As noted in the audit communication letters, there were no significant audit findings, no difficulties encountered between the auditors and staff, and no disagreements between management and the auditors.

The audit communication letters also have verbiage that is required by new auditing standards.

These new standards require the auditors to disclose to the Governing Council areas they have identified as significant risks in the City. These areas were a point of focus for the auditors this year. As noted in the letter, the identification of such risks of material misstatements does not necessarily indicate that there were instances of error or omission.

This memorandum is to serve as a narrative overview and analysis of the financial activities of the City of Ripon for the fiscal year ending June 30, 2022. We encourage readers to consider the information presented here in conjunction with the information that is included in the financial audit.

Financial Highlights:

General Fund:
 General fund operating revenue increased by $2,441,663 (or 19%) as compared to the previous fiscal year.
 General fund operating expenses increased by $1,879,443 (or 16%) as compared to the previous fiscal year.
 During the fiscal year ending June 30, 2022, a total of $237,245 was transferred from the General Fund to Landscape Districts ($63,798), CNG Capital Reserve ($15,878), and CalPERS Contingency Fund ($157,569).
 The City’s share of CalPERS unfunded liability decreased significantly due to the larger than normal returns during the prior fiscal year. Fortunately, not all employees of the City of Ripon participate in PERS, so the City’s unfunded liability is much less than other municipalities ($3,257,160 as of June 30, 2021 PERS Valuation Report). Since fiscal year 2017-2018, $1,339,369 has been transferred to a CalPERS Contingency fund and a $250,000 prepayment towards the City’s unfunded accrued liability has been made.

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Street & Road Funds:
 At the end of the fiscal year ending June 30, 2022, the fund balances of the Street & Road Operating fund was $3,389,430 and the Street & Road Reserve fund was $2,461,384.

The Street & Road Operating fund balance increased by $454,701 during fiscal year 21/22.
 SJCOG changed the policy for FY 21/22 regarding the use of LTF revenue that impacts the City of Ripon. The City must allocate 25% of this revenue to transit related expenses.

Based upon the timing of receiving these funds, the City of Ripon will have lower funds available by 25% in FY 22/23.
 The following table is a summary of the Street & Road Operating fund revenue and expenses for the fiscal year ending June 30, 2022 as compared to the previous fiscal year:

FY 2020-21 FY 2021-22
Operating Revenue $1,827,882 $4,954,583
Highway User Tax Account 358,310 361,781
Local Transportation Fund 745,833 799,211
Measure K Local Streets 319,277 392,101
Senate Bill 1 287,692 326,350
Street & Road Misc. Revenue1 116,770 3,075,140
Operating Expenses $573,665 $767,064
Street & Road Maintenance 241,433 373,307
Landscape Maintenance 319,514 371,945
Administration 12,156 18,015
Engineering 562 3,797
Capital Projects $775,553 $3,732,818
Street & Road Operating Fund Ending
Balance $2,934,729 $3,389,430
 The following is a summary of major Street & Road capital expenses during the year ending June 30, 2022:
o $7,392 for the Ripona and Parkview Safe Route to School Project o $3,677,074 for the Stockton Avenue Rehabilitation Phase 2 Project o $21,573 for the Lower Stanislaus River Multi-Use Trail Project o $26,779 for the Utility Maintenance Asphalt Project

1 Includes grant income in FY 2020-21 for the Stockton Rehabilitation, Doak Boulevard Shared Use Path, Lower Stanislaus River Multi-Use Trail, and 2nd Street Safe Route to School Improvements projects and in FY 2021-22 for the Stockton Rehabilitation and Lower Stanislaus River Multi-Use Trail projects.

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Enterprise Operating Funds:
 At the end of the fiscal year ending June 30, 2022, the Enterprise Operating funds had the following activity by source:

FY 2020-21 FY 2021-22
Fund Ending
Balance Income Expenses
Balance
Prior to
Transfer

Transfer

Final Ending
Balance
Water $926,514 $3,816,116 ($2,509,104) $2,233,526 ($1,307,012) $926,514 Sewer $763,709 $1,927,363 ($1,335,463) $1,355,609 ($645,000) $710,609 Garbage $211,230 $2,403,992 ($2,309,685) $305,537 ($94,307) $211,230  During fiscal year 2021-2022, the Water and Sewer enterprise operating funds were able to transfer to their respective enterprise capital funds the recommended amount made by Tom Pavletic from Municipal Financial Services for future capital replacement.

However, the garbage fund was only able to transfer the current year’s cash flow and not the recommended amount of $280,000.

Enterprise Capital Funds:
 The following is a summary of the fund balance of each enterprise capital account for fiscal year ending June 30, 2022, as compared to the previous fiscal year:

FY 2020-21 FY 2021-22
Fund Ending
Balance Income Expenses
Balance
Prior to
Transfer

Transfer

Final Ending
Balance
Water $7,368,413 $242,092 ($1,684,122) $5,926,383 $1,307,012 $7,233,395 Sewer $1,875,486 $11,341 ($554,124) $1,332,703 $355,000 $1,687,703 Sewer WWTP Reserve $864,885 $6,240 ($0) $871,125 $290,000 $1,161,125 Garbage $988,842 $12,324 ($28,338) $972,828 $94,307 $1,067,135 Storm Drain $465,229 $3,130 ($97,337) $371,022 $0 $371,022  The following is a summary of major Enterprise Capital expenses during the year ending June 30, 2022:

Water Enterprise Capital Summary:
o $902,000 for drilling of Well #19
o $25,000 for design of Well #3
o $580,000 for Stockton Avenue Rehabilitation Project
o $28,000 for Utility Maintenance Asphalt Patch Project o $14,000 for a radio study
o $8,000 for new equipment
o $127,000 for the purchase of new endpoints

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Sewer Enterprise Capital Summary:
o $532,000 for Stockton Avenue Rehabilitation Project
o $14,000 for a radio study
o $8,000 for new equipment
Garbage Enterprise Capital Summary:
o $28,000 for replacement garbage cans
Storm Drain Enterprise Capital Summary:
o $97,000 for Stockton Avenue Rehabilitation Project
PFFP Capital Funds:
 The following is a summary of the fund balance of each PFFP Capital Fund for fiscal year ending June 30, 2022, as compared to the previous fiscal year:

FY 2020-21 FY 2021-22
Fund Ending
Balance Income Expenses Final Ending Balance
Water $2,639,214 $155,147 $0 $2,794,361
SSJID Connection Reserve $774,052 $44,332 $0 $818,384
Garbage ($668,185) $14,395 ($9,817) ($663,607)
Wastewater $5,133,141 $247,328 $0 $5,380,469
Storm Drain $2,167,143 $112,916 $0 $2,280,059
Transportation $717,616 $507,311 $0 $1,224,927
RTIF $1,246,220 $64,461 $0 $1,310,681
Parks & Recreation $1,104,351 $98,445 $0 $1,202,796
Parks & Rec loan repayment funds $548,250 -$8,727 $0 $539,523 Police ($1,198,258) $9,372 ($8,632) ($1,197,518)
City Hall ($3,786,868) $19,612 ($27,296) ($3,794,552)
Corporation Yard $589,479 $31,139 ($175,555) $445,063
Library ($605,307) $2,540 ($4,365) ($607,132)
TOTAL $8,660,848 $9,733,454
 The following is a summary of major PFFP capital expenses during the year ending June 30, 2022:
o $175,000 for the Corporation Yard design
 The City advanced construction for the City Hall and Library buildings and constructed each to a size that accommodates the future growth of the General Plan, which resulted in negative balances to these funds since fees from future growth have not yet been collected. With that, the revenue from this growth over the term of the buildout of the City’s general plan is necessary to relieve these negative balances. Goodwin & Associates re-evaluated the negative fund balances in early 2021 to ensure that the PFFP development fees for these funds are sufficient to ensure that enough revenue is collected from the future growth within the City’s general plan.

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 In 2011, the Ripon Redevelopment Agency loaned the Parks and Recreation PFFP Fund $3.3 million to construct the Mistlin Softball Fields. The loan repayment was made with half the Parks and Recreation PFFP fees collected since the loan was made. As of March 30, 2020, the total loan amount has been collected, of which $1,689,238 will remain with the City and $539,523 will be returned to the State to be distributed to the various taxing entities at some point in the future. Until the funds are returned, this amount will continue to show as a liability in the table below.

Debt Obligations:
 At the end of the fiscal year ending June 30, 2022, the City’s total debt obligation was $29,089,374. This balance is summarized in the table below:

Debt Balance @
6/30/21
Additions in
FY 21/22
Paid in
FY 21/22
Ending Balance
@ 6/30/22
2011 Sewer Bonds $880,000 $160,000 $720,000
2006 Water Revenue Bonds $4,670,000 $300,000 $4,370,000 2012 Water Revenue Bonds $1,710,000 $225,000 $1,485,000 2020 Redevelopment Bonds $20,005,512 $224,707 $19,780,805 Parks & Recreation loan to
City and Redevelopment
Agency
$548,250 -$8,727 $0 $539,523
Water Surcharge Installation
Project; repaid by surcharges
collected until 2025
$826,841 $192,716 $634,125
Mistlin Indoor Facility
Parking Lot; repaid by facility
lease
$1,642,721 $82,800 $1,559,921
TOTAL $30,283,324 ($8,727) $1,185,223 $29,089,374
Economic Development Incentive Program:
 In May 2017, through Resolution 17-22, the City Council adopted an Economic Development Incentive Program to stimulate private sector investment in sales tax producing development in Ripon with the goal of retaining and growing the tax structure and jobs that are essential to maintaining a high quality of life for Ripon residents.  At the end of the fiscal year ending June 30, 2022, the City’s outstanding Economic Incentives were $2,296,465. This balance is summarized in the table below:

Business Original
Incentive
Balance @
6/30/21
Tax received to offset
incentive in FT 21/22
Ending
Balance @
6/30/22
Boat Country $66,944 $0 $0 $0
JKB Living $655,417 $612,823 $44,530 $568,293
Happy Daze RV $1,311,746 $1,311,746 $0 $1,311,746
TownePlace Suites by
Marriott (added in FY 21/22)
$416,426 $0 $0 $416,426
TOTAL $1,924,569 $44,530 $2,296,465

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Money Purchase Thrift Pension Plan (Non-PERS Retirement Plan):

The audit for the Money Purchase Thrift Pension Plan Financial Statements is also attached for review. The net position available for benefits decreased $1,205,709 during fiscal year ending June 30, 2022. During fiscal year ending June 30, 2022, the Plan had a significant depreciation in the fair value of investments especially compared to the prior year, which had significant appreciation due to the returns in the market. In addition, in fiscal year ending 2021, there was a large amount of benefits paid to participants due to rollovers or distributions of 9 employees compared to 2 in fiscal year ending June 30, 2022.

Attachments:

1. Budget Category Reporting Summary

2. Fund Balances 2022.06.30

3. 2022.06.30 City of Ripon - Audit Communication Letter

4. 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

5. 2022.06.30 City of Ripon - Single-Audit Report

6. 2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Audit Communication Letter

7. 2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements

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Budget Category Reporting Summary 2.A.a
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Attachment: Budget Category Reporting Summary (3615 : Audited financial statements) Fund Description
Beginning Balance
7/1/2021 YTD Income YTD Expenditures YTD Transfers
Ending Balance
6/30/2022
OPERATING FUNDS
General Funds
General Fund               5,215,340.02 $15,220,108.59 (13,697,018.36)               ($237,245.49) 6,501,184.76 Sick Leave Contingency                  353,947.24 $1,599.80 $0.00 $0.00                  355,547.04 PERS Contingency                  972,997.66 $4,830.02 $0.00 $157,568.97 1,135,396.65 Healthcare Contingency                  208,135.65 $889.20 $0.00 $0.00                  209,024.85 Liability SIR Contingency                  624,406.97 $2,667.60 $0.00 $0.00                  627,074.57 Litigation/Natural Disaster Contingency                  505,514.03 $1,970,472.94 $0.00 $0.00 2,475,986.97 Asset/Liability adjustments                    46,075.42 $54,342.88 $0.00 $0.00                  100,418.30 Street & Road Funds
Street & Roads $2,934,729.30 $4,954,583.01 ($4,499,881.92) $0.00 $3,389,430.39 Street & Road Reserve               2,451,594.00 $9,790.26 $0.00 $0.00 2,461,384.26 Transit funds $22,504.86 $55,449.05 ($55,926.28) $0.00 $22,027.63 Enterprise Operating Funds
Water Operating                  926,513.59 $3,816,116.28 ($2,509,104.61) ($1,307,011.67)                  926,513.59 Sewer Operating                  763,708.89 $1,927,363.07 ($1,335,462.69) ($645,000.00)                  710,609.27 Garbage Operating                  211,230.50 $2,403,992.23 ($2,309,684.88) ($94,307.35)                  211,230.50 $         15,236,698.13 $         30,422,204.93 $           (24,407,078.74) $             (2,125,995.54) $         19,125,828.78 CAPITAL FUNDS
General Capital Funds
Parks & Recreation                  930,684.27 $89,359.57 ($138,615.05) $0.00                  881,428.79 Jack Tone Golf Course Capital Reserve                  401,758.25 $71,223.18 $0.00 $0.00                  472,981.43 CNG Station Capital Reserve                  202,066.30 $1,458.00 ($23,419.80) $15,878.35                  195,982.85 Department Funds $1,547,067.66 $90,677.73 ($578,131.14) $0.00 $1,059,614.25 Underground Utilties $10,124.77 $73.05 $0.00 $0.00 $10,197.82 Mitigation Fees               7,922,809.43 $115,633.92 $0.00 $0.00 8,038,443.35 Enterprise Capital Funds
Water Enterprise Capital               7,368,413.00 $242,091.98 ($1,684,122.19) $1,307,011.67 7,233,394.46 Sewer Enterprise Capital               1,875,485.96 $11,340.61 ($554,123.94) $355,000.00 1,687,702.63 Sewer WWTP Reserve                  864,884.96 $6,240.53 $0.00 $290,000.00 1,161,125.49 Garbage Enterprise Capital                  988,842.10 $12,323.62 ($28,338.21) $94,307.35 1,067,134.86 Storm Drain Enterprise Capital                  465,228.99 $3,130.12 ($97,336.81) $0.00                  371,022.30 PFFP Capital Funds
Water               2,639,213.83 $155,147.46 $0.00 $0.00 2,794,361.29 SSJID Connection Reserve                  774,052.44 $44,332.20 $0.00 $0.00                  818,384.64 Garbage                 (668,185.11) $14,395.27 ($9,816.51) $0.00                 (663,606.35) Wastewater               5,133,140.77 $247,327.76 $0.00 $0.00 5,380,468.53 Storm Drainage               2,167,143.66 $112,916.05 $0.00 $0.00 2,280,059.71 Transportation $717,616.41 $507,310.99 $0.00 $0.00 $1,224,927.40 Regional Transportation Impact Fee $1,246,219.84 $64,461.10 $0.00 $0.00 $1,310,680.94 Parks & Recreation $1,107,552.14 $95,244.05 $0.00 $0.00 $1,202,796.19 Parks & Recreation loan repayment funds                  545,049.46 ($5,526.82) $0.00                  539,522.64 Police ($1,198,258.28) $9,371.56 ($8,632.14) $0.00 ($1,197,518.86) City Hall             (3,786,867.64) $19,611.53 ($27,295.88) $0.00 (3,794,551.99) Corporation Yard                  589,479.31 $31,138.98 ($175,554.85) $0.00                  445,063.44 Library                 (605,307.31) $2,539.69 ($4,364.90) $0.00                 (607,132.52) $         31,238,215.21 $           1,941,822.13 $             (3,329,751.42) $              2,062,197.37 $         31,912,483.29 RESTRICTED FUNDS
Special Revenue/Restricted Funds
Benefit Assessment Districts                  278,846.70 $161,937.54 $0.00 $0.00                  440,784.24 NPSP Assessment District                  802,039.47 $5,787.08 $0.00 $0.00                  807,826.55 Landscape & Lighting Districts                  206,850.55 $443,558.52 ($464,954.41) $63,798.17                  249,252.83 Redevelopment ‐ Housing $4,124,336.69 $971,260.70 $0.00 $0.00 $5,095,597.39 Redevelopment ‐ City $1,718,980.83 $12,403.24 $0.00 $0.00 $1,731,384.07 Redevelopment ‐ State $1,231,349.62 $785,744.85 ($1,132,279.69) $0.00 $884,814.78 Housing Fund               1,467,634.54 $283,758.16 $52,446.85 $0.00 1,803,839.55 CDBG                               0.00 $35,836.96 ($35,836.96) $0.00                                 ‐ $           9,830,038.40 $           2,700,287.05 $             (1,580,624.21) $                    63,798.17 $         11,013,499.41 GRAND TOTAL $  56,304,951.74 $  35,064,314.11 $    (29,317,454.37) $                       0.00 $  62,051,811.48 Bank Accounts‐Balances 5/31/2022 Bank Accounts
B of Stkn ‐Gen                  2,367,206.40 B of Stkn ‐Gen                    26,441.41 Petty Cash                              Petty Cash 700.00                          700.00 Police ‐ petty cash                              Police ‐ petty cash 400.00                          400.00 Petty Cash ‐ A/C                              Petty Cash ‐ A/C 200.00                          200.00 B of Stkn.‐PR                           B of Stkn.‐PR 5,999.99                       6,000.00 B of Stkn.‐Rec                        18,376.80 B of Stkn.‐Rec                    36,192.43 B of Stkn.‐PD Voucher Pr                           B of Stkn.‐PD Voucher Pr 1,984.40 o                       1,984.40 B of America‐Prkg Cit.                        11,345.88 B of America‐Prkg Cit.                    14,757.88 LAIF                32,519,941.09 LAIF             35,519,941.09 Bk of New York                26,364,893.84 Bk of New York             26,445,097.53 Redev. Debt ‐ 2020                                   Redev. Debt ‐ 2020 0.45                               0.50 Water Bonds‐2006                                 Water Bonds‐2006 94.06                            94.11 Water Bonds‐2012                                   Water Bonds‐2012 2.13                               2.13 BANK TOTALS 61,291,145.04 $      BANK TOTALS 62,051,811.48 $ TOTAL RESTRICTED FUNDS
CITY OF RIPON
FUND BALANCES SUMMARY
TOTAL CAPITAL FUNDS
TOTAL OPERATING FUNDS
2021‐2022
June‐22 FINAL
C:\Users\lroos\Documents\Month End\06.2022\11. cash June 2022 FINAL.xls - Summary Fund Balances 2022.06.30

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Attachment: Fund Balances 2022.06.30 (3615 : Audited financial statements) October 26, 2022
To the City Council of the
City of Ripon, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Ripon, California (the City) for the year ended June 30, 2022. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated May 4, 2022. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2022. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the City’s financial statements was:

Management’s estimate of the indirect cost allocation is based on actual costs incurred in each fund. We evaluated the key factors and assumptions used to develop the indirect cost allocation in determining that it is reasonable in relation to the financial statements taken as a whole.

The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management.

Management has corrected all such misstatements. The attached schedule summarizes material misstatements detected as a result of our audit procedures.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. 2022.06.30 City of Ripon - Audit Communication Letter

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Attachment: 2022.06.30 City of Ripon - Audit Communication Letter (3615 : Audited financial statements) Management Representations
We have requested certain representations from management that are included in the management representation letter dated October 26, 2022.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

In addition to those matters already communicated to you in our engagement letter, we identified the following significant risks of material misstatements as part of our audit planning:

1. Fund balance is not properly classified in accordance with GASB 54

2. Manual adjustments (journal entries) posted to the City’s cash accounts are not accurate, approved, or are potentially fraudulent
Please note that the identification of significant risks of material misstatement does not necessarily indicate that there were instances of errors or omissions. These are areas that are considered higher risk, in our professional judgment.

Other Matters
We applied certain limited procedures to management’s discussion and analysis which is required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on individual non-major fund financial statements and additional information on the Successor Agency Trust Fund, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with the modified cash basis of accounting, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

Restriction on Use
This information is intended solely for the information and use of City Council and management of the City of Ripon, California, and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
2022.06.30 City of Ripon - Audit Communication Letter

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Attachment: 2022.06.30 City of Ripon - Audit Communication Letter (3615 : Audited financial statements) Client: RIPON, CITY OF
Engagement: 6‐30‐2022 AuditCurrent Period: 06/30/2022Workpaper: Attachment: Adjusting Journal Entries Account Description
WorkpaperReference Debit Credit Net Income Effect
AJE01 O200To correct CRJE02 posted by client (posted in the wrong direction) 300‐28000 DUE TO OTHER FUNDS 165,599.26 0.00300‐10100 CASH IN COMBINED FUND 0.00 165,599.26 900‐17560 DUE FROM OTHER FUNDS 0.00 165,599.26
900‐10100 CASH IN COMBINED FUND 165,599.26 0.00
Total 331,198.52 331,198.52 0.00
AJE02 RE400To correct transfer activity posted by client. 110‐40001 OPERATING TRANSFERS 192,716.00 0.00
110‐99999 Transfers Out (PPC Account) 0.00 192,716.00
Total 192,716.00 192,716.00 0.00
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Attachment: 2022.06.30 City of Ripon - Audit Communication Letter (3615 : Audited financial statements)

CITY OF RIPON

CALIFORNIA

FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITOR’S REPORT

FOR THE YEAR ENDED
JUNE 30, 2022
2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

CALIFORNIA
JUNE 30, 2022

TABLE OF CONTENTS
Page
Independent Auditor’s Report ..................................................................................................................... 1 Management’s Discussion and Analysis ..................................................................................................... 6 Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position – Modified Cash Basis ....................................................................... 18 Statement of Activities – Modified Cash Basis ............................................................................ 19 Fund Financial Statements
Governmental Funds
Balance Sheet – Modified Cash Basis ........................................................................................ 20 Statement of Revenues, Expenditures and Changes in Fund Balances – Modified Cash Basis ................................................................................................................. 21 Proprietary Funds
Statement of Net Position – Modified Cash Basis ....................................................................... 22 Statement of Revenues, Expenses and Changes in Fund Net Position – Modified Cash Basis ................................................................................................................. 23 Fiduciary Funds
Statement of Fiduciary Net Position – Modified Cash Basis – Private-Purpose Trust Funds ............................................................................................................................... 24 Statement of Changes in Fiduciary Net Position – Modified Cash Basis – Private-Purpose Trust Funds .................................................................................................... 25 Notes to the Basic Financial Statements .............................................................................................. 26 Supplementary Information
Non-Major Special Revenue Funds
Combining Balance Sheet – Modified Cash Basis ...................................................................... 51 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Modified Cash Basis ................................................................................................................. 56 Additional Information on the Successor Agency Trust Fund ............................................................... 61 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) 1 INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and
Members of the City Council
City of Ripon, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying modified cash basis financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Ripon, California (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the modified cash basis financial statements referred to above present fairly, in all material respects, the respective modified cash basis financial position of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City of Ripon, California, as of June 30, 2022, and the respective changes in modified cash basis financial position, for the year then ended in accordance with the modified cash basis of accounting.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter—Basis of Accounting
We draw attention to Note 1 of the financial statements, which describes the basis of accounting. The financial statements are prepared on the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with the modified cash basis of accounting described in Note 1, and for determining that the modified cash basis of accounting is an acceptable basis for the preparation of the financial statements in the circumstances. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) 2 In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements and additional information on the Successor Agency Trust Fund are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and additional information on the Successor Agency Trust Fund are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) 3 Other Matters
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the management’s discussion and analysis but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 26, 2022, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Clovis, California
October 26, 2022
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CITY OF RIPON

CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
6 Our discussion and analysis of the City of Ripon’s financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2022, within the limitations of the City’s modified cash basis of accounting. Please read this management’s discussion and analysis in conjunction with the City’s financial statements that begin on page 18.

FINANCIAL HIGHLIGHTS
The net position of the City is the difference between total assets and total liabilities and includes restricted and unrestricted funds of both governmental and business-type activities. As summarized in Table 1 on page 10, the City’s assets exceeded its liabilities by $47,225,493 (net position) for the fiscal year ended June 30, 2022. This compares favorably to the previous year’s net position of $41,422,039. This increase is due mainly to capital development fees, which are restricted funds and increased property taxes, motor vehicle in lieu fees, and interest income, which are unrestricted funds. This net position is comprised of the following:
 Capital related debt of $6,575,000 represents debt recorded in the proprietary funds for capital assets. The debt is associated with the water and sewer enterprise funds. The City does not capitalize capital assets; therefore, this category solely reflects the debt. Capital related debt of $6,575,000 constitutes a negative net position.
 Restricted net position of $38,521,396 represents the portion restricted for public safety, street construction and maintenance, assessment districts, capital projects, mitigation fees, and low- and moderate-income housing.
 Unrestricted net position of $15,279,097 represents the portion available to maintain the City’s obligations to citizens and creditors. These unrestricted funds are made up of committed, assigned and unassigned funds. Committed funds are funds approved by the City Council for a specific purpose. Assigned funds are funds that are constrained by the City’s intent to be used for a specific purpose. Unassigned funds are funds that are not restricted, committed, or assigned.

Below is a summary of unrestricted funds:
2022 2021
General Fund Reserves:

Sick Leave Contingency $ 355,547 $ 353,947
PERS Leave Contingency 1,135,397 972,998
Healthcare Contingency 209,025 208,136
Litigation Self-Insured Retention Contingency 627,075 624,407 Litigation/Natural Disaster Contingency 2,475,987 505,514 Operating Reserve 1,412,073 3,397,624
Subsequent Year Budget Deficit 3,344,729 -
Street and Road Reserve Fund 2,461,384 2,451,596
Street and Road Operations (544,904) -
General Capital Funds:

Parks and Recreation 881,429 930,684
CNG Station Capital Reserve 202,066 202,066
Department Capital Funds 1,526,512 1,547,068
Ripon Lighting Fund (21,343) (48,960)
Enterprise Funds * 1,901,195 1,214,120 *
Total Unrestricted Funds $ 13,046,275 15,279,097 $
* Enterprise funds are considered unrestricted however, these must be used in accordance with the laws governing the City's various enterprise funds. Also, certain reclassifications were made to this table as it relates to unrestricted funds, but does not affect any prior year financial statement numbers. 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
7  During the fiscal year ended June 30, 2019, City staff completed a Reserve Study and City Council approved a policy regarding reserve balances. These policies set goals for the General Fund Reserve, Sick Leave Contingency Reserve, CalPERS Reserve, Healthcare Deductible Reimbursement Reserve, Workers Compensation/Liability Self Insured Retention Reserve and the Natural Disaster/Litigation Reserve. These reserves were funded during the fiscal year ended June 30, 2019 through the budgeting process. These balances are reviewed annually to confirm the City is in compliance with the policies.
 During the fiscal year ended June 30, 2019, City Council created a policy of transferring General Fund dollars to the Landscape Maintenance Districts at the end of the year that have an annual operating deficit and do not have a fund balance to cover the annual deficit. This analysis is completed at the end of the fiscal year and transfers are presented to the City Council for approval.

For fiscal year ended June 30, 2022, $63,798 was transferred from the General Fund to four different Landscape Maintenance Districts to cover their deficit fund balances.

USING THIS ANNUAL REPORT
This annual report is presented in a format consistent with the presentation requirements of the Governmental Accounting Standards Board, as applicable to the City’s modified basis of accounting.

Report Components
This annual report consists of the following four parts:
1) Government-Wide Financial Statements. The Statement of Net Position and the Statement of Activities (on pages 18-19) provide information about the activities of the City government-wide (or as a whole) and present a longer-term view of the City’s finances. 2) Fund Financial Statements. Fund financial statements (beginning on page 20) focus on the individual parts of the City government. Fund financial statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant (major) funds. For governmental activities, these statements tell how these services were financed in the short term, as well as what remains for future spending. For proprietary activities, these statements offer short-term and long-term financial information about the activities, which the City operates like businesses, such as the water, sewer and refuse services. 3) Notes to the Financial Statements. The notes to the financial statements are an integral part of the government-wide and fund financial statements and provide expanded explanation and detail regarding the information reported in the statements.
4) Supplementary Information. The annual report includes optional financial information, such as management’s discussion and analysis, combining statements for non-major funds (that are added together and shown in the fund financial statements in a single column) and additional information on the Successor Agency Trust Fund. This other supplementary financial information is provided to address certain specific needs of various users of the City’s annual report.

Basis of Accounting
The City has elected to present its financial statements on a modified cash basis of accounting. This modified cash basis of accounting is a basis of accounting other than accounting principles generally accepted in the United States of America. Basis of accounting is a reference to when financial events are recorded, such as the timing for recognizing revenues, expenses, and their related assets and liabilities.

Under the City’s modified cash basis of accounting, revenues and expenses and certain related assets, liabilities, and deferred inflows and outflows are recorded when they result from cash transactions or events.

As a result of the use of this modified cash basis of accounting, certain assets and their related revenues (such as accounts receivable and revenue for billed or provided services not yet collected, and other accrued 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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CITY OF RIPON

CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
8 revenue and receivables) and certain liabilities and their related expenses or expenditures (such as accounts payable and expenses for goods or services received but not yet paid, and other accrued expenses and liabilities) are not recorded in these financial statements, with the exception of long-term liabilities arising from cash transactions. In addition, other economic assets, deferred outflows, liabilities, and deferred inflows that do not arise from a cash transaction or event (such as donated assets and postemployment benefit obligations) are not reported, and the measurement of reported assets and liabilities does not involve adjustment to fair value. Lastly, the City does not recognize its investment in capital assets in its statement of net position.

Therefore, when reviewing the financial information and discussion within this annual report, the reader should keep in mind the limitations resulting from the use of the modified cash basis of accounting.

Reporting the City as a Whole
The City’s Reporting Entity Presentation
This annual report includes all activities for which the City of Ripon’s City Council is fiscally responsible.

City management considered all potential component units for inclusion in the reporting entity by applying the criteria set forth in accounting principles generally accepted in the United States of America. The City concluded that there are no potential component units which should be included in the reporting entity.

The Government-Wide Statement of Net Position and the Statement of Activities Management’s analysis of the City as a whole begins on page 6. The government-wide financial statements are presented on pages 18 and 19. The Statement of Net Position and Statement of Activities report information about the City as a whole and its activities. These statements include all the City’s assets, liabilities, and deferred inflows and outflows resulting from the use of the modified cash basis of accounting, as further defined in the notes to the financial statements.

These two statements report the City’s net position and changes therein. Keeping in mind the limitation of the modified cash basis of accounting, the City’s net position, the difference among assets, deferred outflows, liabilities, and deferred inflows is one way to measure the City’s financial health or financial position. Over time, increases or decreases in the City’s net position are one indicator of whether its financial health is improving or deteriorating. Other nonfinancial factors should also be considered, such as changes in the City’s sales tax base and the condition of the City’s roads, to assess the overall health of the City.
1) Governmental activities. Most of the City’s basic services are reported here, including the general administration, police, streets, public works and recreation. Property taxes, sales and use taxes, charges for services, operating grants, and contributions finance most of these activities. 2) Business-type activities. The City charges a fee to customers to help it cover all or most of the cost of certain services it provides. The City’s water, sewer, and refuse service are reported here.

Reporting the City’s Most Significant Funds
The Fund Financial Statements
Management’s analysis of the City’s major funds begins on page 14 and provides detailed information about the most significant funds, not the City as a whole. Some funds are required to be established by State law.

However, the City Council establishes certain other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other money.

The City has three types of funds: governmental, proprietary and fiduciary. 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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CITY OF RIPON

CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
9  Governmental Funds. Most of the City’s basic services are reported in governmental funds that focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds report the acquisition of capital assets and payments for debt principal as expenditures, not changes to asset and debt balances. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. The City uses the modified cash basis of accounting and, accordingly, there are no reconciling differences between the governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds. The City considers the General Fund, Streets & Roads Fund, and Capital Project Fund to be its significant, or major, governmental funds.

All other governmental funds are aggregated in a single column titled “Non-major Special Revenue Funds.”
 Proprietary Funds. The City charges customers for the services it provides. These services are generally reported in proprietary funds. Proprietary funds are reported in the same way all activities are reported in the Statement of Net Position and Statement of Activities. For example, principal payments on long-term debt are recorded as a reduction to the liability. The City’s proprietary (enterprise) fund financial statements are essentially the same as the business-type activities we report in the government-wide financial statements. The City utilizes the modified cash basis of accounting and, accordingly, capital assets are not capitalized or depreciated. The City has three enterprise funds: Water, Sewer, and Refuse.
 Fiduciary Funds. Private Purpose Trust Funds are established to serve as the custodian for assets held in a trustee or agency capacity for others and, therefore, cannot be used to support the City’s own programs. The City has one private purpose trust fund known as the Successor Agency Trust Fund which holds the assets and accounts for the activities related to the winding down of the former Redevelopment Agency.

Net Position – Modified Cash Basis
The City’s combined net position resulting from modified cash basis transactions or events increased from $41,422,039 to $47,225,493 between fiscal years 2021 and 2022. Looking at the net position and net expenses of governmental and business-type activities separately, governmental activities had a larger increase than business-type activities.

Table 1 on the following page shows a breakdown and comparison of these activities. 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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CITY OF RIPON

CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
10 TABLE 1:

Total
Percentage
Change
2021 2022 2021 2022 2021 2022 2021-2022
Cash and investments $ 15,980,978 $ 19,851,870 $ 1,901,195 $ 1,848,244 $ 17,882,173 $ 21,700,114 21%Cash and investments - restricted 31,347,872 32,639,806 244 31,348,116 96 32,639,902 4% Internal balances 634,124 826,841 (826,841) (634,124) - - 0% Total assets 53,125,800 48,155,691 1,074,598 1,214,216 49,230,289 54,340,016 10% Long-term liabilities:

Loan due to private-purpose trust funds 548,250 539,523 - - 548,250 539,523 -2% Debt due within one year - - 685,000 715,000 685,000 715,000 4% Debt due in more than one year - - 6,575,000 5,860,000 6,575,000 5,860,000 -11% Total liabilities 539,523 548,250 7,260,000 6,575,000 7,808,250 7,114,523 -9% Capital related debt - - (8,086,841) (6,575,000) (8,086,841) (6,575,000) -19% Restricted for:

Public safety 174,997 184,461 - - 174,997 184,461 5%
Street construction and maintenance 2,934,728 3,934,333 - - 2,934,728 3,934,333 34% Assessment districts 255,822 270,601 - - 255,822 270,601 6% Capital outlay 23,706,370 24,289,622 - - 23,706,370 24,289,622 2% Mitigation fees 7,922,809 8,038,443 - - 7,922,809 8,038,443 1% Low and moderate income housing 1,467,635 1,803,840 - - 1,467,635 1,803,840 23% Debt service - - 244 96 244 96 -61%
Unrestricted 11,145,080 14,064,977 1,901,195 1,214,120 13,046,275 15,279,097 17% Total Net Position $ 52,586,277 47,607,441 $ (6,185,402) $ (5,360,784) $ 41,422,039 $ 47,225,493 $ 14% Governmental Activities Business-Type Activities Total
The net position of the City’s governmental activities increased 10.46% to $52,586,277. However, $38,521,300 of this amount is restricted regarding the purposes for which it can be used. Consequently, unrestricted amounts showed $14,064,977 at the end of this year. A summary of the total unrestricted funds, including these governmental activities, is noted on page 6 under Financial Highlights. 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report 2.A.d Packet Pg. 99
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CITY OF RIPON

CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
11 Net Position – Modified Cash Basis
(10,000,000)
-
10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 Governmental Business‐Type
20212022
Changes from 2021 to 2022 reflect an increase of 14.01% in net position, an increase of 10.46% for governmental activities and an increase of 13.33% for business-type activities. Changes in Net Position – Modified Cash Basis For the year ended June 30, 2022, net position (resulting from modified cash basis transactions or events) changed as follows on page 12. 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report 2.A.d Packet Pg. 100
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CITY OF RIPON

CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
12 Total
Percentage
Change
2021 2022 2021 2022 2021 2022 2021-2022
RevenuesProgram revenues:

Charges for services 1,525,929 $ 2,212,168 $ 7,819,460 $ 8,137,665 $ 9,345,389 $ 10,349,833 $ 11% Operating grants and contributions 1,769,336 1,879,180 - - 1,769,336 1,879,180 6% Capital grants and contributions 3,439,030 5,527,209 437,802 398,915 3,876,832 5,926,124 53% General revenues
Taxes:

Property taxes 2,263,340 2,532,657 - 2,263,340 - 2,532,657 12% Sales and use taxes 3,383,767 4,626,645 - 3,383,767 - 4,626,645 37% Other 292,763 328,848 153,239 188,030 446,002 516,878 16% Motor vehicle in lieu 1,725,970 1,809,713 - 1,725,970 - 1,809,713 5% American rescue plan act 1,959,940 - - - 1,959,940 - 100%Investment income 409,411 289,482 23,136 14,495 432,547 303,977 -30% Miscellaneous 668,774 694,051 - - 694,051 668,774 -4%
Total revenue 21,834,616 15,503,597 8,433,637 8,739,105 23,937,234 30,573,721 28% ExpensesAdministrative 40,667 71,133 - - 40,667 71,133 75% Legislative 2,767 3,616 - - 2,767 3,616 31%
Police 6,749,793 7,805,549 - - 6,749,793 7,805,549 16%
Streets and public works 1,829,400 1,937,767 - - 1,829,400 1,937,767 6% Culture and recreation 2,072,375 2,238,190 - - 2,072,375 2,238,190 8% Community development 277,132 5,676 - - 277,132 5,676 -98% Redevelopment 196,592 216,357 - - 196,592 216,357 10%
Other 99,279 116,419 - - 99,279 116,419 17%
Capital outlay 2,041,040 6,906,310 - - 2,041,040 6,906,310 238% Water - - 2,015,165 1,984,104 2,015,165 1,984,104 -2%
Sewer - - 1,135,228 1,175,464 1,135,228 1,175,464 4%
Refuse - - 2,105,818 2,309,682 2,105,818 2,309,682 10%
Total expenses 19,301,017 13,309,045 5,256,211 5,469,250 18,565,256 24,770,267 33% Excess (deficiency) before transfers 2,194,552 2,533,599 3,177,426 3,269,855 5,371,978 5,803,454 8% Transfers 2,445,237 2,317,192 (2,317,192) (2,445,237) - - Increase in net position 4,511,744 4,978,836 860,234 824,618 5,371,978 5,803,454 8% Net position - beginning 47,607,441 43,095,697 (7,045,636) (6,185,402) 36,050,061 41,422,039 Net position - ending $ 52,586,277 47,607,441 $ (6,185,402) $ (5,360,784) $ 41,422,039 $ 47,225,493 $ Governmental Activities Business-Type Activities Total
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CITY OF RIPON

CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
13 Governmental Activities
The Statement of Activities format is significantly different from a typical Statement of Revenues, Expenses and Changes in Fund Balance. Expenses are listed in the first column, with revenues from that particular program reported to the right. The result is net (expense) revenue. This type of format highlights the relative financial burden of each of the functions on the City’s taxpayers. It also identifies how much each function draws from the general revenues or if it is self-financing through fees and grants or contributions. All other governmental revenues are reported as general. It is important to note that all taxes are classified as general revenue, even if restricted for a specific purpose.

For the year ended June 30, 2022, the City’s governmental activities sources and uses follow:
10%
9%
25%
12%
21%
2% 8%
9% 1%
3%
Sources of Funds for Governmental Activities
Charges for services
Operating grants and
contributions
Capital grants and
contributions
Property taxes
Sales and use taxes
Other taxes
Motor vehicle in lieu
Amercian rescue plan act
Investment income
Miscellaneous

0.37%

0.02%

40.44%

10.04%

11.60% 0.03%

1.12% 0.60%

35.78%
Uses of Funds in Governmental Activities
Administrative
Legislative
Police
Streets and public works
Culture and recreation
Community development
Redevelopment
Other
Capital outlay
For the year ended June 30, 2022, total expenses for governmental activities resulting from modified cash basis transactions or events amounted to $19,301,017. Of these total expenses, taxpayers and other general revenues funded $12,216,059, and those directly benefiting from the program funded $7,406,389 from grants and other contributions, and $2,212,168 from charges for services.

Business-Type Activities
The business-type activities’ net revenue (expenses), before contributions and transfers, resulting from modified cash basis transactions or events follow: The water, sewer and refuse service activities reported net revenues (expenses) of $2,199,303, $961,845, and $108,707, respectively. ‐
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
Water Sewer Refuse
Business-type Activities Revenues and Expenses - Modified Cash Basis Revenues
Expenses
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CITY OF RIPON

CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
14 A FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Certain funds experienced noteworthy changes from the prior year and are highlighted as follows:

Revenues:
 Sales and use taxes increased 37% from the prior fiscal year to the current fiscal year. This is due to increased fuel sales.
 Development-related General Fund fees were conservatively budgeted at $262,000, but the amount actually received by the City was $374,646.
 The City continues to receive the $250,000 administrative allowance for administering the windingdown of the Redevelopment Agency. At this time, it is not clear when the City would no longer be receiving this allowance.
 The City continues to analyze its utility rates based upon a rate study that was completed in 2020. In accordance with Proposition 218, the City Council approved rate increases to occur over a 5-year period. The utility rate study projected increases to water, sewer, and refuse rates during fiscal year 2021/2022 of 2%, 4%, and 5%, respectively. The City Council has directed staff to re-analyze the financial position of each Enterprise Fund each year to decide if any rate needs to be increased based upon the approved increases. During the current fiscal year, utility rates for water, sewer, and refuse increased as projected. There have been significant increases in refuse expenditures due to State mandates. Staff is tracking these increases to report to the City Council.  The City received approximately $1,900,000 of the first tranche of American Rescue Plan dollars during the fiscal year ending June 30, 2022, and received the second tranche of approximately $1,900,000 during fiscal year ending June 30, 2023. These funds have already been allocated by the City Council at the Strategic Planning meeting in March 2022.

Expenditures:
 Capital Outlay expenditures increased $4,808,629 from the prior year. Below is a list of major capital expenditures that were incurred during the current fiscal year:
o Corporation Yard Design - $176,000
o Dispatch Center Upgrades - $294,000 (partially reimbursed by City of Lathrop) o Upgrade to computer servers - $75,000
o Police Vehicles (2) - $169,000
o Public Works Vehicles (2) – $90,000
o Equipment for Parks - $49,000
o Drilling of Well #19 – $902,000
o Senior Center Retrofit Project - $21,000
o Rehabilitation to Stockton Avenue – $3,666,412 (mostly grant funded) o Water, Sewer & Storm Drain expenses due to Stockton Avenue - $500,000; $532,000; and 97,000; respectively
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CITY OF RIPON

CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2022
15 CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets – Modified Cash Basis
The City does not capitalize capital assets.

Long-Term Debt – Modified Cash Basis
At June 30, 2022, the City had $7,114,523 in long-term debt arising from modified cash basis transactions or events, compared with $7,808,250 at June 30, 2021. This debt is related to business-type activities and a loan due to the Successor Agency Trust.

At June 30, 2022, the City’s Private-Purpose Trust Fund (Former Ripon Redevelopment Agency) had $19,780,805 in long-term debt arising from the modified cash basis transactions or events, compared with $20,005,512 at June 30, 2021. This debt is related to redevelopment tax allocation bonds.

ECONOMIC OUTLOOK AND MAJOR INITIATIVES
The City’s budget for the upcoming fiscal year ended June 30, 2023 is fairly consistent with the year ending June 30, 2022.

The City staffing levels for the year ending June 30, 2023 increased compared to the year ended June 30, 2022 due to the addition of a new patrol officer, and a regulatory compliance position. In addition, part time positions of Information Technician and Water Conservation Coordinator were moved to full-time positions.

The City’s Redevelopment Successor Agency expects to continue to receive the $250,000 administrative allowance for administering the winding-down of the Redevelopment Agency for the upcoming fiscal years, but is projected to be reduced or eliminated in the future.

The City’s share of CalPERS unfunded accrued liability is projected to increase significantly over the next several years as a result of the CalPERS Board lowering the discount rate. The City has transferred $1,339,369 to a reserve fund for future CalPERS payments. In addition, a $250,000 prepayment was made towards the City’s unfunded accrued liability in fiscal year ended June 30, 2018. It is important to continue to monitor CalPERS increasing rates and unfunded accrued liability. During the fiscal year ending June 30, 2023, the City is establishing a Section 115 trust to help mitigate these increases.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This report is designed to provide our citizens, taxpayers, customers, and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. If you have questions about this report or need additional information, please contact the City Clerk’s Office at 259 N.

Wilma Avenue, Ripon, California 95366, or telephone (209) 599-2108. 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 106 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) The notes to the basic financial statement are an integral part of this statement. 18 CITY OF RIPON
STATEMENT OF NET POSITION – MODIFIED CASH BASIS
JUNE 30, 2022
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 19,851,870 $ 1,848,244 $ 21,700,114 $ Cash and investments - restricted 32,639,806 96 32,639,902 Internal balances 634,124 (634,124) -
Total assets 53,125,800 1,214,216 54,340,016

LIABILITIES
Loan due to private-purpose trust funds 539,523 - 539,523 Long-term liabilities:

Debt due within one year - 715,000 715,000
Debt due in more than one year - 5,860,000 5,860,000
Total liabilities 539,523 6,575,000 7,114,523

NET POSITION
Capital related debt - (6,575,000) (6,575,000)
Restricted for:

Public safety 184,461 - 184,461
Street construction and maintenance 3,934,333 - 3,934,333 Assessment districts 270,601 - 270,601
Capital projects 24,289,622 - 24,289,622
Mitigation fees 8,038,443 - 8,038,443
Low and moderate income housing 1,803,840 - 1,803,840
Debt service - 96 96
Unrestricted 14,064,977 1,214,120 15,279,097
Total net position (deficit) 52,586,277 $ (5,360,784) $ 47,225,493 $ 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

2.A.d
Packet Pg. 107 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) The notes to the basic financial statement are an integral part of this statement. 19 CITY OF RIPON
STATEMENT OF ACTIVITIES – MODIFIED CASH BASIS
FOR THE YEAR ENDED JUNE 30, 2022
Operating Capital
Charges for Grants and Grants and Governmental Business-Type Direct Indirect Total Services Contributions Contributions Activities Activities Total Functions/ProgramsGovernmental activities:

Administrative 1,632,181 $ (1,561,048) $ 71,133 $ 420,793 $ - $ 7,808 $ 357,468 $ - $ 357,468 $ Legislative 458,880 (455,264) 3,616 - - - (3,616) - (3,616) Police 6,629,342 1,176,207 7,805,549 429,940 182,591 - (7,193,018) - (7,193,018) Streets and public works 2,261,348 (323,581) 1,937,767 677,271 1,230,046 3,825,517 3,795,067 - 3,795,067 Culture and recreation 1,981,234 256,956 2,238,190 684,164 - - (1,554,026) - (1,554,026)Community development 5,676 - 5,676 - - - (5,676) - (5,676) Redevelopment 216,357 - 216,357 - - - (216,357) - (216,357)Other 98,840 17,579 116,419 - 466,543 - 350,124 - 350,124Capital outlay 66,327 6,839,983 6,906,310 - - 1,693,884 (5,212,426) - (5,212,426) Total governmental activities 20,123,841 (822,824) 19,301,017 2,212,168 1,879,180 5,527,209 (9,682,460) - (9,682,460) Business-type activities:

Water 1,686,117 297,987 1,984,104 4,001,846 - 174,574 - 2,192,316 2,192,316 Sewer 998,493 176,971 1,175,464 1,733,453 - 209,946 - 767,935 767,935 Refuse 1,961,816 347,866 2,309,682 2,402,366 - 14,395 - 107,079 107,079 Total business-type activities 822,824 4,646,426 5,469,250 8,137,665 - 398,915 - 3,067,330 3,067,330 Total primary government $ - 24,770,267 $ 24,770,267 $ 10,349,833 $ 1,879,180 $ 5,926,124 $ (9,682,460) 3,067,330 (6,615,130) General revenues:

Taxes:

Property taxes - 2,532,657 2,532,657Sales and use taxes - 4,626,645 4,626,645Other 188,030 328,848 516,878 Motor vehicle in lieu - 1,809,713 1,809,713American rescue plan act - 1,959,940 1,959,940Investment income 14,495 289,482 303,977 Miscellaneous - 668,774 668,774
Transfers (2,445,237) 2,445,237 -
Total general revenues and transfers (2,242,712) 14,661,296 12,418,584 Change in net position 4,978,836 824,618 5,803,454
Net position (deficit) - beginning (6,185,402) 47,607,441 41,422,039 Expenses Program Revenues Net (Expense) Revenue and Changes in Net Position 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report 2.A.d Packet Pg. 108
Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 :

The notes to the basic financial statement are an integral part of this statement. 20 CITY OF RIPON
BALANCE SHEET – MODIFIED CASH BASIS

GOVERNMENTAL FUNDS
JUNE 30, 2022
Streets &
Roads Capital Non-Major Total
General Special Projects Special Revenue Governmental
Fund Revenue Fund Fund Funds Funds
ASSETS
Cash and investments $ 11,098,411 $ 1,916,480 $ 2,610,007 $ 4,226,972 $ 19,851,870 Cash and investments - restricted 10,026,744 22,613,062 - 32,639,806 - Due from other funds 21,343 - - - 21,343
Advance to other funds - - 2,194,045 - 2,194,045
Total assets $ 1,916,480 21,146,498 $ 27,417,114 $ 4,226,972 $ 54,707,064 $

LIABILITIES
Due to other funds - $ - $ - $ 21,343 $ 21,343 $
Advances from other funds 1,559,921 - - - 1,559,921
Loan due to private-purpose trust funds - - 539,523 - 539,523 Total liabilities - 1,559,921 539,523 21,343 2,120,787

FUND BALANCES
Restricted for:

Public safety 184,461 - - - 184,461
Street construction and maintenance - - - 3,934,333 3,934,333 Assessment districts - - - 270,601 270,601
Capital projects:

Culture and recreation - - 960,398 22,038 982,436
Special assessment districts - - 1,248,611 - 1,248,611
Sewer projects - - 3,219,850 - 3,219,850
Water projects - - 7,867,518 - 7,867,518
Refuse projects - - 1,067,135 - 1,067,135
Public facilities financing plan - - 9,733,455 - 9,733,455 Other - - 170,617 - 170,617
Mitigation fees 8,038,443 - - - 8,038,443
Low and moderate income housing 1,803,840 - - - 1,803,840 Committed to:

Street construction and maintenance - 2,461,384 - - 2,461,384 Capital projects:

General government - - 195,983 - 195,983
Culture and recreation - - 1,354,410 - 1,354,410
General capital projects - - 1,059,614 - 1,059,614
Contingencies:

Sick leave 355,547 - - - 355,547
Retirement 1,135,397 - - 1,135,397 -
Healthcare 209,025 - - - 209,025
Liability self-insured retention 627,075 - - - 627,075
Litigation and natural disaster 2,475,987 - - 2,475,987 - Assigned to:

Subsequent year budget deficit 3,344,729 - - 3,344,729 - Unassigned (544,904) 1,412,073 - (21,343) 845,826
Total fund balances 1,916,480 19,586,577 26,877,591 4,205,629 52,586,277 Total liabilities and fund balances $ 1,916,480 21,146,498 $ 27,417,114 $ 4,226,972 $ 54,707,064 $ 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

2.A.d
Packet Pg. 109 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) The notes to the basic financial statement are an integral part of this statement. 21 CITY OF RIPON

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES MODIFIED CASH BASIS – GOVERNMENTAL FUNDS
JUNE 30, 2022
Streets &
Roads Capital Non-Major Total
General Special Projects Special Revenue Governmental
Fund Revenue Fund Fund Funds Funds

REVENUES
Taxes 9,431,187 $ - $ - $ 41,170 $ 9,472,357 $
Assessments - - - 399,687 399,687
Licenses, permits and fees 1,662,890 - 696,559 - 2,359,449 Investment income 447,717 22,184 169,933 19,459 659,293 Intergovernmental revenue 1,981,246 3,048,392 93,600 1,949,409 7,072,647 Charges for services 1,063,575 8,191 - 1,862 1,073,628
Fines and forfeitures 134,368 - - - 134,368
Housing/loan program income 430,706 - - - 430,706
Contributions 16,652 - - - 16,652
Other 128,191 6,160 78,781 2,697 215,829
Total revenues 15,296,532 3,084,927 1,038,873 2,414,284 21,834,616

EXPENDITURES
General government:

Administration 1,632,183 - - - 1,632,183
Legislative 455,265 - - - 455,265
Public safety:

Police 6,629,342 - - - 6,629,342
Streets and public works:

Streets - 770,581 - 47,426 818,007
Planning 317,422 - - 5,001 322,423
Engineering 370,385 - - - 370,385
Building 359,394 - - - 359,394
Culture and recreation:

Library 69,656 - - - 69,656
Parks and recreation 1,867,692 - - - 1,867,692
Community Center 43,886 - - - 43,886
Community development 5,676 - - 30,837 36,513
Special assessment districts - - - 394,754 394,754
Redevelopment 216,357 - - - 216,357
Allocation to other department costs (1,104,893) 137,038 66,327 78,702 (822,826) Other 98,840 - - - 98,840
Capital outlay 4,194 3,592,265 3,212,687 - 6,809,146
Total expenditures 10,965,399 4,499,884 3,279,014 556,720 19,301,017 Excess (deficiency) of revenues over expenditures 4,331,133 (1,414,957) (2,240,141) 1,857,564 2,533,599

OTHER FINANCING SOURCES (USES)
Operating transfers in - 879,841 2,754,059 63,798 3,697,698 Operating transfers out - (372,623) - (879,838) (1,252,461) Total other financing sources (uses) (372,623) 879,841 2,754,059 (816,040) 2,445,237 Net change in fund balances 3,958,510 (535,116) 513,918 1,041,524 4,978,836 Fund balances - beginning 2,451,596 15,628,067 26,363,673 3,164,105 47,607,441 Fund balances - ending 19,586,577 $ 1,916,480 $ 26,877,591 $ 4,205,629 $ 52,586,277 $ 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

2.A.d
Packet Pg. 110 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) The notes to the basic financial statement are an integral part of this statement. 22 CITY OF RIPON
STATEMENT OF NET POSITION – MODIFIED CASH BASIS

PROPRIETARY FUNDS
JUNE 30, 2022
Sewer Water Refuse
Enterprise Enterprise Enterprise
Fund Fund Fund Total
ASSETS
Current assets:

Cash and investments $ 926,419 710,598 $ 211,227 $ 1,848,244 $ Cash and investments - restricted 96 - - 96
Total assets 710,598 926,515 211,227 1,848,340

LIABILITIES
Current liabilities:

Current portion of bonds payable 170,000 545,000 - 715,000 Noncurrent liabilities:

Advance from capital projects fund 634,124 - - 634,124
Noncurrent portion of bonds payable 5,310,000 550,000 - 5,860,000 Total liabilities 720,000 6,489,124 - 7,209,124

NET POSITION
Capital related debt (720,000) (5,855,000) (6,575,000) - Restricted for debt service - 96 - 96
Unrestricted 292,295 710,598 211,227 1,214,120
Total net position (deficit) $ (5,562,609) (9,402) $ 211,227 $ (5,360,784) $ 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

2.A.d
Packet Pg. 111 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) The notes to the basic financial statement are an integral part of this statement. 23 CITY OF RIPON

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION MODIFIED CASH BASIS – PROPRIETARY FUNDS
JUNE 30, 2022
Sewer Water Refuse
Enterprise Enterprise Enterprise
Fund Fund Fund Total
Operating revenues:

Charges for services:

Sewer usage services $ 1,733,453 $ - $ 1,733,453 - $
Water revenue 4,001,846 - 4,001,846 -
Refuse revenue - - 2,402,366 2,402,366
Total operating revenues 1,733,453 4,001,846 2,402,366 8,137,665 Operating expenses:

Salaries and wages 315,869 469,598 624,511 1,409,978
Employee benefits 168,793 243,559 352,872 765,224
Professional services 100,057 39,960 10,891 150,908
Repairs and maintenance 155,280 112,940 218,842 487,062 Gas and oil 19,419 20,485 90,486 130,390
Utilities 112,069 395,044 8,620 515,733
Supplies 7,441 10,756 9,429 27,626
Conference expenses - 795 - 795
Communications 3,119 59,726 4,767 67,612
Membership, dues, books, etc. 55,863 40,782 2,663 99,308 Postage 11,267 11,551 11,266 34,084
Refuse disposal - 584,326 - 584,326
Other 15,716 29,365 43,141 88,222
Allocation of other department costs 297,987 176,971 347,866 822,824 Total operating expenses 1,141,864 1,732,548 2,309,680 5,184,092 Operating income 591,589 2,269,298 92,686 2,953,573
Nonoperating revenues (expenses):

Contributions/developer fees 174,574 209,946 14,395 398,915 Assessments 188,030 - - 188,030
Interest revenue 5,880 6,987 1,626 14,493
Interest expense (33,600) (251,556) - (285,156)
Total nonoperating revenues (expenses) (69,995) 370,256 16,021 316,282 Net income before transfers 2,199,303 961,845 108,707 3,269,855 Operating transfers out (1,481,586) (854,946) (108,705) (2,445,237) Change in net position 106,899 717,717 2 824,618
Net position (deficit) - beginning (6,280,326) (116,301) 211,225 (6,185,402) Net position (deficit) - ending $ (5,562,609) (9,402) $ 211,227 $ (5,360,784) $ 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

2.A.d
Packet Pg. 112 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) The notes to the basic financial statement are an integral part of this statement. 24 CITY OF RIPON
STATEMENT OF FIDUCIARY NET POSITION – MODIFIED CASH BASIS

FIDUCIARY FUNDS
JUNE 30, 2022
Successor Agency
Private Purpose
Trust Fund
ASSETS
Cash and investments 4,683,142 $
Cash and investments - restricted 3,028,650
Loan due from capital projects fund 539,523
Total assets 8,251,315

LIABILITIES
Due to County of San Joaquin 1,297,266
Long-term liabilities:

Debt due in more than one year 19,780,805
Total liabilities 21,078,071

NET POSITION
Net position (deficit) held in trust for redevelopment
dissolution and other purposes (12,826,756) $
2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

2.A.d
Packet Pg. 113 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) The notes to the basic financial statement are an integral part of this statement. 25 CITY OF RIPON
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION – MODIFIED CASH BASIS

FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Successor Agency
Private Purpose
Trust Fund

ADDITIONS
Property taxes $ 560,968
Program income 940,927
Investment income 267,514
Total additions 1,769,409

DEDUCTIONS
General operating 256,000
Interest expense 660,300
Total deductions 916,300
Change in fiduciary net position 853,109
Total net position (deficit) - beginning of year (13,679,865) Total net position (deficit) - end of year (12,826,756) $ 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

2.A.d
Packet Pg. 114 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
26 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Ripon, California (the City) are presented on the modified cash basis of accounting. The modified cash basis of accounting differs from accounting principles generally accepted in the United States of America (GAAP). Generally accepted accounting principles include all relevant Governmental Accounting Standards Board (GASB) pronouncements.

Financial Reporting Entity
The City was incorporated on November 27, 1945, under the general laws of the State of California. The City operates under a Council-Manager form of government consisting of five elected council members including the Mayor and a city council appointed City Manager. The City provides the following services as authorized by its charter: public safety, sanitation, water utility, street maintenance, community development, library, parks and recreation, and general administrative services.

Individual Component Unit Disclosures
There are no entities which meet the Governmental Accounting Standards Board (GASB) Statement No. 14, as amended by GASB Statement No. 39 and GASB Statement No. 61 criteria for discrete disclosure within these basic financial statements.

Basis of Presentation
The government-wide financial statements (i.e. Statement of Net Position and Statement of Activities) display information about the primary government (the City). These statements include the financial activities of the overall City government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties.

The Statement of Activities presents a comparison between direct and indirect expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses are allocated to functions based on the relativity of direct expenses by department. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets.

Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund financial statements of the reporting entity are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts that constitutes its assets, liabilities, fund equity, revenues, and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria:

Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type, and
Total assets, liabilities, or expenditures/expenses of the individual governmental or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

2.A.d
Packet Pg. 115 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
27 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Presentation (Continued)
The funds of the financial reporting entity are described below:

Governmental Funds
The General Fund is the primary operating fund of the City and is always classified as a major fund. It is used to account for all activities except those legally or administratively required to be accounted for in other funds.

Special Revenue Funds are used to account for the proceeds of the specified revenue sources that are either legally restricted to expenditures for specified purposes or designated to finance particular functions or activities of the City. The reporting entity includes the following special revenue fund, which is reported as a major fund.

Streets and Road Fund – Accounts for revenues and expenditures for streets and roads related maintenance and construction.

Capital Projects Funds are used to account for resources restricted or designated for the acquisition or construction of specific capital projects or items. The reporting entity includes the following capital projects fund, of which is reported as a major fund.

Capital Projects Fund – Accounts for contributions and specific revenues and transfers from other City funds and expenditures for various capital projects as the City Council may designate.

Proprietary Funds
Enterprise Funds are used to account for business-like activities provided to the general public. These activities are financed primarily by user charges, and the measurement of financial activity focuses on net income measurement similar to the private sector. The reporting entity includes the following enterprise funds: water, sewer, and refuse funds; all of which qualify as major funds.

Sewer Fund – Accounts for activities associated with operating and maintaining the City’s sewer and surface drainage system. All activities necessary to provide such services are accounted for in this fund, including administration, operations, capital improvements, maintenance, financing and related debt service, and billing and collection.

Water Fund – Accounts for the provision of water services to residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, capital improvements, maintenance, financing and related debt service, and billing and collection.

Refuse Fund – Accounts for the provision of refuse collection services to residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, capital improvements, maintenance, financing and related debt service, and billing and collection.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies and investment earnings, result from non-exchange transactions or ancillary activities.

Contributions/developer fees are reported separately and represent capital contributions charged by the City. Operating expenses are those expenses essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.
2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

2.A.d
Packet Pg. 116 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
28 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Presentation (Continued)
Fiduciary Funds
Fiduciary Funds are established to serve as the custodian for assets held in a trustee or agency capacity for others and, therefore, cannot be used to support the City’s own programs. The reporting entity includes one private-purpose trust fund.

Successor Agency Trust Fund – Accounts for activities related to the servicing of debt of the former Redevelopment Agency.

Measurement Focus
In the Government-Wide Statement of Net Position and Statement of Activities, both governmental and business-like activities are presented using the economic resources measurement focus, within the limitations of the modified cash basis of accounting, as defined below.

In the fund financial statements, the “current financial resources” measurement focus or the “economic resources” measurement focus, as applied to the modified cash basis of accounting, is used as appropriate:

All governmental funds utilize a “current financial resources” measurement focus. Only current financial assets and liabilities are generally included on their balance sheets. The operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period.

The proprietary fund utilizes an “economic resources” measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net assets (or cost recovery), and financial position. All assets and liabilities (whether current or noncurrent, financial, or nonfinancial) associated with their activities are reported. Proprietary fund equity is classified as net position.

The fiduciary fund utilizes an “economic resources” measurement focus. The accounting objectives of this measurement focus are the determination of additions, deductions, changes in net position, and financial position. All assets and liabilities (whether current or noncurrent, financial, or nonfinancial) associated with their activities are reported. Fiduciary fund equity is classified as net position.

Basis of Accounting
In the Government-Wide Statement of Net Position and Statement of Activities, and the fund financial statements, governmental and business-like activities are presented using a modified cash basis of accounting. This is a basis of accounting other than accounting principles generally accepted in the United States of America (GAAP) as established by the Governmental Accounting Standards Board. The basis of accounting involves modification to the cash basis of accounting to report in the statement of net position cash transactions that result in an obligation that covers a period greater than the period in which the cash transaction occurred. Accordingly, long-term liabilities arising from cash transactions have been reported in the Statement of Net Position.
2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

2.A.d
Packet Pg. 117 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
29 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Presentation (Continued)
Basis of Accounting (Continued)
This modified cash basis of accounting differs from GAAP primarily because certain assets and their related revenues (such as accounts receivable and revenue for billed or provided services not yet collected, and other accrued revenue and receivables) and certain liabilities and their related expenses or expenditures (such as accounts payable and expenses for goods or services received but not yet paid, and other accrued expenses and liabilities) are not recorded in these financial statements, with the exception of long-term liabilities arising from cash transactions. In addition, other economic assets, deferred outflows, liabilities, and deferred inflows that do not arise from a cash transaction or event (such as donated assets and postemployment benefit obligations) are not reported, and the measurement of reported assets and liabilities does not involve adjustment to fair value. Lastly, the City does not recognize its investment in capital assets in its Statement of Net Position.

If the City utilized the basis of accounting recognized as generally accepted, the fund financial statements for governmental funds would use the modified accrual basis of accounting, while the fund financial statements for proprietary and fiduciary fund types would use the accrual basis of accounting. All government-wide financials would be presented on the accrual basis of accounting.

Cash, Cash Equivalents and Investments
For the purpose of financial reporting, “cash and cash equivalents” includes all demand and savings accounts and certificates of deposit or short-term investments with an original maturity date of three months or less. This also includes deposits with the State of California Local Agency Investment Fund (LAIF) and trust account investments in open-ended mutual fund shares.

The City has adopted GASB statement No. 72, Fair Value Measurement and Application; investments are measured at fair value on a recurring basis, when required. Recurring fair value measurements are those that GASB Statement require or permit in the statement of net position at the end of each reporting period.

Restricted cash and investments includes proceeds from the 2012 refunding water revenue bonds and the 2006 water revenue bonds which are restricted for expansion of the wastewater treatment plant, upgrade of water facilities and for repayment of bonds. Additionally, proceeds from 2020 tax allocation refunding bonds are restricted for various capital projects and for payment of bonds. Restricted cash and investments also include proceeds from grants for which the funds have not been expended.

Long-term Debt
All long-term debt arising from cash basis transactions to be repaid from governmental and business-type resources is reported as liabilities in the government-wide financial statements.

Long-term debt arising from cash basis transactions of governmental funds is not reported as liabilities in the fund financial statements. The debt proceeds are reported as other financing sources and payment of principal and interest reported as expenditures. The accounting for proprietary funds is the same in the fund financial statements as the treatment in the government-wide financial statements. 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

2.A.d
Packet Pg. 118 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
30 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Presentation (Continued)
Equity Classification
Equity in the government-wide statements is classified as net position and displayed in three components:

Capital related debt – Consists of the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, or improvements of capital assets.

Restricted – Consists of restricted assets reduced by liabilities with restriction constraints placed on the use either by external groups such as creditors, grantors, contributors, or laws and regulations of other governments; or law through constitutional provisions or enabling legislation.

Unrestricted – Net amount of assets and liabilities that are not scheduled in the determination of net investment in capital assets on the restricted component of net position.

It is the City’s policy to first use restricted net resources prior to the use of unrestricted net resources when an expense is incurred for purposes for which both restricted and unrestricted net resources are available.

In the fund financial statements, fund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purpose for which amounts in the funds can be spent. Fund balance is reported in five components: non-spendable, restricted, committed, assigned and unassigned.

Nonspendable – Amounts that cannot be spent because they are either not in spendable form or legally or contractually required to be maintained intact.

Restricted – Amounts constrained regarding the use from restrictions externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or by restrictions imposed by law through constitutional provisions or enabling legislation.

Committed – Amounts constrained regarding use for specific purposes pursuant to requirements imposed by formal action of the City’s highest level of decision-making authority.

Assigned – Amounts constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed. The authority of assigning fund balance is expressed by the City Council, City manager or their designee as established in the City’s Fund Balance Policy.

Unassigned – Amounts that have not been restricted, committed or assigned to specific purposes within the General Fund. The General Fund is the only fund that reports a positive unassigned fund balance amount. Other governmental funds besides the General Fund can only report a negative unassigned fund balance amount.

When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources (committed, assigned and unassigned) as they are needed. When unrestricted resources (committed, assigned and unassigned) are available for use, it is the City’s policy to use committed resources first, then assigned, and then unassigned as they are needed.

Proprietary fund equity is classified the same as in the government-wide financial statements. 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 119 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
31 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Presentation (Continued)
Internal and Interfund Balances and Activities
In the process of aggregating the financial information for the Government-Wide Statement of Net Position and Statement of Activities, some amounts reported as interfund activity and balances in the fund financial statements have been eliminated or reclassified.

Interfund activity, if any, within and among the governmental, proprietary, and fiduciary fund categories is reported as follows in the fund financial statements:

Interfund loans and advances – Amounts provided with a requirement for repayment are reported as interfund receivables and payables.

Interfund services – Sales or purchases of goods and services between funds are reported as revenues and expenditures/expenses.

Interfund reimbursements – Repayments from funds responsible for certain expenditures/expenses to the funds that initially paid for them are not reported as reimbursements but as adjustments to expenditures/expenses in the respective funds.

Interfund transfers – Flow of assets from one fund to another where repayment is not expected are reported as transfers in and out.

Interfund activity and balances, if any, are eliminated or reclassified in the government-wide statements as follows:

Internal balances – Amounts reported in the fund financial statements as interfund receivables and payables are eliminated in the governmental and business-type activities columns of the Statement of Net Position, except for the net residual amounts due between governmental and business-type activities, which are reported as Internal Balances.

Internal activities – Amounts reported as interfund transfers in the fund financial statements are eliminated in the Government-Wide Statement of Activities except for the net amount of transfers between governmental and business-type activities. The effects of interfund services between funds, if any, are not eliminated in the Statement of Activities.

Minimum Fund Balance Policy
The City’s fiscal policy requires the City to maintain a General Fund reserve of 35% of the current year’s budgeted General Fund annual expenditures for cash flow purposes.

Use of Estimates
The preparation of financial statements in conformity with the modified cash basis of accounting described in Note 1 used by the City requires management to make estimates and assumptions that affect certain reported amounts and disclosures; accordingly, actual results could differ from those estimates.
2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 120 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
32 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Presentation (Continued)
Budgetary Accounting
The City does not adopt an appropriated budget and is not required to adopt such a budget by law.

However, the City does adopt a non-appropriated budget annually which is approved by the City Council.

The budget for all governmental and proprietary funds is on the cash basis of accounting.

Property Taxes
Property taxes in the State of California are administered for all local agencies at the county level, and consist of secured, unsecured, and utility tax rolls. The following is a summary of major policies and practices relating to property taxes:

Property valuations are established by the Assessor of the County of San Joaquin for the secured and unsecured property tax rolls; the utility property tax rolls are valued by the State Board of Equalization.

Under the provisions of Article XIIIA of the State Constitution (Proposition 13 adopted by voters on June 6, 1978) properties are assessed at 100% of full value. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations, and is subject to annual reappraisal.

Tax levies are limited to 1% of full value which results in a tax rate of $1.00 per $100 assessed valuation, under the provisions of Proposition 13. Tax rates for voter-approved indebtedness are excluded from this limitation.

Tax levy dates are attached annually on January 1 proceeding the fiscal year for which the taxes are levied. The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured personal property, as it exists at that time. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership.

Tax collections are the responsibility of the county tax collector. Taxes and assessments on secured and utility rolls, which constitute a lien against the property, may be paid in two installments. The first is due on November 1 of the fiscal year and is delinquent if not paid by December 10. The second is due on March 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against real property unless the taxes become delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the county for late payments.

The County of San Joaquin levies bills and collects property taxes and special assessments for the City.

Property taxes levied are recorded as revenue when received, in the fiscal year of the levy, due to the adoption of the “alternate method of property tax distribution”, known as the Teeter Plan, by the City of Ripon and the County of San Joaquin. The Teeter Plan authorizes the Auditor/Controller of the County of San Joaquin to allocate 100 percent of the secured property taxes billed, but not yet paid. The County of San Joaquin remits tax monies to the City in three installments as follows:
50 percent remitted in December
45 percent remitted in April
5 percent remitted in June
2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 121 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
33 NOTE 2 – CASH AND INVESTMENTS
Cash and investments as of June 30, 2022 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Governmental and proprietary funds:

Cash and investments $ 21,700,114
Cash and investments - restricted 32,639,902
Total governmental and proprietary funds: 54,340,016
Fiduciary funds:

Cash and investments 4,683,142
Cash and investments - restricted 3,028,650
Total fiduciary funds 7,711,792
Total cash and investments 62,051,808 $
Cash and investments as of June 30, 2022 consisted of the following:

Cash on hand $ 1,300
Deposits with financial institutions 85,375
Investments 61,965,133
$ 62,051,808
The City maintains a cash and investment pool that is available for use by all funds. Each fund type’s portion of this pool is displayed on the Statement of Net Position and Balance Sheet as “cash and investments”. California statutes authorize cities to invest idle or surplus funds in a variety of credit instruments as provided for in the California Government Code Section 53600.

The Government Code and the City of Ripon Investment Policy allow investments in the following instruments:

Maximum Authorized Required
Maturity Limit % Rating
Local Agency Bonds 5 years None None
U.S. Treasury Bills, Notes or Bonds 5 years None None
State Registered Warrants, Notes or Bonds 5 years None None Notes and Bonds of Other Local California Agencies 5 years None None U.S. Agencies 5 years None None
Bankers Acceptances 180 days 40% None
Prime Commercial Paper 270 days 15% or 30% A1/P1
Negotiable Certificates of Deposit 5 years 30% None
Repurchase and Reverse Purchase Agreements 1 yr/92 days None/20% None Medium Term Corporate Notes 5 years 30% A
Money Market Mutual Funds 5 years 15% 2-AAA
Collateralized Bank Deposits 5 years None None
Mortgage Pass-Through Securities 5 years 20% AA
Local Agency Investment Fund (LAIF) N/A None None
County Pooled Investment Funds N/A None None
Supranational Obligations 5 years 30% AA
Funds Held Under the Terms of a Trust Indenture
Indenture or Other Contract ***
* Such funds may be invested according to the provisions of those indentures or agreements.

Investment Type
2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 122 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
34 NOTE 2 – CASH AND INVESTMENTS (Continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities as necessary to provide the cash flow and liquidity needed for operations.

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

Total 12 Months
Cost Fair Value or Less
LAIF $ 35,519,941 $ 35,062,636 $ 35,062,636
CSJVRMA Pool 26,445,098 25,664,362 25,664,362
Held by Bond Trustees:

Money Market Funds 94 94 94
Total 61,965,133 $ 60,727,092 $ 60,727,092 $
Investment Type
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of fiscal year-end for each investment type.

Minimum
Fair Legal
Amount Value Rating Not Rated
LAIF $ 35,519,941 $ 35,062,636 N/A 35,062,636 $
CSJVRMA Pool 26,445,098 25,664,362 * N/A 25,664,362
Held by Bond Trustees:

Money Market Funds 94 94 N/A 94
Total 61,965,133 $ 60,727,092 $ N/A $ 60,727,092
* Average rating of portfolio AA/Aa1
Investment Type
2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 123 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
35 NOTE 2 – CASH AND INVESTMENTS (Continued)
Concentration of Credit Risk
The investment policy of the City contains limitations on the amount that can be invested in certain types of investments. The City’s investments are concentrated in external investment pools which are not subject to investment limits.

Custodial credit risk for deposits is the risk that, in the event of failure of a depository financial institution, a government will not be able to recover its deposit or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of failure of the counterparty (e.g. broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial risk for deposits or investments, other than the following provisions for deposits. The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

As of June 30, 2022, none of the City’s deposits with financial institutions were in excess of federal depository insurance limits.

A description of the City’s investments in external pools is as follows:

Investment in State Investment Pool
Although the City did not participate in any securities lending transactions or enter into any reverse repurchase agreements during the year, the City does have an investment in the California Local Agency Investment Fund (LAIF) with fair value in the amount of $35,062,636. The total amount invested by all public agencies in the LAIF is $35,761,173,309. The Local Investment Advisory Board (Board) has oversight responsibility for the LAIF. The Board consists of five members as designated by state statute. The value of the pool shares in the LAIF, which may be withdrawn, is determined on an amortized cost basis, which is different than the fair value of the City’s portion in the pool. Included in the LAIF’s Investment Portfolio are United States Treasury and federal agency securities, International Bank for Reconstruction and Development federal agency floating rate debentures, bank notes, certificates of deposit, commercial paper, corporate floaters and bonds, time deposits, and California Assembly Bill 55 and State of California General Fund loans. Participant’s equity in the LAIF is determined by the dollar amount at the participant’s deposits, adjusted for withdrawals and distributed investment income. Accordingly, LAIF is not an investment type that can be categorized in any particular level in the fair value hierarchy. The State Treasurer’s investment policy for the LAIF and separately issued financial statements for the LAIF are available at https://www.treasurer.ca.gov/pmia-laif/pmia/index.asp.

Central San Joaquin Valley Risk Management Authority Pool The City maintains an investment of $26,445,098 in the Central San Joaquin Valley Risk Management Authority (CSJVRMA) Pool as of June 30, 2022. The total amount invested by all participants in the pool is $154,843,564. The value of the pool shares which may be withdrawn is determined on an amortized cost basis, which is different than the fair value of the City’s portion in the pool. The fair value of the City’s share of the pool is determined monthly and is $25,664,362 as of June 30, 2022. As the investment in CSJVRMA is presented at amortized costs, they are not an investment type that can be categorized in any level in the fair value hierarchy. The pool is not registered with the Securities Exchange Commission; however, it is managed by a registered investment advisor. Participation in the pool is voluntary. The pool’s average maturity is 2.73 years and the average rating is AA/Aa1. The pool consists of 49% Securities of U.S. Government Agencies, 26% U.S. Corporate Obligations and 25% other. The pool complies with the City’s investment policy. 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 124 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
36 NOTE 3 – INTERFUND TRANSACTIONS
Interfund transactions consist of the following:

Transfers Between Funds
Resources may be transferred from one City fund to another with Council approval. Transfers between funds during the year ended June 30, 2022 were as follows:

Transfers In Transfers Out
Major Governmental Funds:

General Fund - $ 372,623 $
Streets and Roads Special Revenue Fund 879,841 -
Capital Projects Fund 2,754,059 -
Major Proprietary Funds:

Sewer Enterprise - 854,946
Water Enterprise - 1,481,586
Refuse Enterprise - 108,705
Non-Major Special Revenue Funds:
2107.5 Fund - 4,016
SB1 Street & Road Tax Fund - 108,318
COG/LTF Fund - 767,504
Dutch Meadows Fund 7,952 -
Country Woods Fund 8,899 -
Farmland Estates Fund 4,320 -
Main Street Landscape Fund 42,627 -
Total interfund transfers 3,697,698 $ 3,697,698 $
Fund
In general, the City uses interfund transfers to:
 Transfer unrestricted revenues collected in the General Fund to help finance various programs and capital projects accounted for in other funds
 Transfer unrestricted revenues collected in the General Fund to help cover excess expenditures over revenues accounted for in other funds
 Fund operations (move revenues from the funds that collect them to the funds that statute or budget requires to expend them)
 Fund interdepartmental cost reimbursement
 Fund capital projects
The effect of the interfund activity has been eliminated from the government-wide financial statements. 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 125 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
37 NOTE 3 – INTERFUND TRANSACTIONS (Continued)
Internal Balances
Due To/From Other Funds
Due From Due To
Governmental Funds
Major Funds:

General Fund $ 21,343 $ -
Non-Major Funds:

Ripon Lighting Fund 21,343 -
Total 21,343 $ 21,343 $
The "due from" balance of $21,343 in the General Fund listed above represents short-term cash advances made to the Ripon Lighting Fund to cover operating cash deficits.

Advances To/From Other Funds
During the year ended June 30, 2014, City Council passed a resolution authorizing the installation of water meters on all water customer connections known as the Water Meter Implementation Program.

This resolution called for the recovery of costs related to the installation project over the period of ten years through an additional charge to customers known as a “Water Meter Surcharge” fee. To pay for the cost of the project, City Council authorized expenditures from the Capital Projects Fund with the understanding, and legal requirement, that the Water Enterprise Fund will reimburse the expenditures incurred by the Capital Projects Fund from the revenues received from the newly implement Water Meter Surcharge fee. The City anticipates collections from this revenue source to be approximately $193,000 in each fiscal year. During the year ended June 30, 2022 the Water Enterprise Fund collected approximately $192,716 in water meter surcharges which was subsequently paid back to the capital projects fund. As of June 30, 2022 the balance owed from the Water Enterprise Fund to the Capital Projects Fund was $634,124.

During the year ended June 30, 2020, City Council passed a resolution authorizing an agreement with a local business in which the City would pay for certain capital improvements to a City owned recreation facility which would then be rented by the business. These capital expenditures were paid for by the Capital Projects Fund on behalf of the General Fund with the expectation that these costs would be recovered over a ten-year period through rent proceeds received from the tenant. During the year ended June 30, 2022, the General Fund collected $82,800 in facilities rent which was subsequently paid back to the Capital Projects Fund. As of June 30, 2022 the balance owed from the General Fund to the Capital Projects fund was $1,559,921.
2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 126 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
38 NOTE 4 – LOAN DUE TO PRIVATE-PURPOSE TRUST FUND
In 2011, the City entered into a loan agreement between the Redevelopment Agency and the City of Ripon (City). The City shall repay the Redevelopment Agency, the principal sum of up to five million dollars ($5,000,000) and pay interest on the outstanding balance of said sum at the rate of 0.4625% (the LAIF rate as of December 2010) for the first year. Thereafter, at the end of each calendar year, the interest rate may be reset according to the December LAIF rate (2.40% at December 2018). A minimum of fifty percent (50%) of all development impact (PFFP) paid in connection with building activity of the City for the same calendar year shall be applied towards the loan. Only after the interest accrued for that calendar year has been paid, shall the outstanding balance be reduced. The full payment of principal and interest outstanding was due as of February 1, 2016; however, the City has only partially repaid the total balance owed and continues to work with the Department of Finance to settle the liability.

As of February 1, 2012, the Redevelopment Agency was dissolved, and the assets and activities of the Redevelopment Agency were transferred to a private-purpose trust fund (Successor Agency Trust).

NOTE 5 – LONG-TERM DEBT
The City incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt.

In governmental fund types, debt discounts and issuance costs are recognized in the current period.

Debt discounts and issuance costs incurred by proprietary fund types have also been recorded in the period incurred in accordance with the modified cash basis of accounting.

Current Year Transactions and Balances
The City’s debt issues and transactions are summarized below and discussed in further detail thereafter:

Original Balance Balance Current
Amount June 30, 2021 Additions Reductions June 30, 2022 Year Business-Type Activities
2011 Refunding Revenue
Bonds (Sewer) 2,195,000 $ 880,000 $ - $ 160,000 $ 720,000 $ 170,000 $ 2006 Revenue Bonds
(Water) 7,845,000 4,670,000 - 300,000 4,370,000 315,000 2012 Refunding Revenue
Bonds (Water) 3,350,000 1,710,000 - 225,000 1,485,000 230,000 Total $ 7,260,000 13,390,000 $ - $ 685,000 $ 6,575,000 $ 715,000 $ 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 127 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
39 NOTE 5 – LONG-TERM DEBT (Continued)
Revenue Bonds
Enterprise fund long-term debt outstanding as of June 30, 2022 consisted of the following:

In 2011, the City entered into an Installment Purchase Agreement with Bank of America Leasing to refund the City’s portion of the California Statewide Communities Development Authority Water and Wastewater Revenue Bonds (Pooled Financing Program) Series 1999A. The original borrowing was $2,195,000.

The bonds are secured by a pledge of net revenues of the Sewer Enterprise Fund. The Sewer Enterprise Fund is required to establish user fees and rates that will yield net revenues equal to at least 1.2 times the annual debt service. Principal payments are due annually on October 1. Interest payments are payable semi-annually on April 1 and October 1. In the event the City fails to make prompt payment, the Trustee may declare the entire unpaid balance immediately due.

In August 2006, the City issued $7,845,000 California Statewide Communities Development Authority Water Revenue Bonds Series 2006C. The bonds are secured by a pledge of net revenues of the Water Enterprise Fund. The Water Enterprise Fund is required to establish user fees and rates that will yield net revenues equal to at least 1.2 times the annual debt service. Principal payments are due annually on October 1. Interest payments are payable semi-annually on April 1 and October 1. In the event the City fails to make prompt payment, the Trustee may declare the entire unpaid balance immediately due.

In September 2012, the City entered into an agreement with Union Bank, N.A. to refund the City’s portion of the California Statewide Community Development Authority Water and Wastewater Revenue Bonds (Pooled Financing Agreement) Series 2002A. The original borrowing was $3,350,000. The bonds are secured by a pledge of net revenues of the Water Enterprise Fund. The Water Enterprise Fund is required to establish user fees and rates that will yield net revenues equal to at least 1.2 times the annual debt service. Principal payments are due annually on October 1. Interest payments are payable semiannually on April 1 and October 1. In the event the City fails to make prompt payment, the Trustee may declare the entire unpaid balance immediately due.

All debts recorded by the City have been evaluated and are neither direct financing nor direct borrowings, under GASB 88.

Debt Outstanding as of June 30, 2022 consisted of the following:

Interest Amounts
Rate Maturity Date Issued Outstanding
Business-Type Activities
Enterprise Fund Bonds
2011 Refunding Wastewater Revenue
Bonds (Sewer):

Term Bonds 4.20% October 1, 2025 2,195,000 $ 720,000 $
2006 Revenue Bonds (Water):

Term Bonds 4.50% October 1, 2027 2,120,000 2,120,000
Term Bonds 4.50% October 1, 2032 2,250,000 2,250,000
Subtotal 4,370,000 4,370,000
2012 Refunding Revenue Bonds (Water):

Serial Bonds 2.00%-3.375% October 1, 2027 3,350,000 1,485,000 Total 9,915,000 $ 6,575,000 $
2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 128 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
40 NOTE 5 – LONG-TERM DEBT (Continued)
Annual future debt service requirements are shown below for all long-term debt:

For the Years
Ending June 30 Principal Interest
2023 $ 715,000 $ 265,945
2024 740,000 237,981
2025 775,000 208,371
2026 800,000 177,390
2027 635,000 149,069
2028-2032 436,247 2,910,000
Total 6,575,000 $ 1,475,003 $
NOTE 6 – SITE LEASE
On October 11, 2006, the City entered into a lease-financing agreement with Municipal Finance Corporation to facilitate the purchase of street lighting. Municipal Finance Corporation assigned the lease to Westamerica Bank, which in turn leases the property to the City. Westamerica prepaid all rental payments totaling $420,422 in November 2006. During the year ended June 30, 2022 the City made the final payment on the lease.

Rental expense related to the site totaled $39,147 for the year ended June 30, 2022.

NOTE 7 – DEFICIT NET POSITION AND FUND BALANCES
Fund Balance and Net Position Deficits
Major Funds
The Sewer Enterprise Fund and the Water Enterprise Fund had net position deficits of $9,402 and $5,562,609, respectively, at June 30, 2022. These deficits are due to debts financing and are expected to be offset in the future from the receipts of revenues from charges for services and construction permits and the repayment of said debt.

Non-Major Funds
A deficit fund balance of $21,343 exists in the Ripon Lighting Assessment District Fund. The deficit is due to the City incurring costs in advance of revenues. The fund deficit is expected to be offset in the future from the receipt of assessment revenue.
2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 129 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
41 NOTE 8 – EMPLOYEE RETIREMENT SYSTEMS
Defined Contribution Plan
The City provides pension benefits for all of its permanent full-time employees, who completed six consecutive months of employment, through the City of Ripon Money Purchase Thrift Pension Plan (the Contribution Plan), a defined contribution plan, with the exception of public safety officers. On April 4, 1990, the public safety officers elected to participate in the California Public Employees Retirement System. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. As of June 30, 2022, there were 67 plan members. The Contribution Plan provisions and contribution requirements are established and may be amended by the City Council. The City contributes 10% of the total compensation of all participants who agree to contribute 5% of their compensation to the plan. The City entered into a Memorandum of Understanding with the Union representing its employees which requires the City to “pick up” the 5% employee contribution. All such contributions are designated as employee contributions and are fully vested. The Contribution Plan also allows additional employee contributions up to 6.6% of annual compensation, and the City will match such contributions at a 50% rate up to 3.3% of the qualified employee’s annual compensation.

The trust agreement provides that each participant directs the investments held in his/her individual account. Participants are immediately vested in their contributions plus actual earnings thereon. The City’s contributions for each employee and interest allocated to the employee’s account are fully vested after six years of continuous service. City contributions for, and interest forfeited by, employees who leave employment before six years of service are redistributed to all participants based on salary and vesting levels with the exception of the additional contributions up to 6.6% of annual compensation referenced above, which are immediately fully vested.

The City’s total payroll in fiscal year 2022 was $6,698,332. The City’s contributions were calculated using the base salary amount of $4,382,444 for employees participating in the City’s defined contribution plan.

The total employee and employer contributions for the year ended June 30, 2022 were $318,809 and $565,753, respectively. The employee and employer contributions represented 7.27% and 12.90% of covered payroll, respectively.

The Contribution Plan’s investments are reported at fair value in the separately issued plan financial Statements. The methods used to measure fair value may produce an amount that may not be indicative of net realizable value or reflective future fair values. Furthermore, although the Contribution Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The fair value measurement accounting literature establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels:

Level 1 inputs consist of unadjusted quoted prices in active markets for identical assets and have the highest priority; Level 2 inputs are from other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 inputs are unobservable and have the lowest priority. The Contribution Plan uses appropriate valuation techniques based on the available inputs to measure the fair value of its investments. When available, the Contribution Plan measures fair value using Level 1 inputs because they generally provide the most reliable evidence of fair value. Level 3 inputs were used only when Level 1 or Level 2 inputs were not available. 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 130 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
42 NOTE 8 – EMPLOYEE RETIREMENT SYSTEMS (Continued)
Defined Contribution Plan (Continued)
The following table sets forth, by level within the fair value hierarchy, the Plan’s investments at fair value as of June 30, 2022:

Level 1 Level 2 Level 3 Total
U.S. Government securities $ 981,712 - $ $ 981,712 - $
Corporate obligations 654,246 - 654,246 -
Mutual funds 8,413,775 - 8,413,775 -
Common and preferred stock 1,108,640 - 1,108,640 -
Real estate investment trusts 274,917 - - 274,917
Total 1,108,640 $ 10,324,650 $ - $ 11,433,290 $
Assets at Fair Value as of June 30, 2022
California Public Employees Retirement System
Plan Descriptions
All public safety officers are eligible to participate in the City’s Safety Employee Pension Plan (the Plan), a cost-sharing multiple employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under the plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information 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 Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

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

Prior to January 1, 2012 through On or after
Hire date January 1, 2012 December 31, 2012 January 1, 2013 Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50 - 55 50 - 57
Monthly benefits, as a % of eligible compensation 3.000% 2.400% to 3.000% 2.000% to 2.700% Required employee contribution rates 9.000% 9.000% 13.000% Required employer contribution rates 22.480% 20.640% 13.130% Safety
2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 131 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
43 NOTE 8 – EMPLOYEE RETIREMENT SYSTEMS (Continued)
California Public Employees Retirement System (Continued) Contributions
Section 20814c of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions 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 contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2022, the contributions recognized as part of pension expense totaled $750,973.

NOTE 9 – DEFERRED COMPENSATION PLAN AND TRUST
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The Plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency.

All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights (until paid or made available to the employee or other beneficiary) are solely the property and rights of the employees. Accordingly, the plan/trust assets have been excluded from the City’s reported assets.

NOTE 10 – RISK MANAGEMENT
The City is exposed to various risks of loss related to torts, errors and omissions and injuries to employees. The City participates in a pooled liability program for general liability and workers compensation through the Central San Joaquin Valley Risk Management Authority (the Authority). The pooled liability program is an insurance pool provided through the deposits of approximately 58 member cities. The Authority is not an insurance company and does not charge a premium for coverage. Audited financial statements are available from the Central San Joaquin Valley Risk Management Authority at 1750 Creekside Oaks Drive, Suite, 200, Sacramento, CA 95833.

General Liability
The liability coverage provided by the Authority is completely self-insured by its member cities and all losses and related costs are shared among the other member cities in the pool above the City’s retained limit of $50,000 for the fiscal year ended June 30, 2022. The Authority determines the amount of risk each member city brings to the pool and calculates a relative risk distribution factor. As part of the retrospective adjustment process, at the time the respective program year is closed, any surplus will be refunded to the City and net deficits will be billed to the City. The City financial statements are prepared on the modified cash basis of accounting and, accordingly, a liability for net fund deficits, if any, on open program years has not been recorded. Disbursements to the Authority for general liability coverage during the year ended June 30, 2022 were $347,504.
2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 132 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
44 NOTE 10 – RISK MANAGEMENT (Continued)
Workers’ Compensation
The workers’ compensation coverage is provided by the Authority through a pooling feature which requires the member cities to self-insure a portion of each claim. Sharing of the risk is accomplished by forming pooled layers above the member city’s retained limit of $50,000 for the fiscal year ended June 30, 2022. As part of the retrospective adjustment process, at the time the respective program year is closed any surplus will be refunded to the City and net deficits will be billed to the City. The Pooled Workers’ Compensation Program participates in Local Agency Workers’ Compensation Joint Powers Authority (LAWCX).

Members of LAWCX risk share the layer between $2,000,000 and $5,000,000 (most recent information).

Effective July 1, 2003, LAWCX joined the California State Association of Counties Excess Insurance Authority (CSAC EIA), a joint powers authority comprised of a number of individual public entities and other joint power authorities. CSAC EIA provides coverage above $5,000,000. The City’s financial statements are prepared on the modified cash basis of accounting and, accordingly, a liability for net fund deficits, if any, on open program years has not been recorded. Disbursements to the Authority for workers’ compensation coverage during the year ended June 30, 2022 were $125,992.

NOTE 11 – CONTINGENCIES
Grant Program Involvement
In the normal course of operations, the City participates in various federal or state grant/loan programs from year to year. The grant/loan programs are often subject to additional audits by agents of the granting or loaning agency, the purpose of which is to ensure compliance with the specific conditions of the grant or loan. Any liability or reimbursement that may arise as a result of these audits cannot be reasonably determined at this time, although it is believed the amount, if any, would not be material.

General Liability
The City is subject to litigation arising from the normal course of business. In the opinion of the City attorney there is no pending litigation which is likely to have a material adverse effect on the financial position of the City.

NOTE 12 – REVENUE LIMITATIONS IMPOSED BY CALIFORNIA PROPOSITION 218 Proposition 218, which was approved by the voters in November 1996, regulates the City’s ability to impose, increase, and extend taxes, assessments and fees. Any new increased or extended taxes, assessments and fees subject to the provisions of Proposition 218, require voter approval before they can be implemented. Additionally, Proposition 218 provides that these taxes, assessments and fees are subject to the voter initiative process and may be rescinded in the future years by the voters. 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 133 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
45 NOTE 13 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Ripon that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local governments. On January 17, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City Resolution Number 12-7.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill.

In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.

After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported as fiduciary funds (private-purpose trust funds) in the financial statements of the City.

In addition, the former Ripon Redevelopment Agency transferred all housing rights, powers, assets, liabilities, duties and obligations to the Housing Authority of the County of San Joaquin by operation of law, on February 1, 2012. The Housing Authority has chosen not to take any action on this transfer because it does not believe it is obligated to accept the housing functions previously performed by the former Ripon Redevelopment Agency. The City’s position on this issue is not a position of settled law and there is uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue. Currently the remaining housing assets and loan portfolios are currently administered by the City of Ripon until a final resolution is determined. The activity of the housing assets of the former Ripon Redevelopment Agency are also reported as fiduciary funds (private-purpose trust funds) in the financial statements of the City. 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 134 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
46 NOTE 13 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued)
Long-Term Debt
The Successor Agency’s debt issues and transactions are summarized below and discussed in detail thereafter:

Original Balance Balance
Amount June 30, 2021 Additions Reductions June 30, 2022 Current Fiduciary Fund
Former Redevelopment
Agency of the City of Ripon
2020 Tax Allocation
Refunding Bonds 16,560,000 16,560,000 - - 16,560,000 -
Premiums 3,595,317 3,445,512 - 224,707 3,220,805 -
Total 20,155,317 $ 20,005,512 $ - $ 224,707 $ 19,780,805 $ - $ Tax Allocation Bonds
In 2020, the Successor Agency to the Former Redevelopment Agency of the City of Ripon issued Tax allocation Refunding Bonds in the amount of $16,560,000 to refund the 2003, 2005, and 2007 series Tax Allocation Bonds previously issued by the Former Redevelopment Agency. This was done to take advantage of lower interest rates and to save on future debt service payments. Total debt service payments were reduced by $3,339,938. As a result, the 2003, 2005, and 2007 series Tax Allocation Bonds are considered fully defeased as of June 30, 2020. The 2020 bonds mature beginning on November 1, 2025 through 2036 and include variable rates of interest from 3%-4%. Those bonds maturing on or before November 1, 2030 are not subject to optional redemption prior to maturity and those maturing after November 1, 2030 are subject to redemption at the option of the Successor Agency on any date on or after November 1, 2030. Payments on the bonds are due biannually on May 1 and November 1 beginning on May 1, 2021. There is a provision whereby if the Successor Agency is unable to make payment or does not comply with bond covenants the Trustee may and shall at the written direction of the Owners of not less than a majority in aggregate principal amount of bonds at that time outstanding, declare the principal of all bonds outstanding and the accrued interest thereon to be due and payable immediately. The 2020 Tax Allocation Refunding Bonds are secured by a pledge of Tax Revenues derived from the Project Area and moneys in certain funds held under the bond indenture.

Fiduciary Fund debt outstanding as of June 30, 2022 consists of the following:

Interest Rate Maturity Date Amounts Issued Outstanding
Former Redevelopment
Agency of the City of Ripon
2020 Tax Allocation Bonds
Serial Bonds 3.00% Nov. 1, 2025 $ 210,000 210,000 $
Term Bonds 4.00% Nov. 1, 2036 16,350,000 16,350,000
Total $ 16,560,000 16,560,000 $
Fiduciary Fund
2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 135 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
47 NOTE 13 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued)
Tax Allocation Bonds (Continued)
Annual debt service requirements are shown below for fiduciary fund long-term debt:

For the Years
Ending June 30 Principal Interest
2023 $ - $ 660,300
2024 - 660,300
2025 - 660,300
2026 210,000 660,300
2027 880,000 657,150
2028-2032 7,275,000 2,666,900
2033-2037 1,150,600 8,195,000
Total $ 7,115,850 16,560,000 $
Fiduciary Activities
NOTE 14 – PUBLIC FACILITIES FINANCING PLAN
The City collects fees from various developers in accordance with its Public Facilities Financing Plan (PFFP) that is restricted to be used for fund infrastructure needed to support growth in the City. The PFFP fees are collected to fund specific facility types, which include transportation, water, wastewater, storm drain, parks and recreation, library, administration, police, and corporation yard facilities. Additional other non PFFP fees are collected, including garbage, mitigation and building permit fees, each of which is also restricted for specific purposes. Each of these funds, which are maintained in the City’s Capital Projects Fund, are required to be accounted for separately.

There are a number of PFFP funds with negative balances, which was a result of advancing certain infrastructure projects ahead of collecting the necessary funds. These negative balances, which were borrowed from other PFFP funds and restricted funds with positive balances, continue to be tracked and are charged with interest expense that are applied to the funds with positive balances.

During the most recent PFFP fee update, a consultant evaluated the funds with negative balances and determined that the fees, as currently established, allows the City to collect sufficient revenue from future development to reimburse the funds with negative balances within the timeframe of the remainder of the City’s General Plan.
2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 136 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
48 NOTE 14 – PUBLIC FACILITIES FINANCING PLAN (Continued) The following includes the City’s PFFP fund balances for the year ended June 30, 2022:

Balance Balance
June 30, 2021 Revenue Expenditures Transfers June 30, 2022 Water $ 2,639,214 $ 155,147 $ - $ 2,794,361 - $
SSJID Connection Reserve 774,052 44,332 - 818,384 -
Garbage (668,186) 14,395 (9,817) (663,608) -
Wastewater 5,133,141 247,328 - 5,380,469 -
Storm Drainage 2,167,143 112,916 - 2,280,059 -
Transportation 717,616 507,311 - 1,224,927 -
Regional Transportation Impact Fee 1,246,220 64,461 - 1,310,681 - Parks and Recreation 1,107,552 95,244 - 1,202,796 -
Parks and Recreation Loan Repayment 545,049 (5,527) - 539,522 - Police Station (1,198,258) 9,372 (8,632) (1,197,518) -
City Hall (3,786,868) 19,612 (27,296) (3,794,552) -
Corporation Yard 589,479 31,139 (175,555) 445,063 -
Library 2,540 (605,304) (4,365) - (607,129)
Total balances by facility type $ 1,303,797 8,660,850 $ (231,192) $ - $ 9,733,455 $ Facility Type
2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 137 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) 49 SUPPLEMENTARY INFORMATION
2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 139 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) 51 CITY OF RIPON
COMBINING BALANCE SHEET – MODIFIED CASH BASIS

NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2022

HUTA HUTA HUTA HUTA HUTA
2103 2105 2106 2107 2107.5
Fund Fund Fund Fund Fund
ASSETS
Cash and investments 121,157 $ 83,235 $ 99,770 $ 523,443 $ - $ Total assets 121,157 $ 83,235 $ 99,770 $ 523,443 $ - $

LIABILITIES
Due to other funds - $ - $ - $ - $ - $
Total liabilities - - - - -

FUND BALANCES
Restricted for:

Street construction and maintenance 121,157 83,235 99,770 523,443 - Assessment districts - - - - -
Capital projects - - - - -
Unassigned - - - - -
Total fund balances 121,157 83,235 99,770 523,443 -
Total liabilities and fund balances 121,157 $ 83,235 $ 99,770 $ 523,443 $ - $ 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 140 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) 52 CITY OF RIPON
COMBINING BALANCE SHEET – MODIFIED CASH BASIS

NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2022
(Continued)
SB1 Street &
Road Tax Measure K COG/LTF STA/BUS CDBG
Fund Fund Fund Fund Fund
ASSETS
Cash and investments 218,032 $ 2,856,989 $ 31,707 $ 22,038 $ - $ Total assets 218,032 $ 2,856,989 $ 31,707 $ 22,038 $ - $

LIABILITIES
Due to other funds - $ - $ - $ - $ - $
Total liabilities - - - - -

FUND BALANCES
Restricted for:

Street construction and maintenance 218,032 2,856,989 31,707 - - Assessment districts - - - - -
Capital projects - - - 22,038 -
Unassigned - - - - -
Total fund balances 218,032 2,856,989 31,707 22,038 -
Total liabilities and fund balances 218,032 $ 2,856,989 $ 31,707 $ 22,038 $ - $ 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 141 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) 53 CITY OF RIPON
COMBINING BALANCE SHEET – MODIFIED CASH BASIS

NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2022
(Continued)
Dutch Country Farmland Jacob's Carolina's
Meadows Woods Estates Landing Landscape
Fund Fund Fund Fund Fund
ASSETS
Cash and investments - $ - $ - $ 22,770 $ 22,727 $
Total assets - $ - $ - $ 22,770 $ 22,727 $

LIABILITIES
Due to other funds $ - - $ - $ - $ - $
Total liabilities - - - - -

FUND BALANCES
Restricted for:

Street construction and maintenance - - - - -
Assessment districts - - - 22,770 22,727
Capital projects - - - - -
Unassigned - - - - -
Total fund balances - - - 22,770 22,727
Total liabilities and fund balances - $ - $ - $ 22,770 $ 22,727 $ 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 142 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) 54 CITY OF RIPON
COMBINING BALANCE SHEET – MODIFIED CASH BASIS

NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2022
(Continued)
Boesch/
Kingery Main Street Vineyards Alexandra
Assessment Landscape Cornerstone I Landscape Landscape
Fund Fund Fund Fund Fund
ASSETS
Cash and investments 22,781 $ - $ 83,773 $ 117,525 $ 1,025 $ Total assets 22,781 $ - $ 83,773 $ 117,525 $ 1,025 $

LIABILITIES
Due to other funds - $ - $ - $ - $ - $
Total liabilities - - - - -

FUND BALANCES
Restricted for:

Street construction and maintenance - - - - -
Assessment districts 22,781 - 83,773 117,525 1,025
Capital projects - - - - -
Unassigned - - - - -
Total fund balances 22,781 - 83,773 117,525 1,025
Total liabilities and fund balances 22,781 $ - $ 83,773 $ 117,525 $ 1,025 $ 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 143 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) 55 CITY OF RIPON
COMBINING BALANCE SHEET – MODIFIED CASH BASIS

NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2022
(Continued)
Total
Ripon Non-Major
Lighting Special Revenue
Fund Funds
ASSETS
Cash and investments - $ 4,226,972 $
Total assets - $ 4,226,972 $

LIABILITIES
Due to other funds 21,343 $ 21,343 $
Total liabilities 21,343 21,343

FUND BALANCES
Restricted for:

Street construction and maintenance - 3,934,333
Assessment districts - 270,601
Capital projects - 22,038
Unassigned (21,343) (21,343)
Total fund balances (21,343) 4,205,629
Total liabilities and fund balances (deficit) - $ 4,226,972 $ 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 144 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) 56 CITY OF RIPON

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – MODIFIED CASH BASIS

NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2022

HUTA HUTA HUTA HUTA HUTA
2103 2105 2106 2107 2107.5
Fund Fund Fund Fund Fund

REVENUES
Taxes - $ - $ - $ - $ - $
Assessments - - - - -
Investment income 482 331 397 2,082 16
Intergovernmental revenue 120,675 82,904 53,120 97,774 4,000 Charges for services - - - - -
Other - - - - -
Total revenues 121,157 83,235 53,517 99,856 4,016

EXPENDITURES
Streets and public works:

Streets - - - - -
Planning - - - - -
Community development - - - - -
Special assessment districts - - - - -
Allocation to other department costs - - - - -
Total expenditures - - - - -
Excess (deficiency) of revenues over expenditures 121,157 83,235 53,517 99,856 4,016

OTHER FINANCING SOURCES (USES)
Operating transfers in - - - - -
Operating transfers out - - - - (4,016)
Total other financing sources (uses) - - - - (4,016)
Net change in fund balances 121,157 83,235 53,517 99,856 - Fund balances (deficit) - beginning - - 46,253 423,587 - Fund balances (deficit) - ending 121,157 $ 83,235 $ 99,770 $ 523,443 $ - $ 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 145 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) 57 CITY OF RIPON

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – MODIFIED CASH BASIS

NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2022
(Continued)
SB1 Streets &
Road Tax Measure K COG/LTF STA/BUS CDBG
Fund Fund Fund Fund Fund

REVENUES
Taxes - $ - $ - $ - $ - $
Assessments - - - - -
Investment income 1,298 11,364 3,179 310 -
Intergovernmental revenue 325,052 380,737 796,032 53,277 35,838 Charges for services - - - 1,862 -
Other - - - - -
Total revenues 326,350 392,101 799,211 55,449 35,838

EXPENDITURES
Streets and public works:

Streets - - - 47,426 -
Planning - - - - 5,001
Community development - - - - 30,837
Special assessment districts - - - - -
Allocation to other department costs - - - 8,500 -
Total expenditures - - - 55,926 35,838
Excess (deficiency) of revenues over expenditures 326,350 392,101 799,211 (477) -

OTHER FINANCING SOURCES (USES)
Operating transfers in - - - - -
Operating transfers out (108,318) - (767,504) - -
Total other financing sources (uses) (108,318) - (767,504) - - Net change in fund balances 218,032 392,101 31,707 (477) - Fund balances (deficit) - beginning 2,464,888 - - 22,515 - Fund balances (deficit) - ending $ 2,856,989 218,032 $ 31,707 $ 22,038 $ - $ 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 146 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) 58 CITY OF RIPON

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – MODIFIED CASH BASIS

NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2022
(Continued)
Dutch Country Farmland Jacob's Carolina's
Meadows Woods Estates Landing Landscape
Fund Fund Fund Fund Fund

REVENUES
Taxes - $ - $ - $ - $ - $
Assessments 4,540 7,810 3,350 5,701 8,394
Investment income - - - - -
Intergovernmental revenue - - - - -
Charges for services - - - - -
Other - - - - -
Total revenues 4,540 7,810 3,350 5,701 8,394

EXPENDITURES
Streets and public works:

Streets - - - - -
Planning - - - - -
Community development - - - - -
Special assessment districts 10,606 14,186 6,512 5,279 9,510 Allocation to other department costs 1,886 2,523 1,158 939 1,691 Total expenditures 12,492 16,709 7,670 6,218 11,201
Excess (deficiency) of revenues over expenditures (7,952) (8,899) (4,320) (517) (2,807)

OTHER FINANCING SOURCES (USES)
Operating transfers in 7,952 8,899 4,320 - -
Operating transfers out - - - - -
Total other financing sources (uses) 7,952 8,899 4,320 - - Net change in fund balances - - - (517) (2,807)
Fund balances (deficit) - beginning - - - 23,287 25,534 Fund balances (deficit) - ending - $ - $ - $ 22,770 $ 22,727 $ 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 147 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) 59 CITY OF RIPON

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – MODIFIED CASH BASIS

NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2022
(Continued)
Boesch/
Kingery Main Street Vineyards Alexandra
Assessment Landscape Cornerstone I Landscape Landscape
Fund Fund Fund Fund Fund

REVENUES
Taxes $ - $ - $ - $ - $ -
Assessments 6,061 10,482 14,079 64,939 4,776
Investment income - - - - -
Intergovernmental revenue - - - - -
Charges for services - - - - -
Other - - - - -
Total revenues 10,482 6,061 14,079 64,939 4,776

EXPENDITURES
Streets and public works:

Streets - - - - -
Planning - - - - -
Community development - - - - -
Special assessment districts 10,661 45,090 10,741 34,392 5,125 Allocation to other department costs 1,896 8,019 1,910 6,116 911 Total expenditures 12,557 53,109 12,651 40,508 6,036
Excess (deficiency) of revenues over expenditures (6,496) (42,627) 1,428 24,431 (1,260)

OTHER FINANCING SOURCES (USES)
Operating transfers in - 42,627 - - -
Operating transfers out - - - - -
Total other financing sources (uses) 42,627 - - - -
Net change in fund balances (6,496) - 1,428 24,431 (1,260) Fund balances (deficit) - beginning - 29,277 82,345 93,094 2,285 Fund balances (deficit) - ending $ - 22,781 $ 83,773 $ 117,525 $ 1,025 $ 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – MODIFIED CASH BASIS

NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2022
(Continued)
Total
Ripon Non-Major
Lighting Special Revenue
Fund Funds

REVENUES
Taxes 41,170 $ 41,170 $
Assessments 269,555 399,687
Investment income - 19,459
Intergovernmental revenue - 1,949,409
Charges for services - 1,862
Other 2,697 2,697
Total revenues 2,414,284 313,422

EXPENDITURES
Streets and public works:

Streets - 47,426
Planning - 5,001
Community development - 30,837
Special assessment districts 242,652 394,754
Allocation to other department costs 43,153 78,702
Total expenditures 556,720 285,805
Excess (deficiency) of revenues over expenditures 27,617 1,857,564

OTHER FINANCING SOURCES (USES)
Operating transfers in - 63,798
Operating transfers out - (879,838)
Total other financing sources (uses) (816,040) -
Net change in fund balances 27,617 1,041,524
Fund balances (deficit) - beginning 3,164,105 (48,960)
Fund balances (deficit) - ending (21,343) $ 4,205,629 $ 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 149 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) 61 CITY OF RIPON

ADDITIONAL INFORMATION ON THE SUCCESSOR AGENCY TRUST FUND The following information is presented to supplement the basic financial statements and provides additional information about the Successor Agency Trust Fund. The information includes: the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position in accordance with generally accepted accounting principles as of and for the year ended June 30, 2022. Accordingly, the fiduciary fund financial statements utilize the accrual basis of accounting. For additional information on the Successor Agency Trust Fund, refer to the notes to the City’s basic financial statements.

STATEMENT OF FIDUCIARY NET POSITION

PRIVATE-PURPOSE TRUST FUND
JUNE 30, 2022
Successor Agency
Private Purpose
Trust Fund
ASSETS
Cash and investments 4,683,142 $
Cash and investments - restricted 3,028,650
Cash and investments with fiscal agents - restricted -
Interest receivable 2,033
Prepaid bond insurance 122,390
Loan due from capital projects fund 539,523
Total assets 8,375,738

LIABILITIES
Interest payable 100,050
Due to County of San Joaquin 1,297,266
Long-term liabilities
Debt due within one year -
Debt due in more than one year 19,780,805
Total liabilities 21,178,121

NET POSITION
Net position (deficit) held in trust for redevelopment
dissolution and other purposes $ (12,802,383)
2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 150 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements) 62 CITY OF RIPON

ADDITIONAL INFORMATION ON THE SUCCESSOR AGENCY TRUST FUND

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

PRIVATE-PURPOSE TRUST FUND
FOR THE YEAR ENDED JUNE 30, 2022
Successor Agency
Private Purpose
Trust Fund
Additions
Property taxes 560,968 $
Program income 940,927
Investment income 255,452
Total additions 1,757,347
Deductions
General operating 256,000
Interest expense 668,839
Total deductions 924,839
Net increase (decrease) in fiduciary net position 832,508 Total net position - beginning (13,634,891)
Total net position - ending $ (12,802,383)
2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report

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Packet Pg. 151 Attachment: 2022.06.30 City of Ripon - Financial Statements with Independent Auditor's Report (3615 : Audited financial statements)

CITY OF RIPON

CALIFORNIA

SINGLE AUDIT REPORT

FOR THE YEAR ENDED
JUNE 30, 2022
2022.06.30 City of Ripon - Single-Audit Report

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Packet Pg. 152 Attachment: 2022.06.30 City of Ripon - Single-Audit Report (3615 : Audited financial statements)

CITY OF RIPON

CALIFORNIA

SINGLE AUDIT REPORT
JUNE 30, 2022

TABLE OF CONTENTS
Page
Independent Auditor’s Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards ....................................................................................1 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance ................................................................................................................................3 Schedule of Expenditures of Federal Awards ..............................................................................................6 Notes to the Schedule of Expenditures of Federal Awards .........................................................................7 Schedule of Findings and Questioned Costs ...............................................................................................8 Summary Schedule of Prior Audit Findings ...............................................................................................10 2022.06.30 City of Ripon - Single-Audit Report

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Packet Pg. 153 Attachment: 2022.06.30 City of Ripon - Single-Audit Report (3615 : Audited financial statements) 1 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and
Members of the City Council
City of Ripon, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the modified cash basis financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Ripon, California (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated October 26, 2022.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. 2022.06.30 City of Ripon - Single-Audit Report

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Packet Pg. 154 Attachment: 2022.06.30 City of Ripon - Single-Audit Report (3615 : Audited financial statements) 2 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Clovis, California
October 26, 2022
2022.06.30 City of Ripon - Single-Audit Report

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Packet Pg. 155 Attachment: 2022.06.30 City of Ripon - Single-Audit Report (3615 : Audited financial statements) 3 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE

FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL

OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and
Members of the City Council
City of Ripon, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Ripon, California’s (the City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2022. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City of Ripon, California complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.
2022.06.30 City of Ripon - Single-Audit Report

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Packet Pg. 156 Attachment: 2022.06.30 City of Ripon - Single-Audit Report (3615 : Audited financial statements) 4 Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
 Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
2022.06.30 City of Ripon - Single-Audit Report

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Packet Pg. 157 Attachment: 2022.06.30 City of Ripon - Single-Audit Report (3615 : Audited financial statements) 5 Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Clovis, California
October 26, 2022
2022.06.30 City of Ripon - Single-Audit Report

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Packet Pg. 158 Attachment: 2022.06.30 City of Ripon - Single-Audit Report (3615 : Audited financial statements) The accompanying notes are an integral part of this statement. 6 CITY OF RIPON

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2022
Assistance Pass-Through
Listing Grantor's Federal Passed Through
Number Number Expenditures to Subrecipients
U.S. DEPARTMENT OF TRANSPORTATION
Pass-through California Department of Transportation:

Highway Planning and Construction
STPL California Department of Transportation 20.205 STPL-5286 (025) 1,644,913 $ - $ Total U.S. Department of Transportation - 1,644,913
U.S. DEPARTMENT OF JUSTICE
Direct Award:

Bureau of Justice Assistance - Bulletproof Vest Partnership 16.607 FY 2020 429 Bureau of Justice Assistance - Bulletproof Vest Partnership 16.607 FY 2021 1,892 - Total U.S. Department of Justice - 2,321
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Pass-through California Department of Finance:

Coronavirus State and Local Fiscal Recovery Funds
American Rescue Plan Act 21.027 N/A - 3,919,880
Pass-through State Water Resources Control Board:

Coronavirus State and Local Fiscal Recovery Funds
California Water and Wastewater Arrearage Payment Program 21.027 N/A - 32,945 Pass-through County of San Joaquin:

Community Development Block Grants:

Senior Center Retrofit 14.218 RIP 19.06 & RIP 20.3 20,837 - County of San Joaquin, CA Community Development Block Grants 14.218 RIP 21.24, RIP 20.29 &
RIP 21.29 10,000 15,000
Total U.S. Department of Housing and Urban Development 10,000 3,988,662 TOTAL EXPENDITURES OF FEDERAL AWARDS $ 10,000 5,635,896 $ Federal Grantor/Pass-Through Grantor/Program Title
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Packet Pg. 159 Attachment: 2022.06.30 City of Ripon - Single-Audit Report (3615 : Audited financial statements) 7 CITY OF RIPON

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2022

GENERAL
The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs of the City of Ripon (the City). Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies are included in the schedule. The information in this SEFA is presented in accordance with the requirements of Title 2 U.S.

Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

BASIS OF ACCOUNTING
The accompanying SEFA is presented using the modified cash basis of accounting, which is described in Note 1 of the City’s basic financial statements.

RELATIONSHIP TO BASIC FINANCIAL STATEMENTS
Federal award expenditures agree or can be reconciled with the amounts reported in the City’s basic financial statements.

INDIRECT COST RATE
The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
2022.06.30 City of Ripon - Single-Audit Report

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Packet Pg. 160 Attachment: 2022.06.30 City of Ripon - Single-Audit Report (3615 : Audited financial statements) 8 CITY OF RIPON

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2022
SECTION I – SUMMARY OF AUDITOR’S RESULTS

FINANCIAL STATEMENTS
Type of auditor's report issued:

Internal control over financial reporting:

Material weaknesses identified? Yes X No
Significant deficiencies identified -
not considered to be material weaknesses? Yes X None reported Noncompliance material to financial statements noted? Yes X No

FEDERAL AWARDS
Internal control over major programs:

Material weaknesses identified? Yes X No
Significant deficiencies identified -
not considered to be material weaknesses? Yes X None reported Type of auditor's report issued on compliance for
major programs:

Any audit findings disclosed that are required
to be reported in accordance with
2 CFR 200.516(a)? Yes X No
IDENTIFICATION OF MAJOR PROGRAMS:

Assistance Listing Number(s)

21.027
Dollar threshold used to distinguish
between Type A and Type B programs:

Auditee qualified as low-risk auditee? Yes X No
$750,000
Unmodified
Unmodified
Name of Federal Program or Cluster
Coronavirus State and Local Fiscal Recovery
Funds
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Packet Pg. 161 Attachment: 2022.06.30 City of Ripon - Single-Audit Report (3615 : Audited financial statements) 9 CITY OF RIPON

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2022
SECTION II – FINANCIAL STATEMENT FINDINGS
None reported.

SECTION III – FEDERAL AWARD FINDINGS
None reported.
2022.06.30 City of Ripon - Single-Audit Report

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Packet Pg. 162 Attachment: 2022.06.30 City of Ripon - Single-Audit Report (3615 : Audited financial statements) 10 CITY OF RIPON

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED JUNE 30, 2022

FINANCIAL STATEMENT FINDINGS
None reported.

FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None reported.
2022.06.30 City of Ripon - Single-Audit Report

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Packet Pg. 163 Attachment: 2022.06.30 City of Ripon - Single-Audit Report (3615 : Audited financial statements) October 26, 2022
To the City Council of the
City of Ripon, California
We have audited the financial statements of the City of Ripon Money Purchase Thrift Pension Plan (the Plan) for the year ended June 30, 2022. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated May 4, 2022.

Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Plan are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2022. We noted no transactions entered into by the Plan during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. There were no such estimates affecting the Plan’s financial statements.

The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management.

Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the Plan’s financial statements taken as a whole.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated October 26, 2022.

2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Audit Communication Letter

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Packet Pg. 164 Attachment: 2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Audit Communication Letter (3615 : Audited financial statements) Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the Plan’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Plan’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

We did not identify any additional significant risks of material misstatement as part of our audit planning, other than those that were already communicated to you in our engagement letter. Please note that the identification of significant risks of material misstatement does not necessarily indicate that there were instances of errors or omissions. These are areas that are considered higher risk, in our professional judgment.

Restriction on Use
This information is intended solely for the information and use of the City of Ripon’s City Council and management of the Plan and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Audit Communication Letter

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Packet Pg. 165 Attachment: 2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Audit Communication Letter (3615 : Audited financial statements)

CITY OF RIPON

MONEY PURCHASE THRIFT PENSION PLAN

FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITOR’S REPORT

FOR THE YEARS ENDED
JUNE 30, 2022 AND 2021
2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements

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Packet Pg. 166 Attachment: 2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements (3615 : Audited financial statements)

CITY OF RIPON

MONEY PURCHASE THRIFT PENSION PLAN
JUNE 30, 2022 AND 2021

TABLE OF CONTENTS
Page
Independent Auditor’s Report ..................................................................................................................... 1 Financial Statements
Statements of Fiduciary Net Position −
Pension Trust Fund ............................................................................................................................ 3 Statements of Changes in Fiduciary Net Position −
Pension Trust Fund ............................................................................................................................ 4 Notes to the Financial Statements .............................................................................................................. 5 2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements

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Packet Pg. 167 Attachment: 2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements (3615 : Audited financial statements) 1 INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and
Members City Council of the
City of Ripon, California
Opinion
We have audited the accompanying financial statements of the City of Ripon Money Purchase Thrift Pension Plan (the Plan), which comprise the statements of fiduciary net position – pension trust fund and the statements of changes in fiduciary net position – pension trust fund as of and for the years ended June 30, 2022 and 2021, and the related notes to the financial statements, which collectively comprise the City of Ripon Money Purchase Thrift Plan’s financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the City of Ripon Money Purchase Thrift Pension Plan as of June 30, 2022 and 2021, and the respective changes in fiduciary net position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Ripon Money Purchase Thrift Pension Plan, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Ripon Money Purchase Thrift Pension Plan’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements

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Packet Pg. 168 Attachment: 2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements (3615 : Audited financial statements) 2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Ripon Money Purchase Thrift Pension Plan’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Ripon Money Purchase Thrift Pension Plan’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the financial statements.

Such missing information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. Our opinions on the financial statements are not affected by this missing information.

Clovis, California
October 26, 2022
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Packet Pg. 169 Attachment: 2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements (3615 : Audited financial statements) The accompanying notes are an integral part of these financial statements. 3 CITY OF RIPON

MONEY PURCHASE THRIFT PENSION PLAN
STATEMENTS OF FIDUCIARY NET POSITION −

PENSION TRUST FUND
JUNE 30, 2022 AND 2021
2022 2021
ASSETS
Cash and cash equivalents 2,061,769 $ 2,292,547 $
U.S. government securities 981,712 513,442
Corporate obligations 654,246 434,878
Mutual funds 8,413,775 8,544,259
Common and preferred stocks 1,108,640 2,651,547
Real estate investment trust 232,807 274,917
Total cash and investments 13,495,059 14,669,480
Receivables:

Participant notes receivable 94,664 131,130
Contributions receivable 33,750 32,598
Other receivable - 7,438
Total assets 14,840,646 13,623,473

LIABILITIES
Unearned revenue - 11,464

NET POSITION
Restricted for pensions $ 14,829,182 13,623,473 $
2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements

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Packet Pg. 170 Attachment: 2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements (3615 : Audited financial statements) The accompanying notes are an integral part of these financial statements. 4 CITY OF RIPON

MONEY PURCHASE THRIFT PENSION PLAN
STATEMENTS OF CHANGES IN FIDUCIARY NET POSITION −

PENSION TRUST FUND
FOR THE YEARS ENDED JUNE 30, 2022 AND 2021
2022 2021
Additions to net position attributed to:

Investment income:

Net appreciation (depreciation) in the fair
value of investments (1,830,169) $ 2,856,713 $
Interest 6,515 8,496
Dividends 252,799 198,275
Contributions:

Employer 489,720 497,385
Employee 406,171 406,315
Total additions (674,820) 3,967,040
Deductions from net position attributed to:

Benefits paid to participants 497,625 3,506,173
Administration 18,805 33,264
Total deductions 3,524,978 530,889
Changes in net position 442,062 (1,205,709)
Total net position - beginning of year 14,387,120 14,829,182 Total net position - end of year $ 14,829,182 13,623,473 $ 2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements

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Packet Pg. 171 Attachment: 2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements (3615 : Audited financial statements)

CITY OF RIPON

MONEY PURCHASE THRIFT PENSION PLAN

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
5 NOTE 1 – PLAN DESCRIPTION
The financial statements of the City of Ripon Money Purchase Thrift Pension Plan (the Plan), a singleemployer defined contribution plan, have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to fiduciary activities, and in accordance with the Plan agreement.

The following description of the Plan provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan’s provisions. The Plan is sponsored by the City of Ripon, California (the City).

General
The Plan covers all permanent, full-time employees, excluding public safety employees, of the City who have completed six consecutive months of employment. As of June 30, 2022, there were 67 plan members. Plan provisions and contribution requirements are established and may be amended by the City Council of the City of Ripon. The Plan is subject to the provisions of Government Code Section 7504. The Plan is not subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA) as ERISA does not apply to government sponsored plans. Under the Internal Revenue Code, the Plan meets the requirements of Section 401(a) and is exempt from federal income tax under Section 510(a).

The City has the right under the Plan provisions to terminate the Plan by delivering to the trustee and administrator written notice of such termination. In the event of plan termination, participants will become 100% vested in their accounts.

Employee Contributions
Eligible employees can elect to defer 5% of their compensation to the Plan. The Plan allows additional employee elective contributions up to 6.6% of annual compensation.

Employer Contributions
The City makes contributions to the Plan equal to 10% of the total compensation, excluding overtime, of all participants in the Plan under the mandatory provision and up to 3.3% of the qualified employee’s annual compensation under the voluntary provision.

The City entered into a Memorandum of Understanding with the Union representing its employees which requires the City to “pick up” the 5% employee contribution referenced above. All such contributions are designated as employee contributions and are fully vested.

Participant Accounts
In accordance with the trust agreement, each member directs the investments held in his/her individual account. The participants’ accounts are held by a corporation-administered trust fund.

Vesting
Participants are immediately vested in their contributions plus actual earnings thereon. Vesting in the City contributions under the mandatory provision and earnings thereon is based on years of continuous service. A member is 100% vested after six years of credited service. Participants are fully vested in the City contributions under the voluntary provision and earnings thereon. 2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements

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Packet Pg. 172 Attachment: 2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements (3615 : Audited financial statements)

CITY OF RIPON

MONEY PURCHASE THRIFT PENSION PLAN

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
6 NOTE 1 – PLAN DESCRIPTION (Continued)
Payment of Benefits
Upon termination of service or attainment of earliest retirement age of 55, a participant may elect to receive the value of the account under one of the methods as described in the Plan.

The City contribution for, and interest forfeited by, employees who leave employment before six years of service are redistributed to all participants based on salary and vesting levels.

Participant Notes Receivable
The Plan provides for loans to participants which are secured by their vested account balances and can be no greater than the lesser of 50% of the participant’s vested account balance or $50,000. The loans are secured by the balance in the participant’s account and bear interest at rates which are commensurate with local prevailing rates as determined by the Plan administrator. Principal and interest are paid ratably through payroll deductions.

Expenses
Plan administrator charges are paid by the City of Ripon. Investment related expenses are paid from the Plan assets.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The financial statements of the Plan are prepared on the accrual basis of accounting.

Investment Valuation and Income Recognition
The Plan’s investments are reported at fair value. Securities traded on national exchanges are valued at the last reported sales price. The Plan’s investments are held in trust by Bank of Stockton.

Purchases and sales of securities are recorded on a trade-date basis. Interest and dividend income are recorded on the accrual basis.

Fair Market Value of Financial Instruments
Unless otherwise noted, the carrying value of financial instruments, including investments, receivables and liabilities, approximate fair value due to the short-term maturities of these instruments.

Notes Receivable from Participants
Loans to participants are reported at their unpaid balances plus any accrued but unpaid interest.

Payments of Benefits
Benefits are recorded when paid.
2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements

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Packet Pg. 173 Attachment: 2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements (3615 : Audited financial statements)

CITY OF RIPON

MONEY PURCHASE THRIFT PENSION PLAN

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
7 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Plan administrator to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from the estimates.

Budgetary Accounting
The Plan does not utilize formal budget procedures and is not required to adopt such procedures by law.

Accordingly, budgetary comparison information is not required or presented.

Reporting Entity
The Plan, governed by the Retirement Board, is considered an independent entity. Plan management considered all potential component units for inclusion in the reporting entity by applying the criteria set forth in accounting principles generally accepted in the United States of America. The Plan concluded that there were no potential component units which should be included in the reporting entity.

NOTE 3 – FAIR VALUE MEASUREMENTS
The Plan’s investments are reported at fair value in the accompanying statements of fiduciary net position – pension trust fund. The methods used to measure fair value may produce an amount that may not be indicative of net realizable value or reflective future fair values. Furthermore, although the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The fair value measurement accounting literature establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels:

Level 1 inputs consist of unadjusted quoted prices in active markets for identical assets and have the highest priority; Level 2 inputs are from other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 inputs are unobservable and have the lowest priority. The Plan uses appropriate valuation techniques based on the available inputs to measure the fair value of its investments. When available, the Plan measures fair value using Level 1 inputs because they generally provide the most reliable evidence of fair value. Level 3 inputs were used only when Level 1 or Level 2 inputs were not available.

Following is a description of the valuation methodologies used for Level 2 assets measured at fair value.

There have been no changes in the methodologies used at June 30, 2022.

Corporate obligations and government securities are valued at fair value. The market approach is used to value these assets which uses prices and other relevant information generated by market transactions involving identical or comparable assets, liabilities, or a group of assets and liabilities, such as a business.

Mutual funds and Real Estate Investment Trusts (REITs) are valued at the daily closing prices as reported by the fund. These funds are required to publish their daily net asset value (NAV) and to transact at the price. NAV is calculated by dividing the value of the net assets of the fund by the total number of outstanding shares of the fund. The mutual funds and REITs held by the Plan are deemed to be actively traded.
2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements

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Packet Pg. 174 Attachment: 2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements (3615 : Audited financial statements)

CITY OF RIPON

MONEY PURCHASE THRIFT PENSION PLAN

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
8 NOTE 3 – FAIR VALUE MEASUREMENTS (Continued)
The following tables set forth, by level within the fair value hierarchy, the Plan’s investments at fair value as of June 30, 2022:

Level 1 Level 2 Level 3 Total
U.S. government securities $ 981,712 - $ $ 981,712 - $
Corporate obligations 654,246 - 654,246 -
Mutual funds 8,413,775 - 8,413,775 -
Common and preferred stock 1,108,640 - 1,108,640 -
Real estate investment trust 274,917 - - 274,917
Total $ 10,324,650 1,108,640 $ - $ 11,433,290 $
Assets held at Fair Value
The following tables set forth, by level within the fair value hierarchy, the Plan’s investments at fair value as of June 30, 2021:

Level 1 Level 2 Level 3 Total
U.S. government securities $ 513,442 - $ $ 513,442 - $
Corporate obligations 434,878 - 434,878 -
Mutual funds 8,544,259 - 8,544,259 -
Common and preferred stock 2,651,547 - 2,651,547 -
Real estate investment trust 232,807 - - 232,807
Total $ 9,725,386 2,651,547 $ - $ 12,376,933 $
Assets held at Fair Value
NOTE 4 – INVESTMENTS
There following investments held by the plan were in excess of 5% of the Plan’s net position during the year ended June 30, 2022.

Issuer Investment Type
Reported
Amount
iShares: S&P 500 INDEX Mutual Funds $ 2,135,373
iShares Floating Rate Bond ETF Mutual Funds $ 1,090,253 Vanguard Short-Term Inflation-Protected
Securities Index Fund U.S. Government Security $ 979,495 There were no investments held by the plan that were in excess of 5% of the Plan’s net position during the year ended June 20, 2021.

Investment income results from each participant’s self-directed account. Investment income by major asset category is provided in the trustee reports.
2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements

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Packet Pg. 175 Attachment: 2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements (3615 : Audited financial statements)

CITY OF RIPON

MONEY PURCHASE THRIFT PENSION PLAN

NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
9 NOTE 5 – RISKS AND UNCERTAINTIES
The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statement of fiduciary net position – pension trust fund.

NOTE 6 – RELATED PARTY AND PARTY-IN-INTEREST TRANSACTIONS The Third-Party Administrator of the Plan and the Trust holding plan assets provide various services to the Plan and receive compensation and other fees for these services and, therefore, qualify as parties-ininterest. Total fees and commissions paid to these parties-in-interest totaled $111,615 and $103,061 for the years ended June 30, 2022 and 2021, respectively.
2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements

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Packet Pg. 176 Attachment: 2022.06.30 City of Ripon Money Purchase Thrift Pension Plan - Financial Statements (3615 : Audited financial statements) City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Ed Ormonde, Chief of Police
Date: 11/08/2022
Subject: Grand Jury Response - Draft
RECOMMENDED ACTION:

Discuss response to Grand Jury Case No. 0321 for Superior Court of California, County of San Joaquin regarding Cybersecurity: Local Defense Against a Global Threat and provide direction to staff.

BACKGROUND
The 2021-22 San Joaquin County Grand Jury has published Case No. 0321, “Cybersecurity:

Local Defense Against a Global Threat” (see attached). In the published case the Grand Jury has made Findings and Recommendations to each entity surveyed within the county. The City of Ripon’s suggested responses are here to be reviewed and discussed prior to formal submittal.

DISCUSSION/RESPONSE
The San Joaquin County Civil Grand Jury report requires a response from the Ripon City Council on the report’s recommendations before December 31, 2022. Staff has prepared a draft letter to the Grand Jury (see attached file “DRAFT City Council Response to Grand Jury”) responding to each recommendation that is applicable to the City of Ripon.

Staff is requesting input from the City Council on the draft response to the Grand Jury.

Following the discussion at the November City Council meeting, staff will finalize the letter and bring back for City Council approval at the December City Council meeting.

FISCAL IMPACT
Unknown.

Attachments:

1. SJ Grand Jury Case #0321

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Packet Pg. 177

2. DRAFT City Council Response to Grand Jury

3. Organzational Chart

4. Ripon Business Continuity-Disaster Recovery Plan

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Packet Pg. 178
2021−2022 San Joaquin County Grand Jury
Working Title 1: Working Title 2 (Case No. xx20)
San Joaquin County and Its Seven Cities:

Cybersecurity: Local Defense Against a Global Threat
Case #0321
Summary
We hear reports on a daily basis of cyberattacks occurring around the world. These attacks are becoming increasingly sophisticated, disruptive and expensive. Attacks on government agencies can disrupt essential services, crippling communities. Agencies small and large are equally vulnerable. There is an ever-growing demand for stolen data in an underground market.

Compromise of information has proven to be a serious threat on the cyber battleground, both domestically and internationally. Bad actors hack intelligence, media and essential service systems.

Other disasters such as floods, fires, storms or prolonged power outages can interrupt essential services if providers’ information systems are not adequately secure. According to one expert witness interviewed by the 2021-2022 Grand Jury, “World War III will be fought in cyberspace, not on the battlefield.”
Grand Jury members are not technical experts but sought to understand the cybersecurity landscape and local governments’ management of their cybersecurity risks and vulnerabilities. In this investigation of information security of San Joaquin County and its seven cities, the 2021-2022 Grand Jury made a “point in time” assessment of each entity’s Information Systems Department (ISD), focusing primarily on cybersecurity. The Grand Jury considered nine elements of any ISD and, through research of relevant literature and input from industry experts, established an expected standard for each of those elements. The Grand Jury then evaluated each of the agencies with respect to those expectations.

The Grand Jury concluded that San Joaquin County (SJC) has mature and robust security policies and systems. The County’s security architecture provided a model in evaluating each city’s systems.

The Grand Jury determined that Escalon, Lodi and Stockton met a lay person’s expectations for cybersecurity but were lacking either a formal Business Continuity Plan (BCP) or Disaster

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Packet Pg. 179 Attachment: SJ Grand Jury Case #0321 (3624 : Grand Jury Response - Draft) 2 Preparedness Plan (DPP). Lathrop, Manteca and Tracy were found to have adequate security systems in place but lack documented plans for both Business Continuity and Disaster Preparedness. Ripon was found to need improvement in meeting several of the Grand Jury’s expectations, with lack of personnel being their greatest challenge.

The Grand Jury recommends that the County and affected cities:
• develop, adopt and implement a Business Continuity Plan; • develop, adopt and implement an IT Disaster Preparedness Plan; • remedy specific cybersecurity risks found in this investigation; and • the City of Ripon undergo a data system security review by an expert third party to assess the City’s IT systems and protocols.

The Grand Jury recognizes that cybersecurity is a dynamic process, a continually moving target which needs constant monitoring and updating.

Glossary
• Access: The ability and means to communicate with or otherwise interact with a system; to use system resources to manage information; to gain knowledge of the information the system contains; to control system components and functions.
• Actor, bad actor, threat actor or attacker: An individual, group, organization or government that attempts or executes an attack.
• Attack: An intentional attempt to gain unauthorized access to system services, resources or information; an attempt to compromise system integrity. • Authentication: The process of verifying the identity or other attributes of an entity (user, process or device).
• Authorization: A process of determining, by evaluating applicable access control information, whether a subject is allowed to have the specified types of access to a particular resource. • BCP: Business Continuity Plan. A document that sets forth procedures for the continued performance of core capabilities, critical operations and user services during any disruption or potential disruption.
• CCISDA: California County Information Services Directors Association. This is the official organization of the county IT directors and chief information officers throughout the state of California. CCISDA represents all 58 California counties in the area of information technology in county government.
• CIO: Chief Information Officer.
• Computer Aided Dispatch Systems: Used by dispatchers, call-takers, and 911 operators to prioritize and record incident calls, identify the status and locations of responders in the field and effectively dispatch responders.
• Confidentiality: A property of information that is not disclosed to users, processes or devices unless they have been authorized to access the information. • Cyber event or incident: An occurrence that actually or potentially results in adverse consequences to an information system or the information that the system processes, stores or transmits and that may require a response action to mitigate the consequences. An occurrence that constitutes a violation or imminent threat of violation of security policies, security procedures or acceptable use policies.

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Packet Pg. 180 Attachment: SJ Grand Jury Case #0321 (3624 : Grand Jury Response - Draft) 3 • Cybersecurity: The activity, process, ability, capability or state whereby information and communications systems and the information contained therein are protected from and/or defended against damage, unauthorized use, modification or exploitation. • DPP: Disaster Preparedness Plan. A document that sets forth policies and procedures for restoration of information systems after a critical incident or event from any source. The plan addresses interim restoration of information operations in the short and medium term and full restoration of all capabilities in the longer term.
• Data integrity: The property that data is complete, intact and trusted and has not been modified or destroyed in an unauthorized or accidental manner.
• Data security policy: A rule or set of rules that governs the acceptable use of an organization's information and services to a level of acceptable risk and the means for protecting the organization's information assets.
• Encryption: The process of converting data into a form that cannot be easily understood by unauthorized people or agents.
• Firewall: A capability to limit network traffic between networks and/or information systems. A hardware/software device, or a software program, that limits network traffic according to a set of rules of what access is and is not allowed or authorized. • Hacker: An unauthorized user who attempts to or gains access to an information system. • ISD: Information Systems Department.
• IT: Information Technology.
• KnowB4: A proprietary security awareness training platform. KnowB4 is used by agencies for simulated phishing activities and other email compromise tests, as well as for other IT security training needs.
• Malware: Software that compromises the operation of a system by performing an unauthorized function or process.
• Mobile device management tool: A security software tool designed to help organizations secure, manage and monitor mobile devices such as smartphones and tablets. • Multi-factor authentication: An electronic authentication mechanism in which a user is granted access to an application only after presenting two or more pieces of evidence (factors or keys only the authentic user knows or possesses).
• Multi-layer security access: Multi-layer security refers to a system that uses numerous components to shield the IT infrastructure. It is a defense mechanism that mitigates, delays or prevents threats.
• Network or cyber infrastructure: The information and communication systems and services composed of all hardware and software that process, store and communicate information; any combination of all these elements.
• Next-generation systems: Security systems consisting of both firewall and intrusion prevention systems built in, rather than as add-ons, along with the features of basic firewalls. • Phishing: A digital form of social engineering to deceive individuals into providing sensitive information.
• Phishing test: A security training exercise designed to test users’ vulnerability and reinforce vigilance.
• Presidential Executive Order 14028: “Improving the Nation’s Cybersecurity” (issued May 12, 2021) requires agencies to enhance their cybersecurity system integrity.

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Packet Pg. 181 Attachment: SJ Grand Jury Case #0321 (3624 : Grand Jury Response - Draft) 4 • Ransomware: A type of malicious software designed to block access to a computer system until a sum of money is paid.
• Ransomware attack response plan: A set of predetermined and documented procedures to detect and respond to a cyber incident involving demand for ransom for recovery and restoration of data or systems.
• Records Management System: The management of records for an organization throughout the records’ life cycle.
• Redundancy: Additional or alternative systems, sub-systems, assets or processes that maintain a degree of overall functionality in case of loss or failure of another system, sub-system, asset or process. Typically applied to power supplies and data backup systems. • Vulnerability: A characteristic or specific weakness that renders an organization or asset (such as information or an information system) open to exploitation by a given threat or susceptible to a given hazard.

Wi-Fi network: A family of wireless network protocols used for local area networking of devices and internet access, allowing nearby digital devices to exchange data by radio waves.

Background
The 2008-2009 San Joaquin County Grand Jury reported on information technology security, finding that several County departments and two of the seven cities in the county met expectations for Information Technology (IT) security, while some County departments and five cities did not.

Recommendations were made and generally accepted in agency responses. In terms of technology, 2008-2009 was at least a generation ago. Government agencies use and store vast amounts of sensitive data on their residents and their employees, including personal identification data, financial data, health data and legal data. Additionally, these agencies provide services essential to our day-to-day lives, including public safety (police and fire), public works, health services, water services and community development. The Grand Jury recognizes that we are lay people, hardly experts, in the field of IT. It was the intent of the 2021-2022 Grand Jury to examine how the county and city governments within San Joaquin County are exercising due diligence to protect information, defend against future cyberattacks, maintain current disaster plans and provide ongoing training to employees in these matters.

Reason for Investigation
As stated in Presidential Executive Order 14028, “…the prevention, detection, assessment and remediation of cyber incidents is a top priority and essential to national economic security.” San Joaquin County has experienced ransomware and cybersecurity attacks firsthand. School districts, municipalities and county agencies have been victimized in recent years. Given the rise in complexity of IT, the current sophistication of cybercrime, and the essential nature of government services provided, the 2021-2022 Grand Jury undertook an investigation into the current state of security and disaster preparedness of the IT systems of San Joaquin County and the seven incorporated cities within the county.

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Packet Pg. 182 Attachment: SJ Grand Jury Case #0321 (3624 : Grand Jury Response - Draft) 5 Method of Investigation
The 2021-2022 Grand Jury surveyed six San Joaquin County IT department heads and the City Manager or City Administrator of each of the seven cities in the county; each responded to the survey. Subsequently, an agency IT department head or staff member, an IT consultant or a city administrator was interviewed to clarify responses and to provide additional material when applicable. The Grand Jury also interviewed independent cybersecurity experts. The expert witnesses have collectively more than 50 years’ experience at diverse levels of government ranging from county to state to national information systems and cybersecurity. IT executives from one school district were also interviewed. For this investigation, the Grand Jury interviewed 16 individuals and attended cybersecurity presentations.

The Grand Jury also reviewed numerous websites and newspaper and magazine articles relevant to this investigation. Additionally, the Grand Jury reviewed documents provided, including network diagrams, ransomware insurance policies and other items.

Materials Reviewed
• 2021-2022 San Joaquin County Grand Jury surveys
• Biden, Joseph. Executive Order on Improving the Nation’s Cybersecurity. 12 May 2021.

Executive Order#14028
• California Joint Cyber Incident Response Guide. California Office of Emergency Services Cyber Security Integration Center, 2 Aug. 2021
• Cyber Atack Preparedness in Contra Costa County. Contra Costa County Civil Grand Jury, 2021. Report 2104
• Digital Services and Innovation Strategy. San Joaquin County, 19 Nov. 2020 • How to Develop a Ransomware Remediation Plan. Rubrik, 2021 • Information Technology Security. 2018-2019 Santa Barbara County Grand Jury, 2019 • Information Technology Security: Cities and San Joaquin County. 2008/2009 San Joaquin County Grand Jury, 2009. Report No.03-08
• Ransomware Defense for Dummies--2nd Edition. 2nd ed., Cisco Umbrella, 2021 Websites Visited
• Cybersecurity & Infrastructure Security Agency. “CYBERSECURITY | CISA.” Cisa.gov, Cybersecurity and Infrastructure Security Agency, 2019, www.cisa.gov/cybersecurity. Accessed 6 May 2022.
• Federal Trade Commission, and Alvaro Puig. “Cybersecurity Advice to Protect Your Connected Devices and Accounts.” Sjgov.org, 24 Mar. 2022, www.sjgov.org/department/da/consumeralerts/consumer-alerts/2022/03/24/cybersecurity-advice-to-protect-your-connected-devices-andaccounts. Accessed 6 May 2022. • Kuykendall, By Kristal. “Cybersecurity Experts Call for More Transparency and Immediate Resources for Schools -.” The Journal, 17 Mar. 2022,
thejournal.com/Articles/2022/03/17/Cybersecurity-Experts-Call-For-More-Transparency-andImmediate-Resources-for-Schools.aspx?Page=1. Accessed 6 May 2022.

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Packet Pg. 183 Attachment: SJ Grand Jury Case #0321 (3624 : Grand Jury Response - Draft) 6 • Marcum Accounts Advisors. “What Is a SOC 2?” The SSAE 18 Reporting Standard - SOC 1 - SOC 2 - SOC 3 (Formerly SSAE 16), 8 Jan. 2022, www.ssae-16.com/faq/what-is-a-soc-2/.

Accessed 30 Apr. 2022.
• National Institute for Cybersecurity Careers and Studies. “Cybersecurity Glossary | National Initiative for Cybersecurity Careers and Studies.” Niccs.cisa.gov, niccs.cisa.gov/aboutniccs/cybersecurity-glossary. Accessed 6 May 2022. • Unisys. “Cyber Attacks--What You Need to Know.” Unisys, 2022, www.unisys.com. Accessed 6 May 2022.

Discussions, Findings and Recommendations
General Discussion
The Grand Jury recognizes cybersecurity is an extremely complicated topic. Specialized knowledge, experience and expertise are required for a deep understanding of what is necessary for adequate policies, systems and architecture. Lacking such specialized knowledge, the Grand Jury researched numerous sources, including recognized experts in this field to determine the following elements of any ISD and to define the following expectations for adequate cybersecurity in today’s environment.

Expectations
• Organization: Each organization should have a detailed Organization Chart demonstrating the structure of its independent IT department. Cities lacking an independent IT department should have a chart showing where IT resides in their overall structure. • Network Diagram: Each organization should have a detailed network diagram indicating the relationships between all IT architectural elements. Best-practice guidelines suggest that this diagram be confidential.
• Data Confidentiality: Each organization should have an organization-wide policy determining data confidentiality and access control. Policy for data access should be clearly defined and deskspecific or station-specific. • Data Security: Each organization should have next-generation systems and controls to ensure both physical and cyber security for all IT assets. Next-generation firewalls and endpoint management systems provide protection against ever-evolving means of cyberattack. Data should be protected with daily or continuous backup and archival systems. Backups should be protected against corruption, external encryption and/or destruction. Agencies should require multi-factor authentication for access to network systems. • Business Continuity Plan (BCP): Each organization should have a detailed, current, comprehensive plan for restoring services in the event of disruption from any source. • Disaster Preparedness Plan (DPP): Each organization should have a formal, detailed plan to prepare for various possible IT disruptions. This plan should be tested frequently and updated regularly.
• Ransomware Policy: Each organization should have an internal (confidential) documented policy for agency response to a ransomware attack.

2.B.a
Packet Pg. 184 Attachment: SJ Grand Jury Case #0321 (3624 : Grand Jury Response - Draft) 7 • Cyber Event Insurance: Each organization should have insurance coverage to help offset economic losses from cyber events.
• Ongoing Employee Training: Each organization should provide rigorous, frequent training and ongoing testing of all employees as an integral part of its cybersecurity profile.

Survey Results:

The table below indicates whether an agency met (M), did not meet (NM) or was in the process of meeting (IP) the nine defined expectations.

Org
Chart
Network
Diagram
Data
Confidentiality
Data
Security
BCP DPP Ransomware
Policy
Cyber
Insurance
Training

SJC M M M M M M NM M M
Escalon M M M M NM M M M M
Lathrop M M M M NM M NM NM M
Lodi M M M M IP M M M M
Manteca M M M M M M IP IP M
Ripon M M M M NM NM NM M M
Stockton M M M M M M NM M M
Tracy M M M M IP IP NM M M

1.0 San Joaquin County−Discussion
In November 2020, San Joaquin County released a three-year (2020-2023) strategic plan for ensuring continuing security, efficacy, cost-effectiveness and best-service outcomes to all end-users of County services and systems. The plan document “San Joaquin County Digital Services and Innovation Strategy” established goals for County digital service systems. These goals— Modernizing and Leveraging Our Technology Environment—address objectives for a security posture:

1. Acquire and implement cybersecurity technology to enable SJC to develop industry-leading capabilities to help mitigate and address cybersecurity risk.

2. Develop and mature security governance and processes to meet or exceed industry standards, enhance security enforcement partnerships, and strengthen County practices.

3. Develop a robust security training program for the County workforce, including enhanced training and development for the security workforce.

Excerpt from “San Joaquin County Digital Services and Innovation Strategy,” November 19, 2020 (page 6) San Joaquin County has met these objectives and continues to update and enhance these processes as the cybersecurity landscape continues to evolve.

2.B.a
Packet Pg. 185 Attachment: SJ Grand Jury Case #0321 (3624 : Grand Jury Response - Draft) 8 San Joaquin County ISD oversees all County departments, making it one of the largest county ISDs in California. San Joaquin County ISD is an active participant in the California County Information Systems Department Association (CCISDA). This association provides opportunities for counties to share information and experiences and offers guidance, such as standards for best-practice policies.

Several large and specialized departments within the County have their own IT departments and department chiefs who report to the County’s Chief Information Officer. Additionally, SJC has a dedicated Information Security Officer. All these IT executives form a cybersecurity governance committee which meets monthly, with subgroups meeting more frequently as needed.

County ISD and Human Resource Departments conduct frequent and on-going employee training and testing using proprietary software. In addition to these County departments, several Independent Special Districts in SJC use County IT services through various memoranda of understanding.

The only element of the defined expectations not met by SJC is having an internal documented policy for response to a ransomware attack.

San Joaquin County is a model agency in the realm of information technology and maintenance of cybersecurity.

Findings
F1.1 San Joaquin County does not have a formal internal policy concerning payments or procedures in ransomware attacks. This absence of policy could cause confusion, delay and greater loss of security in the event of such an attack.

F1.2 San Joaquin County has an exemplary profile regarding cybersecurity and should serve as a model for other government agencies within San Joaquin County.

Recommendations
R1.1 By November 1, 2022, the San Joaquin County Board of Supervisors, in conjunction with San Joaquin County ISD, develop, adopt and implement a formal internal policy and procedure for response to a ransomware attack.

2.0 City of Escalon−Discussion
The City of Escalon does not have an independent IT department but has a contract agreement with Mid Valley IT to provide all IT services. In the City organization, IT functions report to the Finance and HR Directors. Each employee is given a level of access according to assigned responsibilities within their department. All employees receive information security training specific to their responsibilities as well as general security awareness training. The IT consultant employs an aggressive multi-layered approach to mitigate security threats through software and hardware protection measures. Critical or confidential data is stored in multiple cloud-based locations and systems employing numerous safeguards, including use of multi-factor authentication for access.

IT functions are protected with a standby generator and redundant backups in case of a system failure. The generator is tested periodically for functionality.

2.B.a
Packet Pg. 186 Attachment: SJ Grand Jury Case #0321 (3624 : Grand Jury Response - Draft) 9 The City of Escalon met all but one of the expectations for adequate cybersecurity. Escalon is by far the smallest city in San Joaquin County, but by using a contracted IT service provider, Escalon is meeting its cybersecurity needs. The City of Escalon does not have a documented Business Continuity Plan.

Findings
F2.1 The City of Escalon does not have a documented Business Continuity Plan, leaving the City relatively unprepared to restore essential services in a disruptive event.

Recommendations
R2.1 By January 1, 2023, the Escalon City Council, in conjunction with Mid Valley IT, develop, adopt and implement a Business Continuity Plan.

3.0 City of Lathrop−Discussion
The City of Lathrop met six of the expectations for the nine elements considered in this investigation. Lathrop’s IT organization includes a Director of Information Technology at the cabinet leadership level, a policy strongly recommended by an IT expert for maximum IT security. Including the Director of IT in frequent, regular meetings with other department heads allows effective communication of IT security needs to all City departments.

Expectations for data confidentiality and data security were met. However, use of multi-factor authentication for system access was not universal at the time of this investigation, leaving Lathrop at higher risk of attack. Lathrop provides an unsecured public Wi-Fi network, separate from the City’s secure business network and accessible to any user. Hackers or other bad actors could take advantage of the unsecured network, possibly resulting in compromise of log-in credentials from that network and possibly exposing the City to costly liability suits. Lathrop was in the process of developing and approving a BCP and DPP plan at the time of this investigation. Similarly, the City was updating an internal policy for response to a ransomware attack. At the time of this investigation, Lathrop lacked insurance against losses incurred in a cybersecurity incident.

Findings
F3.1 The City of Lathrop does not employ multi-factor authentication universally, leaving City systems more vulnerable to the activities of bad actors.

F3.2 The City of Lathrop provides an unsecured public Wi-Fi network. Misuse of this unsecured network could expose the City to liability risks.

F3.3 The City of Lathrop does not have an approved Business Continuity Plan, rendering the City relatively unprepared to restore essential services in a disruptive event.

2.B.a
Packet Pg. 187 Attachment: SJ Grand Jury Case #0321 (3624 : Grand Jury Response - Draft) 10 F3.4 The City of Lathrop does not have a formal internal policy or procedure to address ransomware attacks. This absence of policy could cause confusion, delay and greater loss of security in the event of such an attack.

F3.5 The City of Lathrop does not have an insurance policy covering financial losses from a cyberattack, possibly exposing City financial resources.

Recommendations
R3.1 By November 1, 2022, the Lathrop City Council, in conjunction with the City’s IT department, develop, adopt and implement a procedure for universal multi-factor authentication for access to City data.

R3.2 By November 1, 2022, the Lathrop City Council, in conjunction with the City’s IT department, provide a secure public Wi-Fi network.

R3.3 By January 1, 2023, the Lathrop City Council, in conjunction with the City’s IT department, develop, adopt and implement a Business Continuity Plan.

R3.4 By November 1, 2022, the Lathrop City Council, in conjunction with the City’s IT department, develop, adopt and implement a formal internal policy and procedure for a ransomware attack.

R3.5 By January 1, 2023, the Lathrop City Council, in conjunction with the City’s IT department, obtain an insurance policy to mitigate fiscal impact resulting from cyberattack or other critical information system loss.

4.0 City of Lodi−Discussion
The City of Lodi has a large IT division, responsible for all IT functions of the City. The division is responsible for the integrity of the City’s cyber infrastructure, maintenance and support of all hardware and software, and assuring secure access to all network resources. Lodi fell victim to a ransom attack in April 2019. That unfortunate event caused the City to change its management of cybersecurity, significantly elevating the importance of vigilance by all City staff. Lodi has implemented a robust cyber awareness training program for all City employees, incorporating education in tactics used by bad actors both inside and outside the City’s network. Monthly training is followed by testing in topics covered. Citywide campaigns occur quarterly to test employee response to phishing and other email-based attacks. The IT division head reports directly to the Deputy City Manager and meets regularly with all City department heads. The City of Lodi met all expectations for cybersecurity except for having a completed, up-to-date Business Continuity Plan.

The City has contracted a business consulting firm to create a BCP, projected to be completed and implemented by the end of June 2022.

2.B.a
Packet Pg. 188 Attachment: SJ Grand Jury Case #0321 (3624 : Grand Jury Response - Draft) 11 Findings
F4.1 The City of Lodi does not have an approved Business Continuity Plan, rendering the City relatively unprepared to restore essential services in a disruptive event.

F4.2 The City of Lodi has implemented an excellent cyber awareness training program for all employees minimizing risk to damage from cyberattack.

Recommendations
R4.1 By January 1, 2023, the Lodi City Council, in conjunction with the City’s IT division, develop, adopt and implement a Business Continuity Plan.

5.0 City of Manteca−Discussion
The City of Manteca met seven of the nine expectations considered in this investigation. Manteca’s Information Technology department is independent in the City’s organization. The department director reports directly to the City Manager and meets weekly with other City department heads.

User level of access is determined by position, background and other departmental factors.

Employees are trained on a regular basis. The training is mandatory for all employees. Hard drives are encrypted, and a Mobile Device Management tool is used for tablets, laptops and phones.

Manteca’s ISD is currently updating its Information Technology Security Policy. This comprehensive policy has not been updated since 2010. Manteca’s Department of Information Technology and Innovation is collaborating with City administration and the City Attorney to update all policies relating to information technology security. Similarly, the City is in the process of bringing both hardware and software systems up to next-generation standards with new firewall, malware, user access, backup systems and applications in place. Employee training is executed through KnowB4, an industry-standard cybersecurity training program which includes phishing and other email compromise testing.

Regarding firewalls and switches, roughly 60% still operate off single rather than dual or redundant power supplies. Over the next five years, the City is phasing out older devices as they reach end-oflife.

Findings
F5.1 The City of Manteca has an Information Technology Security Policy which has not been updated since 2010, leaving the City relatively unprepared for a cyber event.

F5.2 The City of Manteca lacks a policy and procedure for ransomware attacks. This absence of policy could cause confusion, delay, and greater loss of security in the event of such an attack.

F5.3 The City of Manteca has a significant number of security devices with single power supplies.

This lack of redundant power presents vulnerability in major or prolonged power outages.

2.B.a
Packet Pg. 189 Attachment: SJ Grand Jury Case #0321 (3624 : Grand Jury Response - Draft) 12 Recommendations
R5.1 By January 1, 2023, the Manteca City Council, in conjunction with the City’s ISD, develop, approve and implement an updated Information Technology Security Policy.

R5.2 By January 1, 2023, the Manteca City Council, in conjunction with the City’s ISD, develop, approve and implement a confidential policy and procedure for response to a ransomware attack.

R5.3 By March 1, 2023, the Manteca City Council, in conjunction with the City’s ISD, develop, approve and adopt an updated timeline to replace single-powered units with dual-powered or redundant-powered units in their network architecture.

6.0 City of Ripon−Discussion
The City of Ripon has experienced turnover and vacancies in the IT Department in the past year.

The Director of IT resigned in early 2021. Subsequently, another IT Director was hired but resigned within three months. The City has contracted with a former IT employee as a temporary IT Director and is currently updating the job description for a permanent director of the IT functions.

The City’s organization chart does not include an IT department or department head. The only IT position shown is within the Police Department.

Data confidentiality is maintained through a three-tiered access structure. Management supervisors for each City department determine who has access to appropriate information.

Sensitive data is held within a Computer Aided Dispatch Program or a Records Management System within the IT division of the Ripon Police Department. The sensitivity of data with all other City departments is determined by supervisors.

Findings
F6.1 It is unclear in the City of Ripon’s Organization Chart where responsibilities for IT and IT security lie, creating confusion over who is responsible to act in a disruptive event.

F6.2 The City of Ripon has a rudimentary network diagram outlining the City’s router and firewall relationship with networks used, but the diagram lacks detail, leaving uncertainty about data security.

F6.3 Although the City of Ripon met expectations in the areas of data confidentiality and security, lack of IT staff and leadership leaves these areas vulnerable to cyberattack.

F6.4 The City of Ripon lacks a Business Continuity Plan, rendering the City relatively unprepared to restore essential services in a disruptive event.

F6.5 The City of Ripon does not have a Disaster Preparedness Plan, leaving the City at risk for significant delay and cost to restore IT systems in the event of a disaster.

F6.6 The City of Ripon does not have a formal policy or procedure to address ransomware attacks. This absence of policy could cause confusion, delay and greater loss of security in the event of an attack.

2.B.a
Packet Pg. 190 Attachment: SJ Grand Jury Case #0321 (3624 : Grand Jury Response - Draft) 13 Recommendations
R6.1 By January 1, 2023, the Ripon City Council develop and make public an updated City Organization chart showing details of the City’s IT functions, including all IT positions.

R6.2 By January 1, 2023, the Ripon City Council develop and adopt a detailed Network Diagram to decrease security vulnerabilities.

R6.3 By January 1, 2023, the Ripon City Council obtain a third-party security review of the City’s IT department assets, positions, and policies and an evaluation of data confidentiality, security systems and protocols.

R6.4 By January 1, 2023, the Ripon City Council develop, adopt and implement a formal Business Continuity Plan.

R6.5 By January 1, 2023, the Ripon City Council develop, adopt and implement a formal Disaster Preparedness Plan for IT functions.

R6.6 By January 1, 2023, the Ripon City Council develop, adopt and implement a formal internal policy and procedure for response to a ransomware attack.

7.0 City of Stockton−Discussion
The City of Stockton has a large IT department that oversees IT functions for all the City’s other departments. Data confidentiality and user access are determined departmentally, following uniform standards. Information is protected by many safeguards aiming not only to minimize risk of penetration but also to detect any breach that might occur. Stockton has both a BCP and a DPP.

Stockton is one of very few cities having license to use a cybersecurity tool integrating the City with the State of California’s Office of Emergency Services. Stockton’s IT Director meets weekly with other department heads, updating them on all matters related to cybersecurity.

Stockton met each of the cybersecurity expectations except for the presence of a documented internal policy and procedure for response to a ransomware attack. However, the City does have a Cybersecurity Response Book detailing response procedures for other cyber events. Employee security awareness training is required every six months.

Findings
F7.1 The City of Stockton does not have a formal internal policy concerning payments or procedures in ransomware attacks. This absence of policy could cause confusion, delay and greater loss of security in the event of an attack.

F7.2 The City of Stockton has a large IT Department which places cybersecurity and disaster preparedness at a high priority, minimizing risk to the City’s information and service systems.

2.B.a
Packet Pg. 191 Attachment: SJ Grand Jury Case #0321 (3624 : Grand Jury Response - Draft) 14 Recommendations
R7.1 By November 1, 2022, the Stockton City Council, in conjunction with the City’s IT department, develop, adopt and implement a formal internal policy and procedure for response to a ransomware attack.

8.0 City of Tracy−Discussion
The City of Tracy met all expectations for cybersecurity or was in the process of meeting them when surveyed. The City has an Information Technology Division, which is part of the Finance Department. This division supports all departments and functions of the City except water treatment. Data confidentiality and security are guaranteed with industry-leading, next-generation firewalls and network access controls. Data storage, backup and cybersecurity are monitored continually. The IT Manager meets every two weeks with all other City department heads to address IT issues, including cybersecurity.

Tracy does not require encryption of thumb drives used on City devices, a requirement that is considered a “best practice” by an expert witness.

Tracy does not have either a formal Business Continuity Plan or Disaster Preparedness Plan in place but is in the process of developing both. The BCP was scheduled to be complete in April 2022.

Completion date for the DPP was not specified by the City.

Findings
F8.1 Lacking a requirement for encryption of thumb drives used on City devices exposes the City of Tracy to potential data theft and contamination.

F8.2 The City of Tracy lacks a completed Business Continuity Plan, rendering Tracy relatively unprepared to restore essential services in a disruptive event.

F8.3 The City of Tracy lacks a completed Disaster Preparedness Plan, leaving Tracy at risk for delay and cost to restore IT systems in the event of a disaster.

Recommendations
R8.1 By November 1, 2022, the Tracy City Council, in conjunction with the IT division, develop, adopt and implement a policy requiring encryption of thumb drives used on City devices.

R8.2 By January 1, 2023, the Tracy City Council, in conjunction with the IT division, develop, adopt and implement a formal Business Continuity Plan.

R8.3 By January 1, 2023, the Tracy City Council provide the Grand Jury with an updated formal Disaster Preparedness Plan.

2.B.a
Packet Pg. 192 Attachment: SJ Grand Jury Case #0321 (3624 : Grand Jury Response - Draft) 15 Conclusion
San Joaquin County is well protected regarding cybersecurity. The seven cities in the county vary with respect to Grand Jury expectations, most being well secured but lacking defined plans for Business Continuity and IT Disaster Preparedness. Cybersecurity is an evolving concern and requires ongoing efforts by government entities to remain current and vigilant against risks to their Information Systems.

In this investigation the Grand Jury learned from cybersecurity experts that three key elements lead to maximum agency cybersecurity:
• a dedicated information security position within each organization, • a “seat at the table” with other agency department heads in regular meetings, and • a rigorous employee education and training program in cybersecurity matters.

Disclaimers
Grand Jury reports are based on documentary evidence and the testimony of sworn or admonished witnesses, not on conjecture or opinion. However, the Grand Jury is precluded by law from disclosing such evidence except upon the specific approval of the Presiding Judge of the Superior Court, or another judge appointed by the Presiding Judge (Penal Code Section 911. 924.1 (a) and 929). Similarly, the Grand Jury is precluded by law from disclosing the identity of witnesses except upon an order of the court for narrowly defined purposes (Penal Code Sections 924.2 and 929).

Response Requirements
California Penal Code Sections 933 and 933.05 require that specific responses to all findings and recommendations contained in this report be submitted to the Presiding Judge of the San Joaquin County Superior Court within 90 days of receipt of the report.

The San Joaquin County Board of Supervisors and the City Councils of each city addressed shall respond to all findings and recommendations specific to their city.

Mail or hand deliver a hard copy of the response to:

Honorable Michael D. Coughlan, Presiding Judge
San Joaquin County Superior Court
180 E Weber Ave, Suite 1306J
Stockton, California 95202
Also, please email a copy of the response to Ms. Trisa Martinez, Staff Secretary to the Grand Jury, at [email protected]

2.B.a
Packet Pg. 193 Attachment: SJ Grand Jury Case #0321 (3624 : Grand Jury Response - Draft) October XX, 2022
Honorable Michael D. Coughlan, Presiding Judge
Superior Court of California, San Joaquin County
180 E. Weber Ave, Suite 1306J
Stockton, California 95202
Dear Judge Coughlan,
The City of Ripon welcomes the opportunity to respond to the 2021-2022 San Joaquin Grand Jury Case #0321 Report (the “Report”) regarding Cybersecurity. The City of Ripon always welcomes independent review of its information technology systems, and thanks the Grand Jury for its efforts.

The City of Ripon has reviewed the Report and implemented many of its recommendations. The City of Ripon would also like to take the opportunity to address the Report’s specific findings and recommendations.

By way of background, the City of Ripon’s IT Department experienced a significant amount of turnover over the last couple of years. Prior to the beginning of the information gathering stage by the Grand Jury, the City’s only full-time Information Technology Technician that had been in this position for 15 years had resigned. During the information gathering stage, the City had just filled the full-time Information Technology Technician position, but unfortunately this individual resigned shortly after the completion of the information gathering stage because of a lack of the technical skill level and experience to function in this position.

Since the completion of the Grand Jury investigation and as part of the Fiscal Year 2022-23 budget, the City has created a second full-time Information Technology Technician position so there would be overlap in the understanding of department operations in the event an individual resigns in the future. The City is confident that these measures will address the areas of concern outlined in the Report.

2.B.b
Packet Pg. 194 Attachment: DRAFT City Council Response to Grand Jury (3624 : Grand Jury Response - Draft) Grand Jury Findings:

F6.1 It is unclear in the City of Ripon’s Organizational Chart where responsibilities for IT and IT security lie, creating confusion over who is responsible to act in a disruptive event.

The City of Ripon respectfully disagrees with this finding for the reasons set forth below.

The IT Department is organized into Information Technology Technician level I and II, with the tier II technician reporting directly to the Lieutenant of the Ripon Police Department. The Police Department’s organizational chart (see attached) depicts the relationship between the two IT positions and the Lieutenant. In a disruptive event it is clear that the technicians within the IT Department, as well as all identified vendors and contractors, respond to, preserve and reinstate functions at the City of Ripon, under the supervision of the Lieutenant.

At this time, both Information Technology Technician positions are filled and both employees have been fully briefed as to the organizational structure.

F6.2 The City of Ripon has a rudimentary network diagram outlining the City’s router and firewall relationship with networks used, but the diagram lacks detail, leaving uncertainty about data security.

The City of Ripon respectfully disagrees with the finding. The City of Ripon has contracted with Waypoint Network Solutions to assist in creating very detailed diagrams of network structure including documentation on router and firewall settings. Both of the City’s Information Technology Technicians understand these diagrams and work with Waypoint Network Solutions as updates are periodically needed when improvements are made to increase the security of the City’s network.

F6.3 Although the City of Ripon met expectations in the areas of data confidentiality and security, lack of IT staff and leadership leaves these areas vulnerable to cyberattack.

The City of Ripon has addressed this Finding as to staffing following the information-gathering phase of the Report. The City of Ripon has created a second full time position as part of the Fiscal Year 2022-23 budget. The City has filled both full-time positions since the completion of the informationgathering phase.

The City of Ripon respectfully disagrees with the finding regarding lack of leadership. The IT team leader reports directly to the Lieutenant of the Ripon Police Department for status updates and administrative decisions.

F6.4 The City of Ripon Lacks a Business Continuity Plan, rendering the City relatively unprepared to restore essential services in a disruptive event.

The City of Ripon has addressed this finding following the information-gathering phase of this Report. The City of Ripon has drafted a formal plan for business continuity (see attached) that was approved by the City Council on (enter date of approval).

2.B.b
Packet Pg. 195 Attachment: DRAFT City Council Response to Grand Jury (3624 : Grand Jury Response - Draft) F6.5 The City of Ripon does not have a Disaster Preparedness Plan, leaving the City at risk for significant delay and cost to restore IT systems in the event of a disaster.

The City of Ripon has addressed this finding following the information-gathering phase of this Report. Many of the disaster response measures were already in place prior to the informationgathering phase. To avoid the confusion of utilizing multiple plans in the event of a ransomware attack, the City of Ripon has incorporated these elements of the disaster preparedness plan into the attached Business Continuity Plan.

F6.6 The City of Ripon does not have a formal policy or procedure to address ransomware attacks. This absence of policy could cause confusion, delay and greater loss of security in the event of an attack.

The City of Ripon has addressed this finding following the information-gathering phase of this Report. Many of the measures to address a ransomware attack were already in place prior to the information-gathering phase. To avoid the confusion of utilizing multiple plans in the event of a ransomware attack, the City of Ripon has incorporated these elements into the attached Business Continuity Plan.

Grand Jury Recommendations:

In responding to the Grand Jury’s recommendations, we note each recommendation and the City of Ripon’s response follows.

R6.1 By January 1, 2023, the Ripon City Council develop and make public an updated City Organizational Chart showing details of the City’s IT functions, including all IT positions.

The City of Ripon has updated its organizational chart to show the changes made to our current staff positions (see attached).

R6.2 By January 1, 2023, the Ripon City Council develop and adopt a detail Network Diagram to decrease system vulnerabilities.

The City of Ripon already has developed and adopted highly detailed networks diagrams that are kept confidential and secure internally. The City of Ripon recognizes the importance of maintaining network documentation and will continually maintain its network documentation consistent with the Grand Jury’s recommendation.

2.B.b
Packet Pg. 196 Attachment: DRAFT City Council Response to Grand Jury (3624 : Grand Jury Response - Draft) R6.3 By January 1, 2023, the Ripon City Council obtain a third-party security review of the City’s IT department assets, positions, and policies and an evaluation of data confidentiality, security systems and protocols.

The City of Ripon has sought out an independent review of our internal systems from the company Resolute Guard. The City of Ripon’s IT department has taken into account the findings of this third-party review and will implement the changes proposed to improve the City’s security posture consistent with the Grand Jury’s findings.

R6.4 By January 1, 2023, the Ripon City Council develop, adopt and implement a formal Business Continuity Plan.

The City of Ripon has conducted an internal review of its network and developed a formal Business Continuity Plan that is accessible to the IT department and relevant Response Team Members.

This plan was adopted by the City Council on (enter date of approval) and will be continually reviewed and updated to stay current and effective with evolving technologies.

R6.5 By January 1, 2023, the Ripon City Council develop, adopt and implement a formal Disaster Preparedness Plan.

The City of Ripon has conducted an internal review of its network and incorporated the elements of the Disaster Preparedness Plan as part of the Business Continuity Plan previously described.

R6.6 By January 1, 2023, the Ripon City Council develop, adopt and implement a formal internal policy and procedure for response to a ransomware attack.

The City of Ripon has conducted an internal review of its network and incorporated the elements of responding to a ransomware attack as part of the Business Continuity Plan previously described.

The City of Ripon would like to once again thank the Grand Jury for its effort in their review of the City’s security posture. The City of Ripon agrees that it is vital that all local municipalities implement sufficient safeguards to protect their information systems and continue to supply vital resources to their constituents. Please let us know if there is anything further that you require.

Dean Uecker, Mayor

2.B.b
Packet Pg. 197 Attachment: DRAFT City Council Response to Grand Jury (3624 : Grand Jury Response - Draft) Ripon Police Department
Organizational Chart
Chief of Police
Lieutenant
Investigations
Sergeant
General
Detective
Special
Investigator
Narcotics/Gangs
School
Resource
Officer
Patrol
Sergeants
Patrol
Officers
Reserve
Officers
Communications
Supervisor
Dispatchers
Information &
Technology
Technician II
Information &
Technology
Technician I
Community
Service
Officers

2.B.c
Packet Pg. 198 Attachment: Organzational Chart (3624 : Grand Jury Response - Draft) Business Continuity-Disaster Recovery Plan
1 Business Continuity-Disaster Recovery Plan
Version History
Version Date Author Reason/Comments

1.00 October 2022 Hunter Crosby Document Origination

1.1 October 2022 Hunter Crosby Specific Team Details Added

2.B.d
Packet Pg. 199 Attachment: Ripon Business Continuity-Disaster Recovery Plan (3624 : Grand Jury Response - Draft) Business Continuity-Disaster Recovery Plan
2 Table of Contents
Business Continuity-Disaster Recovery Plan.........................................................................................................1 Version History .................................................................................................................................................1 Table of Contents .......................................................................................................................................2 Introduction ..........................................................................................................................................................3 Design of the Plan.................................................................................................................................................4 Contact Information .............................................................................................................................................6 Roles and Responsibilities.....................................................................................................................................7 Chief Information Officer (CIO/CTO) ................................................................................................................7 Business Continuity Team (BCT).......................................................................................................................7 Business Continuity Manager.......................................................................................................................7 Business Continuity Team Members............................................................................................................8 Business Continuity Framework ...........................................................................................................................9 Phase I – Disaster Detection and Determination .........................................................................................9 Phase II – Notification of Personnel Responsible for Recovery....................................................................9 Phase III – Initiate the Business Continuity Plan.........................................................................................10 Phase IV - Disaster Recovery Strategy ........................................................................................................10 Phase V - Scope of the Business Continuity Plan........................................................................................12

2.B.d
Packet Pg. 200 Attachment: Ripon Business Continuity-Disaster Recovery Plan (3624 : Grand Jury Response - Draft) Business Continuity-Disaster Recovery Plan
3 Introduction
Planning for the business continuity of the City of Ripon in the aftermath of a disaster is a complex task.

Preparation for, response to, and recovery from a disaster affecting the administrative functions of the Institute requires the cooperative efforts of many support organizations in partnership with the functional areas supporting the "business" of the City of Ripon. This document records the Plan that outlines and coordinates these efforts, reflecting the analyses by representatives from these organizations and by the City of Ripon Information Systems Network Administrator, Hunter Crosby.

For use in the event of a disaster, this document identifies the computer recovery facilities (hot sites and shell sites) that have been designated as backups if the functional areas are disabled The purpose of the Business Continuity-Disaster Recovery Plan is to allow City of Ripon to respond quickly and appropriately to service interrupting incidents.

Event Definition
Any abnormal observable loss of service or accessibility occurrence in system, network, environment, process, workflow, or personnel. Events may be negative in nature.

Adverse Events Definition
Events with a negative consequence. This plan only applies to adverse events that are caused by factors beyond the resolution capabilities of the Computer Incident Response Plan (IRP). Examples of adverse events outside of the scope of the IRP are: natural disasters, power failures, etc. will be covered by the Business Continuity Plan.

How to Use This Document
Use this document to learn about the issues involved in planning for the continuity of the critical and essential business functions at the City of Ripon, as a checklist of preparation tasks, for training personnel, and for recovering from a disaster. This document is divided into four parts, as the table below describes.

Part Contents
I Information about the document itself.

II Design of the Plan that this document records, including information about the overall structure of business continuity planning at the City of Ripon.

III General responsibilities of the individual City of Ripon Support Teams that together form the Business Continuity Management Team, emphasizing the function of each team and its preparation responsibilities.

IV Recovery actions for the City of Ripon Support Teams and important checklists such as the notification list for a disaster and an inventory of resources required for the environment. [Note: If a "disaster" situation arises, Section IV of the Plan is the only section that needs to be referenced. It contains all the procedures and support information for recovery.

2.B.d
Packet Pg. 201 Attachment: Ripon Business Continuity-Disaster Recovery Plan (3624 : Grand Jury Response - Draft) Business Continuity-Disaster Recovery Plan
4 Audience
This document addresses several groups within the City of Ripon central administration with differing levels and types of responsibilities for business continuity, as follows:
• Administration
• Business Continuity Management Team
• City of Ripon Support Teams
• External Organizations
It should be emphasized that this document is addressed particularly to the members of the Business Continuity Management Team, since they have the responsibility of preparing for, responding to, and recovering from any disaster that impacts the City of Ripon. Part III of this document describes the composition of the Business Continuity Management Team in detail.

Distribution
As the written record of the City of Ripon 's Business Continuity Plan, this document is distributed to each member of the Business Continuity Management Team, including members of the City of Ripon Support Teams.

It is also distributed to members of the Administration, External Organization Coordinators and others not primarily involved with the direct recover effort but require advanced knowledge of planned actions and needs.

Design of the Plan
Part II describes the philosophy of business continuity planning at City of Ripon generally, and the kind of analysis that produced this Plan. It also provides an overview of the functions of the Business Continuity Management Team in implementing this Plan.

Purpose
The City of Ripon increasingly depends on computer-supported information processing and telecommunications. This dependency will continue to grow with the trend toward decentralizing information technology to individual organizations within the City of Ripon administration and throughout the organization.

The increasing dependency on computers and telecommunications for operational support poses the risk that a lengthy loss of these capabilities could seriously affect the overall performance of the City of Ripon. A risk analysis which was conducted identified systems as to risk Category I, belonging comprising those functions whose loss could cause a major impact to the City of Ripon within 72 hours. It also categorized the City of Ripon functions as Essential, or Category II - requiring processing support within 2-4 week(s) of an outage. This risk assessment process will be repeated on a regular basis to ensure that changes to our processing and environment are reflected in recovery planning.

The City of Ripon administration recognizes the low probability of severe damage to data processing telecommunications or support services capabilities that support the operations. Nevertheless, because of the potential impact to the City of Ripon, a plan for reducing the risk of damage from a disaster however

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5 unlikely is vital. The City of Ripon’s Business Continuity Plan is designed to reduce the risk to an acceptable level by ensuring the restoration of Critical processing within 72 hours, and all essential production (Category II processing) within 2-4 week(s) of the outage.

The Plan identifies the critical functions of the City of Ripon and the resources required to support them. The Plan provides guidelines for ensuring that needed personnel and resources are available for both disaster preparation and response and that the proper steps will be carried out to permit the timely restoration of services.

This Business Continuity Plan specifies the responsibilities of the Business Continuity Management Team, whose mission is to establish Institute level procedures to ensure the continuity of the City of Ripon 's business functions. In the event of a disaster affecting any of the functional areas, the Business Continuity Management Team serves as liaison between the functional area(s) affected and other community organizations providing major services. These services include the support provided by Physical Plant, security provided by the Police, and public information dissemination handled by the City of Ripon Administration, among other.

Assumptions
The City of Ripon Plan is predicated on the validity of the following three assumptions:
• The situation that causes the disaster is localized to the data processing facility of Operations and Systems in the City of Ripon; the building or space housing the functional area; or to the communication systems and networks that support the functional area. It is not a general disaster, such as an earthquake or hurricane affecting the entire region.

It should be noted however, that the Plan will still be functional and effective even in an area-wide disaster. Even though the basic priorities for restoration of essential services to the community will normally take precedence over the recovery of an individual organization, the City of Ripon 's Business Continuity Plan can still provide for a more expeditious restoration of our resources for supporting key functions. • The Plan is based on the availability of the hot sites or the back-up resources, as described in Part IV. The accessibility of these, or equivalent back-up resources, is a critical requirement. • The Plan is a document that reflects the changing environment and requirements of the City of Ripon. Therefore, the Plan requires the continued allocation of resources to maintain it and to keep it in a constant state of readiness.

Development
The City of Ripon 's Information System Network Administrator, with assistance from key City of Ripon support areas, is responsible for developing the City of Ripon 's Business Continuity Plan.

Development and support of individual City of Ripon Team Plans are the responsibility of the functional area planning for recovery.

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6 Maintenance
Ensuring that the Plan reflects ongoing changes to resources is crucial. This task includes updating the Plan and revising this document to reflect updates; testing the updated Plan; and training personnel. The Business Continuity Management Team Coordinators are responsible for this comprehensive maintenance task.

The Business Continuity Management Team Coordinators ensures that a formal review is initiated whenever there is a significant change required for the plan. Annually, the Business Continuity Management Team Coordinators initiates a complete review of the Plan, which could result in major revisions to this document. These revisions will be distributed to all authorized personnel, who exchange their old plans for the newly revised plans.

Testing
Testing the Business Continuity Plan is an essential element of preparedness. Partial tests of individual components and recovery plans of specific the City of Ripon Teams will be carried out on a regular basis. A comprehensive exercise of the City of Ripon continuity capabilities and support by our designated recovery facilities will be performed on an annual basis.

Contact Information
Updated October 2022
The following is a list of roles to be referred to in a disaster recovery event.

Name Title Role Contact Information Escalation
(1-3)*
City
Administrator
Business Continuity
Manager
BC manager (209) 599-0235 1
IT Infrastructure Manager IR Manager (209) 599-0277 1
Chief Communications
Manager
BCT member (209) 599-0259 3
City Attorney Legal BCT member (209) 599-0214 3
IT Risk Manager BCT member (209) 599-0277 3
City Clerk HR Representative BCT member (209) 599-0217 3 Chief Physical Security
Representative
BCT member (209) 599-0259 3
WPNS 3
rd Party Support (209) 581-6789 3
Alliant Cyber Insurance
Provider
3 City Council Regulatory/Government
Reporting Body
3 *Escalation level determines order in which notification should occur:

1. Notify first, required on all incidents

2. Required on all moderate or high-severity incidents

3. Involve as needed

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7 Roles and Responsibilities
Chief Information Officer (CIO/CTO)
 Seek approval from Executive Management for the administration of the Business Continuity Program.
 Coordinate response activities with auxiliary departments and external resources as needed to minimize damages to information resources.
 Provide updates on response activities to Business Continuity Team (BCT) and other stakeholders during an incident.
 Ensure service level agreements with service providers clearly define expectations of the organization and the service provider in relation to Business Continuity.  Ensure policies related to recovery management accurately represent the goals of the organization.
 Review the Business Continuity Plan (“the Plan”) to ensure that it meets policy objectives and accurately reflects the goals of the organization. Seek Plan approval from BCT.  Work with the Business Continuity Manager to periodically evaluate the effectiveness of the Plan and BCT.
 Ensure Cyber Insurance is maintained as necessary and appropriate stakeholders are informed. (See Error! Reference source not found.)
 Ensure lessons learned are applied/weighed based on risk for Business Continuity incidents.

Business Continuity Team (BCT)
Under the overall direction of the Business Continuity Manager, support is provided to assist a functional area's recovery by Infrastructure Support Teams. These teams work the problem condition to restore services and provide assistance at the Institute level. In many cases, the organizations comprising these support teams have as their normal responsibility the provision of these support services. This support is generally documented in a procedure’s manual for the organization. The Business Continuity Plan is an adjunct to that documentation and highlights the interfaces between the infrastructure level service and the Business Continuity Team operations requirements. In cases where the documentation in this Plan and the organization's documents differ, the organization's documentation has precedence. • Consists of legal experts, risk managers, and other department managers that may be consulted or notified during Business Recovery.
• Advise on recovery response activities relevant to their area of expertise. • Maintain a general understanding of the Plan and policies of the organization. • Ensure business continuity activities are in accordance with legal, contractual, and regulatory requirements.
• Participate in tests of the Business Continuity plan and procedures. • Responsible for internal and external communications pertaining to recovery activities.

Business Continuity Manager
The Business Continuity manager oversees and prioritizes actions during the incident. They are also responsible for conveying the special requirements of high severity activities to the rest of the organization as well as communicating potential impact to the CIO. Additionally, they are responsible for understanding the SLAs in place with third parties, and the role third parties may play in specific response scenarios.

Further responsibilities:
 Act as a liaison for all communications to and from the CIO.  Assemble a Business Continuity Response Team (CSIRT).  Ensure personnel tasked with business continuity responsibilities are trained and knowledgeable on how to respond to incidents.

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8  Update Business Continuity Plan and procedures as needed based on results from testing, incident lessons learned, industry developments and best practices.  Review the Business Continuity Plan and procedures at least annually.  Initiate tests of the business Continuity Plan and procedures at least annually.  Ensure team activities comply with legal and industry requirements for Business Continuity procedures.
 Act as the primary Business Continuity Manager, responsible for declaring a disaster incident, managing team response activities, and approving close of recovery incidents.  Be aware of Cyber Insurance Policies, contact mechanisms, and when to include providers. (See Error! Reference source not found.)
Business Continuity Team Members
The Business Continuity Manager is supported by a team of technical staff that work directly with the affected information systems to restore service to end users. Team members are typically comprised of subject matter experts (SMEs), senior level IT staff, third parties, outsourced security, or forensic partners.

Teams and responsibilities:
• Damage Assessment/Salvage Team. Headed by the Infrastructure Manager and activated during the initial stage of an emergency, the team reports directly to the Business Continuity Management Team, evaluates the initial status of the damaged functional area, and estimates both the time to reoccupy the facility and the salvageability of the remaining equipment. This team draws members from the Business Continuity Team as well as appropriate vendors supporting our environment.
o Following the assessment of damage, the team is responsible for salvaging equipment, data and supplies following a disaster; identifying which resources remain; and determining their future utilization in rebuilding the data center and recovery from the disaster. The members of the Damage Assessment Team become the Salvage Team • Transportation Team. A temporary Institute Support Team headed jointly by the Infrastructure Manager and Physical Security Manager responsible for transporting resources personnel, equipment, and materials to back-up sites as necessary. • Public Information. The interface with the media, the general public and faculty, staff and students who are not participating in the recovery process is handled by the Communications Manager, working closely with the CIO and HR Managers.
• Telecommunications Team. Headed by the Infrastructure Manager is responsible for establishing voice and data communications between the affected site and the remainder of the Institution.

TABLE 1: (COMPANY) BUSINESS CONTINUITY TEAM MEMBERS
No. BCT Member Role
1 IT Department Damage Assessment Team/Salvage Team, Telecommunications Team
2 Chief Public Information

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9 Business Continuity Framework
This section describes four required responses by the City of Ripon to a disaster, or to a problem that could evolve into a disaster:

1. Detect and determine a disasters condition.

2. Notification of Personnel Responsible for Recovery.

3. Initiate the City of Ripon 's Business Continuity Plan Activate the designated hot site.

Disseminate Public Information.

Provide support services to aid recovery.

Disaster Recovery Strategy
Emergency Phase
Backup Phase
Recovery Phase
Each subsection below identifies the organization(s) and/or position(s) responsible for each of these responses.

Phase 0 – Preface
In the event a major disaster, the first priority is to ensure the safety of every employee. In an emergency situation where life is threatened or staff is in danger of physical harm, it is imperative to take measures to protect all staff from danger. No one in the organization should place themselves into a dangerous situation or take unnecessary risks that may threaten their life or the lives of others unless properly trained to respond to such disasters.

Phase I – Disaster Detection and Determination
The detection of an event which could result in a disaster affecting information processing systems at the City of Ripon is the responsibility of Business Continuity Manager, Physical Security Representative, Infrastructure Manager, or whoever first discovers or receives information about an emergency developing in one of the functional areas or other building housing major information processing systems or about the communications lines between these buildings.

Phase II – Notification of Personnel Responsible for Recovery Personnel will follow existing procedures and notify the individuals who are acting as the Business Continuity Management Team Duty Persons (DP)). The DP on call will monitor the evolving situation and, if appropriate, will then notify the Business Continuity Management Team representative based upon a predefined set of notification parameters.

When a situation occurs that could result in interruption of processing of major information processing systems of networks on campus, the following people must be notified:
· The Business Continuity Management Team Coordinator (Network Administrator)

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10 · The Business Continuity Team
Phase III – Initiate the Business Continuity Plan
Initiation of this Plan is the responsibility of the Business Continuity Management Team Coordinator or any member of the Business Continuity Management Team.

Activation of a Designated Hot Site
The responsibility for activating any of the designated hot sites or back-up resources is delegated to Chief Information Officer. In the absence of the CIO, responsibility reverts to the Business Continuity Manager.

Within 24 hours of the occurrence the CIO, or alternate, determines the prognosis for recovery of the damaged functional area through consultation with the Infrastructure Manager, Communications Manager and representatives from Operations and Systems, Telecommunications Systems and the functional areas affected.

If the estimated occupancy or recovery of the damaged functional area cannot be accomplished within 72 hours, the usual occupants of the designated back-up site are notified of the intention to occupy their facility.

Dissemination of Public Information
The Public Information Manager is responsible for directing all meetings and discussions with the news media and the public, and in conjunction with the BCT Manager and necessary BCT personnel not actively participating in the recovery operation. In the absence of the Public Information Manager, the responsibility reverts to the senior official present at the scene.

Recovery Status Information Number
A predefined number should be established as a voice mail information number for posting recovery status and information notices. All reports will be placed by the Business Continuity Manager or the Telecommunication BCT team leader.

Provision of Support Services to Aid Recovery
During and following a disaster, Institute Support Teams are responsible for aiding the BCT Teams. They operate under the direction of the Business Continuity Management Team through the Chief Information Officer.

Phase IV - Disaster Recovery Strategy
The disaster recovery strategy explained below pertains specifically to a disaster disabling the main data center. This functional area provides mainframe computer and major server support to the City of Ripon administrative applications. Especially at risk are the critical applications those designated as Category I (see below) systems. The BCT Operations and Systems (O&S) Team Plan provides for recovering the capacity to support these critical applications within 72 hours. Summarizing the provisions of the O&S Plan, subsections below explain the context in which the Institute's Business Continuity Plan operates. The Business Continuity

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11 Plan complements the strategies for restoring the data processing capabilities normally provided by Operations & Systems.

This section addresses three phases of disaster recovery:
· Emergency
· Backup
· Recovery
Strategies for accomplishing each of these phases are described below. It should be noted that the subsection describing the emergency phase applies equally to a disaster affecting the Administration Building, other buildings housing computing assets, or the functional area that provides support for the maintenance of the critical system.

Emergency Phase
The emergency phase begins with the initial response to a disaster. During this phase, the existing emergency plans and procedures are implemented for direct efforts to protect life and property. Security over the area is established as local support services such as the Police and Fire Departments are enlisted through existing mechanisms. The Business Continuity Manager is alerted and begins to monitor the situation.

If the emergency situation appears to affect critical facility or services, either through damage to data processing or support facilities, or if access to the facility is prohibited, the BCT Manager will closely monitor the event, notifying BCT personnel as required to assist in damage assessment. Once access to the facility is permitted, an assessment of the damage is made to determine the estimated length of the outage. If access to the facility is precluded, then the estimate includes the time until the effect of the disaster on the facility can be evaluated.

If the estimated outage is less than 72 hours, recovery will be initiated under normal Information Systems operational recovery procedures. If the outage is estimated to be longer than 72 hours, then the Business Continuity Manager activates the BCT Members and notifies the Chief Technical Officer the Business Continuity Plan is activated. The recovery process then moves into the back-up phase.

The Business Continuity Management Team remains active until recovery is complete to ensure that the Institute will be ready in the event the situation changes.

Back-up Phase
The back-up phase begins with the initiation of the appropriate BCT Plan(s) for outages enduring longer than 72 hours. In the initial stage of the back-up phase, the goal is to resume processing critical applications.

Processing will resume either at the main data center or at the designated hot site, depending on the results of the assessment of damage to equipment and the physical structure of the building.

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12 In the back-up phase, the initial hot site must support critical (Category I) applications for up to 4 weeks and as many Category II applications as resources and time permit. During this period, processing of these systems resumes, possibly in a degraded mode, up to the capacity of the hot site. Within this 4 week period, the main data center will be returned to full operational status if possible.

However, if the damaged area requires a longer period of reconstruction, then the second stage of back-up commences. During the second stage, a shell facility is assembled and equipment installed to provide for processing all applications until a permanent site is ready.

Recovery Phase
The time required for recovery of the functional area and the eventual restoration of normal processing depends on the damage caused by the disaster. The time frame for recovery can vary from several days to several months. In either case, the recovery process begins immediately after the disaster and takes place in parallel with back-up operations at the designated hot site. The primary goal is to restore normal operations as soon as possible.

Phase V - Scope of the Business Continuity Plan
The object of this Plan is to restore critical (Category I) systems within 72 hours, and Essential (Category II) systems within 2-4 week(s) of a disaster that disables any functional area and/or essential equipment supporting City of Ripon systems or functions in that area.

The initial Risk Assessment of the computer applications that support administration assigned 4 systems to Category I Critical. This risk category identifies applications that have the highest priority and must be restored within 72 hours of a disaster disabling a functional area. Specifically, each function of these systems was evaluated and allocated a place in one of four risk categories, as described below.

Category I - Critical Functions
Category II - Essential Functions
Category III - Necessary Functions
Category IV - Desirable Functions
Note: Category IV functions are important to City of Ripon administrative processing, but due to their nature, the frequency they are run and other factors, they can be suspended for the duration of the emergency.

The administrative systems in Categories I - IV are those that provide Institute wide services. There are noninformation processing systems (such as telephone communications) that are also either essential for the Institute or the local area(s) they support. Recovery for these systems too must be based upon an assessment of the impact of their loss and the cost of their recovery.

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