Agenda packet — Mayor and City Council, May 1, 2024 (part 4 of 5)

Library – Courts Building 916-323-9759
P.O. Box 942837 [email protected]
Sacramento, CA 94237-0001 www.library.ca.gov
This grant is governed by the attached Grant Agreement and Certification of Compliance, which includes the project period, reporting requirements, payment schedule, and the proposal outlining the project plan and budget. Within the DocuSign system, please sign the claim and certification forms included in the award packet using the DocuSign system. Should you have any questions regarding using DocuSign please get in touch with your grant monitor.

There are two people assigned to your project. The first is your Grant Monitor.

Contact them regarding compliance and reporting. The Grant Monitor assigned to your project is Lisa Lindsay. Contact Lisa via email at [email protected].

You are also assigned a Library Programs Consultant for ongoing programmatic support. The Library Programs Consultant assigned to your project is Kaela Villalobos.

Contact Kaela via email at [email protected].

Please stay in touch with your Grant Monitor and Library Programs Consultant throughout the award period. Read the enclosed award packet thoroughly and contact your Grant Monitor if you have any questions.

Best wishes for a successful project.

Respectfully yours,
Greg Lucas
California State Librarian
Enclosures
CC: Gina Iwata
Yesenia Castellon
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THE BASICS – YOUR GRANT AWARD
The following provides all the basic information about your grant and managing your grant.

Award #: LATL23-57A
Library/Organization: City of San Bernardino Public Library Project Title: Lunch at the Library Summer 2024
Award Amount: $8,900

APPROVED BUDGET CORE PROGRAM
Salaries/Wages/Benefits $0
Consultant Fees $0
Travel $0
Supplies/Materials $8,900
Equipment ($5,000 or more per unit) $0
Services (contracted) $0
Project Total $8,900
Indirect Cost $0

APPROVED BUDGET INNOVATION
Salaries/Wages/Benefits $0
Consultant Fees $0
Travel $0
Supplies/Materials $0
Equipment ($5,000 or more per unit) $0
Services (contracted) $0
Project Total $0
Indirect Cost $0

APPROVED BUDGET TOTAL
Grant Total $8,900
Payment Schedule IN FULL
Start Date: 2/1/2024
End Date: 1/31/2025
Please understand that it can take six to eight weeks to receive a fully executed claim form with no errors before grant funds are delivered. Therefore, if you have not received your payment after eight weeks, please contact your grant monitor.

REPORTING
As outlined in the grant terms and conditions, Jurisdiction is required to provide two financial and narrative reports (first reports due 6/20/2024; second reports due 10/17/2024; final reports and detailed expenditures due 2/20/2025); and updates upon request. In addition, the LATL Annual Outputs Survey (reporting on all outputs thus far) must be submitted by 9/19/2024. Required reports will be available on the State Library’s Lunch at the Library website under Evaluation.

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Library – Courts Building 916-323-9759
P.O. Box 942837 [email protected]
Sacramento, CA 94237-0001 www.library.ca.gov

PAYMENTS
Please note this clarification regarding payments. Grant payments will be made based on the payment schedule laid out in the Grant Term and Award Documentation. Ten percent (10%) of the full grant award is withheld until the end of the project period. It is payable only if the grant recipient fulfills all project reporting requirements and expends all funds, or returns all unspent grant funds, by the time specified in the grant terms and conditions.

CONTACT
We want your project to be successful. Please work with the grant monitor and library programs consultant in implementing your project:

Grant
Monitor
Lisa Lindsay Library Programs
Consultant
Kaela Villalobos
Phone 916.603.6708 Phone 279.399.8977
Email [email protected] Email [email protected] DocuSign Envelope ID: ABFBACF6-3738-4AA7-BE06-9034EB69F4C9 Packet Page. 873
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STATE FUNDED GRANTS

AWARD AGREEMENT AND

CERTIFICATE OF COMPLIANCE
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TABLE OF CONTENTS
PROJECT SUMMARY........................................................ Error! Bookmark not defined.

PROCEDURES and REQUIREMENTS ................................ Error! Bookmark not defined.

A. Term of the Agreement.......................................... Error! Bookmark not defined.

B. Scope of Work.......................................................... Error! Bookmark not defined.

C. Budget Detail .......................................................... Error! Bookmark not defined.

D. Narrative and Financial Reports ........................... Error! Bookmark not defined.

E. Claim Form and Payment ...................................... Error! Bookmark not defined.

EXHIBIT A: TERMS and CONDITIONS............................... Error! Bookmark not defined.

EXHIBIT B: CERTIFICATION of COMPLIANCE FORM ...... Error! Bookmark not defined.

Certification.................................................................. Error! Bookmark not defined.

EXHIBIT C: STATE REIMBURSABLE TRAVEL EXPENSES...... Error! Bookmark not defined.

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PROJECT SUMMARY
AWARD AGREEMENT BETWEEN THE STATE LIBRARY and City of San Bernardino Public Library for the Lunch at the Library Summer 2024 project.

AWARD AGREEMENT NUMBER LATL23-57A
This Award Agreement (“Agreement”) is entered into on 2/1/2024 by and between the California State Library (“State Library”) and City of San Bernardino Public Library, (“Grantee”).

This Award Agreement pertains to Grantee’s State-funded Lunch at the Library Summer 2024 project.

The Library Development Services Bureau (“LDS”) of the State Library administers state and federal funds in the form of awards.

The Grantee was selected by the State Library to receive state grant funds in the amount of $8,900 through the process adopted by the State Library in administering such grants.

The State Library and the Grantee, for the consideration and under the conditions hereinafter set forth in the Grant Agreement, agree as follows:

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PROCEDURES and REQUIREMENTS
A. Term of the Agreement
The Grant term begins on the date of execution of the Agreement by both parties, until 1/31/2025. If completion of the project occurs prior to the end of the grant period this will be the end date of the term of this agreement. Grant eligible program expenditures may begin no earlier than the start date. The project period ends on 1/31/2025 and all eligible program costs must be incurred by this date.

B. Scope of Work

1. Grantee agrees to perform all activities specifically identified in the Grantee’s application and submitted to the State Library in response to the Lunch at the Library Summer 2024 Opportunity.

2. The following activities and deliverables to be performed by the Grantee include, but are not limited to the following:
• Maintain and keep records of expenditures related to the grant that are consistent with Generally Acceptable Accounting Practices (GAAP). • Make financial records available to the State Library upon request. • Work with the State Library staff to assure that funds are disbursed in compliance with the purpose of the grant.
• Prepare and submit required narrative and financial reports. • Procure equipment, and other supplies as needed for the project. • Issue contracts for services, personnel, and consultants as needed for the project.
• If applicable, make payments for services, including for hours worked and travel reimbursements, to consultants and contractors.
• Oversee the implementation of project activities.

C. Budget Detail
The State Library shall provide the Grantee funding for the expenses incurred in performing the Scope of Work and activities specified in the Grantee’s application. The Grantee shall request the distribution of grant funding consistent with its proposal and DocuSign Envelope ID: ABFBACF6-3738-4AA7-BE06-9034EB69F4C9 Packet Page. 877
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the budget worksheet that was included with the application. Under no circumstances shall payments exceed the total grant amount identified in this Agreement.

D. Narrative and Financial Reports

1. The Grantee shall be responsible for submission of interim and final narrative and financial reports on the progress and activities of the project, to the California State Library, using the sample report documents provided by the California State Library.

2. All the reports must be current, include all required sections and documents, and must be approved by the Grant Monitor before any payment request can be processed. Failure to comply with the specified reporting requirements may be considered a breach of this Agreement and result in the termination of the Agreement or rejection of the payment request and/or forfeiture by the Grantee of claims for costs incurred that might otherwise have been eligible for grant funding. Any problems or delays must be reported immediately to the Grant Monitor. The financial reports shall reflect the expenditures made by the Grantee under the Agreement and may be incorporated into the same reporting structure as the narrative reports.

3. The reports shall be submitted by the following dates:

Reporting Period Report Due Date
2/1/2024 –
5/31/2024
1st Financial and Mid Project Narrative
Report Due
6/20/2024
Summer 2024 LATL Annual Outputs Survey (Reporting on
all outputs thus far)
9/19/2024
6/1/2024 –
9/30/2024
2nd Financial and Mid Project Narrative
Report Due
10/17/2024
10/1/2024 –
1/31/2025
Final Financial Report, Expenditure Detail
Report and Final Narrative Report Due
2/20/2025

4. Failure to submit timely reports with the appropriate documentation by the due date may result in rejection of the payment request and/or forfeiture by the Grantee of claims for costs incurred that might otherwise have been eligible for grant funding.

5. The Grantee agrees to maintain records and supporting documentation pertaining to the performance of this grant, subject to possible audit for a DocuSign Envelope ID: ABFBACF6-3738-4AA7-BE06-9034EB69F4C9 Packet Page. 878
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minimum of five (5) years after final payment date or grant term end date, whichever is later. Please refer to Exhibit A, Terms and Conditions for more information.

6. In addition to the foregoing, the Grantee shall submit to the State Library such periodic reports, updates, documents and any information as deem necessary by the State Library to monitor compliance and/or perform program evaluation. Any requested data or information shall be submitted in electronic format on a form specified by the State Library.

E. Claim Form and Payment

1. The California State Library shall provide the Grantee payment as outlined in the payment schedule only if all requirements for claiming the funds as outline in this document have been met, and only for those activities and costs specified in the approved award application.

2. The Grantee shall complete, sign, and submit Certification of Compliance form (Exhibit B) and the Financial Claim form (included in your award packet), to the California State Library within 14 days of receiving this award packet. These forms will be issued, signed, and submitted using the online signature and agreement platform, DocuSign, unless DocuSign is unallowable or inconsistent with practices and policies of the local jurisdiction. If the use of DocuSign is not acceptable to your organization, please contact your grant monitor regarding alternate options.

3. Any of the sums appearing under the categories in the approved budget may be adjusted with prior authorization from the California State Library Grant Monitor. This would be to increase the allotment with the understanding that there will be corresponding decreases in the other allotments so that the total amount paid by the California State Library to the Grantee under this Agreement shall not exceed the awarded amount, which shall be expended/encumbered during the grant period.

4. If the payment amount made by the California State Library exceeds the actual expenses incurred during the term of this Agreement, as reflected in the financial reports to be filed by the Grantee, the Grantee shall immediately refund the excess payment amount to the California State Library.

5. The Award payments will only be made to the Grantee. It is the Grantee’s responsibility to pay all contractors and subcontractors for purchased goods and services.

6. The Final Payment of 10% (if applicable) will be withheld and retained by the California State Library until all conditions agreed upon in this Agreement, DocuSign Envelope ID: ABFBACF6-3738-4AA7-BE06-9034EB69F4C9 Packet Page. 879
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including submission and grant monitor approval of the interim and final narrative and financial reports, have been satisfied.

7. Prompt Payment Clause
The California State Library will make payments to the Grantee in accordance with the Prompt Payment Clause under Government Code, section 927, et. seq.

The Grantee may typically expect payment within 45 days from the date a grant payment request is properly submitted and approved by the Grant Monitor.

8. Budget Contingency Clause
a. It is mutually agreed that if the Budget Act of the current fiscal year or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall no longer be in full force and effect. In this event, the California State Library shall have no liability to pay any funds whatsoever to the Grantee or to furnish any other considerations under this Agreement and the Grantee shall not be obligated to perform any provisions of this Agreement.
b. If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this Program, the California State Library shall have the option to either cancel this Agreement with no liability occurring to itself or offer an Agreement amendment to the Grantee to reflect the reduced amount.

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EXHIBIT A: TERMS and CONDITIONS

1. Accessibility: The State is responsible for ensuring that public websites are accessible to both the general public and state employees, including persons with disabilities. Grantee shall assist the State in meeting its responsibility. Therefore, all project materials generated by state funded programs must meet the California Accessibility Standards. Additionally all project materials designed, developed, and maintained shall be in compliance with the California Government Code, sections 7405 and 11135, and the Web Content Accessibility Guidelines 2.0, or a subsequent version, as published by the Web Accessibility Initiative of the World Wide Web Consortium at a minimum Level AA success criteria.

However, if for some reason project material is not generated to be in compliance to meet these standards, please still submit it to the State Library. When submitting the material make sure to note that the material is not accessible by including “NOT ACCESSIBLE” in the file name.

The California State Library reserves the right to post project materials to its website that are in compliance with these standards.

2. Acknowledgment: The State of California and the California State Library shall be acknowledged in all promotional materials and publications related to the Lunch at the Library Summer 2024 Opportunity.
a. Grant award recipients must ensure that the State of California receives full credit as the source of funds and that the California State Library, likewise, is acknowledged as the administrator.
b. Publications and information releases about the project must credit the State of California. An appropriate statement for a publication or project press release is:
“This [publication/project] was supported in whole or in part by funding provided by the State of California, administered by the California State Library.”
Grantees must include the above statement in any publications, vehicle wraps, and promotional materials, including websites. If space is limited the State Library logo and the following shortened acknowledgement statement is acceptable:
“Funding provided by the State of California.”
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c. This credit line on products of a project, such as materials, is important to foster support from the public, and state funding sources. d. California State Library Logo: Use of the California State Library logo, which can be downloaded on the California State Library website, is required on any publication, vehicle wrap, or promotional material along with the above statement(s).
e. Photo Documentation: Digital photos are a great way to document the happenings of your project. It is recommended that you use a photo release form when taking photos of the public. You may use your library’s photo release form, or contact your grant monitor for the State Library’s form.

3. Agency: In the performance of this Agreement the Grantee and its agents and employees shall act in an independent capacity and not as officers, employees or agents of the California State Library. The Grantee is solely responsible for all activities supported by the grant. Nothing in this Agreement creates a partnership, agency, joint venture, employment, or any other type of relationship between the parties. The Grantee shall not represent itself as an agent of the California State Library for any purpose, and has no authority to bind the State Library in any manner whatsoever.

4. Amendment: No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties, and approved as required.

No oral understanding or agreement not incorporated into this Agreement is binding on any of the parties. This Agreement may be amended, modified or augmented by mutual consent of the parties, subject to the requirements and restrictions of this paragraph.

5. Applicable law: The laws of the State of California shall govern all proceedings concerning the validity and operation of this Agreement and the performance of the obligations imposed upon the parties hereunder. The parties hereby waive any right to any other venue. The place where the Agreement is entered into and place where the obligation is incurred is Sacramento County, California.

6. Assignment, Successors, and Assigns: The Grantee may not assign this Agreement or delegate its performance to any third-party person or entity, either in whole or in part, without the California State Library’s prior written consent. The provisions of this Agreement shall be binding upon and inure to the benefit of the California State Library, the Grantee, and their respective successors and assigns.

7. Audit and Records Access: The Grantee agrees that the California State Library, the Department of General Services, the State Auditor, or their designated representatives shall have the right to review, audit, inspect and copy any records and supporting documentation pertaining to the performance of this Agreement. The Grantee agrees to maintain such records for possible audit for a minimum of five (5) years after the final payment, or grant term end date, whichever is later, unless a longer period of records retention is stipulated, or until DocuSign Envelope ID: ABFBACF6-3738-4AA7-BE06-9034EB69F4C9 Packet Page. 882
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completion of any action and resolution of all issues which may arise as a result of any litigation, dispute, or audit, whichever is later. The Grantee agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Further, the Grantee agrees to include a similar right of the State to audit records and interview staff in any subcontract related to performance of this Agreement.

Examples of audit documentation may include, but not limited to, competitive bids, grant amendments, if any, relating to the budget or work plan, copies of any agreements with contractors or subcontractors if utilized, expenditure ledger, payroll register entries, time sheets, personnel expenditure summary form, travel expense log, paid warrants, contracts and change orders, samples of items and materials developed with grant funds, invoices and/or cancelled checks.

8. Authorized Representative: Grantee and the California State Library mutually represent that their authorized representatives have the requisite legal authority to sign on their organization’s behalf.

9. Communication: All communications from either party, including an interim check-in at any time during the grant term, shall be directed to the respective grant manager or representative of the California State Library or Grantee. For this purpose, the following contact information is provided below:

City of San Bernardino Public
Library
Ed Erjavek
555 West 6th Street
San Bernardino, CA 92336
909-381-8210
[email protected]
California State Library
Lisa Lindsay
900 N Street
Sacramento, CA 95814
916.603.6708
[email protected]

1. Confidentiality: Grantee will maintain as confidential any material it receives or produces that is marked Confidential or is inherently confidential or is protected by privilege. Grantee agrees to alert the State Library to this status in advance, and State Library agrees to maintain this status in conformity with the Public Records Act.

2. Contractor and Subcontractors: Nothing contained in this Grant Agreement or otherwise shall create any contractual relation between the State and any contractor or subcontractors, and no contract or subcontract shall relieve the Grantee of his or her responsibilities and obligations hereunder. The Grantee agrees to be as fully responsible to the State for the acts and omissions of its contractors, subcontractors, volunteers, student interns and of persons either directly or indirectly employed by any of them as it is for the acts and omissions DocuSign Envelope ID: ABFBACF6-3738-4AA7-BE06-9034EB69F4C9 Packet Page. 883
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of persons directly employed by the Grantee. The Grantee’s obligation to pay its contractors and subcontractors is an independent obligation from the State’s obligation to make payments to the Grantee. As a result, the State shall have no obligation to pay or to enforce the payment of any monies to any contractor or subcontractor.

3. Copyright: Grantee owns and retains titles to any copyrights or copyrightable material from any original works that it creates within the scope of this Agreement in accordance with the federal Copyright Act. (17 U.S.C. 101, et seq.) Grantee is responsible for obtaining any necessary licenses, permissions, releases or authorizations to use text, images, or other materials owned, copyrighted, or trademarked by third parties and for extending such licenses, permissions, releases, or authorizations to the California State Library pursuant to this section. Also, the California State Library may upload, post or transmit copyrighted material produced or purchased with grant funds on a California State Library website for public access and viewing.

4. Discharge of Grant Obligations: The Grantee's obligations under this Agreement shall be deemed discharged only upon acceptance of the final report by California State Library. If the Grantee is a non-profit entity, the Grantee’s Board of Directors shall accept and certify as accurate the final report prior to its submission to California State Library.

5. Dispute Resolution: In the event of a dispute, Grantee will discuss the problem informally with the Grant Monitor. If unresolved, the Grantee shall file a written “Notice of Dispute” with the State Library Grant Monitor within ten (10) days of discovery of the problem. Within ten (10) days of receipt, the Grant Monitor shall meet with the Grantee for purposes of resolving the dispute. Any dispute arising under the terms of this Agreement which is not disposed of within a reasonable period of time, the Grantee may bring it to the attention of the State Librarian or the designated representative. The decision of the State Librarian or designated representative shall be final. Unless otherwise instructed by the Grant Monitor, the Grantee shall continue with its responsibilities under this Agreement during any dispute.

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1) The dangers of drug abuse in the workplace.
2) The Grantee’s policy of maintaining a drug-free workplace; 3) Any available counseling, rehabilitation and employee assistance programs.
4) Penalties that may be imposed upon employees for drug abuse violations.
c. Require that every employee who works on the Agreement will:
1) Receive a copy of the Grantee’s drug-free workplace policy statement.
2) Agrees to abide by the terms of the Grantee’s statement as a condition of employment on the Agreement.

Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both and grantee may be ineligible for award of any future state agreements if the California State Library determines that the grantee has made a false certification or violated the certification by failing to carry out the requirements as noted above.

7. Effectiveness of Agreement: This Agreement is of no force or effect until signed by both parties.

8. Entire Agreement: This Agreement supersedes all prior agreements, oral or written, made with respect to the subject hereof and, together with all attachments hereto, contains the entire agreement of the parties.

9. Exclusive Agreement: This is the entire Agreement between the California State Library and Grantee.

10. Executive Order N-6-22-Russia Sanctions: The Grantee shall comply with Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate grant agreements with, and to refrain from entering any new grant agreements with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the State determine Grantee is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement. The State shall provide Grantee advance written notice of such termination, allowing Grantee at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State.

11. Extension: The State Librarian or designee may extend the final deadline for good cause. The Grantee’s request for an extension of the grant period must be made in writing and received by the California State Library at least 30 days prior to the final deadline.

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12. Failure to Perform: The grant being utilized by the Grantee is to benefit the Lunch at the Library Summer 2024 Opportunity. If the Grant Monitor determines the Grantee has not complied with this Agreement, the Grantee may forfeit the right to reimbursement of any grant funds not already paid by the California State Library, including, but not limited to, the ten percent (10%) withhold.

13. Federal and State Taxes: The State Library shall not:
a. Withhold Federal Insurance Contributions Act (FICA) payments from Grantee’s payments or make FICA payments on the Grantee’s behalf; or
b. Make Federal or State unemployment insurance contributions on Grantee’s behalf; or
c. Withhold Federal or State income taxes from Grantee’s payments Grantee shall pay all taxes required on payments made under this Agreement including applicable income taxes and FICA.

14. Force Majeure: Neither the California State Library nor the Grantee, its contractors, vendors, or subcontractors, if any, shall be responsible hereunder for any delay, default, or nonperformance of this Agreement, to the extent that such delay, default, or nonperformance is caused by an act of God, weather, accident, labor strike, fire, explosion, riot, war, rebellion, sabotage, flood, or other contingencies unforeseen by the California State Library or the Grantee, its contractors, vendors, or subcontractors, and beyond the reasonable control of such party.

15. Forfeit of Grant Funds and Repayment of Funds Improperly Expended: If grant funds are not expended, or have not been expended, in accordance with this Agreement, the State Librarian or designee, at his or her sole discretion, may take appropriate action under this Agreement, at law or in equity, including requiring the Grantee to forfeit the unexpended portion of the grant funds, including, but not limited to, the ten percent (10%) withhold, and/or to repay to the California State Library any funds improperly expended.

16. Fringe Benefit Ineligibility: Grantee agrees that neither the Grantee nor its employees and contract personnel are eligible to participate in any employee pension, health benefit, vacation pay, sick pay or other fringe benefit plan of the State of California or the State Library.

17. Generally Accepted Accounting Principles: The Grantee is required to use Generally Accepted Accounting Principles in documenting all grant expenditures.

18. Grant Monitor: The Grant Monitor’s responsibilities include monitoring grant progress, and reviewing and approving Grant Payment Requests and other documents delivered to the California State Library pursuant to this Agreement.

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The Grant Monitor may monitor Grantee performance to ensure Grantee expends grant funds appropriately and in a manner consistent with the terms and conditions contained herein. The Grant Monitor does not have the authority to approve any deviation from or revision to the Terms and Conditions (Exhibit A) or the Procedures and Requirements unless such authority is expressly stated in the Procedures and Requirements.

19. Grantee: the government or legal entity to which a grant is awarded and which is accountable to the California State Library for the use of the funds provided. a. The grantee will make reports to the State Librarian in such form and containing such information as may be required to ensure the proper used of funds consistent with the grantee’s application and award agreement. The grantee will keep such records and afford such access as the California State Library may find necessary to assure the correctness and verification of such reports.

20. Grantee Accountability: The Grantee is ultimately responsible and accountable for the manner in which the grant funds are utilized and accounted for and the way the grant is administered, even if the Grantee has contracted with another organization, public or private, to administer or operate its grant program. In the event an audit should determine that grant funds are owed to the California State Library, the Grantee is responsible for repayment of the funds to the California State Library.

21. Grantee Funds: It is mutually agreed that the Grantee is responsible for furnishing funds beyond the grant award that may be necessary to complete the project.

22. Independent Action: Grantee reserves the right to fulfill its obligations under this Agreement in an independent manner, at any location and at any time within the agreed-upon timeline. Grantee’s employees or contract personnel shall perform all services required by this Agreement, but their time need not be devoted solely to fulfilling obligations under this Agreement. Grantee shall furnish all equipment and materials used to meet its obligations, and complete the Project. The State Library shall not provide any personnel or other resources beyond the grant award, and is not required to provide training in connection with this Agreement.

23. Indemnification: Grantee agrees to indemnify, defend and save harmless the State of California, the California State Library and its officers, employees, and agents, from any and all claims, losses, and liabilities accruing or resulting to any and all contractors, subcontractors, suppliers, laborers and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by Grantee in the performance of this Agreement.

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24. License to Use: The California State Library reserves a fully paid-up, royalty-free, nonexclusive, sub-licensable and irrevocable license to reproduce, publish, prepare derivative works, distribute or otherwise use, and to authorize third parties to use, any material received or maintained by Grantee in connection with this Agreement. This includes intellectual property, with or without thirdparty rights. All such usages will be for public library and State governmental purposes:
a. The copyright in any work developed under this grant, sub-grant, or contract under this grant or sub-grant; and
b. Any rights of copyright to which a Grantee, sub-grantee, or a contractor purchases ownership with grant support.

25. Limitation of Expenditure: Expenditure for all projects must conform to the grantee’s approved budget and with applicable State laws and regulations. The total amount paid by the California State Library to the Grantee under this agreement shall not exceed $8,900 and shall be expended/encumbered in the designated award period.

During the award period, the grantee may find that the awarded budget may need to be modified. Budget changes, requests for additional funds, or requests for reductions in award funding must be discussed with the assigned State Library Grant Monitor and a Grant Award Modification may be required to be submitted according to the instructions. Approval is by the State Librarian or their designee. Adjustments should be reported on the next financial report. Any adjustments in approved budgets must be documented and documentation retained in project accounts.

26. Lobbying: Grantee confirms that the grant funds will not be used for the purposes of lobbying or otherwise attempting to influence legislation, as those purposes are defined by the U.S. Internal Revenue Code of 1986.

27. Non-Discrimination Clause: During this grant period, the Grantee and the Grantee’s contractors, and subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, age, sexual orientation, or military and veteran status. Grantee shall insure that the evaluation and treatment of contractors, employees and applicants for employment are free from such discrimination and harassment.

Additionally, Grantee, contractors, and subcontractors, if applicable, shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs., tit. 2, DocuSign Envelope ID: ABFBACF6-3738-4AA7-BE06-9034EB69F4C9 Packet Page. 888
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§11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code §§ 11135-11139.5), and the regulations or standards adopted by the California State Library to implement such article.

Grantee shall permit access by representatives of the Department of Civil Rights and the California State Library upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or the California State Library shall require ascertaining compliance with this clause. Grantee, and its contractors, and subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. (See Cal. Code Regs., tit. 2, §11105.) Grantee shall include the nondiscrimination and compliance provisions of this clause in all contracts and subcontracts to perform work under the Agreement.

28. Notices: All notices and other communications in connection with this Agreement shall be in writing, and shall be considered delivered as follows:
a. Electronic Mail (E-mail): When sent by e-mail to the last e-mail address of the recipient known to the party giving notice. Notice is effective upon transmission.
b. DocuSign (e-signature platform): When sent via DocuSign a notification will be sent to the last e-mail address of the recipient known to the party giving notice. Notice is effective upon transmission.
c. Grants Management System: When sent via / uploaded to the California State Library’s Grants Management System a notification will be sent to the last e-mail address of the recipient known to the party giving notice.

Notice is effective upon transmission.
d. Personally: When delivered personally to the recipient’s physical address as stated in this Agreement.
e. U.S. Mail: Five days after being deposited in the U.S. Mail, postage prepaid, and addressed to recipient’s address as stated in this Agreement.

Grantee’s California State Library-approved Application (Grantee’s Application) is hereby incorporated herein by this reference. In the event of conflict or inconsistency between the articles, exhibits, attachments, specifications or DocuSign Envelope ID: ABFBACF6-3738-4AA7-BE06-9034EB69F4C9 Packet Page. 889
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provisions that constitute this Agreement, the following order of precedence shall apply:
a. Grant Agreement Coversheet and any Amendments thereto b. Terms and Conditions
c. Procedures and Requirements
d. Certificate of Compliance
e. Project Summary
f. Grantee’s Application (including Budget and Activities Timeline) g. All other attachments hereto, including any that are incorporated by reference.

30. Payment:
a. The approved Budget, if applicable, is attached hereto and incorporated herein by this reference and states the maximum amount of allowable costs for each of the tasks identified in the Project Summary and Activity Timeline included in the project application. California State Library shall provide funding to the Grantee for only the work and tasks specified in the Grantee’s Application at only those costs specified in the Budget and incurred in the term of the Agreement.
b. The Grantee shall carry out the work described in the Work Plan or in the Grantee’s Application in accordance with the approved Budget and shall obtain the Grant Monitor’s written approval of any changes or modifications to the Work Plan, approved project as described in the Grantee’s Application, or the approved Budget prior to performing the changed work or incurring the changed cost. If the Grantee fails to obtain such prior written approval, the State Librarian or designee, at his or her sole discretion, may refuse to provide funds to pay for such work or costs. c. The Grantee shall request funds in accordance with the funding schedule included in this agreement.
d. Ten percent (10%) will be withheld from the Payment Request (if applicable) and paid at the end of the grant term, when all reports and conditions stipulated in this Agreement have been satisfactorily completed. Failure by the grantee to satisfactorily complete all reports and conditions stipulated in this Agreement may result in forfeiture of any such funds withheld.
e. Lodgings, Meals and Incidentals: Grantee’s eligible costs are limited to the amounts authorized in the California State Administrative Manual (see Exhibit C or contact the Grant Monitor for more information). f. Payment will be made only to the Grantee.

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g. Reimbursable expenses shall not be incurred unless and until the grantee receives a Notice to Proceed as described in the Procedures and Requirements.

Native American Tribal grantees expressly waive tribal sovereign immunity as a defense to any and all proceedings concerning the validity and operation of this Agreement and the performance of the obligations imposed upon the parties.

32. Personnel Costs: Any personnel expenditures to be paid for with grant funds must be computed based on actual time spent on grant-related activities and on the actual salary or equivalent hourly wage the employee is paid for their regular job duties, including a proportionate share of any benefits to which the employee is entitled.

33. Pledge: This Agreement shall not be interpreted to create any pledge or any commitment by the State Library to make any other or further grants or contributions to Grantee, or any other person or entity in connection with the Project. It is mutually agreed that Grantee is responsible for furnishing funds beyond the grant award that may be necessary to complete outcomes or deliverables.

34. Privacy Protection: Both parties agree to protect the confidentiality of any nonpublic, personal information that may be contained in materials received or produced in connection with this Agreement, as required by Civil Code, section 1798, et. seq.

35. Prohibited Use: The expenditure under this program shall not be used to supplant Grantee efforts in other grant programs provided by the California State Library.

36. Public Records Act: Material maintained or used by the California State Library is considered “public record” under the Public Records Act (PRA) at Government Code, sections 6250, et. seq. This includes the Interim and Final reports, and any other written communications between the parties. Grantee agrees to ensure that all content contained in its written reports are appropriate for publication.

Said material, along with all other reports, documentation and data collected during the term of the Agreement, will be subject to disclosure unless it qualifies for exemption under the PRA in whole or in part. Grantee agrees to alert the State Library as to a basis for exemption, if any exists.

37. Publicity Obligations: Grantee will notify the State Library of any promotional materials or publications resulting from the grant no later than five (5) days in advance of distribution, whether they are print, film, electronic, or in any other DocuSign Envelope ID: ABFBACF6-3738-4AA7-BE06-9034EB69F4C9 Packet Page. 891
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format or medium. Copies of all promotional materials will be provided to the State Library. Grantee will acknowledge the State Library’s support as noted above. Grantee agrees that the State Library may include information about this grant and its outcomes in its own annual reports, with specific reference to Grantee, and may distribute such information to third parties.

38. Records: Communications, grant related documents, data, original receipts, and invoices must be maintained by Grantee and shall be made available to the State Library upon request. Grantee agrees to maintain adequate grant program records and adequate financial records consistent with generally accepted accounting practices, and to retain all records for at least five (5) years after the end-of-term. The State Library may monitor or conduct an onsite evaluation of Grantee’s operation to ensure compliance with this Agreement, with reasonable advance notice.

39. Reduction of Waste: In the performance of this Agreement, Grantee shall take all reasonable steps to ensure that materials purchased or utilized in the course of the project are not wasted. Steps should include, but not be limited to: the use of used, reusable, or recyclable products; discretion in the amount of materials used; alternatives to disposal of materials consumed; and the practice of other waste reduction measures where feasible and appropriate.

40. Reimbursement Limitations: Under no circumstances shall the Grantee seek reimbursement pursuant to this Agreement for a cost or activity that has been or will be paid for through another funding source. The Grantee shall not seek reimbursement for any costs used to meet cost sharing or matching requirements of any other California State Library funded program.

41. Reports and Claims: It is the responsibility of the grantee make the required reports and claims to the California State Library.
a. The grantee shall be responsible for submitting to the State Library Narrative Reports detailing progress and activities. The reports are due on the dates specified in the reporting schedule detailed in the Procedures and Requirements section.
b. The grantee shall be responsible for submitting to the State Library Financial Reports reflecting grantee expenditure activity. The reports are due on the dates specified in the reporting schedule detailed in the Procedures and Requirements section.
c. To obtain payment hereunder the grantee shall submit authorized claims provided by the State Library for that purpose, on each of the following mentioned dates for payment, and the California State Library agrees to reimburse the Library as soon thereafter as State fiscal procedures will permit.

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d. The final 10% of the grant award (if applicable) is payable only upon approval of all final reports and receipt of claim form. Failure to provide timely reports is a serious breach of an award recipient’s administrative duty under the award.
e. Payment will be provided to cover the expenditures incurred by the grantee for the project in the following manner:
o $8,900 upon execution of the agreement and submission of claim by the grantee organization.
o If applicable, second payment will be made after the submission and approval of the first reports and receipt of claim form in the amount of $-
o If applicable, final payment will be made upon approval of all final reports and receipt of claim form in the amount of $-.

42. Self-Dealing and Arm’s Length Transactions: All expenditures for which reimbursement pursuant to this Agreement is sought shall be the result of arm’slength transactions and not the result of, or motivated by, self-dealing on the part of the Grantee or any employee or agent of the Grantee. For purposes of this provision, “arm’s-length transactions” are those in which both parties are on equal footing and fair market forces are at play, such as when multiple vendors are invited to compete for an entity’s business and the entity chooses the lowest of the resulting bids. “Self-dealing” is involved where an individual or entity is obligated to act as a trustee or fiduciary, as when handling public funds, and chooses to act in a manner that will benefit the individual or entity, directly or indirectly, to the detriment of, and in conflict with, the public purpose for which all grant monies are to be expended.

43. Severability: If any part of this Agreement is found to be unlawful or unenforceable, such provisions will be voided and severed from this Agreement, but the remainder of the provisions in the Agreement will remain in full force and effect.

44. Site Visits: The Grantee shall allow the California State Library to access and conduct site visits, with reasonable notice, at which grant funds are expended and related work being performed at any time during the performance of the work and for up to ninety (90) days after completion of the work, or until all issues related to the grant project have been resolved. A site visit may include, but not be limited to, monitoring the use of grant funds, provide technical assistance when needed, and to visit the State funded project.

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data, and materials prepared up to the date of termination. The State Librarian shall determine and pay the Grantee for necessary and appropriate expenditures and obligations up to the date of termination which have not been covered by prior installments previously paid to the Grantee. Upon such termination, the unused portion of the grant award must be returned to the California State Library within 45 days. If funding has been advanced to the Grantee, any unobligated balances, as determined by the State Librarian, shall be returned to the State Library within 45 days of the notice of termination.

46. Timeline: Time is of the essence to this Agreement. It is mutually agreed between the parties that the grant application and the timeline included therein are part of the Agreement.

47. Unused Funds: At the end-of-term Grantee agrees to return any unexpended or unaccounted for funds to the State Library, or to submit a written request for an extension of the grant period. Funds will be considered unexpended or unaccounted if they were: (1) not used for their intended purpose, or (2) used inconsistent with the terms of this Agreement.

Funds will also be considered unaccounted for, and must be returned, if the proposal outcomes or deliverables are materially incomplete by the end-of-term or earlier termination, as determined by the State Library in its sole discretion.

48. Waiver of Rights: California State Library shall not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by California State Library. No delay or omission on the part of California State Library in exercising any rights shall operate as a waiver of such right or any other right. A waiver by California State Library of a provision of this Agreement shall not prejudice or constitute a waiver of California State Library’s right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by California State Library, nor any course of dealing between California State Library and Grantee, shall constitute a waiver of any of California State Library’s rights or of any of grantee’s obligations as to any future transactions. Whenever the consent of California State Library is required under this Agreement, the granting of such consent by California State Library in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of California State Library.

49. Work Products: Grantee shall provide California State Library with copies of all final products identified in the Work Plan and Application. Grantee shall also DocuSign Envelope ID: ABFBACF6-3738-4AA7-BE06-9034EB69F4C9 Packet Page. 894
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provide the State Library with copies of all public education and advertising material produced pursuant to this Agreement.

The Grantee is aware of Labor Code Section 3700, which requires every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the Labor Code, and the Grantee agrees to comply with such provisions before commencing the performance of the work of this Agreement.

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EXHIBIT B: CERTIFICATION of COMPLIANCE FORM

1. AUTHORIZED REPRESENTATIVE: I certify that the authorized representative named below is the legally designated representative of the Grantee for this Grant Agreement and project and is authorized to receive and expend funds in order to administer this grant program.

2. I certify that all information provided to the California State Library for review in association with this award is correct and complete to the best of my knowledge, and as the authorized representative of the Grantee, I commit to the conditions of this award, and I have the legal authority to do so.

3. I certify that any or all other participants or contractors in the grant program have agreed to the terms of the application/grant award and have entered into an agreement(s) concerning the final disposition of equipment, facilities, and materials purchased for this program from the funds awarded for the activities and services described in the attached, as approved and/or as amended in the application by the California State Librarian.

4. The authorized representative, on behalf of the Grantee, certifies that the Grantee will comply with all applicable requirements of State and Federal laws, regulations, and policies governing this program, to include the requirements listed below in this Certification of Compliance Form.

5. The authorized representative, on behalf of the Grantee, hereby certifies to the California State Library, for an award of funds in the amount $8,900. This award will provide library services as set forth in the Project Application as approved and/or as amended by the California State Librarian.

6. STATEMENT OF COMPLIANCE: Grantee has, unless exempted, complied with the non-discrimination program requirements. (Gov. Code §12990 (a-f) and CCR, Title 2, Section 11102).

7. DRUG-FREE WORKPLACE REQUIREMENTS: Grantee will comply with the requirements of the Drug-Free Workplace Act of 1990 and will provide a drugfree workplace by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations.
b. Establish a Drug-Free Awareness Program to inform employees about:

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1) the dangers of drug abuse in the workplace;
2) the person's or organization's policy of maintaining a drug-free workplace;
3) any available counseling, rehabilitation and employee assistance programs; and,
4) penalties that may be imposed upon employees for drug abuse violations.
c. Every employee who works on the proposed Agreement will:
1) receive a copy of the company's drug-free workplace policy statement; and,
2) agree to abide by the terms of the company's statement as a condition of employment on the Agreement.

Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both and Grantee may be ineligible for award of any future State agreements if the department determines that any of the following has occurred: the Grantee has made false certification or violated the certification by failing to carry out the requirements as noted above. (Gov. Code § 8350 et. seq.)

8. CONFLICT OF INTEREST: Grantee needs to be aware of the following provisions regarding current or former state employees. If Grantee has any questions on the status of any person rendering services or involved with the Agreement, the California State Library must be contacted immediately for clarification.

Current State Employees (Pub. Contract Code § 10410):
a. No officer or employee shall engage in any employment, activity or enterprise from which the officer or employee receives compensation or has a financial interest, and which is sponsored or funded by any state agency, unless the employment, activity or enterprise is required as a condition of regular state employment.
b. No officer or employee shall contract on his or her own behalf as an independent contractor with any state agency to provide goods or services.

Former State Employees (Pub. Contract Code § 10411):
a. For the two-year period from the date he or she left state employment, no former state officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements or any part of the decision-making process relevant to the contract while employed in any capacity by any state agency. b. For the twelve-month period from the date he or she left state employment, no former state officer or employee may enter into a contract with any state agency if he or she was employed by that state agency in a policy-making position in the same general subject area as the proposed contract within the 12-month period prior to his or her leaving state service.

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If Grantee violates any provisions of above paragraphs, such action by Grantee shall render this Agreement void. (Pub. Contract Code § 10420).

Members of boards and commissions are exempt from this section if they do not receive payment other than payment of each meeting of the board or commission, payment for preparatory time and payment for per diem. (Pub.

Contract Code § 10430 (e)).

9. LABOR CODE/WORKERS' COMPENSATION: Grantee needs to be aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions, and Grantee affirms to comply with such provisions before commencing the performance of the work of this Agreement. (Labor Code § 3700).

10. AMERICANS WITH DISABILITIES ACT: Grantee assures the State that it complies with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et. seq.)

11. RESOLUTION: For awards totaling $350,000 or more, a county, city, district, or other local public body must provide the State with a copy of a resolution, order, motion, or ordinance of the local governing body which by law has authority to enter into an agreement, authorizing execution of the agreement.

12. PAYEE DATA RECORD FORM STD. 204: This form must be completed by all Grantees that are not another state agency or other governmental entity.

13. DRUG FREE WORKPLACE:
a. Continue to provide a drug-free workplace by complying with the requirements in 2 C.F.R. part 3186 (Requirements for Drug-Free Workplace (Financial Assistance)). In particular, the recipient must comply with drugfree workplace requirements in subpart B of 2 C.F.R. part 3186, which adopts the Government-wide implementation (2 C.F.R. part 182) of sections 5152-5158 of the Drug-Free Workplace Act of 1988 (P. L. 100-690, Title V, Subtitle D; 41 U.S.C. §§ 701-707).
b. This includes but is not limited to: making a good faith effort, on a continuing basis, to maintain a drug-free workplace; publishing a drugfree workplace statement; establishing a drug-free awareness program for the employees; taking actions concerning employees who are convicted of violating drug statutes in the workplace.

14. ACCESSIBILITY: The organization receiving this award, as listed in the certification section below, and all program staff, will ensure all project materials will meet California accessibility standards.

15. NON-DISCRIMINATION: The organization receiving this award, as listed in the certification section below, and all program staff, agree to comply with all California non-discrimination laws.

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16. ACKNOWLEDGEMENT: The organization receiving this award, as listed in the certification section below, and all program staff, agree to comply with California State Library acknowledgement requirements.

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Certification

ORGANIZATION
Name: City of San Bernardino Public Library Address (official and complete): 555 West 6th Street, San Bernardino, CA, 92336

PROJECT COORDINATOR
Name: Nikki Villalobos
Email: [email protected] Phone: 909-381-8238

GRANTEE AUTHORIZED REPRESENTATIVE
Name: Ed Erjavek Title: Library Director
Email: [email protected] Phone: 909-381-8210
Signature: Date:

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Authorized Representative Signature

ORGANIZATION
Name: City of San Bernardino Public Library Address (official and complete): 555 West 6th Street, San Bernardino, CA, 92336

AUTHORIZED REPRESENTATIVE
Signature: Date:

Printed Name of Person Signing: Ed Erjavek Title: Library Director

STATE OF CALIFORNIA
Agency Name: California State Library Address: 900 N Street, Sacramento, CA 95814 Signature: Date:

Printed Name of Person Signing: Greg
Lucas
Title: California State Librarian
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EXHIBIT C: STATE REIMBURSABLE TRAVEL EXPENSES
Rates are subject to change per State of California, Department of Human Resources Please Check State of California, Department of Human Resources Website for updated expenses:
http://www.calhr.ca.gov/employees/pages/travel-reimbursements.aspx Mileage:

Rate subject to change
$0.67 per mile – approved business/travel expense
Meals:

Receipts are required
$7.00 – Breakfast
$11.00 – Lunch
$23.00 – Dinner
$5.00 - Incidentals
Meals Note: Lunch can only be claimed if travel is more than 24 hours. Incidental charge may be claimed once for every 24-hour period and should cover incidental expenses, such as but not limited to, tip, baggage handling, etc.

Hotel:

Receipts are required
and MUST have a zero
balance.
$ 90.00 plus tax for all counties/cities not listed below $ 95.00 plus tax for Napa, Riverside, and Sacramento
Counties
$ 110.00 plus tax for Marin County
$ 120.00 plus tax for Los Angeles, Orange, and Ventura
Counties, and Edwards AFB. Excluding the city of Santa
Monica
$ 125.00 plus tax for Monterey and San Diego Counties
$ 140.00 plus tax for Alameda, San Mateo and Santa
Clara Counties
$ 150.00 plus tax for the City of Santa Monica
$ 250.00 plus tax for San Francisco County
Out of State: Prior authorization must be obtained, as well as three print-out hotel quotes. Actual receipt must be included with authorization and additional quotes.

Hotel Note: If the above approved reimbursable hotel rates cannot be secured, please contact your grant monitor to obtain an excess lodging form. This form must be approved prior to actual travel.

AIRLINE TICKETS:

Itinerary and receipts are
required
Actual reasonable fees pertaining to airline travel will be reimbursed. Business, First Class, or Early Bird Check-in fee is not an approved reimbursable expense.

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RE: Contractor and Grantee Compliance with Economic Sanctions Imposed in Response to Russia’s Actions in Ukraine
Dear Grantee,
You are receiving this notification because you currently have an active grant through the California State Library.

On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (EO) regarding sanctions in response to Russian aggression in Ukraine. The EO is located at https://www.gov.ca.gov/wp-content/uploads/2022/03/3.4.22-Russia-Ukraine-Executive-Order.pdf.

The EO directs all agencies and departments that are subject to the Governor’s authority to take certain immediate steps, including notifying all contractors and grantees of their obligations to comply with existing economic sanctions imposed by the U.S. government in response to Russia's actions in Ukraine, as well as any sanctions imposed under state law.

This correspondence serves as a notice under the EO that as a contractor or grantee, compliance with the economic sanctions imposed in response to Russia’s actions in Ukraine is required, including with respect to, but not limited to, the federal executive orders identified in the EO and the sanctions identified on the U.S. Department of the Treasury website (https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-countryinformation/ukraine-russia-related-sanctions). Failure to comply may result in the termination of contracts or grants, as applicable.

Please note that for any agreements or grants valued at $5 million or more, a separate notification will be sent outlining additional requirements specified under the EO.

Annly Roman
California State Library
900 N Street
Sacramento, CA 95814
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LUNCH AT THE LIBRARY PROGRAM

FINANCIAL CLAIM
1st PAYMENT

CERTIFICATION
I hereby certify under penalty of perjury: that I am the duly authorized representative of the claimant herein; that this claim is in all respects true, correct and in accordance with law and the terms of the agreement; and that payment has not previously been received for the amount claimed herein.

By
(Signature of the Authorized Representative)
(Print Name) (Title)
*Legal payee name must match the payee’s federal tax return. Warrant will be made payable to payee name. Payee discrepancies in name and/or address may cause delay in payment. If you need to change payee name and/or address, please contact Fiscal Services at [email protected].

State of California, State Library Fiscal Office
ENY: 2023 ITEM NO: 6120-140-0001, Chapter 12, Statutes of 2023 PURCHASING AUTHORITY NUMBER: CSL-6120 REPORTING STRUCTURE: 61202000 COA: 5432000 PROGRAM #: 5312
FAIN: N/A
By Date
(State Library Representative)
Grant Award #: LATL23-57A Date:

Invoice #: LATL23-57A-01 PO #: 7224
Payee Name: City of San Bernardino
(Legal name of authorized agency to receive, disburse and account for funds*) Complete Address:

Street Address, City, State, Zip Code (Warrant will be mailed to this address) Amount Claimed: $8,900 Type of Payment:
(Payable Upon Execution of Agreement) ☐ PROGRESS
Grantee Name: City of San Bernardino Public Library ☐ FINAL (Name on Award Letter and Agreement) ☒ IN FULL
Project Title: Lunch at the Library Summer 2024 ☐ AUGMENT For Period From: upon execution to end of grant period
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STATE OF CALIFORNIA – DEPARTMENT OF FINANCE

PAYEE DATA RECORD
(Required when receiving payment from the State of California in lieu of IRS W-9 or W-7) STD 204 (Rev. 03/2021)
Section 1 – Payee Information
NAME (This is required. Do not leave this line blank. Must match the payee’s federal tax return) BUSINESS NAME, DBA NAME or DISREGARDED SINGLE MEMBER LLC NAME (If different from above) MAILING ADDRESS (number, street, apt. or suite no.) (See instructions on Page 2)

CITY, STATE, ZIP CODE E-MAIL ADDRESS
Section 2 – Entity Type
Check one (1) box only that matches the entity type of the Payee listed in Section 1 above. (See instructions on page 2) ☐ SOLE PROPRIETOR / INDIVIDUAL CORPORATION (see instructions on page 2) ☐ ☐ MEDICAL (e.g., dentistry, chiropractic, etc.) SINGLE MEMBER LLC Disregarded Entity owned by an individual ☐ PARTNERSHIP
☐ ESTATE OR TRUST
☐ LEGAL (e.g., attorney services)
☐ EXEMPT (e.g., nonprofit)
☐ ALL OTHERS
Section 3 – Tax Identification Number
Enter your Tax Identification Number (TIN) in the appropriate box. The TIN must match the name given in Section 1 of this form. Do not provide more than one (1) TIN.

The TIN is a 9-digit number. Note: Payment will not be processed without a TIN. •
•
•
•
•
•
For Individuals, enter SSN.

If you are a Resident Alien, and you do not have and are not eligible to get an SSN, enter your ITIN.

Grantor Trusts (such as a Revocable Living Trust while the grantors are alive) may not have a separate FEIN. Those trusts must enter the individual grantor’s SSN.

For Sole Proprietor or Single Member LLC (disregarded entity), in which the sole member is an individual, enter SSN (ITIN if applicable) or FEIN (FTB prefers SSN).

For Single Member LLC (disregarded entity), in which the sole member is a business entity, enter the owner entity’s FEIN. Do not use the disregarded entity’s FEIN.

For all other entities including LLC that is taxed as a corporation or partnership, estates/trusts (with FEINs), enter the entity’s FEIN.

Social Security Number (SSN) or
Individual Tax Identification Number (ITIN)
___ ___ ___ -___ ___ - ___ ___ ___ ___
OR
Federal Employer Identification Number
(FEIN)
___ ___ - ___ ___ ___ ___ ___ ___ ___
Section 4 – Payee Residency Status (See instructions)

☐ CALIFORNIA RESIDENT – Qualified to do business in California or maintains a permanent place of business in California. ☐ CALIFORNIA NONRESIDENT – Payments to nonresidents for services may be subject to state income tax withholding. ☐No services performed in California
☐Copy of Franchise Tax Board waiver of state withholding is attached.

Section 5 – Certification
I hereby certify under penalty of perjury that the information provided on this document is true and correct.

Should my residency status change, I will promptly notify the state agency below.

NAME OF AUTHORIZED PAYEE REPRESENTATIVE TITLE E-MAIL ADDRESS SIGNATURE DATE TELEPHONE (include area code)
Section 6 – Paying State Agency
Please return completed form to:

STATE AGENCY/DEPARTMENT OFFICE UNIT/SECTION
MAILING ADDRESS FAX TELEPHONE (include area code)

CITY STATE ZIP CODE E-MAIL ADDRESS
Print Form Reset Form
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STATE OF CALIFORNIA – DEPARTMENT OF FINANCE

PAYEE DATA RECORD
(Required when receiving payment from the State of California in lieu of IRS W-9 or W-7) STD 204 (Rev. 03/2021)

GENERAL INSTRUCTIONS
Type or print the information on the Payee Data Record, STD 204 form. Sign, date, and return to the state agency/department office address shown in Section 6.

Prompt return of this fully completed form will prevent delays when processing payments.

Information provided in this form will be used by California state agencies/departments to prepare Information Returns (Form1099).

NOTE: Completion of this form is optional for Government entities, i.e. federal, state, local, and special districts.

A completed Payee Data Record, STD 204 form, is required for all payees (non-governmental entities or individuals) entering into a transaction that may lead to a payment from the state. Each state agency requires a completed, signed, and dated STD 204 on file; therefore, it is possible for you to receive this form from multiple state agencies with which you do business.

Payees who do not wish to complete the STD 204 may elect not to do business with the state. If the payee does not complete the STD 204 and the required payee data is not otherwise provided, payment may be reduced for federal and state backup withholding. Amounts reported on Information Returns (Form 1099) are in accordance with the Internal Revenue Code (IRC) and the California Revenue and Taxation Code (R&TC).

Section 1 – Payee Information
Name – Enter the name that appears on the payee's federal tax return. The name provided shall be the tax liable party and is subject to IRS TIN matching (when applicable).
• Sole Proprietor/Individual/Revocable Trusts – enter the name shown on your federal tax return. • Single Member Limited Liability Companies (LLCs) that is disregarded as an entity separate from its owner for federal tax purposes - enter the name of the individual or business entity that is tax liable for the business in section 1. Enter the DBA, LLC name, trade, or fictitious name under Business Name. • Note: for the State of California tax purposes, a Single Member LLC is not disregarded from its owner, even if they may be disregarded at the Federal level. • Partnerships, Estates/Trusts, or Corporations – enter the entity name as shown on the entity’s federal tax return. The name provided in Section 1 must match to the TIN provided in section 3. Enter any DBA, trade, or fictitious business names under Business Name.

Business Name – Enter the business name, DBA name, trade or fictitious name, or disregarded LLC name.

Mailing Address – The mailing address is the address where the payee will receive information returns. Use form STD 205, Payee Data Record Supplement to provide a remittance address if different from the mailing address for information returns, or make subsequent changes to the remittance address.

Section 2 – Entity Type
If the Payee in Section 1 is a(n)… THEN Select the Box for… Individual ● Sole Proprietorship ● Grantor (Revocable Living) Trust disregarded for federal tax purposes Sole Proprietor/Individual Limited Liability Company (LLC) owned by an individual and is disregarded for federal tax purposes Single Member LLC-owned by an individual Partnerships ● Limited Liability Partnerships (LLP) ● and, LLC treated as a Partnership Partnerships Estate ● Trust (other than disregarded Grantor Trust) Estate or Trust Corporation that is medical in nature (e.g., medical and healthcare services, physician care, nursery care, dentistry, etc. ● LLC that is to be taxed like a Corporation and is medical in nature Corporation-Medical
Corporation that is legal in nature (e.g., services of attorneys, arbitrators, notary publics involving legal or law related matters, etc.) ● LLC that is to be taxed like a Corporation and is legal in nature Corporation-Legal
Corporation that qualifies for an Exempt status, including 501(c) 3 and domestic non-profit corporations. Corporation-Exempt Corporation that does not meet the qualifications of any of the other corporation types listed above ● LLC that is to be taxed as a Corporation and does not meet any of the other corporation types listed above Corporation-All Other
Section 3 – Tax Identification Number
The State of California requires that all parties entering into business transactions that may lead to payment(s) from the state provide their Taxpayer Identification Number (TIN). The TIN is required by R&TC sections 18646 and 18661 to facilitate tax compliance enforcement activities and preparation of Form 1099 and other information returns as required by the IRC section 6109(a) and R&TC section 18662 and its regulations.

Section 4 – Payee Residency Status
Are you a California resident or nonresident?
• A corporation will be defined as a "resident" if it has a permanent place of business in California or is qualified through the Secretary of State to do business in California.
• A partnership is considered a resident partnership if it has a permanent place of business in California. • An estate is a resident if the decedent was a California resident at time of death. • A trust is a resident if at least one trustee is a California resident. o For individuals and sole proprietors, the term "resident" includes every individual who is in California for other than a temporary or transitory purpose and any individual domiciled in California who is absent for a temporary or transitory purpose. Generally, an individual who comes to California for a purpose that will extend over a long or indefinite period will be considered a resident. However, an individual who comes to perform a particular contract of short duration will be considered a nonresident.

For information on Nonresident Withholding, contact the Franchise Tax Board at the numbers listed below:

Withholding Services and Compliance Section: 1-888-792-4900 E-mail address: [email protected] For hearing impaired with TDD, call: 1-800-822-6268 Website: www.ftb.ca.gov Section 5 – Certification
Provide the name, title, email address, signature, and telephone number of individual completing this form and date completed. In the event that a SSN or ITIN is provided, the individual identified as the tax liable party must certify the form. Note: the signee may differ from the tax liable party in this situation if the signee can provide a power of attorney documented for the individual.

Section 6 – Paying State Agency
This section must be completed by the state agency/department requesting the STD 204.

Privacy Statement
Section 7(b) of the Privacy Act of 1974 (Public Law 93-579) requires that any federal, state, or local governmental agency, which requests an individual to disclose their social security account number, shall inform that individual whether that disclosure is mandatory or voluntary, by which statutory or other authority such number is solicited, and what uses will be made of it. It is mandatory to furnish the information requested. Federal law requires that payment for which the requested information is not provided is subject to federal backup withholding and state law imposes noncompliance penalties of up to $20,000. You have the right to access records containing your personal information, such as your SSN. To exercise that right, please contact the business services unit or the accounts payable unit of the state agency(ies) with which you transact that business.

All questions should be referred to the requesting state agency listed on the bottom front of this form.

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Library – Courts Building 916-323-9759
P.O. Box 942837 [email protected]
Sacramento, CA 94237-0001 www.library.ca.gov
February 16, 2024
Ed Guerrero
City of San Bernardino Public Library
555 West 6th Street
San Bernardino, CA, 92410
Subject: Lunch at the Library Summer 2024
Dear Mr. Erjavek:

This letter confirms the California State Library’s award of $8,900 to the City of San Bernardino Public Library for Lunch at the Library Summer 2024.

The Lunch at the Library program makes it possible for public libraries to:
 Provide free summer meals and programming at library sites,  Take pop-up libraries to other community-based meal sites,  Connect children, teens, and families to locally sourced, sustainable food and provide hands-on food education activities,
 Create volunteer opportunities for teens, and
 Implement innovative solutions to connect more families with nutritious meals during the summer.

Thank you for being a part of this important work.

City of San Bernardino Public Library will receive $8,900 of the award upon execution and approval of the grant agreement, certification, and claim forms. The remaining funding (if applicable) will be made available according to the payment schedule and upon the awardee’s completion of the requirements listed in the Grant Agreement and Certification of Compliance document included with this award packet.

Hard copies of this correspondence will not follow. Therefore, please keep this correspondence for your files and consider these award materials your original documents.

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2023 Lunch at the Library
LATL23-57A

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There are two people assigned to your project. The first is your Grant Monitor.

Contact them regarding compliance and reporting. The Grant Monitor assigned to your project is Lisa Lindsay. Contact Lisa via email at [email protected].

You are also assigned a Library Programs Consultant for ongoing programmatic support. The Library Programs Consultant assigned to your project is Kaela Villalobos.

Contact Kaela via email at [email protected].

Best wishes for a successful project.

Respectfully yours,
Greg Lucas
California State Librarian
Enclosures
CC: Gina Iwata
Yesenia Castellon
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THE BASICS – YOUR GRANT AWARD
The following provides all the basic information about your grant and managing your grant.

Award #: LATL23-57A
Library/Organization: City of San Bernardino Public Library Project Title: Lunch at the Library Summer 2024
Award Amount: $8,900

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Library – Courts Building 916-323-9759
P.O. Box 942837 [email protected]
Sacramento, CA 94237-0001 www.library.ca.gov

CONTACT
We want your project to be successful. Please work with the grant monitor and library programs consultant in implementing your project:

STATE FUNDED GRANTS

AWARD AGREEMENT AND

CERTIFICATE OF COMPLIANCE
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TABLE OF CONTENTS
PROJECT SUMMARY....................................................................................... Error! Bookmark not defined.

PROCEDURES and REQUIREMENTS ............................................................... Error! Bookmark not defined.

A. Term of the Agreement ......................................................................... Error! Bookmark not defined.

B. Scope of Work........................................................................................ Error! Bookmark not defined.

C. Budget Detail ......................................................................................... Error! Bookmark not defined.

D. Narrative and Financial Reports............................................................ Error! Bookmark not defined.

E. Claim Form and Payment....................................................................... Error! Bookmark not defined.

EXHIBIT A: TERMS and CONDITIONS.............................................................. Error! Bookmark not defined.

EXHIBIT B: CERTIFICATION of COMPLIANCE FORM ....................................... Error! Bookmark not defined.

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PROJECT SUMMARY
AWARD AGREEMENT BETWEEN THE STATE LIBRARY and City of San Bernardino Public Library for the Lunch at the Library Summer 2024 project.

This Award Agreement pertains to Grantee’s State-funded Lunch at the Library Summer 2024 project.

The Library Development Services Bureau (“LDS”) of the State Library administers state and federal funds in the form of awards.

The Grantee was selected by the State Library to receive state grant funds in the amount of $8,900 through the process adopted by the State Library in administering such grants.

The State Library and the Grantee, for the consideration and under the conditions hereinafter set forth in the Grant Agreement, agree as follows:

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B. Scope of Work

1. Grantee agrees to perform all activities specifically identified in the Grantee’s application and submitted to the State Library in response to the Lunch at the Library Summer 2024 Opportunity.

C. Budget Detail
The State Library shall provide the Grantee funding for the expenses incurred in performing the Scope of Work and activities specified in the Grantee’s application. The Grantee shall request the distribution of grant funding consistent with its proposal and DocuSign Envelope ID: ABFBACF6-3738-4AA7-BE06-9034EB69F4C9 Packet Page. 914
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the budget worksheet that was included with the application. Under no circumstances shall payments exceed the total grant amount identified in this Agreement.

D. Narrative and Financial Reports

3. The reports shall be submitted by the following dates:

Reporting Period Report Due Date
2/1/2024 –
5/31/2024
1st Financial and Mid Project Program
Narrative Report Due
6/20/2024
Summer 2024 LATL Annual Outputs Report (Reporting on
all outputs thus far)
9/19/2024
6/1/2024 –
9/30/2024
2nd Financial and Mid Project Program
Narrative Report Due
10/17/2024
10/1/2024 –
1/31/2025
Final Financial Report, Expenditure Detail
Report and Final Program Narrative Report
Due
2/20/2025

5. The Grantee agrees to maintain records and supporting documentation pertaining to the performance of this grant, subject to possible audit for a minimum of five (5) years after final payment date or grant term end date, DocuSign Envelope ID: ABFBACF6-3738-4AA7-BE06-9034EB69F4C9 Packet Page. 915
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whichever is later. Please refer to Exhibit A, Terms and Conditions for more information.

E. Claim Form and Payment

5. The Award payments will only be made to the Grantee. It is the Grantee’s responsibility to pay all contractors and subcontractors for purchased goods and services.

6. The Final Payment of 10% (if applicable) will be withheld and retained by the California State Library until all conditions agreed upon in this Agreement, including submission and grant monitor approval of the interim and final narrative and financial reports, have been satisfied.

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7. Prompt Payment Clause
The California State Library will make payments to the Grantee in accordance with the Prompt Payment Clause under Government Code, section 927, et. seq.

The Grantee may typically expect payment within 45 days from the date a grant payment request is properly submitted and approved by the Grant Monitor.

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EXHIBIT A: TERMS and CONDITIONS

The California State Library reserves the right to post project materials to its website that are in compliance with these standards.

2. Acknowledgment: The State of California and the California State Library shall be acknowledged in all promotional materials and publications related to the Lunch at the Library Summer 2024.
a. Grant award recipients must ensure that the State of California receives full credit as the source of funds and that the California State Library, likewise, is acknowledged as the administrator.
b. Publications and information releases about the project must credit the State of California. An appropriate statement for a publication or project press release is:
“This [publication/project] was supported in whole or in part by funding provided by the State of California, administered by the California State Library.”
Grantees must include the above statement in any publications, vehicle wraps, and promotional materials, including websites. If space is limited the State Library logo and the following shortened acknowledgement statement is acceptable:
“Funding provided by the State of California.”
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4. Amendment: No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties, and approved as required.

7. Audit and Records Access: The Grantee agrees that the California State Library, the Department of General Services, the State Auditor, or their designated representatives shall have the right to review, audit, inspect and copy any records and supporting documentation pertaining to the performance of this Agreement. The Grantee agrees to maintain such records for possible audit for a minimum of five (5) years after the final payment, or grant term end date, whichever is later, unless a longer period of records retention is stipulated, or until DocuSign Envelope ID: ABFBACF6-3738-4AA7-BE06-9034EB69F4C9 Packet Page. 919
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City of San Bernardino Public Library
Ed Erjavek
555 West 6th Street
San Bernardino, CA, 92410
909-381-8210 [email protected]
California State Library
Lisa Lindsay
900 N Street
Sacramento, CA 95814]
916.603.6708 [email protected]

2. Contractor and Subcontractors: Nothing contained in this Grant Agreement or otherwise shall create any contractual relation between the State and any contractor or subcontractors, and no contract or subcontract shall relieve the Grantee of his or her responsibilities and obligations hereunder. The Grantee agrees to be as fully responsible to the State for the acts and omissions of its contractors, subcontractors, volunteers, student interns and of persons either directly or indirectly employed by any of them as it is for the acts and omissions of persons directly employed by the Grantee. The Grantee’s obligation to pay its contractors and subcontractors is an independent obligation from the State’s obligation to make payments to the Grantee. As a result, the State shall have no obligation to pay or to enforce the payment of any monies to any contractor or subcontractor.

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Unless otherwise instructed by the Grant Monitor, the Grantee shall continue with its responsibilities under this Agreement during any dispute.

6. Drug-free Workplace: The Grantee certifies under penalty of perjury under the laws of California, that the Grantee will comply with the requirements of the Drug-Free Workplace Act of 1990 (Gov. Code, § 8350 et. seq.) and will provide a drug-free workplace by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations.
b. Establish a Drug-Free Awareness Program to inform employees about all of the following:
1) The dangers of drug abuse in the workplace.
2) The Grantee’s policy of maintaining a drug-free workplace; 3) Any available counseling, rehabilitation and employee assistance programs.
4) Penalties that may be imposed upon employees for drug abuse violations.
c. Require that every employee who works on the Agreement will:
1) Receive a copy of the Grantee’s drug-free workplace policy statement.
2) Agrees to abide by the terms of the Grantee’s statement as a condition of employment on the Agreement.

7. Effectiveness of Agreement: This Agreement is of no force or effect until signed by both parties.

9. Exclusive Agreement: This is the entire Agreement between the California State Library and Grantee.

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12. Failure to Perform: The grant being utilized by the Grantee is to benefit the Lunch at the Library Summer 2024. If the Grant Monitor determines the Grantee has not complied with this Agreement, the Grantee may forfeit the right to reimbursement of any grant funds not already paid by the California State Library, including, but not limited to, the ten percent (10%) withhold.

15. Forfeit of Grant Funds and Repayment of Funds Improperly Expended: If grant funds are not expended, or have not been expended, in accordance with this Agreement, the State Librarian or designee, at his or her sole discretion, may take appropriate action under this Agreement, at law or in DocuSign Envelope ID: ABFBACF6-3738-4AA7-BE06-9034EB69F4C9 Packet Page. 923
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equity, including requiring the Grantee to forfeit the unexpended portion of the grant funds, including, but not limited to, the ten percent (10%) withhold, and/or to repay to the California State Library any funds improperly expended.

17. Generally Accepted Accounting Principles: The Grantee is required to use Generally Accepted Accounting Principles in documenting all grant expenditures.

18. Grant Monitor: The Grant Monitor’s responsibilities include monitoring grant progress and reviewing and approving Grant Payment Requests and other documents delivered to the California State Library pursuant to this Agreement. The Grant Monitor may monitor Grantee performance to ensure Grantee expends grant funds appropriately and in a manner consistent with the terms and conditions contained herein. The Grant Monitor does not have the authority to approve any deviation from or revision to the Terms and Conditions (Exhibit A) or the Procedures and Requirements unless such authority is expressly stated in the Procedures and Requirements.

19. Grantee: the government or legal entity to which a grant is awarded and which is accountable to the California State Library for the use of the funds provided.
a. The grantee will make reports to the State Librarian in such form and containing such information as may be required to ensure the proper used of funds consistent with the grantee’s application and award agreement. The grantee will keep such records and afford such access as the California State Library may find necessary to assure the correctness and verification of such reports.

21. Grantee Funds: It is mutually agreed that the Grantee is responsible for furnishing funds beyond the grant award that may be necessary to complete the project.

22. Independent Action: Grantee reserves the right to fulfill its obligations under this Agreement in an independent manner, at any location and at any time within the agreed-upon timeline. Grantee’s employees or contract personnel shall perform all services required by this Agreement, but their DocuSign Envelope ID: ABFBACF6-3738-4AA7-BE06-9034EB69F4C9 Packet Page. 924
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time need not be devoted solely to fulfilling obligations under this Agreement. Grantee shall furnish all equipment and materials used to meet its obligations, and complete the Project. The State Library shall not provide any personnel or other resources beyond the grant award, and is not required to provide training in connection with this Agreement.

24. License to Use: The California State Library reserves a fully paid-up, royaltyfree, nonexclusive, sub-licensable and irrevocable license to reproduce, publish, prepare derivative works, distribute or otherwise use, and to authorize third parties to use, any material received or maintained by Grantee in connection with this Agreement. This includes intellectual property, with or without third-party rights. All such usages will be for public library and State governmental purposes:
a. The copyright in any work developed under this grant, sub-grant, or contract under this grant or sub-grant; and
b. Any rights of copyright to which a Grantee, sub-grantee, or a contractor purchases ownership with grant support.

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Additionally, Grantee, contractors, and subcontractors, if applicable, shall comply with the provisions of the Fair Employment and Housing Act (Gov.

Code §12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs., tit. 2, §11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code §§ 11135-11139.5), and the regulations or standards adopted by the California State Library to implement such article.

Grantee shall permit access by representatives of the Department of Civil Rights and the California State Library upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or the California State Library shall require ascertaining compliance with this clause. Grantee, and its contractors, and subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. (See Cal. Code Regs., tit. 2, §11105.) Grantee shall include the non-discrimination and compliance provisions of this clause in all contracts and subcontracts to perform work under the Agreement.

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e. U.S. Mail: Five days after being deposited in the U.S. Mail, postage prepaid, and addressed to recipient’s address as stated in this Agreement.

29. Order of Precedence: The performance of this Agreement shall be conducted in accordance with the Terms and Conditions, Procedures and Requirements, Certificate of Compliance, Project Summary, Activities Timeline, and Budget, of this Agreement, or other combination of exhibits specified on the Grant Agreement Coversheet attached hereto (collectively referred to as “Terms”). Grantee’s California State Libraryapproved Application (Grantee’s Application) is hereby incorporated herein by this reference. In the event of conflict or inconsistency between the articles, exhibits, attachments, specifications or provisions that constitute this Agreement, the following order of precedence shall apply:
a. Grant Agreement Coversheet and any Amendments thereto b. Terms and Conditions
c. Procedures and Requirements
d. Certificate of Compliance
e. Project Summary
f. Grantee’s Application (including Budget and Activities Timeline) g. All other attachments hereto, including any that are incorporated by reference.

30. Payment:
a. The approved Budget, if applicable, is attached hereto and incorporated herein by this reference and states the maximum amount of allowable costs for each of the tasks identified in the Project Summary and Activity Timeline included in the project application. California State Library shall provide funding to the Grantee for only the work and tasks specified in the Grantee’s Application at only those costs specified in the Budget and incurred in the term of the Agreement.
b. The Grantee shall carry out the work described in the Work Plan or in the Grantee’s Application in accordance with the approved Budget and shall obtain the Grant Monitor’s written approval of any changes or modifications to the Work Plan, approved project as described in the Grantee’s Application, or the approved Budget prior to performing the changed work or incurring the changed cost. If the Grantee fails to obtain such prior written approval, the State Librarian or designee, at his or her sole discretion, may refuse to provide funds to pay for such work or costs.
c. The Grantee shall request funds in accordance with the funding schedule included in this agreement.
d. Ten percent (10%) will be withheld from the Payment Request (if applicable) and paid at the end of the grant term, when all reports DocuSign Envelope ID: ABFBACF6-3738-4AA7-BE06-9034EB69F4C9 Packet Page. 927
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and conditions stipulated in this Agreement have been satisfactorily completed. Failure by the grantee to satisfactorily complete all reports and conditions stipulated in this Agreement may result in forfeiture of any such funds withheld.
e. Lodgings, Meals and Incidentals: Grantee’s eligible costs are limited to the amounts authorized in the California State Administrative Manual (see Exhibit C or contact the Grant Monitor for more information).
f. Payment will be made only to the Grantee.
g. Reimbursable expenses shall not be incurred unless and until the grantee receives a Notice to Proceed as described in the Procedures and Requirements.

31. Personal Jurisdiction: The Grantee consents to personal jurisdiction in the State of California for all proceedings concerning the validity and operation of this Agreement and the performance of the obligations imposed upon the parties. Native American Tribal grantees expressly waive tribal sovereign immunity as a defense to any and all proceedings concerning the validity and operation of this Agreement and the performance of the obligations imposed upon the parties.

34. Privacy Protection: Both parties agree to protect the confidentiality of any non-public, personal information that may be contained in materials received or produced in connection with this Agreement, as required by Civil Code, section 1798, et. seq.

35. Prohibited Use: The expenditure under this program shall not be used to supplant Grantee efforts in other grant programs provided by the California State Library.

Grantee agrees to ensure that all content contained in its written reports DocuSign Envelope ID: ABFBACF6-3738-4AA7-BE06-9034EB69F4C9 Packet Page. 928
In Process
are appropriate for publication. Said material, along with all other reports, documentation and data collected during the term of the Agreement, will be subject to disclosure unless it qualifies for exemption under the PRA in whole or in part. Grantee agrees to alert the State Library as to a basis for exemption, if any exists.

37. Publicity Obligations: Grantee will notify the State Library of any promotional materials or publications resulting from the grant no later than five (5) days in advance of distribution, whether they are print, film, electronic, or in any other format or medium. Copies of all promotional materials will be provided to the State Library. Grantee will acknowledge the State Library’s support as noted above. Grantee agrees that the State Library may include information about this grant and its outcomes in its own annual reports, with specific reference to Grantee, and may distribute such information to third parties.

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b. The grantee shall be responsible for submitting to the State Library Financial Reports reflecting grantee expenditure activity. The reports are due on the dates specified in the reporting schedule detailed in the Procedures and Requirements section.
c. To obtain payment hereunder the grantee shall submit authorized claims provided by the State Library for that purpose, on each of the following mentioned dates for payment, and the California State Library agrees to reimburse the Library as soon thereafter as State fiscal procedures will permit.
d. The final 10% of the grant award (if applicable) is payable only upon approval of all final reports and receipt of claim form. Failure to provide timely reports is a serious breach of an award recipient’s administrative duty under the award.
e. Payment will be provided to cover the expenditures incurred by the grantee for the project in the following manner:
o $8,900 upon execution of the agreement and submission of claim by the grantee organization.
o If applicable, second payment will be made after the submission and approval of the first reports and receipt of claim form in the amount of $-.
o If applicable, final payment will be made upon approval of all final reports and receipt of claim form in the amount of $-.

42. Self-Dealing and Arm’s Length Transactions: All expenditures for which reimbursement pursuant to this Agreement is sought shall be the result of arm’s-length transactions and not the result of, or motivated by, self-dealing on the part of the Grantee or any employee or agent of the Grantee. For purposes of this provision, “arm’s-length transactions” are those in which both parties are on equal footing and fair market forces are at play, such as when multiple vendors are invited to compete for an entity’s business and the entity chooses the lowest of the resulting bids. “Self-dealing” is involved where an individual or entity is obligated to act as a trustee or fiduciary, as when handling public funds, and chooses to act in a manner that will benefit the individual or entity, directly or indirectly, to the detriment of, and in conflict with, the public purpose for which all grant monies are to be expended.

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A site visit may include, but not be limited to, monitoring the use of grant funds, provide technical assistance when needed, and to visit the State funded project.

45. Termination: The Agreement shall be subject to termination by the State Librarian or designee upon notice to the Grantee at least thirty (30) days prior to the effective date of termination. In the event this agreement is terminated, the Grantee shall deliver to the State Librarian copies of all reports, accounting, data, and materials prepared up to the date of termination. The State Librarian shall determine and pay the Grantee for necessary and appropriate expenditures and obligations up to the date of termination which have not been covered by prior installments previously paid to the Grantee. Upon such termination, the unused portion of the grant award must be returned to the California State Library within 45 days.

If funding has been advanced to the Grantee, any unobligated balances, as determined by the State Librarian, shall be returned to the State Library within 45 days of the notice of termination.

46. Timeline: Time is of the essence to this Agreement. It is mutually agreed between the parties that the grant application and the timeline included therein are part of the Agreement.

Funds will also be considered unaccounted for, and must be returned, if the proposal outcomes or deliverables are materially incomplete by the end-ofterm or earlier termination, as determined by the State Library in its sole discretion.

48. Waiver of Rights: California State Library shall not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by California State Library. No delay or omission on the part of California State Library in exercising any rights shall operate as a waiver of such right or any other right. A waiver by California State Library of a provision of this Agreement shall not prejudice or constitute a waiver of California State Library’s right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by California State Library, nor any course of dealing between California State Library and Grantee, shall constitute a waiver of any of California State Library’s rights or of any of grantee’s obligations as to any future transactions. Whenever the consent of California State Library is required under this Agreement, the granting of such consent by California State DocuSign Envelope ID: ABFBACF6-3738-4AA7-BE06-9034EB69F4C9 Packet Page. 931
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Library in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of California State Library.

49. Work Products: Grantee shall provide California State Library with copies of all final products identified in the Work Plan and Application. Grantee shall also provide the State Library with copies of all public education and advertising material produced pursuant to this Agreement.

50. Worker’s Compensation: The State of California will not provide Workers’ Compensation insurance for Grantee or Grantee’s employees or contract personnel. If Grantee hires employees to perform services required by this Agreement, Grantee shall provide Workers’ Compensation insurance for them. The Grantee is aware of Labor Code Section 3700, which requires every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the Labor Code, and the Grantee agrees to comply with such provisions before commencing the performance of the work of this Agreement.

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EXHIBIT B: CERTIFICATION of COMPLIANCE FORM

6. STATEMENT OF COMPLIANCE: Grantee has, unless exempted, complied with the non-discrimination program requirements. (Gov. Code §12990 (a-f) and CCR, Title 2, Section 11102).

7. DRUG-FREE WORKPLACE REQUIREMENTS: Grantee will comply with the requirements of the Drug-Free Workplace Act of 1990 and will provide a drug-free workplace by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations.
b. Establish a Drug-Free Awareness Program to inform employees about:
1) the dangers of drug abuse in the workplace;
2) the person's or organization's policy of maintaining a drug-free workplace;
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3) any available counseling, rehabilitation and employee assistance programs; and,
4) penalties that may be imposed upon employees for drug abuse violations.
c. Every employee who works on the proposed Agreement will:
1) receive a copy of the company's drug-free workplace policy statement; and,
2) agree to abide by the terms of the company's statement as a condition of employment on the Agreement.

Current State Employees (Pub. Contract Code § 10410):
a. No officer or employee shall engage in any employment, activity or enterprise from which the officer or employee receives
compensation or has a financial interest, and which is sponsored or funded by any state agency, unless the employment, activity or enterprise is required as a condition of regular state employment. b. No officer or employee shall contract on his or her own behalf as an independent contractor with any state agency to provide goods or services.

Former State Employees (Pub. Contract Code § 10411):
a. For the two-year period from the date he or she left state employment, no former state officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements or any part of the decisionmaking process relevant to the contract while employed in any capacity by any state agency.
b. For the twelve-month period from the date he or she left state employment, no former state officer or employee may enter into a contract with any state agency if he or she was employed by that state agency in a policy-making position in the same general subject area as the proposed contract within the 12-month period prior to his or her leaving state service.

If Grantee violates any provisions of above paragraphs, such action by Grantee shall render this Agreement void. (Pub. Contract Code § 10420).

Members of boards and commissions are exempt from this section if they do not receive payment other than payment of each meeting of the board or DocuSign Envelope ID: ABFBACF6-3738-4AA7-BE06-9034EB69F4C9 Packet Page. 934
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commission, payment for preparatory time and payment for per diem. (Pub.

Contract Code § 10430 (e)).

12. PAYEE DATA RECORD FORM STD. 204: This form must be completed by all Grantees that are not another state agency or other governmental entity.

13. DRUG FREE WORKPLACE:
a. Continue to provide a drug-free workplace by complying with the requirements in 2 C.F.R. part 3186 (Requirements for Drug-Free Workplace (Financial Assistance)). In particular, the recipient must comply with drug- free workplace requirements in subpart B of 2 C.F.R. part 3186, which adopts the Government-wide
implementation (2 C.F.R. part 182) of sections 5152-5158 of the DrugFree Workplace Act of 1988 (P. L. 100-690, Title V, Subtitle D; 41 U.S.C. §§ 701-707).
b. This includes but is not limited to: making a good faith effort, on a continuing basis, to maintain a drug-free workplace; publishing a drug-free workplace statement; establishing a drug-free awareness program for the employees; taking actions concerning employees who are convicted of violating drug statutes in the workplace.

15. NON-DISCRIMINATION: The organization receiving this award, as listed in the certification section below, and all program staff, agree to comply with all California non-discrimination laws.

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Certification

ORGANIZATION
Name: City of San Bernardino Public Library Address (official and complete): 555 West 6th Street, San Bernardino, CA, 92410

PROJECT COORDINATOR
Name: Nikki Villalobos
Email: [email protected] Phone: 909-381-8238

GRANTTEE AUTHORIZED REPRESENTATIVE
Name: Ed Erjavek Title: Library Director
Email: [email protected] Phone: 909-381-8210
Signature: Date:

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Authorized Representative Signature

ORGANIZATION
Name: City of San Bernardino Public Library Address (official and complete): 555 West 6th Street, San Bernardino, CA, 92410

AUTHORIZED REPRESENTATIVE
Signature: Date:

Printed Name of Person Signing: Ed Erjavek Title: Library Director

STATE OF CALIFORNIA
Agency Name: California State Library Address: 900 N Street, Sacramento, CA 95814 Signature: Date:

Printed Name of Person Signing: Greg Lucas Title: California State Librarian DocuSign Envelope ID: ABFBACF6-3738-4AA7-BE06-9034EB69F4C9 2/16/2024
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In Process
April 25, 2022
RE: Contractor and Grantee Compliance with Economic Sanctions Imposed in Response to Russia’s Actions in Ukraine
Dear Grantee,
You are receiving this notification because you currently have an active grant through the California State Library.

Please note that for any agreements or grants valued at $5 million or more, a separate notification will be sent outlining additional requirements specified under the EO.

Annly Roman
California State Library
900 N Street
Sacramento, CA 95814
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Resolution No. 2024-092
Resolution 2024-092
May 1, 2024

Page 1 of 3 ends

RESOLUTION NO. 2024-092

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,

AUTHORIZING THE DIRECTOR OF FINANCE AND
MANAGEMENT SERVICES TO AMEND THE FY 2023/24
BUDGET TO RECOGNIZE $29,786 OF ADDITIONAL

GRANT FUNDING FROM THE CALIFORNIA

DEPARTMENT OF EDUCATION IN BOTH REVENUES

AND EXPENDITURES
WHEREAS, the City of San Bernardino has been awarded additional grant funding in the amount of $29,786 from the California Department of Education and WHEREAS, The California Department of Education funding is from the Workforce Innovation and Opportunity Act, Title II: Adult Education and Family Literacy Act program and helps residents improve their educational and employment possibilities; and

BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. The Mayor and City Council of the City of San Bernardino hereby authorize the Director of Finance & Management Services to amend and appropriate $29,786 in both revenues and expenditures to the Fiscal Year 2023 – 2024 Operating Budget for the Workforce Innovation and Opportunity Act, Title II: Adult Education and Family Literacy Act program.

SECTION 3. The Mayor and City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.

SECTION 5. Effective Date. This Resolution shall become effective immediately.

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Resolution No. 2024-092
Resolution 2024-092
May 1, 2024

Page 2 of 3 ends

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 1st day of May 2024.

Helen Tran, Mayor
City of San Bernardino
Attest:

Genoveva Rocha, CMC, City Clerk
Approved as to form:

Sonia Carvalho, City Attorney
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Resolution No. 2024-092
Resolution 2024-092
May 1, 2024

Page 3 of 3 ends

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss

CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2024-092, adopted at a regular meeting held on the 1st day of May 2024 by the following vote:

Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
REYNOSO _____ _____ _______ _______
CALVIN _____ _____ _______ _______
ALEXANDER _____ _____ _______ _______
WITNESS my hand and official seal of the City of San Bernardino this 2nd day of May 2024.

Genoveva Rocha, CMC, City Clerk
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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: May 1, 2024
To: Honorable Mayor and City Council Members
From: Charles A. Montoya , City Manager;
Darren Goodman, Chief of Police
Department: Police
Subject: COPS Grant Application (All Wards)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the Police Department to apply for funding for five police officer positions through the Community Oriented Policing Services (COPS) grant program.

Executive Summary
The Police Department anticipates the FY2024 COPS hiring grant application period will open in the near future and it is seeking approval from the Mayor and City Council to apply for five police officer positions.

Background
The Department of Justice COPS grant is intended to reduce crime and promote public safety through community-oriented policing by providing support to law enforcement agencies nationwide. The grant supports hiring law enforcement officers to increase an agency’s community policing and crime prevention capabilities.

The Police Department anticipates the release of the FY 2024 COPS Hiring Program (CHP) solicitation in the near future. The award provides funding for up to 75 percent of the approved entry-level salary and fringe benefits of each newly hired or rehired full-time sworn career law enforcement officer over three years of the award period. There is a minimum 25 percent local cash match requirement unless otherwise waived, and a maximum federal share of $125,000 per officer position. Funding from the program may be used to:
• Hire new officers
• Rehire officers (laid off as the result of budget reductions) Packet Page. 945
• Rehire officers (at the time of application, currently scheduled to be laid off as a result of budget reductions)
The Police Department has applied for COPS grant funds to support its Community Policing program since 2020 and has been awarded grant funds each of the past four years. The collective results of these efforts have included obtaining $10,446,502 in grant funds and the creation of 35 sworn officer positions.

Discussion
In February 2019, the Mayor and City Council adopted resolution 2019-29, restructuring the Police Department to support a community-oriented policing model and philosophy. The program has been successful and resulted in increased engagement between the Police Department and the community, along with a reduction in violent crime and police response times. Additionally, there has been a significant increase in the amount of firearms and narcotics removed from the streets, creating a safer environment for residents, businesses, and visitors alike. Residents and business owners of San Bernardino have been supportive of the Police Department’s community policing efforts and the Department intends to build upon those successes as it continues the program. To do so, the Department must balance the needs of the community policing program and the changing environment of police work created through legislation and reporting mandates.

Some legislation has strained police resources. For example, the legislative elimination of a prostitution-related law has made it more difficult to identify and rescue human trafficking victims, resulting in an increased amount of time and personnel required to address prostitution and human trafficking investigations. Proposition 47 has added strain by reducing penalties for crimes such as theft, vandalism, and drug possession, eliminating some of the deterrent effects that arrest and incarceration previously had on offenders, and forcing law enforcement to arrest the same offenders repeatedly.

Solving each individual issue that arises based on these legislative changes without negatively impacting the Patrol Division’s response to calls for service has involved the dedication of district resource officers toward special enforcement programs and lengthy human trafficking investigations. The Police Department is coping with these issues, but doing so draws officers away from community policing functions and slows progress toward the goals of the Community Policing Program.

The Racial Identity and Profiling Act (RIPA) is a reporting mandate that has emerged as a draw on officer productivity. The RIPA mandate became effective for the San Bernardino Police Department on January 1st, 2022 and it required sworn personnel to complete a Stop Data Survey on all vehicle and pedestrian stops from that point forward. RIPA surveys must be completed by the officers who made the stops themselves and cannot be delegated to other personnel, slowing down police operations with an administrative task that cannot be avoided and reducing the number of minutes each officer spends on actual police work. For the average officer, this consumes five to ten minutes per RIPA survey, and for stops of two or more persons, a separate survey must be done for each individual person present. Most officers will Packet Page. 946
make ten or more contacts requiring a RIPA entry each day, costing them anywhere from 50 to 100 minutes to complete and representing a loss of 8-16% of a single officer’s ten-hour shift each day. Over the course of the entire year, this will cost an individual patrol officer approximately 173 to 346 hours or 4.3 to 8.6 work weeks (at 40 hours per week) each year. At full staffing, the Patrol Division alone has 118 officers impacted by the RIPA mandate, creating an enormous burden on staff time and drawing officers away from their traditional duties. This is an unfunded mandate and each law enforcement agency is required to bear the costs related to compliance.

The loss of productivity to RIPA reporting requirements combined with legislative changes related to prostitution and Prop 47 significantly reduces the number of hours available for officers to focus on community policing. To offset some of this loss and maintain the progress made through community policing to this point, staff believes it would be beneficial to apply for COPS grant funding to add five police officer positions to the Police Department.

The COPS grant offers funding for new police officer positions and supports hiring by subsidizing a portion of the costs of pay and benefits for each officer hired. The grant terms require a five-year commitment to maintaining those personnel positions, with three years of them being supported in part by COPS grant funds and the final two years being entirely supported by the City. The Police Department has requested a salary match waiver in previous years and been granted such a waiver for one grant award. The Police Department will request a salary match waiver for this application as well. The anticipated expenditures are depicted in the table below.

Table A
Cost By
Grant
Year
Salary and
Benefits For
One Officer
Percent
Funded By
Grant
Percent
Funded by
City
Cost to City
for One Officer
Cost for Five
Officers
Year 1 $143,381.58 50% 50% $71,690.79 $358,453.95
Year 2 $151,763.73 35% 65% $98,646.42 $493,232.10
Year 3 $165,733.57 15% 85% $140,873.53 $704,367.65
Year 4 $180,343.49 0% 100% $180,343.49 $901,717.45
Year 5 $195,636.73 0% 100% $195,636.73 $978,183.65
Total $836,859.10 N/A N/A $687,190.96 $3,435,954.80
The Police Department anticipates requesting an increase in staffing by ten police officer positions over the next several years. Under normal circumstances, the City would bear the entire cost of any staff increases, however, the COPS grant presents an opportunity to grow the number of police officers with financial support from the Federal Government. Staff is recommending seeking COPS grant assistance to create five new police officer positions in the Police Department, and is seeking consent from the Mayor and Common Council to move forward with the grant application process.

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2021-2025 Strategic Targets and Goals
The request to proceed forward with the COPS grant application aligns with Goal No. 3: Improved Quality of Life - Constantly evaluate public safety service delivery models to enhance the quality of service delivery.

Fiscal Impact
There is no impact to the General Fund for the application submission. If the Police Department is awarded the grant, the General Fund impact will be identified when the item is returned to the Mayor and City Council to accept the award.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the Police Department to apply for funding for five police officer positions through the Community Oriented Policing Services (COPS) grant program.

Attachments
Attachment 1 COPS Hiring Program 2024 Solicitation
Ward:

All Wards
Synopsis of Previous Council Actions:

December 6, 2023 The Mayor and City Council approved Resolution No. 2023- 184, accepting the 2023 COPS grant.

November 16, 2022 The Mayor and City Council approved Resolution No. 2022- 241, accepting the 2022 COPS grant.

December 1, 2021 The Mayor and City Council approved Resolution No. 2021- 284, accepting the 2021 COPS grant.

July 15, 2021 The Mayor and City Council approved Resolution No. 2020- 167, accepting the 2020 COPS grant.

February 20, 2019 The Mayor and City Council approved Resolution No. 2019-29, adopting the Community Oriented Policing and Problem Solving Philosophy Packet Page. 948

OMB No. 1103-0098
Approval Expires 4/30/2024
U.S. Department of Justice
Office of Community Oriented Policing Services
FY24 COPS Hiring Program
Assistance Listing #: 16.710
Grants.gov Opportunity Number: O-COPS-2024-172009
Solicitation Release Date: April 11, 2024, 1:00 PM ET
Grants.gov Deadline: June 6, 2024, 4:59 PM ET
Application JustGrants Deadline: June 12, 2024, 4:59 PM ET Overview
The U.S. Department of Justice, Office of Community Oriented Policing Services (COPS Office, https://cops.usdoj.gov) is pleased to announce that it is seeking applications for funding for the FY24 COPS Hiring Program (CHP). This program furthers the COPS Office’s goal of advancing public safety through community policing by funding additional full-time career law enforcement positions to meet law enforcement agencies’ community policing strategies.

All awards are subject to the availability of appropriated funds and any modifications or additional requirements that may be imposed by law.

Eligibility
Eligible applicants are limited to local, state, territorial, and tribal law enforcement agencies that have primary law enforcement authority. See additional eligibility details under the Eligibility section of this solicitation.

Contact Information
Agency Contact Description
Applications must be submitted through both Grants.gov and the JustGrants system.

For technical assistance with submitting the Application for Federal Assistance, Standard Form 424 (SF424), please call the Grants.gov customer service hotline at 800-518-4726, send questions via email to [email protected] or consult the Grants.gov Organization Applicant User Guide. The Grants.gov Support Hotline operates 24 hours a day, 7 days a week, except on federal holidays.

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For technical support with the Justice Grants System (JustGrants) application, please contact JustGrants Support at [email protected] or 833-872-5175. JustGrants Support operates Monday through Friday between the hours of 5:00 a.m. and 9:00 p.m. Eastern Time (ET) and Saturday, Sunday, and federal holidays from 9:00 a.m. to 5:00 p.m. ET. Training on JustGrants can also be found at https://justicegrants.usdoj.gov/training-resources.

For programmatic assistance with the requirements of this program, please call the COPS Office Response Center at 800-421-6770 or send questions via email to [email protected]. The COPS Office Response Center operates Monday through Friday, 9:00 a.m. to 5:00 p.m. ET, except on federal holidays.

Submission Information
Registration: To submit an application, all applicants must be registered in SAM.gov with a Unique Entity Identifier (UEI) number and be registered in Grants.gov.

Submission: Completing an application is a two-step process:

1. Applicants are first required to register via https://www.grants.gov, complete the SF-424 form and if applicable the Disclosure of Lobbying Activities, Standard Form - LLL (SF-LLL), and submit it through the Grants.gov website.

2. Once the SF-424 and SF-LLL have been submitted via Grants.gov, the applicant will complete the full application including survey questions and provide attachments in JustGrants.

An application is not considered submitted until both of these steps are completed. For more information about registration and submission, see the How to Apply section of this solicitation.

All guidance for this program is contained in this Solicitation and can also be found at https://cops.usdoj.gov/chp. In addition to this Solicitation, the COPS Office “How to Apply” web page, http://cops.usdoj.gov/how-to-apply, provides additional resources to help guide applicants through the process.

The complete application package (this solicitation, including links to additional documents) is available on Grants.gov and on the COPS Office website, https://cops.usdoj.gov.

FY 2024 COPS Hiring Program (CHP) Solicitation 2 of 38
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Contents
Overview........................................................................................................................................... ................................................................................................................................................. ........................................................................................................................... ................................................................................................................... ......................................................................................................................... .......................................................................................................................... ............................................................................................................................ ............................................................................................................. ........................................................................................................... 1 Eligibility 1
Contact Information 1
Agency Contact Description 1
Submission Information 2
Program Description 5
Statutory Authority 5
Program-Specific Information 6
FY24 COPS Hiring Program (CHP) 6
Federal Award Information: Awards, Amounts and Durations............................................................. .............................................................................................................. .................................................................................. .......................................................................................................... ............................................................................................ ................................................................ .................................................................................................................... ........................................................................................................................................ ................................................................................................................ ............................................................................................................................. .......................................................................................... ......................................................................................................... 8 Anticipated Number of Awards 8
Anticipated Maximum Dollar Amount of Awards 9
Period of Performance Start Date 9
Period of Performance Duration (months) 9
Anticipated Total Amount to be Awarded under Solicitation 9 Federal Award Information 9
Type of Award 9
Cost Share or Matching Funds 9
Eligibility Information 9
Application and Submission Information 10
Content and Form of Application 10
Completing the Application for Federal Assistance (SF-424) and the Disclosure of Lobbying (SF-LLL) in Grants.gov ............................................................................................................................................ ........................................................................................................... ......................................................................................................... ............................................................................................... ..........................................
11 Standard Applicant Information 12
Data Requested with Application 13
Budget and Associated Documentation 15
Memoranda of Understanding (MOU) and Other Supportive Documents 19 FY 2024 COPS Hiring Program (CHP) Solicitation 3 of 38
Packet Page. 951

Additional Application Components .................................................................................................... ................................................................................................................................... .................................................................................................................. .................................................................................................................................. ........................................................................................................... .............................................................................................................................. ......................................................................................................................... .......................................................................................................................... 20 How to Apply 21
Submission Dates and Time 26
Late Submissions 26
Application Review Information 26
Director’s Selection 29
Federal Award Notices 29
The Award Package 30
Administrative and National Policy Requirements .............................................................................. ..................................................................................... .............................................................................................................. ................................................................................................... ................................................................................................................ ......................................................................................................... ......................................................................... ..................................................................... 31 Terms, Conditions, and Award Requirements 31
Administrative Actions and Legal Remedies Related to Federal Awards............................................. ...........................................
............................................................................................................................... ............................................................................................................................................ ................................................................................................. ................................................................................................... ................................................................ ........................................................................................................................ ............................................................................................................................ 31 Remedies for Noncompliance 32
Federal Awarding Agency Contact(s) 33
Freedom of Information Act and Privacy Act (5 U.S.C. §§ 552 and 552a) 33 Feedback to the COPS Office 33
COPS Office Other Information 34
Reporting, monitoring, and evaluation requirements 34
Financial Management and System of Internal Controls 35 Audit Requirement 36
Civil Rights 36
Funding to Faith-Based Organizations 36
Section 508 of the Rehabilitation Act 36
Public Reporting Burden: Paperwork Reduction Act Notice 36 Performance Measures 37
Application Checklist 38
FY 2024 COPS Hiring Program (CHP) Solicitation 4 of 38
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Program Description
The Office of Community Oriented Policing Services (COPS Office) is the component of the U.S.

Department of Justice responsible for advancing the practice of community policing by the nation’s state, local, territorial, and tribal law enforcement agencies through information and grant resources.

The COPS Office has been appropriated more than $20 billion to advance community policing, including grants awarded to more than 13,000 state, local, territorial, and tribal law enforcement agencies to fund the hiring and redeployment of more than 136,000 officers. COPS Office information resources, covering a wide range of community policing topics such as school and campus safety, violent crime, and officer safety and wellness, can be downloaded via the COPS Office’s home page, https://cops.usdoj.gov.

The COPS Hiring Program (CHP) provides funding to law enforcement agencies to hire and/or rehire additional career law enforcement officers in an effort to increase their community policing capacity and crime prevention efforts. Anticipated outcomes of CHP awards include engagement in planned community partnerships, implementation of projects to analyze and assess problems, implementation of changes to personnel and agency management in support of community policing, and increased capacity of agency to engage in community policing activities.

Community policing is a philosophy that promotes organizational strategies that support the systematic use of partnerships and problem-solving techniques to proactively address the immediate conditions that give rise to public safety issues such as violent crime, nonviolent crime, and fear of crime. To read an overview of the principles of community policing, please see the COPS Office publication Community Policing Defined.

The COPS Office is committed to advancing work that promotes civil rights and equity, increases access to justice, supports crime victims and individuals impacted by the justice system, strengthens community safety and protects the public from crime and evolving threats, and build trust between law enforcement and the community.

Statutory Authority
CHP is authorized under the Omnibus Crime Control and Safe Streets Act of 1968, as amended, and the Violent Crime Control and Law Enforcement Act of 1994, Title I, Part Q, Public Law 103-322, 34 U.S.C. § 10381 et seq.

All awards are subject to the availability of appropriated funds and any modifications or additional requirements that may be imposed by law.

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Program-Specific Information
FY24 COPS Hiring Program (CHP)
CHP provides funding to law enforcement agencies to hire and/or rehire additional sworn career law enforcement officers in an effort to increase their community policing capacity and crime prevention efforts. See the Applicants will be expected to describe their community policing strategy and request the number of newly hired and/or rehired full-time sworn career law enforcement officer positions necessary to support that strategy. COPS Office funding must be used to reorient the mission and activities of law enforcement agencies toward the community or enhance their involvement in community policing.

Anticipated outcomes of CHP awards include engagement in planned community partnerships, implementation of projects to analyze and assess problems, implementation of changes to personnel and agency management in support of community policing, and increased capacity of agency to engage in community policing activities.

Overview of Program Requirements
• Hiring Categories: Funding under this program may be used to hire or rehire career law enforcement officers in the following categories:
 Hire new officers, which includes filling existing officer vacancies that are no longer funded in your agency’s budget. These positions must be in addition to your current budgeted (funded) level of sworn officer positions, and the officers must be hired on or after the official award start date on the notice of award.
 Rehire officers laid off by any jurisdiction as a result of state, local, or Bureau of Indian Affairs (BIA) budget reductions. The rehired officers must be rehired on or after the official award start date on the notice of award. Documentation must be maintained showing the date(s) that the positions were laid off and rehired.
 Rehire officers who are (at the time of application) currently scheduled to be laid off by your jurisdiction on a specific future date as a result of state, local, or BIA budget reductions.

Recipients will be required to continue funding the positions with local funding until the date(s) of the scheduled layoffs. The dates of the scheduled layoffs and the number of positions affected must be identified in the CHP application. The recipient may rehire the officers with CHP funding on or immediately after the date of the scheduled layoff. Unless required by a recipient jurisdiction, the agency is not required to formally complete the administrative steps associated with the layoff of the individual officers it is seeking to rehire so long as the agency can document that a final, approved budget decision was made to lay off those individual officers on the identified layoff date. Documentation must be maintained detailing the dates and reason(s) for the layoffs. Furthermore, agencies awarded will be required to maintain documentation that demonstrates that the scheduled layoffs FY 2024 COPS Hiring Program (CHP) Solicitation 6 of 38
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are occurring for local economic reasons unrelated to the availability of CHP award funds; such documentation may include local council meeting minutes, memoranda, notices, or orders discussing the layoffs, budget documents ordering jurisdiction-wide budget reductions, and/or notices provided to the individual officers regarding the layoffs.

An applicant may request funding in one or more of the above-referenced hiring categories under CHP. If an application is approved for funding, the notice of award will specify the number of positions approved in each category. Once awarded, recipient agencies may not move funded positions between the hiring categories without receiving written prior approval from the COPS Office.
• “Career Law Enforcement Officer” Defined: A “career law enforcement officer” is a person hired on a permanent basis who is authorized by law or by a state, local, or tribal agency to engage in or oversee the prevention, detection, or investigation of violations of criminal laws. 34 U.S.C. §10389(1). The State of Alaska, and any Indian tribe or tribal organization in that State, may also use hiring funds for village public safety officers defined as “an individual employed as a village public safety officer under the program established by the State pursuant to Alaska Statute 18.65.670. Tribal Law and Order Act of 2010, Pub. L. 111-211, title II, § 247 (a)(2).” • Cost Sharing or Matching Funds Requirement and Maximum Federal Share: FY24 CHP awards will cover up to 75 percent of the entry-level salary and fringe benefits for each approved position for a three-year funding period, based on the applicant’s current entry level salary levels for full-time officers. There is a minimum 25 percent local cost share or matching funds requirement, which must be in the form of cash, unless a waiver is approved. Absent an approved matching funds waiver, the maximum federal share per officer position is $125,000 over the three-year period (not $125,000 per year) and any additional costs exceeding entrylevel salaries and fringe benefits will be the responsibility of the recipient agency. See the Budget and Associated Documentation section for additional information. • Cap on Officer Requests: Requests will be capped at 20 percent of actual sworn force, with a maximum of 50 officers for any agency. For example, agencies with an actual sworn force of 30 will be allowed to request up to 6 positions. Agencies with fewer than 10 officers may request one position.
• Length of Funding and Retention Requirement: Funding under this program will support three years of officer or deputy salaries within a five-year period of performance to accommodate time needed for recruitment and hiring. Agencies must retain each CHP-funded position for a minimum of 12 months following the three years of funding for that position. The additional officer positions should be added to your agency’s law enforcement budget with state and/or local funds over and above the number of locally funded officer positions that would have existed in the absence of the award. Absorbing CHP-funded positions through attrition (rather than adding the extra positions to your budget with additional funding) does not meet the retention requirement.

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• Background Investigation Requirement: Recipients must ensure that each officer(s) hired with CHP funding is subject to a background investigation, notify the COPS Office upon completion of the background investigation for each officer hired under the CHP award, and cooperate with the COPS Office and provide updates on the status of background investigations upon request.

Additional information can be found in the FY24 Application Resource Guide and the FY24 External Background Investigations FAQs.
• Prohibition on Supplanting: “Supplanting” is to deliberately reduce state or local funds because of the existence of federal funds. For example, when state funds are appropriated for a stated purpose and federal funds are awarded for that same purpose, the state replaces its state funds with federal funds, thereby reducing the total amount available for the stated purpose. As such, a recipient may not reduce its existing current fiscal year budget for sworn officers just to make use of the CHP award. Any budget cut must be unrelated to the receipt of CHP award funds to avoid a violation of the COPS Office statutory non-supplanting requirement. • School Resource Officer (SRO) Training Requirement: COPS Office-funded SRO(s) are required to complete an SRO 40-hour basic training course from a list of COPS Office approved provider(s). Training must be completed no later than nine months after the date shown on the award congratulatory letter or six months from the SRO hire date; whichever comes first.

Additional information and requirements can be found in the FY24 Application Resource Guide.

Note: Agencies selecting SROs should adhere to the guiding principles presented in the SRO Guiding Principles which can be found at SUPPORTING SAFE SCHOOLS | COPS OFFICE (usdoj.gov).
• SRO Memorandum of Understanding (MOU) Requirement: Recipients awarded CHP funding to hire and/or deploy SRO into schools will be required to submit to the COPS Office a signed MOU between the law enforcement agency and the school partner(s) within 90 days of the date shown on the award letter, and before expending or drawing down funds under the award. See the Memorandum of Understanding and Other Supporting Documents section and the MOU Fact Sheet for additional information.

This is a competitive, discretionary program. The COPS Office will fund as many positions as possible for successful applicants; however, the number of officer positions requested by an agency may be reduced based on the availability of funding and other programmatic considerations.

Federal Award Information: Awards, Amounts and
Durations
Anticipated Number of Awards
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Anticipated Maximum Dollar Amount of Awards
$6,250,000
Period of Performance Start Date
October 1, 2024
Period of Performance Duration (months)
60 Anticipated Total Amount to be Awarded under Solicitation Up to $156,668,839
Federal Award Information
This solicitation is expected to be very competitive. The COPS Office may elect to fund applications submitted under this solicitation in future fiscal years, dependent on, among other considerations, the merit of the applications and the availability of funding.

All awards are subject to the availability of appropriated funds and any modifications or additional requirements that may be imposed by law. With limited funding, the COPS Office expects a competitive solicitation.

Type of Award
The COPS Office will make all awards from the FY24 CHP solicitation in the form of grants, which does not provide for substantial involvement between the federal awarding agency and the nonfederal entity in carrying out the activity contemplated by the federal award. Grant recipients will be responsible for day-to-day project management and may reach out to the COPS Office with assistance in implementing the award. However, grant recipients will need to work with the COPS Office program manager in situations stated in the terms and conditions, such as scope changes and extensions.

Cost Share or Matching Funds
A minimum 25 percent local cost share or matching funds is required, which must be in the form of cash, unless a waiver is approved See the Budget and Associated Documentation section below.

Eligibility Information
Local, state, territorial, and tribal law enforcement agencies that have primary law enforcement authority are eligible to apply. An agency with primary law enforcement authority is defined as the first responder to calls for service for all types of criminal incidents within the jurisdiction served. CHP FY 2024 COPS Hiring Program (CHP) Solicitation 9 of 38
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applicants must have a law enforcement agency (i.e. Sheriff’s Office, Department, etc.) that is operational by the close of this application or receive services through a new or existing contract for law enforcement services through an existing contract for law enforcement services or a new contract for law enforcement services that is in place by the close of this solicitation. Applicants must also maintain primary law enforcement authority for the population to be served.

If funds under this program are to be used as part of a written contracting agreement for law enforcement services (e.g., a town that contracts with a neighboring sheriff’s department to receive services), the agency wishing to receive law enforcement services must be the legal applicant in this application.

A law enforcement agency is established and operational if the jurisdiction has passed authorizing legislation and it has a current operating budget.

Application and Submission Information
The complete application package (this solicitation, including links to additional documents) is available on Grants.gov and on the COPS Office website https://cops.usdoj.gov/.

Completing an application under this program is a two-step process. Applicants must first register via https://www.grants.gov and complete an Application for Federal Assistance, Standard Form 424 (SF424), the government-wide standard application form for federal assistance and the of Lobbying Activities, Standard Form - LLL (SF-LLL). The remainder of the application will be completed through the JustGrants System at https://justicegrants.usdoj.gov/.

Applicants are strongly recommended to register immediately on https://www.grants.gov. Any delays in registering with Grants.gov or submitting the SF-424 may result in insufficient time for processing your application through JustGrants.

No other form of application will be accepted. Applications with errors or missing information may be disqualified or rated accordingly. Please note that the application system will not accept incomplete applications or applications with errors.

Please refer to the Contact Information section for technical assistance with submitting the SF-424, technical support with JustGrants, or programmatic assistance with the requirements of this program.

Content and Form of Application
The application in JustGrants consists of a series of questions, as well as a budget worksheet. Below is a summary of the questions that applicants will be required to complete. The complete list of questions is located at https://cops.usdoj.gov/chp. Applicants are encouraged to read through the online application questions in advance to ensure sufficient time to prepare answers to the questions.

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Failure to submit all required documentation at the time of the application may delay processing and/or result in the denial of your application. Unless otherwise noted, each section in the application must be completed in its entirety.

Completing the Application for Federal Assistance (SF-424) and the Disclosure of Lobbying (SF-LLL) in Grants.gov
The SF-424 is a required standard form used as a cover sheet for submission of pre-applications, applications, and related information under discretionary programs. Applicants must complete and submit the SF-424 via https://www.grants.gov using the information provided on that site. Public reporting burden for this collection of information is estimated to average 60 minutes per response including time for reviewing instructions, searching existing data sources, gathering, and maintaining required data as well as completing and reviewing the collection of information. Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Office of Management and Budget, Paperwork Reduction Project (0348-0043), Washington, D.C. 20503.

PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF MANAGEMENT AND BUDGET.

SUBMIT IT ONLINE VIA GRANTS.GOV.

Intergovernmental Review
Note: Intergovernmental Review (SF-424 Question 19): This solicitation is subject to Executive Order (E.O.) 12372, Intergovernmental Review of Federal Programs. Applicants must check the Office of Management and Budget’s website for the names and addresses of Single Points of Contact (SPOC) under Intergovernmental Review: https://www.whitehouse.gov/wp-content/uploads/2023/06/SPOClist-as-of-2023.pdf. If the applicant’s state appears on the SPOC list, the applicant must contact the state SPOC to find out about, and comply with, the state’s process under E.O. 12372. In completing the SF424, such applicant is to make the appropriate selection in response to question 19 once the applicant has complied with its state E.O. 12372 process. An applicant whose state does not appear on the SPOC list should answer question 19 by selecting the following response: “Program is subject to E.O. 12372 but has not been selected by the state for review.”
Disclosure of Lobbying Activities
All applicants must complete and submit the Disclosure of Lobbying Activities (SF-LLL) form in Grants.gov. Applicants that do not expend any funds for lobbying activities should enter “N/A” in the required highlighted fields. Applicants that expend any funds for lobbying activities must provide the information requested on the SF-LLL.

Once the SF-424 and SF-LLL have been submitted via Grants.gov, an email will be sent to the entity’s EBusiness Point of Contact (E-Biz POC) (also referred to as the JustGrants Entity Administrator) from [email protected]. This email will contain registration instructions to create an account in FY 2024 COPS Hiring Program (CHP) Solicitation 11 of 38 Packet Page. 959

DOJ’s secure user management system, the Digital Identity and Access Management Directory (DIAMD), or instructions on how to complete the second part of the online application through the JustGrants website.

Standard Applicant Information
Applicants must complete the web-based form in JustGrants, which is pre-populated with the SF-424 data submitted in Grants.gov. Applicants are required to confirm the two Authorized Representatives, verify the legal name, address, and enter the ZIP code(s) for the areas affected by the project. For statewide or nationwide projects, the applicant should enter “State” or “National” in this field.

In order for applicants to complete this section, the two Authorized Representatives must have established accounts in JustGrants after the Grants.gov portion of the application is submitted. Please note: Users assigned as Authorized Representatives must log in into the JustGrants system to activate their account. Users will not be visible in JustGrants until they have successfully logged into JustGrants.

The Authorized Representatives are officials who have ultimate and final responsibility for all programmatic and financial decisions regarding this COPS Office application as representatives of your agency, as the legal recipient.

For guidance on who should be assigned as Authorized Representatives, please see below:

For law enforcement agencies, COPS Office awards require that both the top law enforcement executive (e.g., chief of police, sheriff, or equivalent) and the top government executive (e.g., mayor, board chairman, or equivalent) sign the application, and (if awarded funding) accept the award package.

Both the top law enforcement executive and the top government executive must be assigned the role of Authorized Representative in Just Grants.

For non–law enforcement agencies, (institutions of higher education, school districts, private organizations, etc.), COPS Office awards require that both the programmatic official (e.g., executive director, chief executive officer, or equivalent) and financial official (e.g., chief financial officer, treasurer, or equivalent) sign the application, and (if awarded funding) accept the award package. These two officials must have the ultimate signatory authority to sign contracts on behalf of your organization.

Both the programmatic official and the financial official must be assigned the role of Authorized Representative in Just Grants.

Please note that nonexecutive positions (e.g., clerks, trustees) are not acceptable Authorized Representatives.

For further assistance with accessing JustGrants, please visit the JustGrants website. For further assistance with submitting an application in JustGrants, please visit the JustGrants Training web page.

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Data Requested with Application
Please refer to the following steps to help guide you through initiating, completing, modifying, and obtaining the status of solicitation surveys in the JustGrants system:
• To initiate a survey, please click on the survey title to open. • When you have completed the survey, please click the “Finish” button on the lower right corner of the screen. The system will direct you to a review screen displaying your survey responses. • To go back to the initial list of surveys, go to the “Actions” menu at the top right corner of the screen and select “Close” to exit the survey review screen. The survey you just completed will still display an “Open” status.
• To confirm the completed status of your survey, go back to the “Actions” menu and select “Refresh.” The status of your completed survey will change to “Resolved-Completed.” • If you would like to verify the survey responses of a completed survey, you may click the survey title to reopen the selected survey and view your saved responses. • If you would like to change and/or update the survey responses of a completed survey, you may click the “Re-open” option to update your saved responses. • Remember, to confirm the status of a completed survey, you will need to click the “Actions” menu and “Refresh.”
Below is a summary of the questions that applicants will be required to complete.

Agency Eligibility: See Eligibility section to ensure that your agency meets eligibility requirements.

Law Enforcement Agency Sworn Force Information: Applicants will enter information regarding budgeted sworn force strength and actual sworn force strength employed at the time of application.

Civilian Staff: The number of full- and part-time civilian positions funded in your agency’s annual budget.

COPS Office–funded Officer Request: Applicants will be asked to enter the number of newly hired and/or rehired entry-level officer positions necessary to support the proposed community policing strategy. CHP awards are subject to the restrictions described in the Program Description and the Budget and Associated Documents sections, including but not limited to $125,000 maximum over three years for each awarded position (not $125,000 per year), a minimum 25 percent cost share or matching funds requirement (unless waived), 12-month retention requirement for each officer hired, 20 percent of sworn force and 50 officer per agency cap, and nonsupplanting requirements.

Applicants should base requests on the current needs in the three hiring categories (new hire, rehire of previously laid-off, and rehire of officers scheduled for layoff), keeping in mind that once awarded, positions cannot be moved between the categories without prior written approval from the COPS Office.

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Law Enforcement and Community Policing Strategy: Through a series of detailed questions requiring a narrative response, CHP applicants are required to describe how hiring additional officers will assist the applicant in implementing and/or enhancing community policing strategies. The first set of questions will examine the current policies and practices within the agency as they relate to community policing.

The second set of questions will assess the proposed community policing strategy as it relates to the three primary elements of community policing.

Note: Agencies that do not meet a minimum community policing score will not be considered for funding. The minimum community policing score reflects a basic existing commitment to community policing and a strategy to enhance or build community policing capacity.

Problem Area Selection: Applicants will identify and describe one specific problem/focus area from the list below. Selection of certain problem areas will require additional narrative descriptions. Note that selection of some problem focus areas may result in additional consideration for funding (see Application Review Information). Applicants that select those funding areas will not be allowed to change the problem areas/focus area of community policing strategies after the award is issued. • Building Legitimacy and Trust – Applicant will deploy officers to partner and engage community stakeholders including residents, businesses, and faith-based organizations to prioritize and collectively strengthen a community’s response to crime and criminal activity and focus on enhancing and maintaining community trust and legitimacy between law enforcement and the communities they serve – to include building trust in immigrant communities. Efforts could include deploying or redeploying officers to support officer recruitment and retention efforts, with an emphasis on promoting diversity. Applicants may wish to review the COPS Office web page Building Trust at https://cops.usdoj.gov/buildingtrust for ideas on strategies. • Violent Crime/Gun Violence – Applicant will employ community policing strategies to address a range of violent crime problems. Community-based approaches to combatting gun violence that build trust in underserved communities suffering from high incidents of gun crime will receive additional consideration. Applicants requesting additional consideration for gun violence issues will be asked to describe their holistic, community-based approach (which could include applicable task force participation) and may wish to review the COPS Office web page on Community Violence Interventions at https://cops.usdoj.gov/community_violence_intervention for ideas on strategies.
• Combating Hate and Domestic Extremism – Applicant will focus on community-based strategies that combat bias-motivated acts of violence that divide our communities, intimidate our most vulnerable citizens, and erode trust in the rule of law. Applicants may wish to review the COPS Office web page on Combating Hate Crimes at https://cops.usdoj.gov/hatecrimeresources for ideas on strategies.
• Police-based Response to Persons in Crisis – Applicant will focus on deploying officers in crisis intervention teams, participation in crisis intervention teams, improving response and interaction with persons in crisis – to include efforts focused on the education, prevention, and interventions related to the abuse of opioids and other substances in communities.

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• Homeland Security – Building strong relationships with the community can prove vital to preventing acts of terror from domestic and foreign actors. This effort includes the thoughtful deployment of officers to strengthen relationships across the community spectrum as well as practical partnerships and task force participation to protect public infrastructure and enhance security at ports of entry. Applicants may wish to review the COPS Office web page on Homeland Security at https://cops.usdoj.gov/homelandsecurity for ideas on strategies. • Other/Innovations in Community Policing – Applicants should describe new and promising approaches in community policing that can be advanced through CHP funding.

Need for Federal Assistance: All applicants are required to explain their inability to address the needs identified in this application without federal assistance. Applicants will answer a series of questions about their service population and fiscal health of their area, including operating budget, poverty and unemployment rates, and other indicators of fiscal health.

Property/Violent Crime Rates: Applicants will be asked to enter crime data information for the previous two years for the population area served by the agency, using Uniform Crime Reporting crime or NIBRS definitions.

Continuation of Project after Federal Funding Ends: All applicants are required to affirm that their agency plans to retain all officer positions awarded following the three years of federal funding, for at least 12 months, and to identify their planned source(s) of retention funding. The retention period may begin during the five-year period of performance of the award and may extend beyond the end date of the award. Agencies that do not plan to retain all officer positions under this award program at the time of application are ineligible to apply for CHP funding. • The retention requirement cannot be satisfied through attrition. The retained CHP-funded officer positions should be added to your agency’s law enforcement budget with state and/or local funds for at least 12 months over and above the number of locally funded officer positions that would have existed in the absence of the award.
• At the conclusion of federal funding, agencies that fail to retain the additional officer positions awarded under the CHP award for a period of 12 months may be ineligible to receive future COPS Office awards for a period of one to three years.

A copy of the survey questions required for this solicitation can be found at https://cops.usdoj.gov/chp.

Budget and Associated Documentation
Budget Worksheet and Budget Narrative (Web-based Form)
Applicants must complete the web-based budget worksheet form in JustGrants along with narrative entries to describe each proposed cost.

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Budget requests may only be made in the following categories:
• Sworn Officer Personnel
• Fringe Benefits
Recipients may not use COPS Office funding for the same item or service also funded by another U.S.

Department of Justice award.

Non-supplanting requirement: Requests may be made only for positions that are not otherwise budgeted with state, local, or BIA funds and that would not be funded in the absence of the CHP award.

See below for non-exhaustive list of allowable and unallowable costs, as well as guidance for completing each budget category.

Allowable Costs – Fundable Requests
The only allowable costs under CHP are the approved full-time, entry-level salaries and fringe benefits of newly hired or rehired sworn career law enforcement officers who are hired or rehired on or after the award start date. An agency seeking to rehire officers scheduled to be laid off on a specific future date with CHP funds must continue to fund them with local funds through the award date until the date of the scheduled layoff. Officers previously employed by your agency who have been (or are currently scheduled to be) laid off as a result of budget reductions may be rehired using CHP award funds, but funding requests must be limited to your agency’s entry-level salaries and fringe benefits for full-time officers. Agencies will be responsible for paying any costs that exceed entry-level salaries and fringe benefits with local funds.

NOTE: The only allowable budget categories under the CHP program are Salaries and Fringe Benefits. Do not enter any funding requests under any other budget category.

The local cost share or matching funds will calculate automatically once the overall salary and fringe rates are entered. There is a minimum local cost share or matching funds requirement of 25 percent.

The local cost share or matching funds requirement may exceed 25 percent if the entry-level salary and fringe costs total more than $167,000 over three years.

Sworn Officer Salaries: You will enter the funding request by indicating the number of officers you are requesting, then by providing the current entry-level salary and fringe benefits for one full-time sworn officer. The total request will calculate automatically. The number of officers you request in the budget must match the number of officers requested in the question survey and may not exceed 20 percent of actual full-time sworn force, up to 50 officers. CHP awards are subject to the restrictions described in the Program Description section, including but not limited to: $125,000 maximum over three years and minimum of 25 percent cost share or matching funds requirement (unless waived). Applicants budgeting for an increase in salaries and/or fringe benefits over the life of the award are required to provide an explanation. Note that the $125,000 in federal funds total for three years, not $125,000 annually. For applicants with more than one entry level salary and benefit package based on prior education for new FY 2024 COPS Hiring Program (CHP) Solicitation 16 of 38 Packet Page. 964

officers with no prior law enforcement experience, you may average those salaries and benefits to report your entry-level salary and benefits. Please note, however, that any higher salaries and benefits that are paid to compensate for prior law enforcement experience are not considered entry-level and should not be included in this average or otherwise reported as entry-level. If awarded CHP funding, an agency must use it to pay the actual entry-level officer’s salary and benefits and any CHP funds remaining after the 36-month funding period will be de-obligated.

Fringe Benefits: Fringe benefits typically covered by the applicant agency, as specified in agency personnel and salary policies or contractual agreements, and allowable under 2 CFR 200, will be covered. Examples of allowable fringe benefits include Social Security, Medicare, insurance (life, health, dental, etc.), shift differential, retirement plans, and holiday pay.

The following are considered unallowable costs under the CHP program, regardless of whether they are included as salary or fringe: overtime costs, training, travel, equipment (e.g., uniforms, weapons, or vehicles), severance pay, and hazard pay. If your agency pays those benefits for locally funded officer positions, your agency will be required to use local funds to do so for CHP-funded officer positions.

For agencies that do not include fringe benefits (e.g., vacation, holiday, shift differential) as part of the base salary costs and typically calculate these separately, the allowable expenditures may be included with personnel costs. Any fringe benefits that are already included as part of the agency’s base salary should not be repeated in the separate fringe listing. Fringe benefits that do not appear in the dropdown budget menu will not be considered.

Shift differential pay is a premium hourly rate paid for those hours that are not considered normal day work hours as defined by your agency. Typically, shift differential pay is for the hours worked outside of normal day work hours, where the majority of hours worked are from 3:00 p.m. of one day until 8:00 a.m. of the following day. This would include the evening shift, midnight shift, overlap shift or power shift, or any other designated shift between those hours that would qualify for the shift differential pay as defined by your agency and/or a contractual or union agreement. Overtime beyond any defined shift work hours is an unallowable cost under 2024 CHP.

Unallowable Costs – Requests will Not be Funded
All items other than entry-level personnel costs (salaries and fringe benefits) as described in the preceding section are considered unallowable under CHP. Therefore, requests for equipment, training, travel, uniforms, vehicles, and indirect costs are not permitted under CHP.

In addition, the following personnel costs are unallowable:
• Salaries and fringe benefits of existing locally-funded officers, unless those officers are currently scheduled to be laid off on a specific future date
• Salaries and fringe benefits over and above an agency’s entry-level salary and fringe benefits for officers
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• Salaries and fringe benefits for civilian or nonsworn personnel • Salaries and fringe benefits for part-time officer positions • Salaries and fringe benefits for furloughed officers
• Salaries and fringe benefits for correctional officers • Overtime costs, severance pay, hazard pay
• Retroactive pay
This is not an exhaustive list, and items not listed above will be reviewed on a case-by-case basis. The COPS Office reserves the right to deny funding for items that may not be included on this list. Agencies are expected to request items that show a direct link between the requested item(s) and the applicant’s CHP project. All requests must contribute directly to the specific purpose of the award project and relate to the appropriations language enacted for FY24.

Federal Share and Local Cost Share or Matching Funds
In the budget worksheet, the applicant will be required to indicate the number of officers, and the total salary and fringe benefits for the three-year salary period for ONE entry-level officer. The local cost share or matching funds will calculate automatically. The minimum local cost share or matching requirement is 25 percent of the total project cost, although it may be higher, and the cap on the amount of federal funding that can be requested per officer position is $125,000 over three years (36 months). Any additional costs above the required local cost share or matching funds and officer funding cap will be the responsibility of the recipient agency. Recipients are also required to pay a progressively larger share of the cost of the award with local funds over the award period. The applicant will also be asked for a projection of the planned federal and local shares of the total project costs over the three years of funding for each position. While your agency may deviate from these specific projections during the award period, it must still ensure that the federal share decreases and the local share increases.

Budget summary: The budget summary will automatically calculate total project costs based on the figures provided in the budget worksheet and the number of officer positions requested in the application. It will also calculate the amount of the local cost share or matching funds requirement.

Ensure that the number of officers requested in the budget matches the number entered in the question survey and is equal to or less than 20 percent of actual sworn full-time force.

Cost Share or Matching Funds and Waiver
The COPS Office may waive some or all of an applicant’s 25 percent local cost share or matching funds requirement. During the application review process, your agency’s waiver request will be evaluated based on the availability of funding, a demonstration of severe fiscal distress as supported by the fiscal health data provided in this application, and comparison of your fiscal health data with that of the overall CHP applicant pool. If your agency wishes to be considered for a waiver, you must respond to the applicable question. Please indicate whether the COPS Office should continue to consider your FY 2024 COPS Hiring Program (CHP) Solicitation 18 of 38 Packet Page. 966

application if the waiver request is not granted or whether it should be removed from consideration if the waiver is not granted. If a full or partial waiver is granted, and your application is funded for a reduced number of officer positions, the percentage of local share provided will be applied to the total project cost of the awarded officers.

Memoranda of Understanding (MOU) and Other Supportive Documents Recipients awarded CHP funding to hire and/or deploy SRO into schools will be required to submit to the COPS Office a signed MOU between the law enforcement agency and the school partner(s) within 90 days of the date shown on the award letter, and before expending or drawing down funds under the award. An MOU is not required at the time of application; however, if the law enforcement agency already has an MOU in place that is applicable to the partnership, the MOU can be uploaded as an attachment under the section in JustGrants titled “MOUs and Other Supporting Documents”.

The MOU must contain the following:

A. The purpose of the MOU
B. Clearly defined roles and responsibilities of the school district and the law enforcement agency focusing on the officers’ roles on safety
C. Information sharing
D. Supervision responsibility and chain of command for the SRO E. Signatures
The MOU is an agreement among parties that defines the roles and responsibilities of the individuals and partners involved, including SROs, school administrators, law enforcement and education departments, students, and parents. The MOU should explicitly state the proposed programs and daily activities that the SRO will develop and/or administer. It should also address the policies and procedures and the extent to which information will be shared between the law enforcement agency and school or school district partners throughout the course of the award. The MOU should be signed by the law enforcement executive and designated representative for the school or school district who has general educational oversight within that jurisdiction.

Please refer to the MOU fact sheet at https://cops.usdoj.gov/chp for a full description of requirements.

School Resource Officer Official Partner Contact Information (if applicable) Applicants requesting funding for SROs should enter in contact information for each school partner where the SROs will be deployed, if known at time of application. This information is not required at the time of application but will be later required for any agency awarded CHP funding for officers to be deployed as SROs.

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Additional Application Components
Letters of Support
As applicable, applicants may attach letters of support, but these are not required.

The COPS Office strongly recommends that uploaded files be clearly named to indicate the applicant organization name and the file contents to ensure that reviewers can easily locate application documents, such as “[Applicant] Letter of Support.” Recommended file formats are PDF, Microsoft Word, and Microsoft Excel. The system may reject applications with other formats. If an applicant submits multiple versions of the same document, the COPS Office will review only the most recent system-validated version submitted.

Disclosures and Assurances
Disclosure of Lobbying Activities
Important: All applicants must complete the SF-LLL Disclosure of Lobbying Activities in Grants.gov prior to beginning the application process in JustGrants. NOTE: Applicants that do not expend any funds for lobbying activities should enter “N/A” in the required highlighted fields.

This disclosure form shall be completed by the reporting entity, whether sub-awardee or prime federal recipient, at the initiation or receipt of a covered federal action, or a material change to a previous filing, pursuant to title 31 U.S.C. § 1352. The filing of a form is required for each payment or agreement to make payment to any lobbying entity for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with a covered federal action. Complete all items that apply for both the initial filing and material change report. Refer to the implementing guidance published by the Office of Management and Budget for additional information.

If this applies to your organization, you are required to complete the disclosure form via grants.gov. If you need to submit additional forms, please submit them as attachments to your application online in the “Additional Application Components” Section.

DOJ Certified Standard Assurances
Applicants to COPS Office programs are required to sign and acknowledge the standard DOJ Assurances form in JustGrants. Signing this document assures the COPS Office that you have read, understood, and accepted the award terms and conditions as outlined in the Assurances. Please read this document carefully, as signatures on this document are treated as material representation of fact upon which reliance will be placed when the U.S. Department of Justice determines to fund the covered award. Full text of the Certified Standard Assurances and Terms and Conditions is available in the FY24 Application Resource Guide.

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DOJ Certifications Regarding Lobbying; Debarment, Suspension and Other Responsibility Matters; Drug-Free Workplace Requirements; Law Enforcement and Community Policing Applicants to COPS Office programs are required to sign and acknowledge the standard DOJ Certifications form in JustGrants. Signing this document assures the COPS Office that you have read, understood, and accepted the award terms and conditions as outlined in the Certifications.

Please read this document carefully, as signatures on this document are treated as material representation of fact upon which reliance will be placed when the U.S. Department of Justice determines to award the covered award. See appendices for the full assurances and certifications, which can all be found in the FY24 Application Resource Guide.

An explanation is required when the applicant is unable to certify to certain statements in the “Certifications Regarding Lobbying; Debarment, Suspension and Other Responsibility Matters; Drug-Free Workplace Requirements; Law Enforcement and Community Policing” form (if applicable). When the applicant is unable to certify to specific statements identified in this Certifications form, the applicant must attach an explanation. The applicant is still required to sign the Certifications form to certify to all the other applicable statements. Please see FY24 Application Resource Guide for a copy of this Certifications form.

Declaration and Certification to DOJ as to Application Submission Applicants must read and acknowledge the statements in the Declaration and Certification.

Federal Civil Rights and Award Review
Please be advised that an application may not be funded and, if awarded, a hold may be placed on the award if it is deemed that the applicant is not in compliance with federal civil rights laws, is not cooperating with an ongoing federal civil rights investigation, or is not cooperating with a U.S.

Department of Justice award review or audit.

How to Apply
Federal regulations require that an applicant for federal funding (1) be registered in SAM before submitting its application, (2) provide a valid unique entity identifier in its application, and (3) continue to maintain an active SAM registration with current information at all times during which it has an active federal award or an application or plan under consideration by a federal awarding agency. The COPS Office may not make an award to an applicant until the applicant has complied with all applicable Unique Entity Identifier (UEI) and SAM requirements and, if an applicant has not fully complied with these requirements by the time the COPS Office is ready to make an award, the COPS Office may determine that the applicant is not qualified to receive an award. See 2 C.F.R. §§ 25.200 and 25.205 and the Award Terms and Conditions for further information.

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Please follow the steps listed here to ensure your application is submitted by the deadline for this solicitation. Applicants should register online with SAM and with Grants.gov well in advance of the JustGrants deadline.

Step 1: Register with SAM database/Confirm Unique Entity Identifier (UEI) number The Unique Entity Identifier (UEI) issued by SAM is a 12-character alphanumeric value and, once issued, will not change. Entities that are currently registered in SAM.gov already have a Unique Entity ID (SAM) which can be viewed in SAM.gov. The transition to UEI (SAM) will not impact an entity’s registration expiration date or when renewal is necessary.

System of Award Management (SAM) registration and renewal can take as long as 10 business days to complete.

If you do not have an Employer Identification Number (EIN), the process can take up to five weeks to obtain an EIN from the Internal Revenue Service. There is no fee associated with these processes. These processes cannot be expedited.

SAM registration procedures can be accessed at https://www.sam.gov.

The person registering with SAM will be the designated SAM E-Business (E-Biz) Point of Contact (POC), who can assign the people who submit applications for the organization (your Authorized Organization Representatives). In addition, you must review your SAM registration once a year.

Step 2: Acquire an Authorized Organization Representative (AOR) and a Grants.gov username and password.

Complete the AOR profile on Grants.gov and create a username and password. An applicant entity’s “Unique Entity Identifier (UEI)” must be used to complete this step. For more information about the registration process for organizations and other entities, visit the Grants.gov registration page.

Individuals registering with Grants.gov may visit the Applicant Registration page.

Step 3: Acquire confirmation for the AOR from the E-Business Point of Contact (E-Biz POC).

The SAM E-Biz POC at the applicant organization must log into Grants.gov to confirm the applicant organization’s AOR. The E-Biz POC will need the Marketing Partner Identification Number (MPIN) password obtained when registering with SAM to complete this step. Note that an organization can have more than one AOR.

Step 4: Search for the funding opportunity on Grants.gov.

Search using the Assistance Listing Title and the Funding Opportunity Number from the solicitation.

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Step 5: Access Funding Opportunity and Application Package from Grants.gov.

Select “Apply for Grants” under the “Applicants” column. Enter your email address to be notified of any changes to the opportunity package before the closing date. Click the Workspace icon to use Grants.gov Workspace.

Step 6: Complete and Submit the SF-424 and SF-LLL via Grants.gov.

Within 48 hours after submitting the SF-424 and SF-LLL, the applicant should receive two notifications from Grants.gov. The first will confirm the receipt of the SF-424 and SF-LLL. The second will state whether the SF-424 and SF-LLL has been validated and successfully submitted, or whether it has been rejected due to errors, with an explanation. It is possible to first receive a message indicating that the application is received, and then receive a system-generated rejection notice a few minutes or hours later. Submitting the SF-424 and the SF-LLL well ahead of the Grants.gov deadline provides time to correct the problem(s) that caused the rejection. These system-generated rejection notices are due to inaccurate data or incomplete applications.

Important: DOJ urges each applicant to submit the SF-424 and the SF-LLL at least 72 hours prior to the Grants.gov due date to allow time to receive validation messages or rejection notifications from Grants.gov and to correct in a timely fashion any problems that may have caused a rejection notification. Verify the application deadline (date and time) in the solicitation.

Step 7: Register the Entity Administrator (E-Biz POC) and the Application Submitter with DOJ’s Justice Grants System (JustGrants).
(Application Submitters and E-Biz POC Users with an existing JustGrants Account may skip to step 8.) Within 24 hours of JustGrants receiving an application from Grants.gov, the user submitting the application in Grants.gov and SAM E-Biz POC will receive an email to register for a JustGrants account.

The email is from DOJ’s secure user management system (DIAMD) and will include instructions on how to create an account.

To ensure that you receive these emails and that they are not flagged as spam, we recommend adding [email protected] to the trusted sender list in your email settings.

The E-Biz POC at the applicant organization serves as the Entity Administrator and must log in to JustGrants to confirm the entity’s profile, add users, and assign the two required Authorized Representatives (Law Enforcement Executive/Program Official and Government Executive/Financial Official). The Authorized Representatives are officials who have ultimate and final responsibility for all programmatic and financial decisions for your agency, as the legal recipient. For guidance on who should be assigned as Authorized Representatives, please see below:

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Both the top law enforcement executive and the top government executive must be assigned the role of Authorized Representative in Just Grants.

For non–law enforcement agencies (institutions of higher education, school districts, private organizations, etc.), COPS Office awards require that both the programmatic official (e.g., executive director, chief executive officer, or equivalent) and financial official (e.g., chief financial officer, treasurer, or equivalent) sign the application, and (if awarded funding) accept the award package. These two officials must have the ultimate signatory authority to sign contracts on behalf of your organization.

Both the programmatic official and the financial official must be assigned the role of Authorized Representative in Just Grants.

Please note that nonexecutive positions (e.g., clerks, trustees) are not acceptable Authorized Representatives.

The user who submitted the application in Grants.gov serves as the Application Submitter. Within minutes of completing your JustGrants account registration, the Application Submitter and the E-Biz POC (Entity Administrator) users will receive an email from JustGrants with a link to the application started in Grants.gov.

Application Submitters and E-Biz POC Users with a JustGrants Account Step 8: Review and Invite the Two Required Authorized Representatives in JustGrants The Entity Administrator will need to log into JustGrants to review and assign the required two Authorized Representatives (Law Enforcement Executive/Program Official and Government Executive/Financial Official). The Authorized Representatives are officials who have ultimate and final responsibility for all programmatic and financial decisions for your agency, as the legal recipient. For guidance on who should be assigned as Authorized Representatives, please see guidance above.

If an Authorized Representative needs to be invited, the Entity Administrator will need to invite the individual to receive a JustGrants account. These actions are required before an application can be submitted.

Within minutes of being invited to be an Authorized Representative, the individual will receive an email from [email protected] with instructions on how to create an account in DOJ’s secure user management system.

Once the Authorized Representatives receives the email and completes the steps to create an account, the Authorized Representative will be available in JustGrants.

Review the “JustGrants User Roles Guide“ to become familiar with the various JustGrants Entity User roles.

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Step 9: Complete and Submit the JustGrants Application
Important: In addition to the Application Submitter, the Entity Administrator and the two Authorized Representatives should be available to assist with the JustGrants application submission.

The Application Submitter will complete the application by entering data into web-based forms, uploading attachments, and accepting assurances and certifications. Before you submit your application, each section much be completed and free of validation errors. If not, please return to each identified page using the table of contents on the right side of the page. If any required fields are unanswered, they will be flagged with warning messages. In this case, answer these required fields. You will not be able to submit your application until all validation issues are corrected and the application is certified.

The Application Submitter will also need to confirm the required two Authorized Representatives (Law Enforcement Executive/Program Official and Government Executive/Financial Official).

The Application Submitter will need to select two authorized representatives via dropdown field in the “Confirm Authorized Representative” section of the application. The dropdown will display all authorized representatives that have been assigned for your entity (the Application Submission Job Aid Reference Guide for this step).

If you do not see authorized representatives for your entity in the dropdown field within the “Confirm Authorized Representative” section of the application, you will need to add and assign the role for each authorized representative for your entity. Please note: the COPS Office requires two authorized representatives (Law Enforcement Executive and Government Executive) for its grant applications. Users will not be visible in JustGrants until they have successfully logged into JustGrants. If you need assistance adding users and assigning roles for your entity, please refer to the Entity Management Job Aid Reference Guide.

Once all sections are completed, the application submitter will submit the application. Upon successful submission of an application, the Application Submitter, Entity Administrator, and the two Authorized Representatives will receive an email from JustGrants confirming submission of the application. The COPS Office will not accept applications submitted via mail or email.

Step 10: Confirm Receipt of JustGrants Application
The Application Submitter should closely monitor their email and JustGrants accounts for any notifications from Grants.gov or JustGrants about a possible failed submission. The user who is authorized to submit applications on behalf of the organization is the one who will receive these notifications. The COPS Office does not send out these notifications, nor does the COPS Office receive a copy of these notifications. It is the applicant’s responsibility to notify the COPS Office of any problems with the application submission process. Submitting the application components at least 48 hours prior to the solicitation deadline will enable the applicant to receive notice of a failed submission and provide an opportunity to correct the error before the applicable deadline.

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Submission Dates and Time
All completed applications must be submitted by the deadline.

Late Submissions
The COPS Office will review on a case-by-case basis requests for late submission due to unforeseen technical issues or extraordinary events such as extreme weather emergencies or mass casualty events.

Requests for an extension of the Grants.gov deadline must be received prior to the close of the solicitation in Grants.gov. Requests for an extension of the JustGrants deadline must be made prior to the close of the solicitation in JustGrants. No late submission requests will be considered once the solicitation closes. Extension of deadlines is rare and is not guaranteed.

To be considered for an extension, applicants must contact the COPS Office Response Center via email at [email protected] detailing the technical/extraordinary issues that impact application submission. This email must be submitted prior to the deadline for which the applicant is requesting an extension. The applicant’s email must include the following information: UEI number, Organization name, Point of Contact name and information, Application ID, and the nature of the issue/disaster and how it affected the applicant’s ability to submit an application on time. The email subject line should read “[Insert Program] Extraordinary Circumstances: [UEI number, Agency Name, Application ID]”, with your UEI number and organization name and details filled in.

The COPS Office will respond to each applicant as soon as possible with either an approval and instructions for submission or a rejection. If the technical issues you reported cannot be validated, the application will be rejected.

The following conditions are not valid reasons to request an extension: (1) failure to begin the registration process in sufficient time; (2) failure to follow instructions on Grants.gov or JustGrants; (3) failure of the two assigned authorized representatives, with the proper authority, to activate accounts in JustGrants prior to application submission; (4) failure to follow all of the instructions in the solicitation; (5) failure to register or update information on the SAM website; and (6) failure to register or complete the SF-424 and SF-LLL in Grants.gov.

Application Review Information
Review Process
The COPS Office is committed to ensuring a fair and open merit review process. Applications that meet eligibility and basic minimum requirements will be subject to a merit review and ranking process. The merit review will consist of both a programmatic and financial review and will be conducted by COPS Office staff or in collaboration with other subject matter experts. The review will also assess whether costs are reasonable, necessary, allowable, and allocable under applicable federal cost principles, agency regulations, and the program.

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Basic Minimum Requirements Review
Once the solicitation closes, COPS Office staff screen and evaluated applications for compliance with basic minimum requirements (BMR).

BMR Review Criteria
The BMR review ensures that applicants are local, state, territorial, and tribal law enforcement agencies that have primary law enforcement authority.

Review Criteria
In the merit review selection process for CHP awards, the COPS Office will make an initial determination, balancing the applicant’s need for federal assistance (as measured by economic and fiscal health questions) with crime rates, the applicant’s current commitment to community policing, and the strength of their proposed community policing strategy.

Applications will be scored according to the following weighting methodology:
• Fiscal Need: 33.3 percent
• Crime: 33.3 percent
• Community Policing: 33.3 percent
Agencies that do not meet a minimum community policing score, reflecting a basic commitment to community policing and a strategy to continue or enhance it, will not be considered for funding.

Additional consideration will be given to applicants who propose a community-based approach to the following four problem/focus areas. Applicants who choose one of the community policing problem/focus areas listed here must devote 100 percent of their funded positions to that focus area and will not be allowed to change their choice once the award has been issued. • Building Legitimacy and Trust
• Violent Crime/gun Violence
• Combating Hate and Domestic Extremism
• Police-based Response to Persons in Crisis
Additional priority consideration will also be given to applicants that meet any of the following criteria:
• Persistent Poverty – Applicants in an area with persistent poverty • Preventing Radicalization of Personnel – Applicants seeking support for screening and counseling programs to identify and prevent the radicalization of applicants and personnel who endorse violent and hateful extremist movements
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• Community-Based Hires – Applicants that commit to recruiting officers from the community in which they will serve
• Community-Based Officer Relocation – Applicants that commit to recruiting officers who are willing to relocate to areas characterized by fragmented relations between police and community residents, or areas of high crime
• Diversity Training – Agencies that require evidenced-based cultural sensitivity training for officers, including training on ethnic and racial bias, racial profiling, gender bias, sexual orientation and gender identity bias, cultural diversity, use of force, procedural justice, and law enforcement interaction with people with disabilities, the mentally ill, and English Language Learners
• Safe Harbor – Applicants in states with certain anti-human trafficking laws that treat minors engaged in commercial sex as victims (referred to as “safe harbor” laws) and permit individuals to vacate arrest or prosecution records for non- violent offenses as a result of being trafficked • Catastrophic Incident – Applicants that experienced an unanticipated catastrophic event or Attorney General declared area in crime-related crisis
• Hiring Veterans – Applicants that commit to hiring at least one military veteran • Rural Designation – Applicants from rural areas
• Agency Not Funded in FY23 – Applicants that did not receive a CHP award in FY23 Note: Applicable priority consideration(s) is only one of many factors in making COPS Office funding decisions and does not guarantee an award.

Federal Policing Priorities
In addition to the criteria listed earlier, responses to the list of questions related to the activities outlined in the Federal Priorities for Policing Inventory will help the U.S. Department of Justice evaluate the possibility for priority consideration, where appropriate, and identify potential gaps in training and technical assistance.

Administrative Compliance Review
All advancing applications will undergo an administrative compliance review. Past financial and programmatic performance with DOJ award funding will be considered in this review process. Past performance may affect the overall rating and ranking of an application. Factors that may be included in the past performance review include the following:
• The extent to which the applicant has adhered to all special conditions in the prior awards • The extent to which the applicant has complied with programmatic and financial reporting requirements
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• The extent to which the applicant has completed closeout of prior awards in a timely manner • Whether the applicant has received financial clearances in a timely manner • Whether the applicant has resolved any issues identified in an audit or on-site monitoring visit in a timely manner
• Whether the applicant has adhered to single audit requirements • The extent to which the applicant has completed work and spent prior award funds in a timely manner
Pursuant to 2 C.F.R. Part 200.206, before award decisions are made, the COPS Office also reviews information related to the degree of risk posed by applicants. Among other things to help assess whether an applicant with one or more prior federal awards has a satisfactory record with respect to performance, integrity, and business ethics, the COPS Office checks whether the applicant is listed in SAM as excluded from receiving a federal award. The COPS Office also must review and consider any information about the applicant that appears in the nonpublic segment of the integrity and performance system accessible through SAM (currently, the Federal Awardee Performance and Integrity Information System, “FAPIIS”).

Applicants may review and comment on any information about them in SAM that a federal awarding agency previously entered in the designated integrity and performance system, and such applicant comments will also be reviewed and considered.

The COPS Office may contact applicants regarding budget and financial questions as part of the review process. This outreach is not an indication of funds or awarding decisions.

Director’s Selection
Absent explicit statutory authorization or written delegation of authority to the contrary, all final award decisions will be made by the Director of the COPS Office, who may also give consideration to factors including prior funding history, current award balances, underserved populations, population served, geographic diversity, strategic priorities, past performance, significant concerns regarding ability of the applicant to administer federal funds, and available funding when making awards.

Federal Award Notices
Award notification will be sent electronically from JustGrants. This award notification will include instruction on enrolling in Automated Standard Application for Payments (ASAP) and accepting the award. Recipients will be required to log into JustGrants to review, sign, and accept the award. The notice of award will contain details about the award including start and end dates, funding amounts, and the award conditions. The Authorized Representatives must acknowledge having read and understood all sections of the award instrument and submit the required declaration and certification to accept the award; these steps will be completed electronically in JustGrants before you will be able to FY 2024 COPS Hiring Program (CHP) Solicitation 29 of 38 Packet Page. 977

draw down funds or begin implementing the program. By accepting the award and the COPS Office funding, your agency acknowledges that it will comply with these conditions and, if applicable, additional special conditions specific to your agency.

It is anticipated that awards will be announced on or after September 30, 2024. Any public announcements will be posted on the COPS Office website.

All award decisions are final and not subject to appeal.

To officially accept and begin your award, your organization must access your award package at https://justgrants.usdoj.gov/. Once you access your account, you will review and electronically sign the award document (including award terms and conditions) and, if applicable, the special award conditions or high-risk conditions within 45 days of the date shown on the award congratulatory letter, unless an extension is requested and granted. The two assigned Authorized Representatives (Law Enforcement Executive/Program Official and Government Executive/Financial Official) as described in the How to Apply section are required to sign the award package. If the Authorized Representative(s) changes between the time of application submission and award receipt, the Entity Administrator will need to update the Authorized Representative(s) in JustGrants. Your organization will not be able to draw down award funds until the COPS Office receives your signed award document. For more information on accepting your award, please visit the JustGrants Training page for step-by-step instructions.

For technical support with JustGrants, please call JustGrants Support at [email protected], or 833-872-5175. For programmatic assistance, please contact the COPS Office Response Center at [email protected].

The Award Package
The award package is the document indicating your official award funding amount, the award number, the award terms and conditions, and award start and end dates.

The award start date indicated in the award package means that your organization may be reimbursed for any allowable costs incurred on or after this date. The duration of awards is 5 years (60 months).

Your FY24 award number is in the following format: 15JCOPS-24-GG-XXXXX-UHPX The COPS Office tracks award information based upon this number; therefore, it is important to have your organization’s award number (or your organization’s UEI number) readily available when corresponding with the COPS Office.

The award terms and conditions are listed in the award package. In limited circumstances, your award package may include additional special conditions or high-risk conditions that prevent your organization from drawing down or accessing award funds until the special conditions or high-risk conditions are satisfied as determined by the COPS Office.

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By accepting the award, you are acknowledging that you are obtaining federal funds from the COPS Office. As part of that agreement, if awarded funds, your organization will acknowledge that it will comply with all applicable award terms and conditions including any special or high-risk conditions.

Administrative and National Policy Requirements
If selected for funding, in addition to implementing the funded project consistent with the approved project proposal and budget, the recipient must comply with award terms and conditions and other legal requirements including, but not limited to, OMB, DOJ, or other federal regulations that will be included in the award or incorporated into the award by reference or are otherwise applicable to the award.

The COPS Office strongly encourages applicants to review applicable requirements and terms and conditions prior to submitting an application. Terms and conditions for COPS Office awards are available on the COPS Office website in the Application Resource Guide. Terms and conditions are subject to change before the award is issued. The FY24 Application Resource Guide also contains additional requirements which apply to this application and award, including audit requirements, suspension, and termination requirements.

Terms, Conditions, and Award Requirements
Please review carefully the FY24 Application Resource Guide for a full description of each of the listed terms, conditions, and other requirements for this COPS Office program. By submitting your application, your organization assures the COPS Office that you agree to the terms, conditions, and requirements. If awarded funds, by accepting your COPS Office award, your organization agrees to comply with all of the terms, conditions, and other requirements in your award package and any additional special or high-risk conditions that may be imposed on your award.

Administrative Actions and Legal Remedies
Related to Federal Awards
Please be advised that an application may not be funded or, if awarded, a hold may be placed on this application if it is deemed that the applicant is not in compliance with federal civil rights laws, is not cooperating with an ongoing federal civil rights investigation, or is not cooperating with a U.S.

Department of Justice award review or audit.

Misuse of COPS Office funds or failure to comply with all COPS Office award requirements may result in legal sanctions including suspension and termination of award funds, the repayment of expended funds, ineligibility to receive additional COPS Office funding, and other remedies available by law.

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Under the False Claims Act, any credible evidence that a person has submitted a false claim or has committed a criminal or civil violation of laws pertaining to fraud, conflict of interest, bribery, gratuity, or similar misconduct involving COPS Office funds may be referred to the Office of Inspector General (OIG). The OIG may be contacted at [email protected], https://oig.justice.gov/hotline/index.htm, or 800-869-4499.

Remedies for Noncompliance
Under 2 C.F.R. § 200.339, if the recipient fails to comply with award terms and conditions, the Federal awarding agency may impose additional conditions or take one or more of the following actions as appropriate in the circumstances:
• Temporarily withhold cash payments pending correction of the deficiency by the non-Federal entity or more severe enforcement action by the Federal awarding agency or pass-through entity.
• Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of the cost of the activity or action not in compliance.
• Wholly or partly suspend or terminate the Federal award. • Initiate suspension or debarment proceedings as authorized under 2 C.F.R. Part 180 and Federal awarding agency regulations (or in the case of a pass-through entity, recommend such a proceeding be initiated by a Federal awarding agency).
• Withhold further Federal awards for the project or program. • Take other remedies that may be legally available.

Prior to imposing sanctions, the COPS Office will provide reasonable notice to the recipient of its intent to impose sanctions and will attempt to resolve the problem informally. Appeal procedures will follow those in the U.S. Department of Justice regulations in 28 C.F.R. Part 18.

Awards terminated due to noncompliance with the federal statutes, regulations, or award terms and conditions will be reported to the integrity and performance system accessible through SAM (currently FAPIIS).

False statements or claims made in connection with COPS Office awards may result in fines, imprisonment, debarment from participating in federal awards or contracts, and any other remedy available by law.

Please be advised that recipients may not use COPS Office funding for the same item or service also funded by another U.S. Department of Justice award.

FY 2024 COPS Hiring Program (CHP) Solicitation 32 of 38 Packet Page. 980

Federal Awarding Agency Contact(s)
For technical assistance with submitting the SF-424, please call the Grants.gov customer service hotline at 800-518-4726, send questions via email to [email protected], or consult the Grants.gov Organization Applicant User Guide. The Grants.gov Support Hotline operates 24 hours a day, 7 days a week, except on federal holidays.

For technical support with the Justice Grants System (JustGrants) application, please contact the JustGrants Support at [email protected] or 833-872-5175. The JustGrants Support operates Monday through Friday between the hours of 5:00 a.m. and 9:00 p.m. Eastern Time (ET) and Saturday, Sunday, and federal holidays from 9:00 a.m. to 5:00 p.m. ET. Training on JustGrants can also be found at https://justicegrants.usdoj.gov/training-resources.

For programmatic assistance with the requirements of this program, please contact the COPS Office Response Center at [email protected]. The COPS Office Response Center operates Monday through Friday, 9:00 a.m. to 5:00 p.m. ET, except on federal holidays.

Freedom of Information Act and Privacy Act (5 U.S.C. §§ 552 and 552a) All applications submitted to the COPS Office (including all attachments to applications) are subject to the federal Freedom of Information Act (FOIA) and to the Privacy Act. By law, DOJ may withhold information that is responsive to a request if DOJ determines that the responsive information is protected from disclosure under the Privacy Act or falls within the scope of one or more of the nine statutory exemptions under FOIA. DOJ cannot agree not to release some or all portions of an application/award file in advance of a request pursuant to the FOIA.

In its review of records that are responsive to a FOIA request, the COPS Office will withhold information in those records that plainly falls within the scope of the Privacy Act or one of the statutory exemptions under FOIA. (Some examples include certain types of information in budgets and names and contact information for project staff other than certain key personnel.) In appropriate circumstances, the COPS Office will request the views of the applicant/recipient that submitted a responsive document.

Feedback to the COPS Office
To assist the COPS Office in improving its application and award processes, we encourage applicants to provide feedback on this solicitation, the application submission process, and the application review peer review process. Provide feedback via email to [email protected] with the following subject line: “FY24 [Insert Program Here] Program Feedback.”
Important: This email is for feedback and suggestions only. Replies are not sent from this mailbox. If you have specific questions on any program or technical aspect of the solicitation, you must contact the COPS Office Response Center at [email protected].

FY 2024 COPS Hiring Program (CHP) Solicitation 33 of 38 Packet Page. 981

COPS Office Other Information
Reporting, monitoring, and evaluation requirements
Reporting
If awarded, your organization will be required to submit quarterly Standard Form 425, Federal Financial Reports (FFR) as well as semiannual Programmatic Performance Reports. Recipients should be prepared to track and report program award funding separately from other funding sources (including other COPS Office federal awards) to ensure accurate financial and programmatic reporting on a timely basis.

Recipients should ensure that they have financial internal controls in place to monitor the use of program funding and ensure that its use is consistent with the award terms and conditions. Good stewardship in this area includes written accounting practices, use of an accounting system that tracks all award drawdowns and expenditures, and the ability to track when award-funded positions are filled or approved purchases are made. Failure to submit complete reports or submit reports in a timely manner will result in the suspension and possible termination of a recipient’s COPS Office award funding or other remedial actions.

Monitoring
Federal law requires that agencies receiving federal funding from the COPS Office be monitored to ensure compliance with their award conditions and other applicable statutory regulations. The COPS Office is also interested in tracking the progress of our programs and the advancement of community policing. Both aspects of award implementation—compliance and programmatic benefits—are part of the monitoring process coordinated by the U.S. Department of Justice.

Awarded organizations will be responsible for submitting Programmatic Performance Reports on a semiannual basis and SF-425 – Federal Financial Reports on a quarterly basis. In addition, awarded organizations will be responsible for the timely submission of a final Closeout Report and any other required final reports. All COPS Office recipients will be required to participate in such award monitoring activities of the U.S. Department of Justice, including but not limited to the COPS Office, the Office of the Inspector General, or any entity designated by the COPS Office.

Please note that the COPS Office may take a number of monitoring approaches, such as site visits, enhanced office-based award reviews, alleged noncompliance reviews, and periodic surveys to gather information and to ensure compliance. The COPS Office may seek information including, but not limited to, your organization’s compliance with nonsupplanting and both programmatic and financial requirements of the award, and your organization’s progress in implementing the award and toward achieving your community policing strategy. The COPS Office is particularly interested in confirming that the purchase of items and/or services is consistent with the applicant’s approved award budget.

If awarded funds, you agree to cooperate with and respond to any requests for information pertaining to your award in preparation for any of the above-referenced award monitoring activities.

FY 2024 COPS Hiring Program (CHP) Solicitation 34 of 38 Packet Page. 982

Please feel free to contact your COPS Office Program Manager to discuss any questions or concerns you may have regarding the monitoring, reporting, and evaluation requirements.

Program Evaluation
Though a formal assessment is not a requirement, awarded organizations are strongly encouraged to conduct an independent assessment of their respective award-funded projects. Project evaluations have proven to be valuable tools in helping organizations identify areas in need of improvement, providing data of successful processes, and reducing vulnerabilities.

Selected award recipients shall be evaluated on the local level or as part of a national evaluation, pursuant to guidelines established by the Attorney General. Such evaluations may include assessments of individual program implementations. In select jurisdictions that are able to support outcome evaluations, the effectiveness of funded programs, projects, and activities may be required. Outcome measures may include crime and victimization indicators, quality of life measures, community perceptions, and police perceptions of their own work.

Financial Management and System of Internal Controls
Award recipients and subrecipients must, as set out in the Uniform Guidance at 2 C.F.R. § 200.303, do the following:
• Establish and maintain effective internal control over the federal award that provides reasonable assurance that [the recipient (and any subrecipient)] is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
• Comply with federal statutes, regulations, and the terms and conditions of the federal awards. • Evaluate and monitor [the recipient’s (and any subrecipient’s)] compliance with statutes, regulations, and the terms and conditions of federal awards. • Take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings.
• Take reasonable measures to safeguard protected personally identifiable information and other information the federal awarding agency designates as sensitive or [the recipient (and any subrecipient)] considers sensitive, consistent with applicable federal, state, local, and tribal laws regarding privacy and obligations of confidentiality.

FY 2024 COPS Hiring Program (CHP) Solicitation 35 of 38 Packet Page. 983

Audit Requirement
The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 C.F.R. Part 200, Subpart F – Audit Requirements, available at https://www.ecfr.gov/current/title2/subtitle-A/chapter-II/part-200/subpart-F, establish the requirements for organizational audits that apply to COPS Office award recipients. Recipients must arrange for the required organization-wide (not award-by-award) audit in accordance with the requirements of Subpart F.

Civil Rights
All recipients are required to comply with nondiscrimination requirements contained in various federal laws. A memorandum addressing federal civil rights statutes and regulations from the Office for Civil Rights, Office of Justice Programs will be included in the award package for award recipients. All applicants should consult the Assurances form to understand the applicable legal and administrative requirements.

Funding to Faith-Based Organizations
Faith-based or religious organizations are eligible, on the same basis as any other organization, to participate in any DOJ program for which they are otherwise eligible. A faith-based or religious organization that participates in DOJ-funded programs or services will retain its independence from government, and may continue to carry out its mission, including the practice and expression of its religious beliefs, as long as it does not use direct financial assistance from DOJ to support any explicitly religious activities, including activities that involve overt religious content such as worship, religious instruction, or proselytization. Further guidance on federal financial assistance for faith-based organizations can be found at Civil Rights | Partnerships with Faith-Based and Other Neighborhood Organizations | Office of Justice Programs (ojp.gov) and Equal Treatment of Faith-Based Organizations in DOJ-Supported Social Service Programs.

Section 508 of the Rehabilitation Act
If you are an applicant using assistive technology and you encounter difficulty when applying, please contact the COPS Office Response Center at 800-421-6770 or [email protected].

The department is committed to ensuring equal access to all applicants and will assist any applicant who may experience difficulties with assistive technology when applying for awards using the JustGrants System.

Public Reporting Burden: Paperwork Reduction Act Notice The public reporting burden for this collection of information is estimated to be up to 11.3 hours per response, depending upon the COPS Office program being applied for, which includes time for reviewing instructions. Send comments regarding this burden estimate or any other aspects of the collection of FY 2024 COPS Hiring Program (CHP) Solicitation 36 of 38 Packet Page. 984

this information, including suggestions for reducing this burden, to the Office of Community Oriented Policing Services, U.S. Department of Justice, 145 N Street NE, Washington, DC 20530; and to the Public Use Reports Project, Office of Information and Regulatory Affairs, Office of Management and Budget, Washington, DC 20503. For any questions or comments, please contact David Neely, COPS Office Paperwork Reduction Act Program Manager, at 202-514-8553.

You are not required to respond to this collection of information unless it displays a valid OMB control number. The OMB control number for this application is 1103-0098, and the expiration date is 04/30/2024.

Performance Measures
To assist in fulfilling the U.S. Department of Justice’s responsibilities under the Government Performance and Results Act Modernization Act (GPRA Modernization Act) of 2010, P.L. 111–352), recipients who receive funding from the Federal Government must measure the results of work that funding supports. This act specifically requires the COPS Office and other federal agencies to set program goals, measure performance against those goals, and publicly report progress in the form of funding spent, resources used, activities performed, services delivered, and results achieved.

COPS Office awards target increasing recipient capacity to implement community policing strategies within the three primary elements of community policing: (1) problem solving; (2) partnerships; and (3) organizational transformation. The COPS Office requires all applicants for this program to describe how the personnel requested will assist the applicant in implementing community policing strategies. For more information on community policing, please go to the COPS Office website at https://cops.usdoj.gov/resources#cptopics.

As part of the programmatic performance report, recipients will be required to report on their progress toward implementing their community policing strategies. Based on the data collected from recipients, the COPS Office may make improvements to the program to better meet the program’s objective and law enforcement agency needs.

Performance measures for this program will include the following:
• Extent to which COPS Office award funding (e.g., officers, equipment, training, technical assistance) has increased your agency’s community policing capacity • Extent to which COPS Office knowledge resources (e.g., publications, podcasts, training) have increased your agency’s community policing capacity
The objective of these performance measures is to increase the capacity of law enforcement agencies to implement community policing strategies that strengthen partnerships for safer communities and enhance law enforcement’s capacity to prevent, solve, and control crime through funding for personnel, technology, equipment, and training.

FY 2024 COPS Hiring Program (CHP) Solicitation 37 of 38 Packet Page. 985

Recipients will rate the effectiveness of the COPS Office funding in increasing community policing capacity. Data will be collected on a periodic basis through performance reports.

Performance measures for this program are as shown in table 1.

Table 1. Performance measures
Objective Performance Measures Data recipient provides
Increase the capacity of law
enforcement agencies to
implement community policing
strategies that strengthen
partnerships for safer communities
and enhance law enforcement’s
capacity to prevent, solve, and
control crime through funding for
personnel, technology, equipment,
and training
Extent to which COPS Office
knowledge resources (e.g.,
publications, podcasts, training,
etc.) have increased your agency’s
community policing capacity?
Extent to which COPS Office award
funding (e.g., officers, equipment,
training, technical assistance, etc.)
has increased your agency’s
community policing capacity?
The number of partnerships
established or enhanced during the
grant period.

Data will be collected on a
periodic basis through recipient
performance reports.

Application Checklist
Please refer to the JustGrants DOJ Application Submission Checklist.

FY 2024 COPS Hiring Program (CHP) Solicitation 38 of 38 Packet Page. 986

CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: May 1, 2024
To: Honorable Mayor and City Council Members
From: Miguel Guerrero, General Manager
Department: Water
Subject: Receive and File San Bernardino Municipal Water Department’s Audited Annual Comprehensive
Financial Report for Fiscal Year Ended June 30, 2023
(All Wards)
Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the San Bernardino Municipal Water Department’s audited Annual Comprehensive Financial Report for water and sewer utilities for Fiscal Year ended June 30, 2023.

Executive Summary
The purpose of this report is to present the City of San Bernardino's Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023, to the Mayor and City Council.

Background
Section 603(e) of the City of San Bernardino Charter requires that the Water Board provide for an “annual, independent audit of all water and wastewater accounts” and that “copies of all auditors’ reports shall be filed with the City Clerk and Council.” The audit firm of Lance, Soll & Lunghard, LLP completed the Water Department’s annual audit and produced the attached Annual Comprehensive Financial Report (ACFR) for Fiscal Year ended June 30, 2023. This report includes the financial statements, the Independent Auditor’s Report, Management’s Discussion and Analysis, as well as a statistical section containing historical information and data. The ACFR was presented to the City Water Board at its February 27, 2024, regular meeting, and it was approved unanimously.

For the seventh straight year, the Water Department received the Government Finance Packet Page. 987
Officers Association Certificate of Achievement for Excellence in Financial Report for its Fiscal Year 2021/2022 ACFR. The Certificate of Achievement is the highest form of recognition in governmental accounting and financial reporting, and its attainment represents a significant accomplishment for the Water Department. 2021-2025 Strategic Targets and Goals
This item aligns with the adopted 2021-2025 Key Strategic Targets and Goals, specifically Target 1: Financial Stability. The information in these reports is useful to the City Water Board in making operational and financial decisions to meet the Water Department’s goals and objectives.

Fiscal Impact
None
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the San Bernardino Municipal Water Department’s audited Annual Comprehensive Financial Report for Fiscal Year ended June 30, 2023.

Attachments
Attachment 1 – Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2023.

Ward:

All Wards
Synopsis of Previous Council Actions:

None
Packet Page. 988
5 Packet Page. 989
�liguel J. Guerrero

Page 2 ends

February 16, 2024
Subject: PRESENTATION OF THE RESULTS OF THE FISCAL YEAR 2022-23 AUDIT, ANNUAL

COMPREHENSIVE FINANCIAL REPORT, SINGLE AUDIT REPORT ON FEDERAL AWARDS RECOMMENDATION:

It is recommended that the Water Board make the following motions:
• Approve the Annual Comprehensive Financial Report for the City of San Bernardino Municipal Water Department for the fiscal year ending June 30, 2023. • Direct staff to file the annual audit and Annual Comprehensive Financial Report with the Mayor and City Council.

Respectfully submitted,
Cynthia Mouser
Director of Finance
Attachments:
• Annual Comprehensive Financial Report, Fiscal Year Ended June 30, 2023 • Single Audit
• Audit Communications Letter
• Report on Internal Controls
• ACFR PowerPoint Presentation
Packet Page. 990

OF THE CITY OF SAN BERNARDINO

WATER DEPARTMENT

A COMPONENT UNIT OF THE CITY

OF SAN BERNARDINO
San Bernardino, CA

FOR THE FISCAL YEAR
ENDED JUNE 30, 2023
ANNUAL

COMPREHENSIVE

FINANCIAL REPORT
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A Certificate of Achievement is valid for a period of one year only. We believe our current annual comprehensive financial report continues to meet the Certificate of Achievement program requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

Preparation of this report was accomplished by the combined efforts of Department staff. We appreciate the dedicated efforts and professionalism that these staff members contribute to the service of the Department’s customers. The contributions made by Andrea Parker, Senior Accountant, and Garrett Van Leuven, Accountant I, deserve special recognition. We would also like to thank and recognize the members of the Board for their continued support in planning and implementation of the Department’s fiscal policies.

Respectfully submitted,
___________________________________ ___________________________________ Miguel J. Guerrero, P.E., General Manager Cynthia J. Mouser, Director of Finance

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CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Statement of Net Position
June 30, 2023
Total
ASSETS
Current:

Cash and investments $ 82,943,540 50,441,661 $ 133,385,201 $ Receivables:

Accounts, net 5, 6,794,648 12, 467,366 262,014
Accrued interest 197,960 290,795 488,755
Lease - 216,671 216,671
Due from other entities - 138,691 138,691
Inventories - 1,446,423 1,446,423
Prepaid expenses 320,024 539,808 859,832
Total current assets 89,380,200 59,417,387 148,797,587
Noncurrent:

Lease receivables 3,463,692 - 3,463,692
Investment in joint venture - RIX 21,208,582 - 21, 208,582 Restricted assets:

Net OPEB asset 1, 1,152,463 2,221,746 069,283
Cash and cash equivalents:

Restricted for capital 6, 13,173,577 19, 734,572 908,149 Investments:

Restricted for consent decree 23,565,710 - 23,565,710
Accrued interest - consent decree 83,555 - 83,555
Prepaid Insurance - consent decree 17,255,919 - 17,255,919 Capital assets:

Land and easements 17,603,413 5,989,563 23, 592,976
Construction in progress 34,557,818 14,799,410 49, 357,228 Capital assets - being depreciated/amortized, net 186,369,184 50,956,570 237,325,754 Total noncurrent assets 132, 265,853,073 397,983,311 130,238 Total assets 221, 325,270,460 546,780,898 510,438

DEFERRED OUTFLOWS OF RESOURCES
Pension-related 9, 9,669,705 18, 324,020 993,725
OPEB-related 2, 2,311,185 4,455,556 144,371
Total deferred outflows of resources 11,980,890 11,468,391 23,449,281

LIABILITIES
Current:

Accounts payable 1, 2,470,685 4,017,815 547,130
Related parties payable 1, 1,123,260 2,326,778 203,518
Accrued compensation 625,391 1,194,430 569,039
Claims payable 1, 7,051,451 8,355,677 304,226
Consumer deposits - 325,747 325,747
Due to other governments - 23,996 23,996
Current portion of compensated absences 1,070,590 468,522 1,539,112 Current portion of bonds, leases, and subscriptions 1,363,500 776,403 2,139,903 Accrued interest 843,244 1,348,882 505,638
Total current liabilities 6, 14,897,864 21, 374,476 272,340 Noncurrent:

Consumer deposits - 3,239,794 3,239,794
Compensated absences 267,648 117,130 384,778
Unearned revenue - consent decree 40,905,184 - 40,905,184 Bonds, leases, and subscriptions payable 46,550,913 29,883,538 76,434,451 Net pension liability 34,432,625 35,709,206 70, 141,831 Total noncurrent liabilities 64,433,293 126,672,745 191,106,038 Total liabilities 70,807,769 141,570,609 212,378,378

DEFERRED INFLOWS OF RESOURCES
Pension-related 444,954 429,047 874,001
OPEB-related 4, 5,219,673 10, 842,970 062,643
Lease-related - 3,555,374 3,555,374
Total deferred inflows of resources 9,220,001 5,272,017 14,492,018

NET POSITION
Net investment in capital assets 172,417,321 79,192,432 251,609,753 Restricted:

Restricted for postemployment benefits 1,152,463 1,069,283 2,221,746 Unrestricted 76,637,328 12,890,956 89, 528,284
Total net position $ 156,899,043 186,460,740 $ 343,359,783 $ Water Utility Sewer Utility
See accompanying notes to financial statements.
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CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended June 30, 2023
Interfund
Eliminations Total

OPERATING REVENUES
Sales and service charges $ 43,545,629 $ 44,519,998 $ (522,717) $ 87,542,910 Other operating revenues 546,204 1,024,262 - 1,570,466
Total operating revenues 44,091,833 45,544,260 (522,717) 89,113,376

OPERATING EXPENSES
Administration and customer service 7,538,744 6,490,936 (180,012) 13,849,668 Utility administration 1,447,526 608,386 (1,734) 2,054,178 Sewer collection and lift stations - 1,676,351 - 1,676,351 Plant operations 9,926,415 13,489,293 (196,633) 23,219,075 Maintenance 3,138,031 4,434,120 (132,776) 7,439,375
Environmental control 826,161 - - 826,161
Distribution 5,448,156 - - 5,448,156
Engineering and water quality control 2,976,680 1,657,022 (11,562) 4,622,140 General, administration and overhead 8,937,245 5,297,009 - 14,234,254 Share of joint venture payments - 1,757,244 - 1,757,244 Depreciation and amortization 7,298,095 5,360,819 - 12,658,914 Total operating expenses 46,710,892 41,597,341 (522,717) 87,785,516 Operating income (loss) (2,619,059) 3,946,919 1,327,860 -

NONOPERATING REVENUES (EXPENSES)
Investment income (loss) 1,126,039 1,251,526 2,377,565 - Rental income 267,668 - - 267,668
Noncapital grant funds 1,684,006 - - 1,684,006
Interest expense and fiscal charges (1,841,859) (1,219,167) - (3,061,026) Gain (loss) on disposal of capital assets 4,859 - - 4,859 Other 140,266 (15,420) - 124,846
Total nonoperating revenues (expenses) 1,380,979 16,939 - 1,397,918 Net income (loss) before capital contributions (1,238,080) 3,963,858 - 2,725,778

CAPITAL CONTRIBUTIONS
Acquisition fees 1,701,909 - 1,701,909 -
Capacity fees 2,262,695 2,356,198 - 4,618,893
EPA grants 95,994 - - 95,994
Capital contributions 1,915,588 280,701 - 2,196,289
Total capital contributions 5,976,186 2,636,899 8,613,085 - Changes in net position 4,738,106 6,600,757 11,338,863 - Net Position - Beginning, Restated 150,298,286 181,722,634 - 332,020,920 Net Position - Ending $ 186,460,740 $ 156,899,043 $ 343,359,783 - $ Water Utility Sewer Utility
See accompanying notes to financial statements.
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CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Statement of Cash Flows
For the Year Ended June 30, 2023
Total

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 46,584,509 46,147,758 $ 92,732,267 $ Cash paid to employees for services (14, (19,052,305) 207,594) (33,259,899) Cash paid to suppliers for goods and services (18,855,176) (23, 437,257) (42,292,433) Cash paid to RIX joint venture operations (905,421) - (905,421) Net cash provided by (used for) operating activities 8,240,277 8,034,237 16,274,514

CASH FLOWS FROM NON-CAPITAL

FINANCING ACTIVITIES
Consent decree insurance drawdowns - 1,709,241 1,709,241 Net cash provided by (used for) noncapital
financing activities - 1,709,241 1,709,241

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Capital fees received 3,964,604 2,356,198 6,320,802
Proceeds from sales of capital assets - 30,855 30,855
Cash paid to acquire capital assets (3, (8,560,339) 323,858) (11,884,197) Principal paid on capital-related debt (735,000) (1,121,464) (1,856,464) Interest paid on capital-related debt (1, (1,998,019) 240,880) (3,238,899) Capital grant proceeds - 95,994 95,994
Net cash provided by (used for) capital
and related financing activities (2, (7,588,369) (10,531,909) 943,540)

CASH FLOWS FROM INVESTING ACTIVITIES
Cash received from rental income - 275,263 275,263
Cash received from investment income 1,125,668 960,511 2,086,179 Net cash provided by (used for) investing activities 1,235,774 1,125,668 2,361,442 Net change in cash and cash equivalents 3,596,923 6,216,365 9,813,288 Cash and cash equivalents, July 1 70,105,146 56,381,161 126,486,307 Cash and cash equivalents, June 30 $ 76,321,511 59,978,084 $ 136,299,595 $

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO AMOUNTS REPORTED ON THE STATEMENT OF

NET POSITION
Cash and investments $ 82,943,540 50,441,661 $ 133,385,201 $ Restricted cash and investments 6,734,572 13,173,577 19,908,149 Less those not meeting the definition of a cash equivalent (3,63 (13, 7,154) 356,601) (16,993,755) Cash and cash equivalents, June 30 $ 76,321,511 59,978,084 $ 136,299,595 $

RECONCILIATION OF OPERATING INCOME TO NET CASH

PROVIDED BY (USED FOR) OPERATING ACTIVITIES
Operating income (loss) $ 3,946,919 (2,619,059) $ $ 1,327,860 Depreciation and amortization 5,360,819 7,298,095 12,658,914 Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
(Increase) decrease in RIX joint venture 851,823 - 851,823 (Increase) decrease in accounts receivable 1,328,684 596,623 1,925,307 (Increase) decrease in due from other entities 443,626 - 443,626 (Increase) decrease in inventory - 311,334 311,334
(Increase) decrease in prepaid expense 89,777 (74,741) 15,036 Increase (decrease) in accounts payable (1, (68,690) 465,928) (1,534,618) Increase (decrease) in related parties payable (669,494) (196,482) (865,976) Increase (decrease) in accrued compensation (171,034) (179,041) (350,075) Increase (decrease) in compensated absences (76,296) 40,036 (36,260) Increase (decrease) in claims payable 218,323 3,135,697 3,354,020 Increase (decrease) in consumer deposits 727,241 - 727,241 Increase (decrease) in OPEB obligation (1,753,203) (1, 770,774) (3,523,977) Increase (decrease) in pension obligation 871,743 98,516 970,259 Total adjustments (1, 3,561,241 273,501) 2,287,740
Net cash provided by (used for) operating activities 8,240,277 $ 8,034,237 $ 16,274,514 $

SCHEDULE OF NON-CASH ACTIVITIES
Capital contributions $ 280,701 1,915,588 $ 2,196,289 $ Capital assets acquired through leases/subscriptions 98,074 - 98,074 Amortization of bond premiums 197,638 6,403 204,041
Water Utility Sewer Utility
See accompanying notes to financial statements.
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1. Use of Estimates
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17. Leases
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CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Schedule of Proportionate Share of the Net Pension Liability As of June 30, for the Last Ten Fiscal Years (1)
2023 2022 2021
Measurement Date 6/30/2022 6/30/2021 6/30/2020
Proportion of the Net Pension Liability 36% 36% 36%
Proportionate Share of the Net Pension Liability $ 40,743,630 70,141,831 $ $ 64,101,577 Covered Payroll $ 20,103,974 20,821,422 $ $ 18,770,894
Proportionate Share of the Net Pension Liability as
Percentage of Covered Payroll 337% 203% 341%
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 70% 82% 71%
Notes to Schedule of Proportionate Share of the Net Pension Liability Benefit Changes: The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred after the June 30, 2019 valuation. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2020 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: Effective for 2023, the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the longterm projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was

7.15% for measurement dates 2018 through 2022, 7.65% for measurement dates 2016 through 2017, and 7.50% for measurement date 2015.
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only nine years are shown.
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2020 2019 2018 2017 2016 2015
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 36% 36% 36% 36% 36% 36%
$ 60,531,689 $ 56,856,346 $ 58,595,075 $ 53,652,216 $ 44,917,863 $ 40,932,398 $ 17,169,126 $ 15,357,635 $ 14,876,739 $ 14,177,779 $ 14,087,004 $ 14,017,065 353% 370% 394% 378% 319% 292%
72% 72% 71% 72% 76% 78%
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CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Schedule of Pension Plan Contributions
As of June 30, for the Last Ten Fiscal Years (1)
2023 2022 2021 2020
Actuarially Determined Contribution $ 6,656,656 7,304,613 $ 6,492,199 $ $ 5,814,288 Contribution in Relation to the Actuarially
Determined Contribution (6,656,656) (7,304,613) (6,492,199) (5,814,288) Contribution Deficiency (Excess) $ - $ - $ - $ -
Covered Payroll $ 20,821,422 22,022,839 $ 20,103,974 $ $ 18,770,894 Contributions as a Percentage of Covered Payroll 33% 32% 32% 31% Actuarial Cost Method:

Amortization Method/Period: For details, see June 30, 2020 Funding Valuation Report Asset Valuation Method:

Inflation:

Salary Increases:

Payroll Growth:

Investment Rate of Return:

Retirement Age:

Mortality:

Notes to Schedule of Plan Contributions:

Entry Age Normal

2.500%
Varies by Entry Age and Service

2.750%
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2020 funding valuation report.

Funding Valuation Report.

Fair Value of Assets. For details, see June 30, 2020
Expenses; includes Inflation.

7.0% Net of Pension Plan Investment and Administrative
The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period of 1997 to 2015.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Postretirement mortality rates include 20 years of projected mortality improvement using Scale BB published by the Society of Actuaries. (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only nine years are shown.
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2019 2018 2017 2016 2015
$ 4,467,847 5,251,737 $ 3,886,888 $ $ 3,607,950 $ 2,979,160 (5,251,737) (4,467,847) (3,886,888) (3,607,950) (2,979,160) $ - - $ - $ $ - $ -
$ 17,169,126 $ 15,357,635 $ 14,876,739 $ 14,177,779 $ 14,087,004 31% 29% 26% 25% 21%
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CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios As of June 30, for the Last Ten Fiscal Years (1)
2023 2022 2021
Measurement Date 6/30/2022 6/30/2021 6/30/2020
Total OPEB Liability:

Service cost $ 956,228 984,915 $ $ 1,352,161
Interest 2,240,570 2,336,141 2,651,878
Changes of benefit terms - - -
Actual vs. expected experience - (3,119,394) (6,747,960) Assumption changes - (2,619,432) (1,784,735)
Benefit payments (1,654,270) (1,738,412) (1,658,421)
Net changes 1,542,528 (4,156,182) (6,187,077)
Total OPEB Liability (beginning of year) 37,262,554 35,720,026 41,907,103 Total OPEB Liability (end of year) (a) 33,106,372 37,262,554 35,720,026 Plan Fiduciary Net Position:

Contributions - employer 2,737,270 1,738,412 2,602,421
Net investment income 7,886,756 (4,469,586) 1,564,423
Benefit payments (1,654,270) (1,738,412) (1,658,421)
Administrative expenses (10,052) (11,068) (8,657)
Net changes 8,959,704 (4,480,654) 2,499,766
Plan Fiduciary Net Position - beginning 39,808,772 30,849,068 28,349,302 Plan Fiduciary Net Position - ending (b) 35,328,118 39,808,772 30,849,068 Net OPEB Liability/(Assets) - ending (a) - (b) $ (2,221,746) $ (2,546,218) $ 4,870,958 Plan fiduciary net position as a percentage
of the total OPEB liability 107% 107% 86%
Covered-employee payroll (2) $ 25,597,944 $ 21,203,035 $ 19,691,462 Net OPEB liability/(asset) as a percentage
of covered-employee payroll -9% -12% 25%
Notes to the Schedule of Changes in the Net OPEB Liability and Related Ratios (2) Contributions are not based on employee compensation; therefore, covered-employee payroll is used.

Benefit Changes: New hires after 7/1/2019 receive no Department contributions.

Changes of Assumptions: Demographic assumptions were updated to CalPERS 2021 Experience Study (1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. 56 DRAFT
Packet Page. 1061
2020 2019 2018
6/30/2019 6/30/2018 6/30/2017
$ 1,067,080 1,312,778 $ 1,036,000 $
2,512,269 2,449,681 2,322,000
(640,849) - -
523,834 - -
(1,065,369) - -
(1,602,932) (1,554,389) (1,118,000)
2,222,115 779,988 2,240,000
39,684,988 38,905,000 36,665,000
41,907,103 39,684,988 38,905,000
2,673,389 2,615,932 2,602,000
2,036,956 1,848,262 2,204,000
(1,602,932) (1,554,389) (1,118,000)
(8,061) (7,855) (7,000)
3,041,895 2,959,407 3,681,000
25,307,407 22,348,000 18,667,000
28,349,302 25,307,407 22,348,000
$ 13,557,801 $ 14,377,581 $ 16,557,000
68% 64% 57%
$ 17,981,957 $ 16,768,495 $ 19,132,000
75% 86% 87%
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CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Schedule of OPEB Plan Contributions
As of June 30, for the Last Ten Fiscal Years (1)
2023 2022 2021
Actuarially Determined Contribution $ 1,572,000 1,559,000 $ $ 1,652,000 Contribution in Relation to the Actuarially
Determined Contribution (1,738,412) (2,327,743) (2,737,270) Contribution Deficiency (Excess) $ (768,743) $ (166,412) $ (1,085,270) Covered-employee payroll $ 28,172,331 $ 25,597,944 $ 21,203,035 Contributions as a percentage of 8% 7% 13%
covered-employee payroll
Notes to Schedule of Employer Contribution:

Valuation Date:

Actuarial Cost Method:

Amortization Method:

Amortization Period:

Asset Valuation Method:

Discount Rate:

General Inflation:

Medical Trend:

Mortality:

Mortality Improvement:

Entry Age Normal, level percentage of payroll
Level % of pay
Investment gains and losses spread over 5-year rolling period.

Fair value
Methods and Assumptions for 2020/21 Actuarially Determined Contribution June 30, 2022
CalPERS 2021 Experience Study
80% of Scale MP-2020
of 3.9% in 2076.
of 3.9% in 2076
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.

Non-Medicare - 6.8% for 2023, decreasing to an ultimate rate Medicare - 5.4% for 2023, decreasing to an ultimate rate

6.25%

2.50%
58 DRAFT
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2020 2019 2018
$ 2,760,000 2,728,000 $ 2,592,000 $
(2,602,421) (2,615,932) (2,673,000)
$ 144,068 125,579 $ (81,000) $
$ 19,691,462 $ 17,981,957 $ 16,768,495
13% 15% 16%
59 DRAFT
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CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Schedule of OPEB Plan Investment Returns
As of June 30, for the Last Ten Fiscal Years (1)
Fiscal Year Ending June 30
Net Money-Weighted Rate of
Return
2023 -11.23%
2022 29.08%
2021 8.83%
2020 7.92%
2019 8.11%
2018 11.81%
Notes to Schedule:
(1) GASB Statement No. 75, which requires ten years of history for this schedule, was implemented during Fiscal Year 2017-18.

Additional years will be added as they become available in the future. 60 DRAFT
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67$7,67,&$/6(&7,21
61 DRAFT
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7+,63$*(,17(17,21$//</()7%/$1.
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FINANCIAL TRENDS
These schedules contain trend informaton to help the
reader understand how the Department's financial performance and well-being have changed over time.
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City of San Bernardino Municipal Water Department
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
Ended
Total
Operating
Revenue
Total
Operating
Expense
Operating
Income
Total NonOperating
Income
(Expense)
Total
Contributed
Capital
Changes in
Net Position
6/30/2014 62,292,428 57,965,395 4,327,033 1,375,536 7,510,777 13,213,346 6/30/2015 57,805,304 55,074,661 2,730,643 3,801,830 4,977,945 11,510,418 6/30/2016 55,376,650 53,529,824 1,846,826 2,059,111 4,271,325 8,177,262 6/30/2017 * 64,488,587 61,895,872 2,592,715 8,431,207 21,995,016 33,018,938 6/30/2018 76,620,620 68,734,958 7,885,662 (1,872,712) 4,854,784 10,867,734 6/30/2019 77,094,723 66,921,125 10,173,598 (7,553,171) 10,121,344 12,741,771 6/30/2020 78,184,698 70,778,987 7,405,711 748,213 4,604,699 12,758,623 6/30/2021 80,831,467 77,247,428 3,584,039 (1,980,043) 6,605,556 8,209,552 6/30/2022 83,517,341 72,109,935 11,407,406 (2,315,279) 8,071,944 17,164,071 6/30/2023 89,113,376 87,785,516 1,327,860 1,397,918 8,613,085 11,338,863 Source: Department's annual reports
*Fiscal Years 2014-2016 contain only the Sewer Treatment and Water Utility Funds. The Sewer Collections Fund was transferred to the Department on May 1, 2017.
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

THOUSANDS
Changes in Net Position- Combined Funds
Changes in Net Position
64 DRAFT
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City of San Bernardino Municipal Water Department
Water Fund
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
Ended
Total
Operating
Revenue
Total
Operating
Expense
Operating
Income
Total NonOperating
Income
(Expense)
Total
Contributed
Capital
Changes in
Net Position
6/30/2014 36,671,903 36,041,616 630,287 2,504,705 6,521,601 9,656,593 6/30/2015 33,121,128 35,504,582 (2,383,454) 2,702,953 3,905,104 4,224,603 6/30/2016 30,001,871 34,834,362 (4,832,491) 2,283,230 2,812,192 262,931 6/30/2017 33,358,907 37,074,670 (3,715,763) (546,280) 2,194,093 (2,067,950) 6/30/2018 38,280,016 34,446,105 3,833,911 1,198,161 3,323,031 8,355,103 6/30/2019 39,099,960 33,995,037 5,104,923 1,829,448 2,737,031 9,671,402 6/30/2020 40,267,376 38,626,151 1,641,225 1,655,628 2,002,637 5,299,490 6/30/2021 42,758,192 42,480,855 277,337 791,527 3,861,010 4,929,874 6/30/2022 43,150,124 37,626,046 5,524,078 483,961 4,718,864 10,726,903 6/30/2023 44,091,833 46,710,892 (2,619,059) 1,380,979 5,976,186 4,738,106 Source: Department's annual reports
(3,000)
(1,000)
1,000
3,000
5,000
7,000
9,000
11,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

THOUSANDS
Changes in Net Position-Water Fund
Changes in Net Position
65 DRAFT
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City of San Bernardino Municipal Water Department
Sewer Fund
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
Ended
Total
Operating
Revenue
Total
Operating
Expense
Operating
Income
Total NonOperating
Income
(Expense)
Total
Contributed
Capital
Changes in
Net Position
6/30/2014 25,670,774 21,974,028 3,696,746 (1,129,169) 989,176 3,556,753 6/30/2015 24,734,425 19,620,328 5,114,097 1,098,877 1,072,841 7,285,815 6/30/2016 25,410,740 18,731,423 6,679,317 (224,119) 1,459,133 7,914,331 6/30/2017 28,612,019 24,139,878 4,472,141 (3,624,658) 1,355,494 2,202,977 6/30/2018 30,733,453 22,697,491 8,035,962 (3,275,704) 1,280,280 6,040,538 6/30/2019 30,546,181 24,866,681 5,679,500 (9,967,309) 7,092,785 2,804,976 6/30/2020 30,397,092 24,648,411 5,748,681 (1,537,179) 2,257,330 6,468,832 6/30/2021 30,361,116 26,986,385 3,374,731 (2,782,481) 2,502,263 3,094,513 6/30/2022 34,171,160 26,794,390 7,376,770 (2,288,006) 2,294,541 7,383,305 6/30/2023 * 45,544,260 41,597,341 3,946,919 16,939 2,636,899 6,600,757 Source: Department's annual reports
* The FY 2023 budget has combined the Sewer Treatment Fund and the Sewer Collection Fund into one fund. Now called the Sewer Fund.
(2,000)
-
2,000
4,000
6,000
8,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

THOUSANDS
Changes in Net Position-Sewer Fund
Changes in Net Position
66 DRAFT
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City of San Bernardino Municipal Water Department
Sewer Collection Fund
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
Ended
Total
Operating
Revenue
Total
Operating
Expense
Operating
Income
Total NonOperating
Income
(Expense)
Total
Contributed
Capital
Changes in
Net Position
6/30/2014 n/a n/a n/a n/a n/a n/a
6/3/2015 n/a n/a n/a n/a n/a n/a
6/30/2016 n/a n/a n/a n/a n/a n/a
6/30/2017 * 2,891,203 1,054,866 1,836,337 12,602,145 18,445,429 32,883,911 6/30/2018 7,682,946 11,667,157 (3,984,211) 204,831 251,473 (3,527,907) 6/30/2019 7,562,097 8,172,922 (610,825) 584,690 291,528 265,393 6/30/2020 7,666,309 7,650,504 15,805 629,764 344,732 990,301 6/30/2021 7,794,418 7,862,447 (68,029) 10,911 242,283 185,165 6/30/2022 6,394,623 7,888,065 (1,493,442) (511,234) 1,058,539 (946,137) 6/30/2023 ** - - - - - -
** The FY 2023 budget has combined the Sewer Treatment Fund and the Sewer Collection Fund into one fund. Now called the Sewer Fund.

Source: Department's annual reports
* The Sewer Collection Utility was transferred to the Water Department on May 1, 2017 so prior year data is unavailable.
(5,000)
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

THOUSANDS
Changes in Net Position-Sewer Collection Fund
Changes in Net Position
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City of San Bernardino Municipal Water Department
Net Position by Component
Last Ten Fiscal Years
Fiscal Year
Ended
Net Investment in
Capital Assets
Restricted Net
Position
Unrestricted
Net Position
Total Net
Position
6/30/2014 206,663,567 7,515,658 66,524,589 280,703,814
6/30/2015 223,053,269 7,633,049 12,510,969 243,197,287
-
6/30/2016 235,670,073 7,814,086 7,890,390 251,374,549
6/30/2017 * 7,944,758 250,399,481 26,049,248 284,393,487 6/30/2018 248,653,963 8,363,037 23,912,311 280,929,311
6/30/2019 259,671,498 - 33,999,894 293,671,392
6/30/2020 255,270,720 - 51,158,985 306,429,705
6/30/2021 253,288,732 - 61,350,525 314,639,257
6/30/2022 250,324,366 - 81,696,554 332,020,920
6/30/2023 251,609,753 2,221,746 89,528,284 343,359,783
Source: Department's annual reports
* Fiscal Years 2014-2016 contain only Sewer Treatment and Water Utility Funds. The Sewer Collections Fund was transferred to the Department on May 1, 2017. -
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

THOUSANDS

NET POSITION BY COMPONENT
COMBINED (IN 1000S)
Net Investment in Capital Assets Restricted Net Position Unrestricted Net Position 68 DRAFT
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City of San Bernardino Municipal Water Department
Net Position by Component - Water Fund
Last Ten Fiscal Years
Fiscal Year
Ended
Net Investment in
Capital Assets
Restricted Net
Position
Unrestricted Net
Position
Total Net
Position
6/30/2014 163,797,283 n/a 175,525,354 11,728,071
6/30/2015 166,963,238 n/a 151,810,301 (15,152,937)
6/30/2016 169,730,998 n/a 152,073,232 (17,657,766)
6/30/2017 169,569,746 n/a 150,005,282 (19,564,464)
6/30/2018 171,794,031 n/a 151,094,965 (20,699,066)
6/30/2019 177,158,535 n/a 160,766,677 (16,391,858)
6/30/2020 168,992,121 n/a 166,065,857 (2,926,264)
6/30/2021 168,553,917 n/a 170,995,731 2,441,814
6/30/2022 168,172,810 n/a 181,722,634 13,549,824
6/30/2023 172,417,321 1,152,463 186,460,740 12,890,956
Source: Department's annual reports
(50,000)
-
50,000
100,000
150,000
200,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

THOUSANDS
NET POSITION BY COMPONENT:

WATER FUND (IN 1000S)
Net Investment in Capital Assets Restricted Net Position Unrestricted Net Position 69 DRAFT
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City of San Bernardino Municipal Water Department
Net Position by Component - Sewer Fund
Last Ten Fiscal Years
Fiscal Year
Ended
Net Investment in
Capital Assets
Restricted Net
Position
Unrestricted
Net Position
Total Net
Position
6/30/2014 42,866,284 7,515,658 54,796,518 105,178,460
6/30/2015 56,090,031 7,633,049 27,663,906 91,386,986
6/30/2016 65,939,075 7,814,086 25,548,156 99,301,317
6/30/2017 62,633,783 7,944,758 30,925,753 101,504,294
6/30/2018 59,011,109 8,363,037 33,041,181 100,415,327
6/30/2019 63,243,033 n/a 103,283,318 40,040,285
6/30/2020 66,906,874 n/a 109,752,150 42,845,276
6/30/2021 64,650,540 n/a 112,846,663 48,196,123
6/30/2022 60,853,472 n/a 120,104,792 59,251,320
6/30/2023 * 79,192,432 1,069,283 156,899,043 76,637,328 Source: Department's annual reports
* The FY 2023 budget has combined the Sewer Treatment Fund and the Sewer Collection Fund into one fund. Now called the Sewer Fund. -
50,000
100,000
150,000
200,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

THOUSANDS
NET POSITION BY COMPONENT:

SEWER FUND (IN 1000S)
Net Investment in Capital Assets Restricted Net Position Unrestricted Net Position 70 DRAFT
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City of San Bernardino Municipal Water Department
Net Position by Component - Sewer Collection Fund
Last Ten Fiscal Years
Fiscal Year
Ended
Net Investment in
Capital Assets
Restricted Net
Position
Unrestricted
Net Position
Total Net
Position
6/30/2014 n/a n/a n/a n/a
6/30/2015 n/a n/a n/a n/a
6/30/2016 n/a n/a n/a n/a
6/30/2017 * 18,195,952 n/a 32,883,911 14,687,959
6/30/2018 17,848,823 n/a 29,356,004 11,507,181
6/30/2019 19,269,930 n/a 29,621,397 10,351,467
6/30/2020 19,371,725 n/a 11,239,973 30,611,698
6/30/2021 20,084,275 n/a 30,796,863 10,712,588
6/30/2022 21,298,084 n/a 30,193,494 8,895,410
6/30/2023 ** - - - -
** The FY 2023 budget has combined the Sewer Treatment Fund and the Sewer Collection Fund into one fund. Now called the Sewer Fund.

Source: Department's annual reports
* The Sewer Collection Utility was transferred to the Water Department on May 1, 2017 so prior year data is unavailable.
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2014201520162017201820192020202120222023

THOUSANDS
NET POSITION BY COMPONENT: SEWER
COLLECTION FUND (IN 1000S)
Net Investment in Capital Assets Restricted Net Position Unrestricted Net Position 71 DRAFT
Packet Page. 1076
City of San Bernardino Municipal Water Department
Water Fund Revenue by Type
Last Ten Fiscal Years
Fiscal Year
Ended Water Sales Service Charges/Fees
Other
Services
Total Operating
Revenue
Interest
Income
Rental
Income Other Income Gain on asset disposition
Noncapital
grant funds
Total Non
Operating
Income
6/30/2014 34,777,112 1,754,614 140,176 36,671,903 93,428 160,089 478,512 4,446 2,030,066 2,766,541 6/30/2015 31,217,534 1,789,654 113,940 33,121,128 54,786 181,809 545,840 - 2,089,637 2,872,072 6/30/2016 28,293,790 1,604,472 103,609 30,001,871 63,566 134,845 495,298 - 1,696,219 2,389,928 6/30/2017 31,893,209 1,347,993 117,705 33,358,907 31,504 203,186 301,833 - 2,047,946 2,584,469 6/30/2018 36,825,634 1,350,623 103,753 38,280,010 975,144 208,925 206,645 46,356 1,776,883 3,213,953 6/30/2019 37,775,285 1,237,903 86,772 39,099,960 903,399 206,360 867,763 12,669 1,891,729 3,881,920 6/30/2020 39,162,485 1,020,818 84,073 40,267,376 747,477 245,784 651,031 - 1,991,747 3,636,039 6/30/2021 41,760,745 910,628 86,819 42,758,192 29,541 286,553 306,785 83,682 2,011,099 2,717,660 6/30/2022 42,175,623 905,674 68,828 43,150,124 - 347,849 530,326 28,846 1,910,435 2,817,456 6/30/2023 42,635,542 1,427,234 29,057 44,091,833 1,126,039 267,668 140,266 4,859 1,684,006 3,222,838 Source: Department's annual reports
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Thousands
Operating Revenue by Type-Water Fund
Other Services
Service Charges/Fees
Water Sales
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Thousands
Non-Operating Revenue by Type: Water Fund
Noncapital grant funds
Gain on asset disposition
Other Income
Rental Income
Interest Income
72 DRAFT
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City of San Bernardino Municipal Water Department
Sewer Fund Revenue by Type
Last Ten Fiscal Years
Fiscal Year
Ended
Sewer Treatment
Revenue Industrial Waste
Other
Operating
Revenue
Total Operating
Revenue
Interest
Income
Rental
Income Other Income
Gain on Asset
Disposition
/Joint Venture
Total Non
Operating
Income
6/30/2014 25,350,988 319,786 - 25, 443,836 670,774 20,669 202,078 - 666,583 6/30/2015 24,399,415 335,010 - 24, 481,211 734,425 700 498,247 345,884 1,326,042 6/30/2016 25,030,569 380,171 - 25, 658,456 410,740 41,498 359,800 - 1,059,754 6/30/2017 28,022,259 589,760 - 28, 23,391 612,019 15,908 - - 39,299 6/30/2018 30,039,110 694,342 - 30, - 733,452 12,481 - 6,063 18,544 6/30/2019 29,861,192 684,989 - 30, 1,361,936 546,181 - - 9,417 1,371,353 6/30/2020 29,712,734 684,358 - 30,397,092 1,322,367 - - - 1,322,367 6/30/2021 29,587,597 773,519 - 30,361,116 - 19,472 - - 19,472 6/30/2022 33,347,882 823,278 34,171,160 - - - - -
6/30/2023 * 44,519,998 1,024,262 45,544,260 1,251,526 (15,420) 1,236,106 Source: Department's annual reports
* The FY 2023 budget has combined the Sewer Treatment Fund and the Sewer Collection Fund into one fund. Now called the Sewer Fund.
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Thousands
Operating Revenue by Type-Sewer Fund
Other Operating Revenue
Industrial Waste
Sewer Treatment Revenue
(200)
-
200
400
600
800
1,000
1,200
1,400
1,600
Thousands
Non-Operating Revenue by Type - Sewer Treatment Fund
Gain on Asset Disposition
/Joint Venture
Other Income
Rental Income
Interest Income
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City of San Bernardino Municipal Water Department
Sewer Collection Fund Revenue by Type
Last Ten Fiscal Years
Fiscal Year
Ended
Sewer Collection
Revenue
Service
Charges/Fees
Other
Operating
Revenue
Total Operating
Revenue
Interest
Income Rental Income Other Income
Gain on asset
disposition/Cont
ribution from
City
Total Non
Operating
Income
6/30/2014 n/a n/a n/a n/a n/a n/a n/a n/a n/a
6/30/2015 n/a n/a n/a n/a n/a n/a n/a n/a n/a
6/30/2016 n/a n/a n/a n/a n/a n/a n/a n/a n/a
6/30/2017 * 2,860,627 30,576 - 2,891,203 28,315 - - 12,580,781 12,609,096 6/30/2018 7,679,020 3 ,926 - 7,682,946 201,663 - 251,473 3,168 456,304 6/30/2019 7,555,960 6 ,137 - 7,562,097 584,685 - 5 - 584,690 6/30/2020 7,656,675 9 ,634 - 7,666,309 626,761 - - 3,003 629,764 6/30/2021 7,759,318 35,100 - 7,794,418 1,605 - 9,306 - 10,911 6/30/2022 6,306,843 87,780 - 6,394,623 - - -
6/30/2023 ** - - - - - - - - -
** The FY 2023 budget has combined the Sewer Treatment Fund and the Sewer Collection Fund into one fund. Now called the Sewer Fund.

Source: Department's annual reports
* The Sewer Collection Utility was transferred to the Water Department on May 1, 2017 so prior year data is unavailable.
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 Thousands
Operating Revenue by Type-Sewer Collection
Fund
Other Operating Revenue
Service Charges/Fees
Sewer Collection Revenue
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Thousands
Non-Operating Revenue by Type - Sewer Collections Fund
Gain on asset
disposition/Contribution from
City
Other Income
Rental Income
74 DRAFT
Packet Page. 1079
City of San Bernardino Municipal Water Department
Water Fund Expenses by Type
Last Ten Fiscal Years
Fiscal Year
Ended
Administration &
Customer Service
Plant Operations
and Distribution Engineering Maintenance
Depreciation
and
Amortization
Total Operating
Expense
Interest
Expense
Loss on asset
disposition
Other Nonoperating
expense
Total NonOperating
Expense
6/30/2014 14,410,400 11,395,305 2,426,717 1,837,556 5,971,638 36,041,616 261,836 - - 261,836 6/30/2015 13,244,552 12,467,017 2,439,170 1,988,719 5,365,124 35,504,582 169,119 - - 169,119 6/30/2016 13,313,085 11,406,861 2,326,551 1,978,534 5,809,331 34,834,362 106,698 - - 106,698 6/30/2017 13,971,106 12,436,501 2,329,142 1,859,871 6,478,050 37,074,670 3,130,749 - - 3,130,749 6/30/2018 11,300,091 12,337,763 1,943,659 2,292,625 6,571,957 34,446,095 2,015,792 - - 2,015,792 6/30/2019 9,987,198 12,853,400 2,253,333 2,387,889 6,512,907 33,994,727 1,993,624 - - 1,993,624 6/30/2020 13,418,886 12,472,633 2,641,641 2,528,441 7,564,550 38,626,151 1,955,317 25,094 - 1,980,411 6/30/2021 14,405,557 14,045,232 3,064,623 3,126,556 7,838,887 42,480,855 1,926,133 - - 1,926,133 6/30/2022 11,921,394 14,603,130 3,001,100 2,846,997 5,253,425 37,626,046 1,877,325 456,170 2,333,495 6/30/2023 17,923,515 15,374,571 2,976,680 3,138,031 7,298,095 46,710,892 1,841,859 1,841,859 Source: Department's annual reports
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Thousands
Operating Expenses by Type-Water Fund
Depreciation and Amortization
Maintenance
Engineering
Plant Operations and Distribution
Administration & Customer Service
-
500
1,000
1,500
2,000
2,500
3,000
3,500
6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 Thousands
Non-Operating Expense by Type: Water Fund
Other Non-operating expense
Loss on asset disposition
Interest Expense
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Packet Page. 1080
City of San Bernardino Municipal Water Department
Sewer Fund Expenses by Type
Last Ten Fiscal Years
Fiscal Year
Ended
Administration &
Customer Service Plant Operations Engineering Maintenance Depreciation
and
Amortization
Total Operating
Expense
Interest
Expense
Loss on Asset
Disposition
/Joint Venture
Other Nonoperating
expense
Total NonOperating
Expense
6/30/2014 5,345,726 9,528,218 527,294 3,146,275 3,426,515 21,974,028 557,049 16,244 1,238,703 1,811,996 6/30/2015 4,016,198 9,292,501 534,226 2,906,853 2,870,550 19,620,328 227,165 - - 227,165 6/30/2016 4,299,808 9,800,283 464,554 2,874,352 1,292,426 18,731,423 167,795 1,116,078 1,283,873 - 6/30/2017 6,799,639 9,620,639 480,951 3,135,686 4,102,963 24,139,878 1,300,263 2,321,485 42,209 3,663,957 6/30/2018 5,690,507 9,056,518 500,009 3,281,446 4,157,550 22,686,030 1,376,009 1,247,670 733,583 3,357,262 6/30/2019 6,775,552 10,118,506 617,855 3,041,620 4,313,147 24,866,681 1,367,375 1,553,261 2,920,635 - 6/30/2020 5,702,973 10,470,501 369,422 3,508,534 4,596,980 24,648,411 1,313,151 1,546,396 2,859,546 - 6/30/2021 6,292,313 11,986,858 387,932 3,811,413 4,507,869 26,986,385 1,283,861 1,479,729 38,363 2,801,953 6/30/2022 * 3,666,547 385,517 14,648,530 3,764,618 4 26,794,390 ,329,178 1,249,715 - * 1,038,291 2,288,006 6/30/2023 ** 12,396,331 17,749,049 1,657,022 4,434,120 5 41,597,341 ,360,819 1,219,167 * 1,219,167 Source: Department's annual reports
* Joint Venture expense relating to RIX operations are now classified as Operations beginning in 2022. ** The FY 2023 budget has combined the Sewer Treatment Fund and the Sewer Collection Fund into one fund. Now called the Sewer Fund.
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Thousands
Operating Expenses by Type-Sewer Fund
Depreciation and Amortization
Maintenance
Engineering
Plant Operations
Administration & Customer Service
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Thousands
Non-Operating Expense by Type: Sewer Fund
Other Non-operating expense
Loss on Asset Disposition /Joint Venture
Interest Expense
76 DRAFT
Packet Page. 1081
City of San Bernardino Municipal Water Department
Sewer Collection Fund Expenses by Type
Last Ten Fiscal Years
Fiscal Year
Ended
Administration &
Customer Service Plant Operations Engineering Maintenance Depreciation and Amortization Total Operating
Expense
Interest
Expense
Loss on Asset
Disposition
Other Nonoperating
expense
Total NonOperating
Expense
6/30/2014 * - -
6/30/2015 * - -
6/30/2016 * - -
6/30/2017 * 314,265 492,675 - - 247,926 1,054,866 - - 6,951 6,951 6/30/2018 2,211,188 354,423 8,071,891 - 1,029,648 11,667,150 - - - - 6/30/2019 1,608,074 439,660 5,051,773 - 1,073,415 8,172,922 - - - - 6/30/2020 1,898,461 483,316 4,124,631 - 1,144,096 7,650,504 - - - - 6/30/2021 3,497,969 533,619 2,549,257 - 1,281,602 7,862,447 - - - - 6/30/2022 2,535,314 590,600 3,333,804 - 1,428,347 7,888,065 - - 511,234 511,234 6/30/2023 ** - - - - - - - - - -
** The FY 2023 budget has combined the Sewer Treatment Fund and the Sewer Collection Fund into one fund. Now called the Sewer Fund.

Source: Department's annual reports
* The Sewer Collection Utility was transferred to the Water Department on May 1, 2017 so prior year data is unavailable. -
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Thousands
Operating Expenses by Type-Sewer Collection Fund
Depreciation and Amortization
Maintenance
Engineering
Plant Operations
Administration & Customer Service
-
100
200
300
400
500
600
Thousands
Non-Operating Expense by Type: Sewer Collection Fund
Other Non-operating expense
Loss on Asset Disposition
Interest Expense
77 DRAFT
Packet Page. 1082
7+,63$*(,17(17,21$//</()7%/$1.
78 DRAFT
Packet Page. 1083

DEBT CAPACITY INFORMATION
These schedules contain information to help the reader assess the affordability of the Department's current level of
outstanding debt and ability to issue debt in the future. 79 DRAFT
Packet Page. 1084
City of San Bernardino Municipal Water Department
Water Fund Debt Service Coverage
Last Ten Fiscal Years
Fiscal Year
Ended
Total
Operating
Revenue
Net Operating
Expenses
(Excluding)
Depreciation
Net Operating
Income (Loss)
Net NonOperating
Income/
(Expense)
Amount
Available for
Debt Service
Principal Interest Total Debt
Service
Coverage
Ratio
6/30/2014 36,671,903 30,069,978 6,601,925 2,504,705 9,106,630 1,658,265 660,854 2,319,119 3.93 6/30/2015 33,121,128 30,139,458 2,981,670 2,702,953 5,684,623 1,748,054 570,434 2,318,488 2.45 6/30/2016 30,001,871 29,025,031 976,840 2,283,230 3,260,070 1,813,594 523,274 1.40 2,336,868 6/30/2017 33,358,907 30,596,620 2,762,287 2,584,468 5,346,755 246,887 218,819 11.48 465,706 6/30/2018 38,280,016 27,874,148 10,405,868 3,167,597 13,573,465 770,000 2,223,838 2,993,838 4.53 6/30/2019 39,099,960 27,482,130 11,617,830 3,810,403 15,428,233 795,000 2,196,388 2,991,388 5.16 6/30/2020 40,267,376 31,061,601 9,205,775 3,636,039 12,841,814 830,000 2,163,888 4.29 2,993,888 6/30/2021 42,758,192 34,641,968 8,116,224 2,633,978 10,750,202 860,000 2,130,088 3.60 2,990,088 6/30/2022 43,150,124 32,372,621 10,777,503 2,332,440 13,109,943 900,000 2,090,388 2,990,388 4.38 6/30/2023 44,091,833 39,412,797 4,679,036 3,217,979 7,897,015 950,000 2,044,138 2,994,138 2.64 Source: Department's annual reports
80 DRAFT
Packet Page. 1085
City of San Bernardino Municipal Water Department
Sewer Fund Debt Service Coverage
Last Ten Fiscal Years
Fiscal Year
Ended
Total
Operating
Revenue
Net Operating
Expenses
(Excluding)
Depreciation
Net Operating
Income (Loss)
Net NonOperating
Income/
(Expense)
Amount
Available for
Debt Service
Principal Interest Total Debt
Service
Coverage
Ratio
6/30/2014 24,734,425 16,749,778 7,984,647 (1,129,169) 6,855,478 4,424,090 747,460 1.33 5,171,550 6/30/2015 25,410,740 16,749,778 8,660,962 1,098,877 9,759,839 4,629,425 568,888 1.88 5,198,313 6/30/2016 25,410,740 17,438,997 7,971,743 (224,119) 7,747,624 300,000 - 300,000 25.83 6/30/2017 28,612,019 20,036,916 8,575,103 39,299 8,614,402 300,000 132,659 432,659 19.91 6/30/2018 30,733,453 18,539,941 12,193,512 (721,103) 11,472,409 890,000 1,382,782 2,272,782 5.05 6/30/2019 30,546,181 20,841,699 9,704,482 1,361,935 11,066,417 910,000 1,356,125 2,266,125 4.88 6/30/2020 30,397,092 20,051,431 10,345,661 1,322,367 11,668,028 935,000 1,331,225 2,266,225 5.15 6/30/2021 30,361,116 22,478,516 7,882,600 19,472 7,902,072 665,000 1,301,900 4.02 1,966,900 6/30/2022 34,171,160 22,465,212 11,705,948 (1,021,981) 10,683,967 700,000 1,267,775 5.43 1,967,775 6/30/2023 45,544,260 36,236,522 9,307,738 1,251,526 10,559,264 735,000 1,231,900 1,966,900 5.37 Source: Department's annual reports
81 DRAFT
Packet Page. 1086
City of San Bernardino Municipal Water Department
Ratios of Outstanding Debt by Type (In Thousands of Dollars) Last Ten Fiscal Years
Fiscal Year
Ended Revenue Bonds Notes/Loans Payable
Certificates of
Participation
Leases and
Subscriptions Total
Percentage of
Personal
Income
Debt Per
Capita
6/30/2014 - 26,174 9,340 - 35,514 0.5% 0.17
6/30/2015 - 22,826 6,375 - 29,201 0.4% 0.14
6/30/2016 - 20,569 - - 20,569 0.3% 0.10
6/30/2017 88,656 900 - - 89,556 1.0% 0.39
6/30/2018 87,092 600 - - 87,692 1.0% 0.37
6/30/2019 85,483 300 - - 85,783 1.0% 0.39
6/30/2020 83,814 - - - 83,814 1.0% 0.39
6/30/2021 82,085 - - - 82,085 1.1% 0.38
6/30/2022 80,221 - - - 80,221 1.7% 0.36
6/30/2023 78,391 - - 183 78,574 1.7% 0.35
Source: Department's annual reports
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Packet Page. 1087

DEMOGRAPHIC AND ECONOMIC INFORMATION
These schedules offer demographic and economic indicators to help the reader understand the environment within which the Department's financial activities take place.
83 DRAFT
Packet Page. 1088
City of San Bernardino Municipal Water Department
Demographic Statistics
Last Ten Fiscal Years
Fiscal Year
Ended
Estimated
Population (1)
Personal
Income (In
Thousands) (2)
Per Capita
Personal
Income (2)
Unemployment Rate
(3)
6/30/2014 212,584 7,070,119 33,258 10.10%
6/30/2015 213,933 7,645,879 35,740 6.80%
6/30/2016 215,491 7,931,577 36,807 6.30%
6/30/2017 216,972 8,459,304 38,988 5.50%
6/30/2018 221,130 8,523,677 38,546 5.70%
6/30/2019 219,233 8,509,748 38,816 4.10%
6/30/2020 217,671 8,159,289 37,485 11.30%
6/30/2021 216,291 7,723,319 35,708 8.10%
6/30/2022 220,840 4,596,122 20,812 4.80%
6/30/2023 223,230 4,608,807 20,646 6.30%
(1) California Department of Finance
(2) U.S. Department of Commerce, Bureau of Economic Analys for 2018-2022; City of San Bernardino Economic Development Dept (3) State of California, Economic Development Department; City of San Bernardino Economic Development Dept 206,000
208,000
210,000
212,000
214,000
216,000
218,000
220,000
222,000
224,000
226,000
Population
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
Personal Income
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Per Capita Personal Income

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%
Unemployment
84 DRAFT
Packet Page. 1089
City of San Bernardino Municipal Water Department
Major Employers
Current Year and Nine Years Ago
Fiscal Year 2023 Fiscal Year 2014
Employer Ranking Number of Employees Ranking Number of Employees* County of San Bernardino 1 25,897 1 1,000+
Stater Brothers 2 18,000 2 1,000+
San Bernardino City Unified School Disrict 3 5,024 3 1,000+ San Bernardino County Human Services 4 4,825 4 1,000+
San Bernardino County Sheriff 5 4,208 5 1,000+
San Bernardino County Superintendent of Schools 6 2,500 6 1,000+ California State Unversity- San Bernardino 7 2,255 7 1,000+ Saint Bernadines Medical Center 8 2,202 8 1,000+
San Bernardino Community Hospital 9 1,800 9 1,000+
Amazon 10 1,000+ * 10 0
* Actual employment figures not available
Source: Economic Development Department Labor Market Information, Agency Websites and City's Annual Financial Report. 85 DRAFT
Packet Page. 1090
City of San Bernardino Municipal Water Department
Authorized Positions History
Last Ten Fiscal Years
Year End Water Fund
Sewer Treatment
Fund
Sewer Collection
Fund Total
2014 185.5 72.5 0.0 258.0
2015 183.5 74.5 0.0 258.0
2016 188.5 83.5 0.0 272.0
2017 216.8 70.3 13.0 300.0
2018 215.0 72.0 12.0 299.0
2019 215.0 72.0 12.0 299.0
2020 215.0 72.0 12.0 299.0
2021 199.0 85.0 12.0 296.0
2022 199.0 84.5 12.0 295.5
2023 202.0 85.0 12.0 299.0
Source: Department's records
Note: The Sewer Collection Utility was transferred to the Department on May 1, 2017. Prior year data is unavailable.

0.0 50.0
100.0
150.0
200.0
250.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Authorized Position History
Water Fund Sewer Treatment Fund Sewer Collection Fund
86 DRAFT
Packet Page. 1091

REVENUE CAPACITY
These schedules contain information to help the reader assess the Department's significant revenue sources.
87 DRAFT
Packet Page. 1092
City of San Bernardino Municipal Water Department
Water Rates: Minimum Monthly Charge
Last Ten Fiscal Years
Effective
Date 1/2" 5/8" 3/4" 1" 1-1/2" 2" 3" 4" 6" 8" 10" 12"
7/1/2014 12.90 12.90 16.15 22.60 38.80 58.20 103.50 168.20 330.00 524.15 750.65 * 7/1/2015 12.90 12.90 16.15 22.60 38.80 58.20 103.50 168.20 330.00 524.15 750.65 * 10/1/2016 16.09 16.09 20.15 28.19 48.40 72.60 129.12 197.36 411.68 653.88 936.44 * 7/1/2017 19.58 19.58 24.51 34.30 58.88 88.32 157.06 240.07 500.78 795.40 1,139.12 * 7/1/2018 23.39 23.39 29.28 40.98 70.35 105.52 187.66 286.63 598.33 950.34 1,361.01 * 7/1/2019 23.39 23.39 29.28 40.98 70.35 105.52 187.66 286.63 598.33 950.34 1,361.01 * 7/1/2020 23.39 23.39 29.28 40.98 70.35 105.52 187.66 286.63 598.33 950.34 1,361.01 * 7/1/2021 23.39 23.39 29.28 40.98 70.35 105.52 187.66 286.63 598.33 950.34 1,361.01 * 4/1/2022 20.49 20.49 28.17 43.51 81.87 127.91 388.77 772.38 1,232.72 2,153.40 4,224.92 4,224.92 7/1/2022 21.72 21.72 29.87 46.13 86.79 135.59 412.10 818.73 1,306.69 2,282.61 4,478.42 4,478.42 Source: Department's Records
($/month)
* Information not reported.
88 DRAFT
Packet Page. 1093
7+,63$*(,17(17,21$//</()7%/$1.
89 DRAFT
Packet Page. 1094
City of San Bernardino Municipal Water Department
Water Connections and Revenues by User Type
Last Ten Fiscal Years
User Type Connections Revenue Connections Revenue Connections Revenue Connections Revenue Single family 21, 36,063 $ 35,744 652,852 23, $ 35,995 761,145 23, $ 36,042 875,761 22, $ 909,054 Multiple family 5,835, 2,916 444 2,905 5,562,012 2,908 5,569,436 2,907 5,222,345 Commercial 8,454, 3,164 199 3,151 6,976,893 3,154 6,579,373 3,117 6,482,560 Landscape 6,742, 1,196 399 1,184 5,515,046 1,192 5,277,114 1,181 4,542,108 Other 860, 2,574 736 2,296 811,219 2,241 811,833 2,174 781,428 Total all users 45,913 43,545,629 $ 45,280 42,626,315 $ 45,490 42,113,517 $ 45,421 39,937,495 $ Connections Revenue Connections Revenue Connections Revenue Connections Revenue Single family 21, 36,006 $ 35,824 579,693 20, $ 35,825 476,866 17, $ 35,729 346,414 15, $ 688,749 Multiple family 5,157, 2,903 997 2,904 4,944,978 2,899 4,449,204 2,873 4,225,832 Commercial 6,320, 3,104 900 3,111 6,117,493 3,131 5,750,672 3,092 4,913,942 Landscape 4,256, 1,150 390 1,159 4,694,704 1,121 3,789,527 1,129 3,203,907 Other 808, 2,056 227 2,018 748,141 1,956 557,392 1,905 677,180 Total all users 45,220 38,123,207 $ 45,016 36,982,182 $ 44,932 31,893,209 $ 44,728 28,709,610 $ Connections Revenue Connections Revenue
Single family 35,695 16,775,834 $ 35,012 18,583,708 $
Multiple family 2,869 4,349,601 2,824 4,591,290
Commercial 3,097 6,332,882 3,085 6,566,344
Landscape 1,130 3,079,610 1,140 3,616,135
Other 1,791 679,606 1,703 913,810
Total all users 44,582 31,217,533 $ 43,764 34,271,287 $ Source: Department's records
2020
2019 2018 2017 2016
2015 2014
2023 2022 2021
50%
13%
19%
16% 2%
Water Service Revenue by User Type FY 2022
Single family
Multiple family
Commercial
Landscape
36,063 , 78% Other
2,916 , 6%
3,164 , 7%
1,196 , 3% 2,574 , 6%
Water Service Connections per Customer Type
FY 2022
Single family
Multiple family
Commercial
Landscape
Other
90 DRAFT
Packet Page. 1095
City of San Bernardino Municipal Water Department
Water Rates: Elevation Charges $ per HCF
Last Ten Fiscal Years
Effective Date Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6 07/01/14 0.11 0.19 0.17 0.14 0.23 0.23
07/01/15 0.11 0.19 0.17 0.14 0.23 0.23
10/01/16 0.11 0.19 0.17 0.14 0.23 0.23
07/01/17 0.11 0.19 0.17 0.14 0.23 0.23
07/01/18 0.11 0.19 0.17 0.14 0.23 0.23
07/01/19 0.11 0.19 0.17 0.14 0.23 0.23
07/01/20 0.11 0.19 0.17 0.14 0.23 0.23
07/01/21 0.11 0.19 0.17 0.14 0.23 0.23
4/1/2022* N/A N/A N/A N/A N/A N/A
7/1/2022* N/A N/A N/A N/A N/A N/A
Source: Department's records
* Elevation charge was eliminated with the rate adoption on 04/01/22. 91 DRAFT
Packet Page. 1096
City of San Bernardino Municipal Water Department
Top Ten Water Customers
Fiscal Year 2023
City of San Bernardino $ 1,579,052
San Bernardino City Unified School District 1,419,699
California State University 580,180
County of San Bernardino 355,809
Housing Authority of the County of San Bernardino 235,197 Cott Beverages 223,457
W. Dean Weidner 195,108
Rialto School District 193,582
Lido Condominiums 162,311
San Bernardino Community College District 162,070
Top Ten Customers Total $ 5,106,465
Total Water Revenue $ 43,545,629
Top Ten Customers Percent of Total 11.73%
2023 Top 10 Customers
92 DRAFT
Packet Page. 1097
City of San Bernardino Municipal Water Department
Sewer Treatment Rate History
Last Ten Fiscal Years
1/1/2014 10/1/2015 7/1/2016 7/1/2017 7/1/2018 7/1/2019 7/1/2020 7/1/2021 4/1/2022* 7/1/2022* Residential (monthly per EDU)
Residential 18.50 20.65 22.38 23.10 23.10 23.10 23.10 23.10 37.83 41.99 Multi-Family (2 units) 37.00 41.31 44.76 46.20 ` 66.05 66.05 66.05 75.66 83.98 Multi-family (3 units) 55.50 61.96 67.14 69.29 99.04 99.04 99.04 99.04 113.49 125.98 All Non-Residential (including multi-family (4 or
more units) and mobile home parks) 2.40 3.18 3.42 3.52 6.62 6.62 6.62 6.62 16.56 18.38 Industrial 1.00 1.67 1.78 1.83 4.93 4.93 4.93 4.93 16.56 18.38 * The Sewer Collection rate was combined with the Sewer Treatment rate to become the sewer rate that was effective 04/01/22.

Source: Department's records
93 DRAFT
Packet Page. 1098
City of San Bernardino Municipal Water Department
Sewer Treatment Rate History
Last Ten Fiscal Years
1/1/2014 10/1/2015 7/1/2016 7/1/2017 7/1/2018 7/1/2019 7/1/2020 7/1/2021 4/1/2022* 7/1/2022* Commodity Charge (per HCF):

Low Strength Non-Residiential
Laundromats 1.50 1.63 1.77 1.83 1.83 1.83 1.83 1.83 2.15 2.39 Schools, churches, nursery schools 1.10 1.19 1.29 1.33 1.33 1.33 1.33 1.33 2.15 2.39 Medium Strength Non-Residiential
Multi-family, mobile home parks 1.25 1.36 1.48 1.53 1.53 1.53 1.53 1.53 2.71 3.01 Retail, commercial, light industrial 2.10 2.28 2.47 2.55 2.55 2.55 2.55 2.55 2.71 3.01 Auto repair, car wash 1.30 1.41 1.53 1.58 1.58 1.58 1.58 1.58 2.71 3.01 Offices, motels (w/o restaurants) 1.50 1.63 1.77 1.83 1.83 1.83 1.83 1.83 2.71 3.01 Hospitals, convalescent homes 1.35 1.46 1.58 1.63 1.63 1.63 1.63 1.63 2.71 3.01 High Strength Non-Residiential
Restaurants, hotels 2.70 2.93 3.18 3.28 3.28 3.28 3.28 3.28 6.42 7.13 Domecstic Liquid Waste (per gallon) 0.0400 0.0430 0.0470 0.0490 0.0490 0.0490 0.0490 0.0490 0.0714 0.0793 Industrial:

Discharge Flow (per million gallons) 900.00 977.00 1,060.00 1,094.00 1,094.00 1,094.00 1,094.00 1,094.00 1,420.83 1,577.12 Biological Oxygen demand (per 1,000 lbs) 360.00 391.00 424.00 438.00 438.00 438.00 438.00 438.00 648.28 719.59 Suspended Solids (per 1,000 lbs) 640.00 694.00 753.00 778.00 778.00 778.00 778.00 778.00 648.50 719.84 * The Sewer Collection rate was combined with the Sewer Treatment rate to become the sewer rate that was effective 04/01/22.

Source: Department's records
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City of San Bernardino Municipal Water Department
Sewer Treatment Connections and Revenue by User Type
Last Ten Fiscal Years
Loma Linda -06/22 East Valley 6/22
User Type Connections Revenue Connections Revenue Connections Revenue Connections Revenue San Bernardino Residential 33,050 $30,834,983 33,230 $14,359,415 32,365 $10,165,765 31,828 $10,191,482 San Bernardino Nonresidential 5,576 2,113,002 5,566 7,279,215 5,436 8,292,874 5,340 8,463,554 East Valley Residential 18,735 5,003,034 18,636 5,011,215 18,710 4,797,833 18,477 4,778,152 East Valley Nonresidential 1,089 3,329,085 1,106 3,805,558 1,087 3,456,827 1,050 3,483,724 Loma Linda Residential 3,185 1,239,524 3,039 1,219,034 3,010 1,232,048 2,856 1,163,501 Loma Linda Nonresidential 170 2,000,370 169 1,673,445 169 1,642,250 168 1,622,872 Total all users 61,805 $44,519,998 61,746 $33,347,882 60,777 $29,587,596 59,719 $29,703,284 Connections Revenue Connections Revenue Connections Revenue Connections Revenue San Bernardino Residential 33,051 $10,146,660 32,945 $10,135,132 32,960 $9,756,592 32,889 $8,746,617 San Bernardino Nonresidential 5,531 8,645,032 5,526 8,834,641 5,471 8,010,240 5,377 7,125,053 East Valley Residential 18,477 4,778,152 18,477 4,765,218 18,477 4,622,944 18,477 4,008,039 East Valley Nonresidential 1,050 3,550,973 1,050 3,579,348 1,050 3,083,475 1,060 2,825,971 Loma Linda Residential 2,799 1,171,706 4,824 1,167,823 4,723 1,107,201 5,948 1,008,071 Loma Linda Nonresidential 345 1,557,119 703 1,548,574 593 1,441,807 591 1,308,474 Total all users 61,253 $29,849,643 63,525 $30,030,737 63,274 $28,022,259 64,342 $25,022,225 Connections Revenue Connections Revenue
San Bernardino Residential 32,874 $8,056,827 32,537 $8,111,634 San Bernardino Nonresidential 5,344 7,240,533 5,410 8,033,072 East Valley Residential 18,480 4,093,625 18,404 4,149,836 East Valley Nonresidential 1,051 2,571,813 1,115 2,725,075 Loma Linda Residential 5,040 997,242 4,656 991,387
Loma Linda Nonresidential 588 1,294,612 592 1,330,102
Total all users 63,377 $24,254,651 62,714 $25,341,106
Source: Department's records
2015 2014
2023 2022 2021 2020
2019 2018 2017 2016
33,050, 54%
5,576, 9%
18,735, 30%
1,089, 2% 1,03,185, 5% , ,185 170, 0% 85, 5%
Sewer Utility Connections per Customer Type FY 2023
San Bernardino Residential
San Bernardino Nonresidential
East Valley Residential
East Valley Nonresidential
Loma Linda Residential
Loma Linda Nonresidential
69%
5%
11%
7%3%5%
Sewer Utility Revenue by User Type
FY 2023
San Bernardino Residential
San Bernardino Nonresidential
East Valley Residential
East Valley Nonresidential
Loma Linda Residential
Loma Linda Nonresidential
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City of San Bernardino Municipal Water Department
Top Ten Sewer Treatment Customers
Fiscal Year 2023
County of San Bernardino $ 654,640
San Bernardino City Unified School District 362,545
Housing Authority 215,500
PAMA Management Company 213,316
Saint Bernardine Hospital 195,040
City of San Bernardino 156,209
Lido Condominiums 149,099
W. Dean Weidner 146,611
State of California - AOC 140,633
Broadstone Investors LLC 138,749
Top Ten Customers Total $ 2,372,342
Total Sewer Revenue $ 44,519,998
Top Ten Customers Percent of Total 5.33%
Source: Department's records
2023 Top 10 Customers
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City of San Bernardino Municipal Water Department
Sewer Collection Rate History
Last Ten Fiscal Years
10/1/2015 7/1/2016 7/1/2017 7/1/2018 7/1/2019 7/1/2020 7/1/2021 4/1/2022* 7/1/2022* Residential (monthly per EDU) 9.00 9.45 9.90 9.90 9.90 9.90 9.90 N/A N/A Multi-Family
Multi-family, 2 units 18.00 18.90 19.85 19.85 19.85 19.85 19.85 N/A N/A Multi-family, 3 units 27.00 28.35 29.75 29.75 29.75 29.75 29.75 N/A N/A Multi-family, 4 or more units, Non-res.

Monthly Charge 2.95 3.10 3.10 3.10 3.10 2.80 3.10 N/A N/A Usage Charge (per HCF) 0.83 0.87 0.87 0.87 0.87 0.79 0.87 N/A N/A * The Sewer Collection rate was combined with the Sewer Treatment rate to become the sewer rate that was effective 04/01/22.

Source: Department's records
The Sewer Collection Utility was transferred to the Water Department on May 1, 2017 so details for prior years is unavailable. 97 DRAFT
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City of San Bernardino Municipal Water Department
Sewer Collection
Connections and Revenue by User Type
Last Ten Fiscal Years
User Type Connections Consumption Revenue Connections Consumption Revenue Connections Consumption Revenue Connections Consumption Revenue Residential-Single Family 42 0 $0 27,748 0 $3,061,513 32,418 0 $3,997,513 31,889 $4,054,020 Residential-Multi Family 1,345 0 356,051 1,576 0 418,545 1,555 412,095 Residential- Multi Family 4 Units + 18 78,494 68,975 19 80,400 70,647 18 63,529 55,921 Comm/Land/Lt. Industrial/Non-Res. 37 0 0 2,670 2,594,640 2,310,986 3,138 3,051,177 2,726,198 3,069 2,893,018 2,588,912 Education-Public 2 0 0 43 127,279 110,588 49 124,047 109,205 37 54,207 48,082 Education-Private 124 58,932 55,859 149 72,141 68,086 150 63,715 60,941 Hospital/Convalescent Homes 29 164,836 144,462 35 197,360 172,771 35 197,787 173,367 Office/Motel-No Restaurant 10 0 0 85 76,768 57,800 93 78,338 59,307 92 79,321 61,027 Restaurant/ Hotel w/ Restaurant 1 0 0 51 43,587 39,632 51 36,181 33,232 52 38,762 35,480 Auto Repair/Car Wash 197 78,293 75,390 226 81,945 78,971 221 75,027 73,487 Laundromat 4 29,232 25,587 5 28,349 24,843 5 24,821 21,771 CS Irrigation 0 0 0 0 0 0 21 255,400 71,571
0 0 49 62,340 0 48 65,559 0 48 56,072 0
Total all users 92 0 $ - 32,363 3,314,401 6,306,843 $ 37,806 3,815,497 7,759,318 $ 37,192 3,801,659 $ 7,656,675 Connections Consumption Revenue Connections Consumption Revenue Connections Consumption Revenue Connections Consumption Revenue Residential-Single Family 33,127 $3,927,784 32,939 $3,916,946 32,899 $3,719,798 Residential-Multi Family 1,606 424,665 1,607 424,024 1,609 405,007 Residential- Multi Family 4 Units + 17 50,331 44,420 16 51,092 44,945 15 45,146 41,351 Comm/Land/Lt. Industrial/Non-Res. 3,180 2,904,054 2,601,804 3,198 2,997,422 2,668,497 3,204 2,626,645 2,467,470 Education-Public 27 24,293 21,700 27 29,478 26,118 27 29,586 27,420 Education-Private 152 64,643 61,858 150 72,936 67,985 150 61,381 61,779 Hospital/Convalescent Homes 35 190,191 166,768 35 194,560 170,063 35 175,241 161,182 Office/Motel-No Restaurant 94 88,632 69,280 94 85,397 66,015 96 71,092 58,587 Restaurant/ Hotel w/ Restaurant 47 41,583 37,750 41 39,909 35,963 37 34,788 32,509 Auto Repair/Car Wash 229 76,587 74,854 231 93,474 89,565 229 73,436 75,421 Laundromat 5 26,639 23,362 5 26,464 23,160 5 24,091 21,824 CS Irrigation 43 423,688 115,905 45 540,444 145,737 46 503,780 158,834 Totals IVDA 50 54,387 0 49 57,057 0 51 54,874 0
Total all users 38,613 3,945,028 7,570,150 $ 38,438 4,188,233 7,679,020 $ 38,402 3,700,060 $7,231,183 0 $0 Connections Consumption Revenue Connections Consumption Revenue Residential-Single Family
Residential-Multi Family
Residential- Multi Family 4 Units +
Comm/Land/Lt. Industrial/Non-Res.

Education-Public
Education-Private
Hospital/Convalescent Homes
Office/Motel-No Restaurant
Restaurant/ Hotel w/ Restaurant
Auto Repair/Car Wash
Laundromat
CS Irrigation
Totals IVDA
Total all users 0 0 $0 0 $0
Source: Department's records
2015 2014
* The Sewer Collection Utility was transferred to the Water Department on May 1, 2017 so prior year data is unavailable. Data provided for 2017 represents the entire year.
2023 2022 2021 2020
2019 2018 2017 2016
46%
40%
2%
11% 1%
Sewer Collection Connections by User Type 2023
Residential-Single Family
Residential-Multi Family
Residential- Multi Family 4 Units +
Comm/Land/Lt. Industrial/Non-Res.

Education-Public
Education-Private
Hospital/Convalescent Homes
Office/Motel-No Restaurant
Restaurant/ Hotel w/ Restaurant
Auto Repair/Car Wash
Laundromat
CS Irrigation
0%
Sewer Collection Revenu
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City of San Bernardino Municipal Water Department
Top Ten Sewer Collection Customers
Fiscal Year 2022
San Bernardino County Unified School District
County of San Bernardino
Saint Bernardine Hospital
PAMA Management Company
Housing Authority of the County of San Bernardino
City of San Bernardino
Lido Condominiums
Broadstone Investors LLC
San Bernardino Community Hospital
W. Dean Weidner
Top Ten Customers Total $ -
Total Sewer Collections Revenue* $ -
Top Ten Customers Percent of Total #DIV/0!
Source: Department's records
2023 Top 10 Customers
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Municipal Water Department
Water Rates: Commodity Charges
Last Ten Fiscal Years
1/1/2014 10/1/2015 7/1/2016 7/1/2017 7/1/2018 7/1/2019 7/1/2020 Customer Class
Single Family Residential
Tier 1 (0-13 HCF) 1.35 1.35 1.37 1.40 1.43 1.43 1.43
Tier 2 (14-23 HCF) 1.35 1.35 1.37 1.40 1.43 1.43 1.43
Tier 3 (24+ HCF) 1.70 1.70 1.86 1.89 1.92 1.92 1.92
Multi-Faimly Residential 1.35 1.35 1.37 1.40 1.43 1.43 1.43 Commercial 1.35 1.35 1.37 1.40 1.43 1.43 1.43
Irrigation 1.35 1.35 1.37 1.40 1.43 1.43 1.43
Institutional 1.35 1.35 1.37 1.40 1.43 1.43 1.43
Other 1.35 1.35 1.37 1.40 1.43 1.43 1.43
* Prior years (07/01/14 - 07/01/21) commodity charges reflect rates including conservation, replenishment and elevation zon which were consolidated with the rates adopted on 04/01/22. 100 DRAFT
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Municipal Water Department
Water Rates: Commodity Charges
Last Ten Fiscal Years
7/1/2021 4/1/2022 7/1/2022

1.43 1.35 1.44

1.43 1.83 1.94

1.92 2.33 2.47

1.43 1.51 1.61

1.43 1.65 1.75

1.43 2.32 2.46

1.43 2.06 2.19

1.43 3.82 4.05
shment and elevation zone charges
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7+,63$*(,17(17,21$//</()7%/$1.
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CITY OF SAN BERNARDINO

MUNICIPAL WATER DEPARTMENT
Single Audit Report
For the Year Ended June 30, 2023
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CITY OF SAN BERNARDINO

MUNICIPAL WATER DEPARTMENT
Single Audit Report
For the Year Ended June 30, 2023
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CITY OF SAN BERNARDINO

MUNICIPAL WATER DEPARTMENT
Single Audit Report
For the Year Ended June 30, 2023
Table of Contents
Page
Number
Independent Auditors’ 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 Auditors’ Report on Compliance for Each Major Program and on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance........................................................................................................ 3 Schedule of Expenditures of Federal Awards for the
Fiscal Year Ended June 30, 2023 ....................................................................................................................... 6 Notes to the Schedule of Expenditures of Federal Awards.................................................................................... 7 Schedule of Findings and Questioned Costs for the
Fiscal Year Ended June 30, 2023 ....................................................................................................................... 8 Summary Schedule of Prior Year Findings and Questioned Costs for the Fiscal Year Ended June 30, 2022 ..................................................................................................................... 10 DRAFT
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INDEPENDENT AUDITORS’ 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 Water Board
San Bernardino Municipal Water Department
San Bernardino, 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 financial statements of each major fund, of San Bernardino Municipal Water Department (the “Department”), component unit of the City of San Bernardino, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the Department’s basic financial statements, and have issued our report thereon dated February 21, 2024.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Department’s internal control over the Department’s 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 Department’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Department’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.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Department’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.

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To the Water Board
San Bernardino Municipal Water Department
San Bernardino, California
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 Department’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 Department’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Brea, California
February 21, 2024
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INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL

CONTROL OVER COMPLIANCE AND REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

REQUIRED BY THE UNIFORM GUIDANCE
To the Water Board
San Bernardino Municipal Water Department
San Bernardino, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the San Bernardino Municipal Water Department (the “Department”), a component unit of the City of San Bernardino, California (the “City”)’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the Department’s major federal programs for the year ended June 30, 2023. The Department’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 Department 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, 2023.

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 Department 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 Department’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 Department’s federal programs.

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To the Water Board
San Bernardino Municipal Water Department
San Bernardino, California
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 Department’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 Department’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 Department’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 Department’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 Department’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.

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To the Water Board
San Bernardino Municipal Water Department
San Bernardino, California
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.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the business-type activities, each major fund, and the aggregate remaining fund information of the Department, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the Department’s basic financial statements. We issued our report thereon dated February 21, 2024 which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is 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 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 schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Brea, California
February 21, 2024
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SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2023
Federal
Assistance Program
Federal Grantor/Pass-Through Grantor/Program Title Listing Number Expenditures Environmental Protection Agency
Consent Decree * 66.000
Operations and maintenance:

Newmark $ 778,696
Muscoy 669,182
Site wide monitoring 129,556
Project management 119,217
Subtotal - Consent Decree 1,696,651
Direct Award:

Superfund State, Political Subdivision, and Indian Tribe Site-Specific Cooperative Agreements 66.802 64,538
Total Environmental Protection Agency 1,761,189
Total Federal Expenditures $ 1,761,189
* Major Program
Note a: Refer to Note 1 to the schedule of expenditures of federal awards for a description of significant accounting policies used in preparing this schedule.

Note b: There was no federal awards expended in the form of noncash assistance and insurance in effect during the year.

Note c: Total amount provided to subrecipients during the year was $0.

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CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Notes To The Schedule Of Expenditures of Federal Awards For The Fiscal Year Ended June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES APPLICABLE TO THE SCHEDULE OF

EXPENDITURES OF FEDERAL AWARDS
A. Scope of Presentation
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the San Bernardino Municipal Water Department (the "Department"), a component unit of the City of San Bernardino, California (the “City”), under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Department, it is not intended to and does not present the financial position, changes in net position or cash flows of the Department, nor does it present all federal programs of the City of San Bernardino as a whole.

B. Basis of Accounting
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. Under the accrual basis of accounting, expenditures are recognized when incurred. Expenditures reported include any property or equipment acquisitions incurred under the federal program. The Department did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance.

NOTE 2: BACKGROUND OF THE CONSENT DECREE
In 1996, the City filed a complaint against the United States of America, Department of the Army (Army) to recover damages, response costs and other available remedies relating to contamination alleged to have originated at a World War II Army installation known as Camp Ono. In March 2005, the United States Department Court, Central Department, entered judgment, in the form of a consent decree (Consent Decree), in the matter of City of San Bernardino v. United States of America. The consent decree settles the City’s and the State’s claims arising from the groundwater contamination allegedly caused by the Army. The Consent Decree contains a number of provisions obligating the City (through the Municipal Water Department) to operate and maintain the Newmark Groundwater Superfund site (Site). The Site consists of two operable units, the Newmark Operable Unit and the Muscoy Operable Unit. The Newmark Operable Unit was declared operational and functional in 1998.

The Consent Decree provided for a payment of $69 million from the Army to the City for performance of the work outlined in the consent decree. Upon entry of the Consent Decree, the City, through the Department, received title to all facilities constructed by the United States Environmental Protection Agency (EPA) for the Site and agreed to operate and maintain the groundwater extraction and treatment system for a period of 50 years. The $69 million payment consisted of $59 million for operation and maintenance and $10 million for the construction of certain capital facilities that would be required in the future. The funds are subject to strict limitations, contained in the Consent Decree, as to how they may be spent.

Pursuant to the Consent Decree, $10 million, including interest earned, has been set aside to be used only for (i) funding construction of treatment and directly related transmission systems that expanded the Department’s capacity to deliver potable water, and (ii) funding work performed by the Department to complete construction of the Muscoy Operable Unit extraction system. These “capital facility” funds may not be used for costs incurred to operate, maintain, repair or retrofit components of the Site extraction or treatment systems constructed by EPA.

In September 2007, the Muscoy Operable Unit was declared operational and functional.

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CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2023

SECTION I - SUMMARY OF AUDITORS' RESULTS
Financial Statements
Type of auditors' report issued: Unmodified Opinion
Internal control over financial reporting:
• Material weaknesses identified? yes X none reported
• Significant deficiencies identified? yes X no
Noncompliance material to financial
statements noted? yes X no
Federal Awards
Internal control over major programs:
• Material weaknesses identified? yes X none reported
• Significant deficiencies identified? yes X no
Type of auditors' report issued on compliance for major programs: Unmodified Opinion Any audit findings disclosed that are required to be
reported in accordance with Title 2 U.S. Code of
Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform
Guidance)? yes X no
Identification of major programs:

Assistance Listing Number(s) Name of Federal Program or Cluster

66.000 Consent Decree
Dollar threshold used to distinguish
between type A and type B program $750,000
Auditee qualified as low risk auditee?
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X yes no
Packet Page. 1118

CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2023

SECTION II - FINANCIAL STATEMENT FINDINGS
No matters were reported.

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.

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1350 South “E” Street, San Bernardino, California 92408 P.O. Box 710, 92402 Phone: (909) 384-5141 FACSIMILE NUMBERS: Administration: (909) 453-6399 Customer Service: (909) 453-6396 Finance: (909) 453-6383 Engineering: (909) 453-6385 Corporate Yards: (909) 453-6389 Water Reclamation Plant: (909) 453-6395 Environmental & Regulatory Compliance: (909) 453-6391 Environmental Control: (909) 453-6394

CITY OF SAN BERNARDINO

MUNICIPAL WATER DEPARTMENT

CITY OF SAN BERNARDINO

WATER BOARD

TONI CALLICOTT
President
Commissioners

WAYNE HENDRIX
DAVID E. MLYNARSKI
RIKKE V. JOHNSON

THOMAS BRICKLEY
MIGUEL J. GUERRERO, P.E.

General Manager
ROBIN L. OHAMA
Deputy General Manager
STEVE R. MILLER
Director of Water Utility
KEVIN T. STEWART, P.E.

Director of Water Reclamation
JENNIFER L. SHEPARDSON
Director of Environmental &
Regulatory Compliance
CYNTHIA J. MOUSER
Director of Finance
“Trusted, Quality Service since 1905”

SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022
No matters were reported.

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Packet Page. 1120
February 21, 2024
To the Water Board
City of San Bernardino Municipal Water Department
San Bernardino, California
We have audited the financial statements each major fund of the City of San Bernardino Municipal Water Department (the “Department”), a department of the City of San Bernardino, California (the “City”) for the year ended June 30, 2023. 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 April 28, 2023. 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 Department are described in Note 1 to the financial statements. As described in Note 1 and 14 to the financial statements, the Department changed accounting policies related to subscription-based information technology arrangements by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 96, in fiscal year 2022-2023. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in the statement of revenues, expenses, and changes in net position. We noted no transactions entered into by the Department 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 estimates affecting the City’s financial statements were:

Management’s estimates of the net pension liability, net other postemployment benefits asset, and claims and judgments liability are based on actuarial valuation estimates. We evaluated the methods, assumptions, and data used to develop the actuarial valuation estimates in determining that they are reasonable in relation to the financial statements taken as a whole.

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure affecting the financial statements was:

The disclosure of the Consent Decree in Note 13 to the financial statements provides information on the 1996 compliant filed by the City against the U.S. Department of the Army to recover damages, response costs, and other available remedies relating to contamination alleged to have originated at a World War II army installation known as Camp Ono.

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To the Water Board
City of San Bernardino Municipal Water Department
San Bernardino, California
The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
The completion of our audit was delayed due to difficulties encountered by management in reconciling capital assets due to the ERP implementation of Tyler Munis in the current year. Delays and difficulties are not unexpected or unusual during years when organizations implement a new ERP system, and our opinion was not modified with respect to this matter. As a result, our audit was not able to finalize until after December 31, 2023.

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.

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 February 21, 2024.

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 Department’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.

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Packet Page. 1122
To the Water Board
City of San Bernardino Municipal Water Department
San Bernardino, California
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 Department’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to management’s discussion and analysis and the required pension and other postemployment benefits schedules, which are 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 not engaged to report on other information included in the annual report which is comprised of the introductory and statistical sections, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

Future GASB Pronouncements
The following Government Accounting Standards Board (GASB) pronouncements will be effective for the following fiscal years’ audits and should be reviewed for proper implementation by management:

Fiscal Year 2023-2024
GASB Statement No. 99, Omnibus 2022.

Fiscal Year 2024-2025
GASB Statement No. 101, Compensated Absences.

Future Projects
Comprehensive Project, Financial Reporting Model.

Comprehensive Project, Revenue and Expense Recognition.

Major Project, Going Concern Uncertainties and Severe Financial Stress.

Major Project, Infrastructure Assets.

Practice Issue, Classification of Nonfinancial Assets.

Practice Issue, Risks and Uncertainties Disclosures.

Pre-Agenda Research Activities, Subsequent Events.

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Packet Page. 1123
To the Water Board
City of San Bernardino Municipal Water Department
San Bernardino, California
Restriction on Use
This information is intended solely for the information and use of the Water Board and management of the Department and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
Brea, California
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Packet Page. 1124
INDEPENDENT AUDITORS’ 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 Water Board
City of San Bernardino Municipal Water Department
San Bernardino, 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 financial statements of each major fund of the City of San Bernardino Municipal Water Department (the “Department”), a department of the City of San Bernardino, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the Department’s basic financial statements, and have issued our report thereon dated February 21, 2024.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Department’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 Department’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Department’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.

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Packet Page. 1125
2023 Financial Audit
Presented by:

Ryan Domino, CPA, Partner
February 27, 2024
Packet Page. 1126
Scope of Engagement
• LSL has been engaged by the Department to perform a financial statement audit in accordance with generally accepted auditing standards and Government Auditing for the year ended June 30, 2023.
• Objective is to render an opinion on reliability and compliance of financial statements with generally accepted accounting principles. • Objective is not to opine on operational performance, although severe financial strain would be reported.
• Objective is not to hunt for fraud, although we do consider risks of fraud, perform certain tests for fraud, and would report it if encountered.

Packet Page. 1127
• Interim Fieldwork
• Examined internal controls
• Provided feedback to
management
• Performed our audit risk
assessment
• Planned year-end audit
procedures to respond to risk
• Year-End Fieldwork
• Detailed testing of account
balances and transactions
• Compliance testing with laws,
regulations, grant agreements,
contracts
• Other procedures necessary to
obtain sufficient, appropriate
audit evidence
Scope of Engagement
Packet Page. 1128
Results of Audit
• We issued an unmodified auditor’s opinion on the financial statements.
• Financial statements are accurate and reliable as of June 30, 2023. • We issued the Report on Internal Control and Compliance • No significant deficiencies in internal control noted. • No material weaknesses in internal control noted.
• No material noncompliance with laws, regulations, grants, etc. noted.

Packet Page. 1129
Results of Audit
• We identified no going concern doubts as of June 30, 2023. • We identified no fraud, waste, or abuse during the fiscal year ended June 30, 2023.
• We had no disagreements with management about application of accounting principles.
• We determined that all estimates used by management in preparing the financial statements were reasonable.

Packet Page. 1130
Questions
Packet Page. 1131
www.lslcpas.com
[email protected]
CALIFORNIA: Brea | Santa Ana | Laguna Hills | Sacramento TEXAS: The Woodlands
Packet Page. 1132
To the Water Board
City of San Bernardino Municipal Water Department
San Bernardino, California
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 Department’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 Department’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Brea, California
February 21, 2024
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Packet Page. 1133

CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: May 1, 2024
To: Honorable Mayor and City Council Members
From: Charles A. Montoya, City Manager
Department: City Manager's Office
Subject: Adopt a Resolution Adding Dignity Moves as a Joint Applicant with the City and Lutheran Social Services
of Southern California for the Homekey 3.0 Grant
Funding Application (All Wards)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2024-093 authorizing a joint application to and participation in the Homekey Program with Lutheran Social Services of Southern California and Dignity Moves.

Executive Summary
The City, Lutheran Social Services of Southern California, and Dignity Moves submitted a joint application for a Homekey 3.0 grant and were awarded $35 million on December 9, 2023. In reviewing the documents, California’s Department of Housing and Community Development (HCD) noticed that the original resolution that authorized the submittal of a joint application did not name Dignity Moves as one of the coapplicants. HCD is requesting for a correction to be made by adding Dignity Moves to the resolution, which is being done by adopting a new resolution.

Background
On April 26, 2023, the Mayor and City Council adopted Resolution No. 2023-057 authorizing the City to submit a joint application with Lutheran Social Services of Southern California (LSSSC) to apply for a Homekey 3.0 grant to fund the development of the San Bernardino Community Wellness Center (“Wellness Center”). The Wellness Center consists of 140 interim housing units and an onsite federally qualified health clinic, where case management, behavioral health treatment, and other services will be provided. On December 9, 2023, the City, LSSSC, and Dignity Moves were awarded a $35 million Homekey grant award for the project.

Packet Page. 1134
Discussion
California’s Department of Housing and Community Development (HCD) is requesting for a correction to be made to the resolution that was adopted by the Mayor and City Council on April 26, 2023. The original resolution authorized the City to submit a joint application for the Homekey grant with LSSSC but it did not include Dignity Moves as one of the co-applicants. Since Dignity Moves is a co-applicant for the grant award, HCD is requesting for a corrected resolution to be submitted. Dignity Moves is the developer of the project and is responsible for coordinating and managing all phases of the project, including overseeing design development, construction documentation, and administration.
2021-2025 Strategic Targets and Goals
The corrected resolution aligns with Key Target No. 3: Improved Quality of Life.

Fiscal Impact
There is no fiscal impact associated with this item.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2024-093 authorizing a joint application to and participation in the Homekey Program with Lutheran Social Services of Southern California and Dignity Moves.

Attachments
Attachment 1 – Resolution 2024-093
Attachment 2 – Resolution 2023-057
Ward:

All Wards
Synopsis of Previous Council Actions:

April 26, 2023 Mayor and City Council adopted Resolution No. 2023-057 authorizing the City to submit a joint application with Lutheran Social Services of Southern California to apply for a Homekey 3.0 grant award.

Packet Page. 1135
Resolution No. 2024-093
Resolution 2024-093
May 1, 2024

Page 1 of 5 ends

Mayor and City CouncilMay 1, 2024

Mayor and City Council
May 1, 2024