San Dimas City Council
December 12, 2023

Ordinance 1301 Page 10
Municipal Code Text Amendment 22-0003

10. Transitional and support housing when
designed as apartments

0.5 space per bedroom plus one guest space
per five units

Agenda Item Staff Report
To: Honorable Mayor and Members of City Council
For the Meeting of December 12, 2023
From: Chris Constantin, City Manager
Prepared by: Michael O'Brien, Director of Administrative Services Subject: Approve a Five-Year Agreement with Flock Group Inc. to Lock in the Current Pricing for Maintaining the Fourteen Cameras Currently in Place as Well as the Cost to Install Additional Cameras that May be Authorized over the Next Five Years
____________________________________________________________________________

SUMMARY
The City of San Dimas is proposing to enter into a five-year agreement with Flock Group Inc. for the maintenance and operation of 14 license plate recognition (LPR) cameras throughout the city at a cost of $2,500 per camera, per year. The purpose of this initiative is to enhance public safety, improve law enforcement capabilities, and strengthen overall community security. The implementation of LPR technology aligns with the city's commitment to employing innovative solutions for the well-being of our residents.

RECOMMENDATION
Staff recommends that the City Council:

1. Approve the five-year agreement with Flock Group Inc. for the maintenance and operation of 14 license plate recognition cameras at a cost of $35,000 per year. Total cost over 5 years would be $175,000

2. Authorize the City Manager or designee to execute the agreement on behalf of the City.

FISCAL IMPACT
Executing the agreement would mean the continuance of the flock license reader program over the next five fiscal years, requiring a budget of $35,000 to be allocated from the COPS grant

Approval of Five-Year Agreement with Flock Group Inc. Page 2 For the Meeting of December 12, 2023
fund 041 for each of those years. For the current 2023-24 fiscal year, funds have already been appropriated to cover the cost.

BACKGROUND
The proposed agreement with Flock Safety represents a strategic investment in advanced technology to enhance the City's public safety infrastructure. Flock Group Inc. is a recognized leader in the field of license plate recognition, providing reliable and efficient solutions for law enforcement agencies and municipalities nationwide. The 14 LPR cameras strategically located across key areas of the city have significantly contributed to crime prevention, investigation, and community safety.

DISCUSSION/ANALYSIS
Entering into this agreement allows the City to stabilize costs over the next five years. Flock Group Inc. has informed us that starting January 1, 2024, the operating and maintenance costs for the system will increase. By utilizing a long-term agreement, the City can lock in the current pricing before the planned 2024 increase, which would amount to an additional $500 per camera or $7,000 annually.

Since the installation of the first ten cameras in 2021, the success of the Flock camera system in detecting stolen vehicles and apprehending criminals has prompted the City to add four additional cameras in 2023, bringing the total to fourteen.

Due to the system's success and the availability of grant funding to cover the costs of maintaining and operating the system, it is highly unlikely that the City would choose to abandon the Flock system over the next five years. Keeping this in mind, locking in the current pricing for the next five years is the most financially prudent step to preserve our limited resources for purchases that will enhance public safety.

ALTERNATIVES
The Council could deny the agreement and continue with a year-to-year approach which would put the City at risk of pay additional costs for the program but allow for greater flexibility to end the program if that was the desire of the Council.

ENVIRONMENTAL REVIEW
Pursuant to CEQA guidelines Section 15061 (b)(3), CEQA does not apply to this item because there is no potential for causing a significant effect on the environment. Therefore, no additional environmental review is needed at this time.

Respectfully submitted,
Michael O'Brien
Director of Administrative Services

Approval of Five-Year Agreement with Flock Group Inc. Page 3 For the Meeting of December 12, 2023
Attachments:

1. Proposed Agreement with Flock Group Inc.

Flock Safety + CA - City of San Dimas
______________
Flock Group Inc.
1170 Howell Mill Rd, Suite 210
Atlanta, GA 30318
______________
MAIN CONTACT:

Tonia Crump
[email protected]
4049329942
ATTACHMENT 1

Company Overview
At Flock Safety, technology unites law enforcement and the communities they serve to eliminate crime and shape a safer future, together. We created the first public safety operating system to enable neighborhoods, schools, businesses, and law enforcement to work together to collect visual, audio, and situational evidence across an entire city to solve and prevent crime.

Our connected platform, comprised of License Plate Recognition (LPR), live video, audio detection, and a suite of integrations (AVL, CAD & more), alerts law enforcement when an incident occurs and turns unbiased data into objective answers that increase case clearance, maximize resources, and reduce crime -- all without compromising transparency or human privacy.

Join thousands of agencies reducing crime with Flock Safety’s public safety operating system 2000+ 120 1B+ <60%*
communities with privatepublic partnershipsincident alerts / minute 1B+ vehicles detected / month
<60% local crime reduction
in Flock cities
*According to a 2019 study conducted by Cobb County Police Department Introduction
Layer Intelligence to Solve More Crime
The pathway to a safer future looks different for every community. As such, this proposal presents a combination of products that specifically addresses your public safety needs, geographical layout, sworn officer count, and budget. These components make up your custom public safety operating system, a connected device network and software platform designed to transform real-time data into a panoramic view of your jurisdiction and help you zero in on the leads that solve more cases, prevent future crimes, and foster trust in the communities you serve.

Software Platform
Flock Safety's out-of-box software platform collects and makes sense of visual, audio, and situational evidence across your entire network of devices.

Out-of-Box Software Features
Simplified Search Get a complete view of all activity tied to one vehicle in your network of privately and publicly owned cameras.

The user-friendly search experience allows officers to filter hours of footage in seconds based on time, location, and detailed vehicle criteria using patented Vehicle Fingerprint ™ technology. Search filters include:
● Vehicle make
● Body type
● Color
● License plates
○ Partial tags
○ Missing tags
○ Temporary tags
○ State recognition
● Decals
● Bumper stickers
● Back racks
● Top racks
National and Local Sharing Access 1B+ additional plate reads each month without purchasing more cameras. Solve cross-jurisdiction crimes by opting into Flock Safety's sharing networks, including one-toone, national, and statewide search networks. Users can also receive alerts from several external LPR databases:

California SVS
FDLE
FL Expired Licenses
FL Expired Tags
FL Sanctioned Drivers
FL Sex Offenders
Georgia DOR
IL SOS
Illinois Leads
NCIC
NCMEC Amber Alert
REJIS
CCIC
FBI
Real-time Alerts Receive SMS, email, and in-app notifications for custom Hot Lists, NCIC wanted lists, AMBER alerts, Silver alerts, Vehicle Fingerprint matches, and more.

Interactive ESRI Map View your AVL, CAD, traffic, and LPR alerts alongside live onscene video from a single interactive map for a birdseye view of activity in your jurisdiction.

Vehicle Location Analysis Visualize sequential Hot List alerts and the direction of travel to guide officers to find suspect vehicles faster.

Out-of-Box Software Features (Continued)
Transparency Portal Establish community trust with a public-facing dashboard that shares policies, usage, and public safety outcomes related to your policing technology.

Insights Dashboard Access at-a-glance reporting to easily prove ROI, discover crime and traffic patterns and prioritize changes to your public safety strategy by using data to determine the most significant impact.

Native MDT Application Download FlockOS to your MDTs to ensure officers never miss a Hot List alert while out on patrol.

Hot List Attachments
Attach relevant information to Custom Hot List alerts. Give simple, digestible context to Dispatchers and Patrol Officers responding to Hot List alerts so they can act confidently and drive better outcomes. When you create a custom Hot List Alert, add case notes, photos, reports, and other relevant case information.

Single Sign On (SSO) Increase your login speed and information security with Okta or Azure Single Sign On (SSO). Quickly access critical
information you need to do your job by eliminating the need for password resets and steps in the log-in process.

Software Add-Ons
Advanced Search Package Unlock more leads and build stronger cases with minimal evidence on the front-end of your investigations with
Advanced Search features:
● Visual Search - Upload any digital image and
transform it into an investigative lead
● Multi-Geo Search - Link a single suspect vehicle to
multiple crimes, even without a vehicle description
or plate number
● Convoy Analysis - Detect suspect vehicles
frequently traveling together to identify
accomplices to serial or organized crimes
Software Integrations
Access real-time incident data in a single ESRI-based map by layering intelligence from your existing data streams into your Flock Safety software experience.
● Computer-Aided Dispatch (CAD) Integration -
Provide your Dispatchers and Patrol Officers with
real-time incident context from 911 calls. Display
CAD events in your Flock Safety Map, including
important incident information like location,
priority, and event type.
● Automatic Vehicle Location (AVL) Integration -
Bring live patrol locations and status into a single
map view, giving dispatchers and patrol officers
more context to deploy resources effectively and
decrease incident response times.

License Plate Recognition
The Flock Safety Falcon® LPR camera uses Vehicle Fingerprint™ technology to transform hours of footage into actionable evidence, even when a license plate isn't visible, and sends Hot List alerts to law enforcement users when a suspect vehicle is detected. The Falcon has fixed and location-flexible deployment options with 30% more accurate reads than leading LPR.* *Results from the 2019 side-by-side comparison test conducted by LA County Sheriff's Department Flock Safety Falcon®LPR Camera Flock Safety Falcon® Flex Flock Safety Falcon® LR Fixed, infrastructure-free LPR camera
designed for permanent placement.
√ 1 Standard LPR Camera
√ Unlimited LTE data service + Flock OS
platform licenses
√ 1 DOT breakaway pole
√ Dual solar panels
√ Permitting, installation, and ongoing
maintenance
Location-flexible LPR camera designed
for fast, easy self-installation, which is
ideal for your ever-changing
investigative needs.
√ 1 LPR Camera
√ Unlimited LTE data service + software
licenses
√ 1 portable mount with varying-sized
band clamps
√ 1 Charger for internal battery
√ 1 hardshell carrying case
Long-range, high-speed LPR camera
that captures license plates and Vehicle
Fingerprint data for increasing
investigative leads on high-volume
roadways like highways and interstates.
√ 1 Long-Rage LPR Camera
√ Computing device in protective poly
case
√ AC Power
√ Permitting, installation, and ongoing
maintenance

Your Flock Safety Team
Flock Safety is more than a technology vendor; we are a partner in your mission to build a safer future. We work with thousands of law enforcement agencies across the US to build stronger, safer communities that celebrate the hard work of those who serve and protect. We don’t disappear after contracts are signed; we pride ourselves on becoming an extension of your hard-working team as part of our subscription service.

Implementation Meet with a Solutions Consultant (former LEO) to build a deployment plan based on your needs. Our Permitting Team and Installation Technicians will work to get your device network approved, installed, and activated.

User Training + Support Your designated Customer Success Manager will help train your power users and ensure you maximize the platform,
while our customer support team will assist with needs as they arise.

Maintenance We proactively monitor the health of your device network. If we detect that a device is offline, a full-time technician will service your device for no extra charge.

Note: Ongoing maintenance does not apply to Falcon Flex devices.

Public Relations Government Affairs
Get support educating your stakeholders, including city councils and other governing bodies.

Media Relations
Share crimes solved in the local media with the help of our Public Relations team.

EXHIBIT A

ORDER FORM
Customer: CA - City of San Dimas Initial Term: 60 Months Legal Entity Name: CA - City of San Dimas Renewal Term: 24 Months Accounts Payable Email: [email protected] Payment Terms: Net 30 Address: 245 E Bonita Ave San Dimas, California 91773 Billing Frequency: Annual Plan - First Year Invoiced at Signing.

Retention Period: 60 Days
Hardware and Software Products
Annual recurring amounts over subscription term
Item Cost Quantity Total
Flock Safety Platform $35,000.00
Flock Safety Flock OS
FlockOS ™ Included 1 Included
Flock Safety LPR Products
Flock Safety Falcon ® Included 14 Included
Flock Safety Platform Add Ons
Extended data retention (Up to 1 Year) $0.00 14 $0.00
Professional Services and One Time Purchases
Item Cost Quantity Total
One Time Fees
Subtotal Year 1: $35,000.00
Annual Recurring Subtotal: $35,000.00
Discounts: $56,000.00
Estimated Tax: $0.00
Contract Total: $175,000.00

Billing Schedule
Billing Schedule Amount (USD)
Year 1
At Contract Signing $35,000.00
Annual Recurring after Year 1 $35,000.00
Contract Total $175,000.00
*Tax not included
Discounts
Discounts Applied Amount (USD)
Flock Safety Platform $35,000.00
Flock Safety Add-ons $21,000.00
Flock Safety Professional Services $0.00

Product and Services Description
Flock Safety Platform Items Product Description Terms
Flock Safety Falcon ®
An infrastructure-free license plate reader camera that utilizes Vehicle Fingerprint® technology to capture vehicular attributes.

The Term shall commence upon first installation and validation of Flock Hardware.

One-Time Fees Service Description
Installation on existing
infrastructure
One-time Professional Services engagement. Includes site & safety assessment, camera setup & testing, and shipping & handling in accordance with the Flock Safety Advanced Implementation Service Brief.

Professional Services - Standard
Implementation Fee
One-time Professional Services engagement. Includes site and safety assessment, camera setup and testing, and shipping and handling in accordance with the Flock Safety Standard Implementation Service Brief.

Professional Services -
Advanced Implementation Fee
One-time Professional Services engagement. Includes site & safety assessment, camera setup & testing, and shipping & handling in accordance with the Flock Safety Advanced Implementation Service Brief.

FlockOS Features & Description
Package: Essentials
FlockOS Features Description
Community Cameras (Full Access) Access to all privately owned Flock devices within your jurisdiction that have been shared with you.

Unlimited Users Unlimited users for FlockOS
State Network (LP Lookup Only) Allows agencies to look up license plates on all cameras opted in to the statewide Flock network.

Nationwide Network (LP Lookup Only) Allows agencies to look up license plates on all cameras opted in to the nationwide Flock network.

Time & Location Based Search Search full, partial, and temporary plates by time at particular device locations License Plate Lookup Look up specific license plate location history captured on Flock devices Vehicle Fingerprint Search Search footage using Vehicle Fingerprint™ technology. Access vehicle type, make, color, license plate state, missing / covered plates, and other unique features like bumper stickers, decals, and roof racks.

Flock Insights/Analytics page Reporting tool to help administrators manage their LPR program with device performance data, user and network audits, plate read reports, hot list alert reports, event logs, and outcome reports.

ESRI Based Map Interface
Flock Safety’s maps are powered by ESRI, which offers the ability for 3D visualization, viewing of floor plans, and layering of external GIS data, such as City infrastructure (i.e., public facilities, transit systems, utilities), Boundary mapping (i.e., precincts, county lines, beat maps), and Interior floor plans (i.e., hospitals, corporate campuses, universities)
Real-Time NCIC Alerts on Flock ALPR Cameras Alert sent when a vehicle entered into the NCIC crime database passes by a Flock camera Unlimited Custom Hot Lists Ability to add a suspect’s license plate to a custom list and get alerted when it passes by a Flock camera Direct Share - Surrounding Jurisdiction (Full Access) Access to all Flock devices owned by law enforcement that have been directly shared with you. Have ability to search by vehicle fingerprint, receive hot list alerts, and view devices on the map.

By executing this Order Form, Customer represents and warrants that it has read and agrees to all of the terms and conditions contained in the Master Services Agreement attached. The Parties have executed this Agreement as of the dates set forth below.

FLOCK GROUP, INC. Customer: CA - City of San Dimas
By:
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Title:
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PO Number:

Master Services Agreement
This Master Services Agreement (this “Agreement”) is entered into by and between Flock Group, Inc. with a place of business at 1170 Howell Mill Road NW Suite 210, Atlanta, GA 30318 (“Flock”) and the entity identified in the signature block (“Customer”) (each a “Party,” and together, the “Parties”) on this the 28 day of November 2023. This Agreement is effective on the date of mutual execution (“Effective Date”). Parties will sign an Order Form (“Order Form”) which will describe the Flock Services to be performed and the period for performance, attached hereto as Exhibit A. The Parties agree as follows:

RECITALS
WHEREAS, Flock offers a software and hardware situational awareness solution through Flock’s technology platform that upon detection is capable of capturing audio, video, image, and recording data and provide notifications to Customer (“Notifications”); WHEREAS, Customer desires access to the Flock Services (defined below) on existing devices, provided by Customer, or Flock provided Flock Hardware (as defined below) in order to create, view, search and archive Footage and receive Notifications, via the Flock Services; WHEREAS, Customer shall have access to the Footage in Flock Services. Pursuant to Flock’s standard Retention Period (defined below) Flock deletes all Footage on a rolling thirty (30) day basis, except as otherwise stated on the Order Form. Customer shall be responsible for extracting, downloading and archiving Footage from the Flock Services on its own storage devices; and

AGREEMENT
NOW, THEREFORE, Flock and Customer agree that this Agreement, and any Order Form, purchase orders, statements of work, product addenda, or the like, attached hereto as

exhibits and incorporated by reference, constitute the complete and exclusive statement of the Agreement of the Parties with respect to the subject matter of this Agreement, and replace and supersede all prior agreements, term sheets, purchase orders, correspondence, oral or written communications and negotiations by and between the Parties.

1. DEFINITIONS
Certain capitalized terms, not otherwise defined herein, have the meanings set forth or crossreferenced in this Section 1.

1.1 “Anonymized Data” means Customer Data permanently stripped of identifying details and any potential personally identifiable information, by commercially available standards which irreversibly alters data in such a way that a data subject (i.e., individual person or entity) can no longer be identified directly or indirectly.

1.2 “Authorized End User(s)” means any individual employees, agents, or contractors of Customer accessing or using the Services, under the rights granted to Customer pursuant to this Agreement.

1.3 “Customer Data” means the data, media and content provided by Customer through the Services. For the avoidance of doubt, the Customer Data will include the Footage.

1.4. “Customer Hardware” means the third-party camera owned or provided by Customer and any other physical elements that interact with the Embedded Software and the Web Interface to provide the Services.

1.5 “Embedded Software” means the Flock proprietary software and/or firmware integrated with or installed on the Flock Hardware or Customer Hardware.

1.6 “Flock Hardware” means the Flock device(s), which may include the pole, clamps, solar panel, installation components, and any other physical elements that interact with the Embedded Software and the Web Interface, to provide the Flock Services as specifically set forth in the applicable product addenda.

1.7 “Flock IP” means the Services, the Embedded Software, and any intellectual property or proprietary information therein or otherwise provided to Customer and/or its Authorized End Users. Flock IP does not include Footage (as defined below).

1.8 “Flock Network End User(s)” means any user of the Flock Services that Customer authorizes access to or receives data from, pursuant to the licenses granted herein.

1.9 “Flock Services” means the provision of Flock’s software and hardware situational awareness solution, via the Web Interface, for automatic license plate detection, alerts, audio detection, searching image records, video and sharing Footage.

1.10 “Footage” means still images, video, audio and other data captured by the Flock Hardware or Customer Hardware in the course of and provided via the Flock Services.

1.11 “Hotlist(s)” means a digital file containing alphanumeric license plate related information pertaining to vehicles of interest, which may include stolen vehicles, stolen vehicle license plates, vehicles owned or associated with wanted or missing person(s), vehicles suspected of being involved with criminal or terrorist activities, and other legitimate law enforcement purposes.

Hotlist also includes, but is not limited to, national data (i.e., NCIC) for similar categories, license plates associated with AMBER Alerts or Missing Persons/Vulnerable Adult Alerts, and includes manually entered license plate information associated with crimes that have occurred in any local jurisdiction.

1.12 “Installation Services” means the services provided by Flock for installation of Flock Services.

1.13 “Retention Period” means the time period that the Customer Data is stored within the cloud storage, as specified in the product addenda.

1.14 “Vehicle Fingerprint™” means the unique vehicular attributes captured through Services such as: type, make, color, state registration, missing/covered plates, bumper stickers, decals, roof racks, and bike racks.

1.15 “Web Interface” means the website(s) or application(s) through which Customer and its Authorized End Users can access the Services.

2. SERVICES AND SUPPORT

2.1 Provision of Access. Flock hereby grants to Customer a non-exclusive, non-transferable right to access the features and functions of the Flock Services via the Web Interface during the Term, solely for the Authorized End Users. The Footage will be available for Authorized End Users to access and download via the Web Interface for the data retention time defined on the Order Form (“Retention Period”). Authorized End Users will be required to sign up for an account and select a password and username (“User ID”). Customer shall be responsible for all acts and omissions of Authorized End Users, and any act or omission by an Authorized End User which, including any acts or omissions of authorized End user which would constitute a breach of this agreement if undertaken by customer. Customer shall undertake reasonable efforts to make all Authorized End Users aware of all applicable provisions of this Agreement and shall cause Authorized End Users to comply with such provisions. Flock may use the services of one or more third parties to deliver any part of the Flock Services, (such as using a third party to host the Web Interface for cloud storage or a cell phone provider for wireless cellular coverage).

2.2 Embedded Software License. Flock grants Customer a limited, non-exclusive, nontransferable, non-sublicensable (except to the Authorized End Users), revocable right to use the Embedded Software as it pertains to Flock Services, solely as necessary for Customer to use the Flock Services.

2.3 Support Services. Flock shall monitor the Flock Services, and any applicable device health, in order to improve performance and functionality. Flock will use commercially reasonable efforts to respond to requests for support within seventy-two (72) hours. Flock will provide Customer with reasonable technical and on-site support and maintenance services in-person, via phone or by email at [email protected] (such services collectively referred to as “Support Services”).

2.4 Upgrades to Platform. Flock may make any upgrades to system or platform that it deems necessary or useful to (i) maintain or enhance the quality or delivery of Flock’s products or services to its agencies, the competitive strength of, or market for, Flock’s products or services, such platform or system’s cost efficiency or performance, or (ii) to comply with applicable law.

Parties understand that such upgrades are necessary from time to time and will not diminish the quality of the services or materially change any terms or conditions within this Agreement.

2.5 Service Interruption. Services may be interrupted in the event that: (a) Flock’s provision of the Services to Customer or any Authorized End User is prohibited by applicable law; (b) any third-party services required for Services are interrupted; (c) if Flock reasonably believe Services are being used for malicious, unlawful, or otherwise unauthorized use; (d) there is a threat or attack on any of the Flock IP by a third party; or (e) scheduled or emergency maintenance (“Service Interruption”). Flock will make commercially reasonable efforts to provide written notice of any Service Interruption to Customer, to provide updates, and to resume providing access to Flock Services as soon as reasonably possible after the event giving rise to the Service Interruption is cured. Flock will have no liability for any damage, liabilities, losses (including any loss of data or profits), or any other consequences that Customer or any Authorized End User may incur as a result of a Service Interruption. To the extent that the Service Interruption is not caused by Customer’s direct actions or by the actions of parties associated with the Customer, the time will be tolled by the duration of the Service Interruption (for any continuous suspension lasting at least one full day). For example, in the event of a Service Interruption lasting five (5) continuous days, Customer will receive a credit for five (5) free days at the end of the Term.

2.6 Service Suspension. Flock may temporarily suspend Customer’s and any Authorized End User’s access to any portion or all of the Flock IP or Flock Service if (a) there is a threat or attack on any of the Flock IP by Customer; (b) Customer’s or any Authorized End User’s use of the Flock IP disrupts or poses a security risk to the Flock IP or any other customer or vendor of Flock; (c) Customer or any Authorized End User is/are using the Flock IP for fraudulent or illegal activities; (d) Customer has violated any term of this provision, including, but not limited to, utilizing Flock Services for anything other than the Permitted Purpose; or (e) any unauthorized access to Flock Services through Customer’s account (“Service Suspension”). Customer shall not be entitled to any remedy for the Service Suspension period, including any reimbursement, tolling, or credit. If the Service Suspension was not caused by Customer, the Term will be tolled by the duration of the Service Suspension.

2.7 Hazardous Conditions. Flock Services do not contemplate hazardous materials, or other hazardous conditions, including, without limit, asbestos, lead, toxic or flammable substances. In the event any such hazardous materials are discovered in the designated locations in which Flock is to perform services under this Agreement, Flock shall have the right to cease work immediately.

3. CUSTOMER OBLIGATIONS

3.1 Customer Obligations. Flock will assist Customer Authorized End Users in the creation of a User ID. Authorized End Users agree to provide Flock with accurate, complete, and updated registration information. Authorized End Users may not select as their User ID, a name that they do not have the right to use, or any other name with the intent of impersonation. Customer and Authorized End Users may not transfer their account to anyone else without prior written permission of Flock. Authorized End Users shall not share their account username or password information and must protect the security of the username and password. Unless otherwise stated and defined in this Agreement, Customer shall not designate Authorized End Users for persons who are not officers, employees, or agents of Customer. Authorized End Users shall only use Customer-issued email addresses for the creation of their User ID. Customer is responsible for any Authorized End User activity associated with its account. Customer shall ensure that Customer provides Flock with up to date contact information at all times during the Term of this agreement. Customer shall be responsible for obtaining and maintaining any equipment and ancillary services needed to connect to, access or otherwise use the Flock Services. Customer shall (at its own expense) provide Flock with reasonable access and use of Customer facilities and Customer personnel in order to enable Flock to perform Services (such obligations of Customer are collectively defined as “Customer Obligations”).

3.2 Customer Representations and Warranties. Customer represents, covenants, and warrants that Customer shall use Flock Services only in compliance with this Agreement and all applicable laws and regulations, including but not limited to any laws relating to the recording or sharing of data, video, photo, or audio content.

4. DATA USE AND LICENSING

4.1 Customer Data. As between Flock and Customer, all right, title and interest in the Customer Data, belong to and are retained solely by Customer. Customer hereby grants to Flock a limited, non-exclusive, royalty-free, irrevocable, worldwide license to use the Customer Data and perform all acts as may be necessary for Flock to provide the Flock Services to Customer. Flock does not own and shall not sell Customer Data.

4.2 Customer Generated Data. Flock may provide Customer with the opportunity to post, upload, display, publish, distribute, transmit, broadcast, or otherwise make available, messages,

text, illustrations, files, images, graphics, photos, comments, sounds, music, videos, information, content, ratings, reviews, data, questions, suggestions, or other information or materials produced by Customer (“Customer Generated Data”). Customer shall retain whatever legally cognizable right, title, and interest in Customer Generated Data. Customer understands and acknowledges that Flock has no obligation to monitor or enforce Customer’s intellectual property rights of Customer Generated Data. Customer grants Flock a non-exclusive, irrevocable, worldwide, royalty-free, license to use the Customer Generated Data for the purpose of providing Flock Services. Flock does not own and shall not sell Customer Generated Data.

4.3 Anonymized Data. Flock shall have the right to collect, analyze, and anonymize Customer Data and Customer Generated Data to the extent such anonymization renders the data nonidentifiable to create Anonymized Data to use and perform the Services and related systems and technologies, including the training of machine learning algorithms. Customer hereby grants Flock a non-exclusive, worldwide, perpetual, royalty-free right to use and distribute such Anonymized Data to improve and enhance the Services and for other development, diagnostic and corrective purposes, and other Flock offerings. Parties understand that the aforementioned license is required for continuity of Services. Flock does not own and shall not sell Anonymized Data.

5. CONFIDENTIALITY; DISCLOSURES

5.1 Confidentiality. To the extent required by any applicable public records requests, each Party (the “Receiving Party”) understands that the other Party (the “Disclosing Party”) has disclosed or may disclose business, technical or financial information relating to the Disclosing Party’s business (hereinafter referred to as “Proprietary Information” of the Disclosing Party).

Proprietary Information of Flock includes non-public information regarding features, functionality and performance of the Services. Proprietary Information of Customer includes non-public data provided by Customer to Flock or collected by Flock via Flock Services, which includes but is not limited to geolocation information and environmental data collected by sensors. The Receiving Party agrees: (i) to take the same security precautions to protect against disclosure or unauthorized use of such Proprietary Information that the Party takes with its own proprietary information, but in no event less than commercially reasonable precautions, and (ii) not to use (except in performance of the Services or as otherwise permitted herein) or divulge to any third person any

such Proprietary Information. The Disclosing Party agrees that the foregoing shall not apply with respect to any information that the Receiving Party can document (a) is or becomes generally available to the public; or (b) was in its possession or known by it prior to receipt from the Disclosing Party; or (c) was rightfully disclosed to it without restriction by a third party; or (d) was independently developed without use of any Proprietary Information of the Disclosing Party.

Nothing in this Agreement will prevent the Receiving Party from disclosing the Proprietary Information pursuant to any judicial or governmental order, provided that the Receiving Party gives the Disclosing Party reasonable prior notice of such disclosure to contest such order. At the termination of this Agreement, all Proprietary Information will be returned to the Disclosing Party, destroyed or erased (if recorded on an erasable storage medium), together with any copies thereof, when no longer needed for the purposes above, or upon request from the Disclosing Party, and in any case upon termination of the Agreement. Notwithstanding any termination, all confidentiality obligations of Proprietary Information that is trade secret shall continue in perpetuity or until such information is no longer trade secret.

5.2 Usage Restrictions on Flock IP. Flock and its licensors retain all right, title and interest in and to the Flock IP and its components, and Customer acknowledges that it neither owns nor acquires any additional rights in and to the foregoing not expressly granted by this Agreement.

Customer further acknowledges that Flock retains the right to use the foregoing for any purpose in Flock’s sole discretion. Customer and Authorized End Users shall not: (i) copy or duplicate any of the Flock IP; (ii) decompile, disassemble, reverse engineer, or otherwise attempt to obtain or perceive the source code from which any software component of any of the Flock IP is compiled or interpreted, or apply any other process or procedure to derive the source code of any software included in the Flock IP; (iii) attempt to modify, alter, tamper with or repair any of the Flock IP, or attempt to create any derivative product from any of the foregoing; (iv) interfere or attempt to interfere in any manner with the functionality or proper working of any of the Flock IP; (v) remove, obscure, or alter any notice of any intellectual property or proprietary right appearing on or contained within the Flock Services or Flock IP; (vi) use the Flock Services for anything other than the Permitted Purpose; or (vii) assign, sublicense, sell, resell, lease, rent, or otherwise transfer, convey, pledge as security, or otherwise encumber, Customer’s rights. There are no implied rights.

5.3 Disclosure of Footage. Subject to and during the Retention Period, Flock may access, use, preserve and/or disclose the Footage to law enforcement authorities, government officials, and/or third parties, if legally required to do so or if Flock has a good faith belief that such access, use, preservation or disclosure is reasonably necessary to comply with a legal process, enforce this Agreement, or detect, prevent or otherwise address security, privacy, fraud or technical issues, or emergency situations.

6. PAYMENT OF FEES

6.1 Billing and Payment of Fees. Customer shall pay the fees set forth in the applicable Order Form based on the billing structure and payment terms as indicated in the Order Form. If Customer believes that Flock has billed Customer incorrectly, Customer must contact Flock no later than thirty (30) days after the closing date on the first invoice in which the error or problem appeared to receive an adjustment or credit. Customer acknowledges and agrees that a failure to contact Flock within this period will serve as a waiver of any claim. If any undisputed fee is more than thirty (30) days overdue, Flock may, without limiting its other rights and remedies, suspend delivery of its service until such undisputed invoice is paid in full. Flock shall provide at least thirty (30) days’ prior written notice to Customer of the payment delinquency before exercising any suspension right.

6.2 Notice of Changes to Fees. Flock reserves the right to change the fees for subsequent Renewal Terms by providing sixty (60) days’ notice (which may be sent by email) prior to the end of the Initial Term or Renewal Term (as applicable).

6.3 Late Fees. If payment is not issued to Flock by the due date of the invoice, an interest penalty of 1.0% of any unpaid amount may be added for each month or fraction thereafter, until final payment is made.

6.4 Taxes. Customer is responsible for all taxes, levies, or duties, excluding only taxes based on Flock’s net income, imposed by taxing authorities associated with the order. If Flock has the legal obligation to pay or collect taxes, including amount subsequently assessed by a taxing authority, for which Customer is responsible, the appropriate amount shall be invoice to and paid by Customer unless Customer provides Flock a legally sufficient tax exemption certificate and Flock shall not charge customer any taxes from which it is exempt. If any deduction or

withholding is required by law, Customer shall notify Flock and shall pay Flock any additional amounts necessary to ensure that the net amount that Flock receives, after any deduction and withholding, equals the amount Flock would have received if no deduction or withholding had been required.

7. TERM AND TERMINATION

7.1 Term. The initial term of this Agreement shall be for the period of time set forth on the Order Form (the “Term”). Following the Term, unless otherwise indicated on the Order Form, this Agreement will automatically renew for successive renewal terms of the greater of one year or the length set forth on the Order Form (each, a “Renewal Term”) unless either Party gives the other Party notice of non-renewal at least thirty (30) days prior to the end of the then-current term.

7.2 Termination. Upon termination or expiration of this Agreement, Flock will remove any applicable Flock Hardware at a commercially reasonable time period. In the event of any material breach of this Agreement, the non-breaching Party may terminate this Agreement prior to the end of the Term by giving thirty (30) days prior written notice to the breaching Party; provided, however, that this Agreement will not terminate if the breaching Party has cured the breach prior to the expiration of such thirty (30) day period (“Cure Period”). Either Party may terminate this Agreement (i) upon the institution by or against the other Party of insolvency, receivership or bankruptcy proceedings, (ii) upon the other Party's making an assignment for the benefit of creditors, or (iii) upon the other Party's dissolution or ceasing to do business. In the event of a material breach by Flock, and Flock is unable to cure within the Cure Period, Flock will refund Customer a pro-rata portion of the pre-paid fees for Services not received due to such termination.

7.3 Survival. The following Sections will survive termination: 1, 3, 5, 6, 7, 8.3, 8.4, 9, 11.1 and

11.6.

8. REMEDY FOR DEFECT; WARRANTY AND DISCLAIMER

8.1 Manufacturer Defect. Upon a malfunction or failure of Flock Hardware or Embedded Software (a “Defect”), Customer must notify Flock’s technical support team. In the event of a Defect, Flock shall make a commercially reasonable attempt to repair or replace the defective Flock Hardware at no additional cost to the Customer. Flock reserves the right, in its sole discretion, to repair or replace such Defect, provided that Flock shall conduct inspection or testing within a commercially reasonable time, but no longer than seven (7) business days after Customer gives notice to Flock.

8.2 Replacements. In the event that Flock Hardware is lost, stolen, or damaged, Customer may request a replacement of Flock Hardware at a fee according to the reinstall fee schedule (https://www.flocksafety.com/reinstall-fee-schedule). In the event that Customer chooses not to replace lost, damaged, or stolen Flock Hardware, Customer understands and agrees that (1) Flock Services will be materially affected, and (2) that Flock shall have no liability to Customer regarding such affected Flock Services, nor shall Customer receive a refund for the lost, damaged, or stolen Flock Hardware.

8.3 Warranty. Flock shall use reasonable efforts consistent with prevailing industry standards to maintain the Services in a manner which minimizes errors and interruptions in the Services and shall perform the Installation Services in a professional and workmanlike manner. Services may be temporarily unavailable for scheduled maintenance or for unscheduled emergency maintenance, either by Flock or by third-party providers, or because of other causes beyond Flock’s reasonable control, but Flock shall use reasonable efforts to provide advance notice in writing or by e-mail of any scheduled service disruption.

8.4 Disclaimer. THE REMEDY DESCRIBED IN SECTION 8.1 ABOVE IS CUSTOMER’S SOLE REMEDY, AND FLOCK’S SOLE LIABILITY, WITH RESPECT TO DEFECTS.

FLOCK DOES NOT WARRANT THAT THE SERVICES WILL BE UNINTERRUPTED OR ERROR FREE; NOR DOES IT MAKE ANY WARRANTY AS TO THE RESULTS THAT MAY BE OBTAINED FROM USE OF THE SERVICES. EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION, THE SERVICES ARE PROVIDED “AS IS” AND FLOCK

DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT

LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A

PARTICULAR PURPOSE AND NON-INFRINGEMENT. THIS DISCLAIMER ONLY

APPLIES TO THE EXTENT ALLOWED BY THE GOVERNING LAW OF THE STATE MENTIONED IN SECTION 11.6.

8.5 Insurance. Flock will maintain commercial general liability policies as stated in Exhibit B.

8.6 Force Majeure. Parties are not responsible or liable for any delays or failures in performance from any cause beyond their control, including, but not limited to acts of God, changes to law or regulations, embargoes, war, terrorist acts, pandemics (including the spread of variants), issues of national security, acts or omissions of third-party technology providers, riots, fires, earthquakes, floods, power blackouts, strikes, supply chain shortages of equipment or supplies, financial institution crisis, weather conditions or acts of hackers, internet service providers or any other third party acts or omissions.

9. LIMITATION OF LIABILITY; INDEMNITY

9.1 Limitation of Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY,

FLOCK, ITS OFFICERS, AFFILIATES, REPRESENTATIVES, CONTRACTORS AND

EMPLOYEES SHALL NOT BE RESPONSIBLE OR LIABLE WITH RESPECT TO ANY

SUBJECT MATTER OF THIS AGREEMENT OR TERMS AND CONDITIONS RELATED

THERETO UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCT LIABILITY, OR OTHER THEORY: (A) FOR LOSS OF REVENUE, BUSINESS OR BUSINESS INTERRUPTION; (B) INCOMPLETE, CORRUPT, OR INACCURATE DATA; (C) COST OF PROCUREMENT OF SUBSTITUTE GOODS, SERVICES OR TECHNOLOGY; (D)

FOR ANY INDIRECT, EXEMPLARY, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES; (E) FOR ANY MATTER BEYOND FLOCK’S ACTUAL KNOWLEDGE OR

REASONABLE CONTROL INCLUDING REPEAT CRIMINAL ACTIVITY OR INABILITY TO CAPTURE FOOTAGE; OR (F) FOR ANY AMOUNTS THAT, TOGETHER WITH

AMOUNTS ASSOCIATED WITH ALL OTHER CLAIMS, EXCEED THE FEES PAID

AND/OR PAYABLE BY CUSTOMER TO FLOCK FOR THE SERVICES UNDER THIS AGREEMENT IN THE TWELVE (12) MONTHS PRIOR TO THE ACT OR OMISSION THAT

GAVE RISE TO THE LIABILITY, IN EACH CASE, WHETHER OR NOT FLOCK HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS LIMITATION OF

LIABILITY OF SECTION ONLY APPLIES TO THE EXTENT ALLOWED BY THE GOVERNING LAW OF THE STATE REFERENCED IN SECTION 10.6.

NOTWITHSTANDING ANYTHING TO THE CONTRARY, THE FOREGOING

LIMITATIONS OF LIABILITY SHALL NOT APPLY (I) IN THE EVENT OF GROSS

NEGLIGENCE OR WILLFUL MISCONDUCT, OR (II) INDEMNIFICATION OBLIGATIONS.

9.2 Responsibility. Each Party to this Agreement shall assume the responsibility and liability for the acts and omissions of its own employees, officers, or agents, in connection with the performance of their official duties under this Agreement. Each Party to this Agreement shall be liable for the torts of its own officers, agents, or employees.

9.3 Flock Indemnity. Flock shall indemnify and hold harmless Customer, its agents and employees, from liability of any kind, including claims, costs (including defense) and expenses, on account of: (i) any copyrighted material, patented or unpatented invention, articles, device or appliance manufactured or used in the performance of this Agreement; or (ii) any damage or injury to property or person directly caused by Flock’s installation of Flock Hardware, except for where such damage or injury was caused solely by the negligence of the Customer or its agents, officers or employees. Flock’s performance of this indemnity obligation shall not exceed the fees paid and/or payable for the services rendered under this Agreement in the preceding twelve (12) months.

10. INSTALLATION SERVICES AND OBLIGATIONS

10.1 Ownership of Hardware. Flock Hardware is owned and shall remain the exclusive property of Flock. Title to any Flock Hardware shall not pass to Customer upon execution of this Agreement, except as otherwise specifically set forth in this Agreement. Except as otherwise expressly stated in this Agreement, Customer is not permitted to remove, reposition, re-install, tamper with, alter, adjust or otherwise take possession or control of Flock Hardware. Customer agrees and understands that in the event Customer is found to engage in any of the foregoing restricted actions, all warranties herein shall be null and void, and this Agreement shall be subject to immediate termination for material breach by Customer. Customer shall not perform any acts which would interfere with the retention of title of the Flock Hardware by Flock. Should Customer default on any payment of the Flock Services, Flock may remove Flock Hardware at

Flock’s discretion. Such removal, if made by Flock, shall not be deemed a waiver of Flock’s rights to any damages Flock may sustain as a result of Customer’s default and Flock shall have the right to enforce any other legal remedy or right.

10.2 Deployment Plan. Flock shall advise Customer on the location and positioning of the Flock Hardware for optimal product functionality, as conditions and locations allow. Flock will collaborate with Customer to design the strategic geographic mapping of the location(s) and implementation of Flock Hardware to create a deployment plan (“Deployment Plan”). In the event that Flock determines that Flock Hardware will not achieve optimal functionality at a designated location, Flock shall have final discretion to veto a specific location, and will provide alternative options to Customer.

10.3 Changes to Deployment Plan. After installation of Flock Hardware, any subsequent requested changes to the Deployment Plan, including, but not limited to, relocating, repositioning, adjusting of the mounting, removing foliage, replacement, changes to heights of poles will incur a fee according to the reinstall fee schedule located at (https://www.flocksafety.com/reinstall-fee-schedule). Customer will receive prior notice and confirm approval of any such fees.

10.4 Customer Installation Obligations. Customer is responsible for any applicable supplementary cost as described in the Customer Implementation Guide, attached hereto as Exhibit C (“Customer Obligations”). Customer represents and warrants that it has, or shall lawfully obtain, all necessary right title and authority and hereby authorizes Flock to install the Flock Hardware at the designated locations and to make any necessary inspections or maintenance in connection with such installation.

10.5 Flock’s Obligations. Installation of any Flock Hardware shall be installed in a professional manner within a commercially reasonable time from the Effective Date of this Agreement. Upon removal of Flock Hardware, Flock shall restore the location to its original condition, ordinary wear and tear excepted. Flock will continue to monitor the performance of Flock Hardware for the length of the Term. Flock may use a subcontractor or third party to perform certain obligations under this agreement, provided that Flock’s use of such subcontractor or third party shall not release Flock from any duty or liability to fulfill Flock’s obligations under this Agreement.

11. MISCELLANEOUS

11.1 Compliance With Laws. Parties shall comply with all applicable local, state and federal laws, regulations, policies and ordinances and their associated record retention schedules, including responding to any subpoena request(s).

11.2 Severability. If any provision of this Agreement is found to be unenforceable or invalid, that provision will be limited or eliminated to the minimum extent necessary so that this Agreement will otherwise remain in full force and effect.

11.3 Assignment. This Agreement is not assignable, transferable or sublicensable by either Party, without prior consent. Notwithstanding the foregoing, either Party may assign this Agreement, without the other Party's consent, (i) to any parent, subsidiary, or affiliate entity, or (ii) to any purchaser of all or substantially all of such Party's assets or to any successor by way of merger, consolidation or similar transaction.

11.4 Entire Agreement. This Agreement, together with the Order Form(s), the reinstall fee schedule (https://www.flocksafety.com/reinstall-fee-schedule), and any attached exhibits are the complete and exclusive statement of the mutual understanding of the Parties and supersedes and cancels all previous or contemporaneous negotiations, discussions or agreements, whether written and oral , communications and other understandings relating to the subject matter of this Agreement, and that all waivers and modifications must be in a writing signed by both Parties, except as otherwise provided herein. None of Customer’s purchase orders, authorizations or similar documents will alter the terms of this Agreement, and any such conflicting terms are expressly rejected. Any mutually agreed upon future purchase order is subject to these legal terms and does not alter the rights and obligations under this Agreement, except that future purchase orders may outline additional products, services, quantities and billing terms to be mutually accepted by Parties. In the event of any conflict of terms found in this Agreement or any other terms and conditions, the terms of this Agreement shall prevail. Customer agrees that Customer’s purchase is neither contingent upon the delivery of any future functionality or features nor dependent upon any oral or written comments made by Flock with respect to future functionality or feature.

11.5 Relationship. No agency, partnership, joint venture, or employment is created as a result of this Agreement and Parties do not have any authority of any kind to bind each other in any respect whatsoever. Flock shall at all times be and act as an independent contractor to Customer.

11.6 Governing Law; Venue. This Agreement shall be governed by the laws of the state in which the Customer is located. The Parties hereto agree that venue would be proper in the chosen courts of the State of which the Customer is located. The Parties agree that the United Nations Convention for the International Sale of Goods is excluded in its entirety from this Agreement.

11.7 Special Terms. Flock may offer certain special terms which are indicated in the proposal and will become part of this Agreement, upon Customer’s prior written consent and the mutual execution by authorized representatives (“Special Terms”). To the extent that any terms of this Agreement are inconsistent or conflict with the Special Terms, the Special Terms shall control.

11.8 Publicity. Flock has the right to reference and use Customer’s name and trademarks and disclose the nature of the Services in business and development and marketing efforts.

11.9 Feedback. If Customer or Authorized End User provides any suggestions, ideas, enhancement requests, feedback, recommendations or other information relating to the subject matter hereunder, Agency or Authorized End User hereby assigns to Flock all right, title and interest (including intellectual property rights) with respect to or resulting from any of the foregoing.

11.10 Export. Customer may not remove or export from the United States or allow the export or re-export of the Flock IP or anything related thereto, or any direct product thereof in violation of any restrictions, laws or regulations of the United States Department of Commerce, the United States Department of Treasury Office of Foreign Assets Control, or any other United States or foreign Customer or authority. As defined in Federal Acquisition Regulation (“FAR”), section

2.101, the Services, the Flock Hardware and Documentation are “commercial items” and according to the Department of Defense Federal Acquisition Regulation (“DFAR”) section 252.2277014(a)(1) and are deemed to be “commercial computer software” and “commercial computer software documentation.” Flock is compliant with FAR Section 889 and does not contract or do business with, use any equipment, system, or service that uses the enumerated banned Chinese telecommunication companies, equipment or services as a substantial or essential component of any system, or as critical technology as part of any Flock system. Consistent with DFAR section 227.7202 and FAR section 12.212, any use, modification, reproduction, release, performance, display, or disclosure of such commercial software or commercial software documentation by the U.S. Government will be governed solely by the terms of this Agreement and will be prohibited except to the extent expressly permitted by the terms of this Agreement.

11.11 Headings. The headings are merely for organization and should not be construed as adding meaning to the Agreement or interpreting the associated sections.

11.12 Authority. Each of the below signers of this Agreement represent that they understand this Agreement and have the authority to sign on behalf of and bind the Parties they are representing.

11.13 Conflict. In the event there is a conflict between this Agreement and any applicable statement of work, or Customer purchase order, this Agreement controls unless explicitly stated otherwise.

11.14 Morality. In the event Customer or its agents become the subject of an indictment, contempt, scandal, crime of moral turpitude or similar event that would negatively impact or tarnish Flock’s reputation, Flock shall have the option to terminate this Agreement upon prior written notice to Customer.

11.15 Notices. All notices under this Agreement will be in writing and will be deemed to have been duly given when received, if personally delivered; when receipt is electronically confirmed, if transmitted by email; the day after it is sent, if sent for next day delivery by recognized overnight delivery service; and upon receipt to the address listed on the Order Form (or, if different, below), if sent by certified or registered mail, return receipt requested.

11.16 Non-Appropriation. Notwithstanding any other provision of this Agreement, all obligations of the Customer under this Agreement which require the expenditure of funds are conditioned on the availability of funds appropriated for that purpose. Customer shall have the right to terminate this Agreement for non appropriation with thirty (30) days written notice without penalty or other cost.

FLOCK NOTICES ADDRESS:
1170 HOWELL MILL ROAD, NW SUITE 210
ATLANTA, GA 30318
ATTN: LEGAL DEPARTMENT
EMAIL: [email protected]
Customer NOTICES ADDRESS:

ADDRESS:

ATTN:

EMAIL:

EXHIBIT B

INSURANCE
Required Coverage. Flock shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the services under this Agreement and the results of that work by Flock or its agents, representatives, employees or subcontractors. Insurance shall be placed with insurers with a current A. M. Best rating of no less than “A” and “VII”. Flock shall obtain and, during the term of this Agreement, shall maintain policies of professional liability (errors and omissions), automobile liability, and general liability insurance for insurable amounts of not less than the limits listed herein. The insurance policies shall provide that the policies shall remain in full force during the life of the Agreement. Flock shall procure and shall maintain during the life of this Agreement Worker's Compensation insurance as required by applicable State law for all Flock employees.

Types and Amounts Required. Flock shall maintain, at minimum, the following insurance coverage for the duration of this Agreement:
(i) Commercial General Liability insurance written on an occurrence basis with minimum limits of One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) in the aggregate for bodily injury, death, and property damage, including personal injury, contractual liability, independent contractors, broad-form property damage, and product and completed operations coverage;
(ii) Umbrella or Excess Liability insurance written on an occurrence basis with minimum limits of Ten Million Dollars ($10,000,000) per occurrence and Ten Million Dollars ($10,000,000) in the aggregate;
(iii) Professional Liability/Errors and Omissions insurance with minimum limits of Five Million Dollars ($5,000,000) per occurrence and Five Million Dollars ($5,000,000) in the aggregate;
(iv) Commercial Automobile Liability insurance with a minimum combined single limit of One Million Dollars ($1,000,000) per occurrence for bodily injury, death, and property coverage, including owned and non-owned and hired automobile coverage; and

(v) Cyber Liability insurance written on an occurrence basis with minimum limits of Five Million Dollars ($5,000,000).

Agenda Item Staff Report
To: Honorable Mayor and Members of City Council
For the Meeting of December 12, 2023
From: Chris Constantin, City Manager
Prepared by: Jonathan Marin, IS/IT Analyst
Subject: Approve an Agreement with the University of La Verne for the Operation of the City’s Government/Education Access Channel, KWST at an Annual Cost of $98,000 with Annual Escalator of 3% Per Year for a Period of Up to Three Years
____________________________________________________________________________

SUMMARY
The City seeks to renew its agreement with the University of La Verne for the operation of the San Dimas Cable Television Community Access Channel, KWST, the City's Government/Education access channel. Staff supports the ongoing arrangement and recommends that the Council approve and authorize the agreement.

RECOMMENDATION
Staff recommends that the City Council:

1. Approve the agreement with the University of La Verne for the San Dimas cable television community access channel, KWST.

2. Authorize the City Manager or designee to enter into a one-year agreement with two optional one-year extensions for services at the annual cost of $98,000 with an annual escalator of 3% per year.

FISCAL IMPACT
The fiscal impact will result in an increase from the expiring contract amount of $95,006 to $98,000. The new agreement represents a 3.15% rise from the agreement fulfilled in November 2020, set to end in December 2023. The proposed agreement of $98,000 includes an annual 3% escalator per year. The proposed amount is appropriated in the Public Access Contract Assistance fund (001.4190.020.006).

BACKGROUND

Agreement with University of La Verne for the operation of the City’s Access Channel Page 2 For the Meeting of December 12, 2023
The City of San Dimas has engaged the services of the University of La Verne’s Communication Department (ULV) to operate the San Dimas Cable Television Community Access Channel, KWST, since January 2009. Since then, the agreement has been extended or renewed. The existing agreement is a one-year term with two optional one-year extensions, set to conclude on December 31st, 2023.

The University of La Verne Communication Department (ULV) manages, operates, and provides program content development for the City’s access channel. KWST has viewers on Spectrum cable channel 3, YouTube, and the San Dimas website streaming platform, CASTUS TV. KWST broadcasts San Dimas City Council Meetings, City events, and school football games in San Dimas. ULV creates and schedules a daily programming lineup of video content, KWST website and social media posting, and video editing of event shoots. They also provide a community bulletin board for city news, events, and activities.

DISCUSSION/ANALYSIS
The City collects a Public, Educational, and Governmental Access Channel (PEG) fee from all cable subscribers in the City to support the access channel. It is anticipated that the total amount collected this year will be $75,000. This fee is used to offset a portion of the contract amount with ULV, as well as for the purchase of equipment to support the channel. The balance of the contract amount for ULV comes from the General Fund.

The proposed agreement will employ a Station Manager for 20 hours per week and a PEG Access Coordinator/Producer for 30 hours per week to support the channel. The annual program will consist of live broadcasts of City Council meetings, along with ten (10) city events per year, including the Mayor’s annual State of the City, Music in the Park, Holiday Extravaganza, and more. Should additional events outside the scope of the agreement be needed to be filmed or broadcast, ULV would charge $40 per hour per person with equipment costs.

The Station Manager and PEG Access Coordinator/Producer will continue to provide the following scope of work:
• Purchase, store, and maintain the security of community access equipment and supplies inventory.
• Produce governmental programs as requested or authorized by the City (a list of the minimum annual programs is listed below).
• Provide KWST Channel 3 information on the Internet with links to the City's website that provides easy access to programming schedules, community access resources, and other community information of interest to residents.

In addition to the above-listed duties to be performed by the Station Manager, ULV shall perform the following functions:
• Perform the daily cable casting playout function between the hours of 2:00 p.m. and 10:00 p.m. throughout the year.
• Operate and maintain the KWST Channel 3 community message board.

Agreement with University of La Verne for the operation of the City’s Access Channel Page 3 For the Meeting of December 12, 2023
• Develop and distribute the KWST Channel 3 programming schedule on the community message board and on the KWST website.
• Maintain an up-to-date inventory listing of all publicly owned KWST equipment and supplies, to be submitted to the City Finance office as changes are made. • Prepare annual reports of KWST operations.
• Acquire technical equipment for the operation of the community access channel, with prior approval of the City Manager or designee.
• Maintain the KWST website.
• Coordinate with San Dimas High School to utilize student volunteers and/or student programming.

ALTERNATIVES
The City Council can choose not to approve the renewal of the ULV contract. In such a case, staff would research and review options on how best to provide Audio/Video production and management. However, ULV has been managing KWST since 2009 and has knowledge and expertise in the production of our channel.

ENVIRONMENTAL REVIEW
Pursuant to CEQA guidelines Section 15061 (b)(3), CEQA does not apply to this item because there is no potential for causing a significant effect on the environment. Therefore, no additional environmental review is needed at this time.

Respectfully submitted,
Jonathan Marin
IS/IT Analyst
Attachments:

1. Proposed Agreement with the University of La Verne

Rev. 06/22 Page 1 of 19 Professional Service Agreement

PROFESSIONAL SERVICE AGREEMENT
This professional service agreement (“Agreement”), is made and effective as of ___________, between the City of San Dimas ("Agency"), a municipal corporation, and the University of La Verne (“University”), REGARDING OPERATION OF THE SAN DIMAS CABLE TELEVISION COMMUNITY ACCESS CHANNEL, KWST. In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

I. TERM
This Agreement shall commence on January 1, 2024 and shall remain and continue in effect for a period of one year through December 31, 2024 with an additional twoyear extension through December 31, 2026, unless sooner terminated pursuant to the provisions of this Agreement.

II. SERVICES
University shall perform the tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. University shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A. To the extent that Exhibit A is a proposal from University, such proposal is incorporated only for the description of the scope of services and no other terms and conditions from any such proposal shall apply to this Agreement unless specifically agreed to in writing.

III. PERFORMANCE
University shall at all times faithfully, competently, and to the best of their ability, experience, and talent, perform all tasks described herein. University shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of University hereunder in meeting its obligations under this Agreement.

IV. AGENCY REPRESENTATIVE
Agency’s City Manager shall represent Agency in all matters pertaining to the administration of this Agreement, review and approve all products submitted by University, but not including the authority to enlarge the Scope of Work or change the compensation due to University. Agency’s City Manager shall be authorized to act on Agency's behalf and to execute all necessary documents which enlarge the Scope of Work or change University's compensation, subject to Section V hereof.

V. PAYMENT
A. The Agency agrees to pay University in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit B, attached hereto and ATTACHMENT 1

Rev. 06/22 Page 2 of 19 Professional Service Agreement
incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. This amount shall not exceed $98,000 for the total base term of the Agreement (January 1, 2024 through December 31, 2024) unless additional payment is approved as provided in this Agreement.

B. University shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the Agency City Manager. University shall be compensated for any additional services in the amounts and in the manner as agreed to by Agency City Manager and University at the time Agency's written authorization is given to University for the performance of said services.

VI. TERMINATION OF AGREEMENT
A. Except as otherwise provided herein below, either party may terminate this Agreement, or any portion hereof, by serving written notice of termination upon the other party at least ninety (90) days prior to the date of termination. Upon receipt of said notice, the University shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the Agency terminates a portion of this Agreement, such termination shall not make void or invalidate the remainder of this Agreement.

B. IIn the event this Agreement is terminated pursuant to this section, the University shall refund to Agency the pro-rated amount reflecting the portion of the sixmonth payment period that no work will be performed. (For example, if termination is effective on May 1, 2024, University shall refund $16,333 to Agency. [$49,000 / 3]) Upon termination of the Agreement pursuant to this section, the Agency will submit an invoice to the University for the refund amount due.

VII. DEFAULT
A. Either party's failure to comply with the provisions of this Agreement shall constitute a default. In the event that either party is in default for cause under the terms of this Agreement, the affected party shall promptly notify the deficient party of such default and following such notice shall have no obligation or duty to continue compensating or providing any work after the date of default and can terminate this Agreement immediately by written notice to the other party. If such failure hereunder arises out of causes beyond either party’s control, and without fault or negligence, it shall not be considered a default.

B. If the Agency City Manager determines the University is in default in the performance of any of the terms or conditions of this Agreement, Agency shall cause to be served upon the University a written notice of the default. The University shall have ten (10) days after service of default notice to cure the default as directed by the Agency in the notice of default. In the event the

Rev. 06/22 Page 3 of 19 Professional Service Agreement
University fails to cure its default within such period of time, the Agency shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement, including a refund of any payment made to University for work not completed.

VIII. OWNERSHIP OF DOCUMENTS
A. University shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by Agency that relate to the performance of services under this Agreement. University shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. University shall provide free access to the Agency at reasonable times to such books and records; shall give Agency the right to examine and audit said books and records; shall permit Agency to make transcripts or copies therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement.

Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment.

B. Upon completion of, or in the event of termination of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the Agency and may be used, reused, or otherwise disposed of by the Agency without the permission of the University. With respect to computer files, University shall make available to the Agency, at the University's office and upon reasonable written request by the Agency, the necessary computer software and hardware for purposes of accessing, compiling, transferring, copying and/or printing computer files. University hereby grants to Agency all right, title, and interest, including any copyright, in and to the documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared by University in the course of providing the services under this Agreement.

IX. INDEMNIFICATION AND DEFENSE
A. Mutual Indemnification and Hold Harmless between the parties of this agreement.

To the fullest extent permitted by law, University shall indemnify and hold harmless Agency and any and all of its officials, employees, agents, and/or volunteers (“Indemnified Parties”) from and against any and all losses, liabilities, damages, costs, and expenses, including attorney’s fees and costs, caused in whole or in part by the negligent or wrongful act, error or omission of University,

Rev. 06/22 Page 4 of 19 Professional Service Agreement
its officers, agents, employees or subconsultants (or any agency or individual that University shall bear the legal liability thereof) in the performance of services under this Agreement. University’s duty to indemnify and hold harmless Agency shall not extend to the Agency’s sole or active negligence or willful misconduct.

City agrees to indemnify, defend, and hold harmless University, its officers, agents and employees against any claim, liability, loss, injury or damage imposed on University arising out of City's negligent or wrongful performance of this Agreement, except for liability resulting from the negligent or willful misconduct of University, its officers, agents and employees. City shall reimburse University for costs, attorney's fees, expenses and liabilities associated with this agreement but only in proportion to and to the extent such liability, loss, expense, attorneys' fees, or claims for injury or damages are caused by or result from the negligent or willful misconduct of City, its officers, employees or agents. City shall seek University's approval of any settlement that could adversely affect University, its officers, agents or employees.

B. Duty to defend
In the event the Indemnified Parties, individually or collectively, are made a party to any action, lawsuit, or other adversarial proceeding arising from the performance of the services encompassed by this Agreement, and upon demand by Agency, University shall defend the Indemnified Parties at University’s cost or at Agency’s option, to reimburse Agency for its costs of defense, including reasonable attorney’s fees and costs incurred in the defense of such matters to the extent the matters arise from, relate to or are caused by University’s negligent acts, errors or omissions. Payment by Agency is not a condition precedent to enforcement of this provision. In the event of any dispute between University and Agency, as to whether liability arises from the sole or active negligence or willful misconduct of the Agency or its officers, employees, or agents, University will be obligated to pay for Agency’s defense until such time as a final judgment has been entered adjudicating the Indemnified Parties as solely or actively negligent or to have acted with willful misconduct. University will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees, and costs of litigation.

X. INSURANCE
University shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit C attached herewith and incorporated herein by this reference as though set forth in full.

XI. INDEPENDENT CONTRACTOR
A. University is and shall at all times remain as to the Agency a wholly independent contractor. The personnel performing the services under this Agreement on

Rev. 06/22 Page 5 of 19 Professional Service Agreement
behalf of University shall at all times be under University's exclusive direction and control. Neither Agency nor any of its officers, employees, or agents shall have control over the conduct of University or any of University's officers, employees, or agents, except as set forth in this Agreement. University shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the Agency. University shall not incur or have the power to incur any debt, obligation, or liability whatever against Agency, or bind Agency in any manner.

B. No employee benefits shall be available to University in connection with the performance of this Agreement. Except for the fees paid to University as provided in the Agreement, Agency shall not pay salaries, wages, or other compensation to University and/or its employees for performing services hereunder for Agency. Agency shall not be liable for compensation or indemnification to University for injury or sickness to its employee(s) arising out of performing services hereunder.

XII. LEGAL RESPONSIBILITIES
The University shall keep itself informed of local, state, and federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The University shall at all times observe and comply with all such laws and regulations. The Agency, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the University to comply with this section.

XIII. UNDUE INFLUENCE
University declares and warrants that no undue influence or pressure was used against or in concert with any officer or employee of the Agency in connection with the award, terms, or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the Agency has or will receive compensation, directly or indirectly, from University, or from any officer, employee, or agent of University, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this section shall be a material breach of this Agreement entitling the Agency to any and all remedies at law or in equity.

XIV. NO BENEFIT TO ARISE TO AGENCY EMPLOYEES
During their tenure and for one year thereafter, no member, officer, or employee of Agency, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the services under this Agreement shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the services performed under this Agreement.

Rev. 06/22 Page 6 of 19 Professional Service Agreement
XV. RELEASE OF INFORMATION/CONFLICTS OF INTEREST
A. All information gained by University in performance of this Agreement shall be considered confidential and shall not be released by University without Agency's prior written authorization. University, its officers, employees, agents, or subconsultants, shall not without written authorization from the Agency City Manager or unless requested by the Agency, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located within the Agency. Response to a subpoena or court order shall not be considered "voluntary" provided University gives Agency notice of such court order or subpoena.

B. University shall promptly notify Agency should University, its officers, employees, agents, or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request (“Discovery”), court order, or subpoena from any person or party regarding this Agreement and the work performed thereunder or with respect to any project or property located within the Agency, unless the Agency is a party to any lawsuit, arbitration, or administrative proceeding connected to such Discovery, or unless University is prohibited by law from informing the Agency of such Discovery. Agency retains the right, but has no obligation, to represent University and/or be present at any deposition, hearing, or similar proceeding as allowed by law. Unless Agency is a party to the lawsuit, arbitration, or administrative proceeding and is adverse to University in such proceeding, University agrees to cooperate fully with Agency and to provide the opportunity to review any response to Discovery requests provided by University. However, Agency's right to review any such response does not imply or mean the right by Agency to control, direct, or rewrite said response.

XVI. NOTICES
Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given either by: (i) personal service; (ii) delivery by a reputable document delivery service (e.g., Federal Express), which provides a receipt showing date and time of delivery; or (iii) United States mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice:

To AGENCY: City of San Dimas
245 E Bonita Ave.

San Dimas, CA 91773
Attention: City Clerk
To University: University of La Verne
1950 Third St

Rev. 06/22 Page 7 of 19 Professional Service Agreement
La Verne, CA 91750
Attention: Avo Kechichian, Vice President
Administration & Finance, Chief Financial Officer
XVII. ASSIGNMENT
A. University shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the Agency. Due to the personal nature of the services to be rendered pursuant to this Agreement, only University shall perform the services described in this Agreement.

B. Before retaining or contracting with any subconsultant for any services under this Agreement, University shall provide Agency with the identity of the proposed subconsultant, a copy of the proposed written contract between University and such subconsultant which shall include an indemnity provision identical to the one provided herein identifying Agency as an indemnified party, or an incorporation of the indemnity provision provided herein, and proof that such proposed subconsultant carries insurance at least equal to that required by this Agreement or obtain a written waiver from Agency for such insurance.

C. The University may use assistants, under their direct supervision, to perform some of the services under this Agreement. University shall provide Agency fourteen (14) days' notice prior to the departure of University from University's employ. Should University leave University's employ, the Agency shall have the option to immediately terminate this Agreement, within three (3) days of the close of said notice period. Upon termination of this Agreement, University's sole compensation shall be payment for actual services performed up to, and including, the date of termination or as may be otherwise agreed to in writing between the Governing Board and the University.

XVIII. LICENSES
At all times during the term of this Agreement, University shall have in full force and effect, all licenses required of it by law for the performance of the services described in this Agreement.

XIX. GOVERNING LAW
The Agency and University understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior, or federal district court with jurisdiction over the Agency.

XX. ENTIRE AGREEMENT

Rev. 06/22 Page 8 of 19 Professional Service Agreement
This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written and pertaining to the subject of this Agreement or with respect to the terms and conditions of this Agreement, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material.

XXI. SEVERABILITY
Any part, provision, or representation of this Agreement or any of its exhibits, including, but not limited to Exhibit C, which is held to be invalid, void or unenforceable by a court of competent jurisdiction, shall be limited to that part, provision or representation and all other parts, provisions, or representations herein shall remain in full force and effect.

XXII. AUTHORITY TO EXECUTE THIS AGREEMENT
The person or persons executing this Agreement on behalf of University warrants and represents that they have the authority to execute this Agreement on behalf of the University and have the authority to bind University to the performance of its obligations hereunder.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written.

University of La Verne
By:
(Signature)
(Typed Name)
(Title)
City of San Dimas
A Municipal Corporation
Chris Constantin, City Manager
VP Administration & Finance / CFO Avo Kechichian

Rev. 06/22 Page 9 of 19 Professional Service Agreement
ATTEST:

Debra Black, City Clerk
APPROVED AS TO FORM:

City Attorney
By:

Attachments: Exhibit A Tasks to Be Performed
Exhibit B Payment Schedule
Exhibit C Insurance Requirements

Rev. 06/22 Page 10 of 20 Design Professional Service Agreement

EXHIBIT A

TASKS TO BE PERFORMED
University is obligated to provide the necessary specialized technical expertise and human resources for the operation of the community access channel, known as KWST, in accordance with the Scope of Work detailed in this Exhibit.

University of La Verne (University) will employ a Station Manager and Producer who will:
 Purchase, store, and maintain security of community access equipment and supplies inventory;
 produce governmental programs as requested or authorized by the City (a list of the minimum annual programs is listed below); and
 provide KWST Channel 3 information on the Internet with links to the City's web site that provides easy access to programming schedules, community access resources and other community information of interest to residents.

In addition to the above listed duties to be performed by Station Manager, the University shall perform the following functions:

1. Perform daily cable casting playout function between the hours of 2:00 p.m. and 10:00 p.m., throughout the year;

2. Operate and maintain the KWST Channel 3 community message board;

3. Develop and distribute the KWST Channel 3 programming schedule on the community message board and on the KWST website;

4. Maintain an up-to-date inventory listing of all publicly owned KWST equipment and supplies to be submitted to the City Finance office as changes are made

5. Prepare annual reports of KWST operations;

6. Acquire technical equipment for the operation of the community access channel, with prior approval of the City Manager or designee;

7. Maintain the KWST website; and

8. Coordinate with San Dimas High School in an effort to utilize student volunteers and/or student programming.

Rev. 06/22 Page 11 of 20 Design Professional Service Agreement Minimum Annual Programs
(The list of programs and events may be adjusted, eliminating and adding like program for like program, at the mutual agreement of both parties)
 City Council Meetings - Live broadcast on the second and fourth Tuesdays of each month at 7:00 p.m. for a duration of approximately 1.5 to 4hours. In addition up to three (3) special meetings per year.
 Community outreach videos with the City Mayor at date and times to be determined.

As well ten (10) events per year, including
• Mayor’s annual State of the City
• Music in the Park
• Holiday Parade/Extravaganza
• Smudgepot Football Game
• All Candidate Forums
In addition, other events of community interest and import will be filmed/broadcast as time and funding allows. For additional production work not in the scope of our contract KWST would charge $40 per hour per person and equipment needed.

Other Services
The University may provide additional services, including the recording and broadcast of other programs or events, upon the written request of the City Manager's office, providing an agreement is established for a fee to compensate for the additional services.

Budget Information
Personnel Costs
Funds will support supplemental salary for the Station Manager (20 hours per week), as well as hourly wages for the PEG Access Coordinator/Producer 30 hours per week), and related fringe benefits for these positions.

Rates of pay and fringe benefits are budgeted in accordance with University of La Verne policy.

Non-personnel costs
These costs may include the following:
 DVDs and DVD supplies
 DVD recorders/duplicators
 Computer software/hardware

Rev. 06/22 Page 12 of 20 Design Professional Service Agreement  Stationary/postage/office supplies
 Video supplies (camera cards, batteries, chargers)
 Music license fee
 Crew food
 Small equipment purchases
 Equipment maintenance
 Membership dues
 Regional conference travel

Rev. 06/22 Page 13 of 20 Design Professional Service Agreement

EXHIBIT B

PAYMENT SCHEDULE
The base year (2024) agreement amount is set at
$98,000, with annual escalators of 3% in subsequent
calendar years.

Payment terms are as follows:
• January 15, 2024 - $49,000
• July 15, 2024 - $49,000
Payments should be mailed to:

University of La Verne
Attn: Office of the CFO
1950 Third Street
La Verne, CA 91750

Rev. 06/22 Page 14 of 20 Design Professional Service Agreement

EXHIBIT C

INSURANCE REQUIREMENTS
Without limiting University’s indemnification of Agency, and prior to commencement of work and/or services under this Agreement, University shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to Agency.

General liability insurance. University shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

Automobile liability insurance. University shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the University arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned, or rented vehicles, in an amount not less than 1,000,000 combined single limit for each accident.

Professional liability (errors & omissions) insurance. University shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement and University agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement.

Workers’ compensation insurance. University shall maintain Workers’ Compensation Insurance (statutory limits) and Employer’s Liability insurance (with limits of at least $1,000,000).

University shall submit to Agency, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of Agency, its officers, agents, employees, and volunteers.

Umbrella or excess liability insurance. University shall obtain and maintain an umbrella liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability coverage, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions:

Rev. 06/22 Page 15 of 20 Design Professional Service Agreement • A drop-down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason, other than bankruptcy or insolvency of said primary insurer; • “Pay on behalf of” wording as opposed to “reimbursement”; • Concurrency of effective dates with primary policies.

Should University obtain and maintain an excess liability policy, such policy shall be excess over commercial general liability, automobile liability, and employer’s liability policies. Such policy or policies shall include wording that the excess liability policy follows the terms and conditions of the underlying policies.

Other provisions or requirements
Proof of insurance. University shall provide certificates of insurance and required endorsements to Agency as evidence of the insurance coverage required herein.

Insurance certificates and endorsements must be approved by Agency’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with Agency for the contract period and any additional length of time required thereafter. Agency reserves the right to require complete, certified copies of all required insurance policies, at any time.

Duration of coverage. University shall procure and maintain for the contract period, and any additional length of time required thereafter, insurance against claims for injuries to persons or damages to property, or financial loss which may arise from or in connection with the performance of the Work hereunder by University, their agents, representatives, employees, or subconsultants.

Primary/noncontributing. Coverage provided by University shall be primary and any insurance or self-insurance procured or maintained by Agency shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of Agency before the Agency’s own insurance or self- insurance shall be called upon to protect it as a named insured.

Agency’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, Agency has the right but not the duty to obtain the insurance it deems necessary, and any premium paid by Agency will be promptly reimbursed by University or Agency will withhold amounts sufficient to pay premium from University payments. In the alternative, Agency may cancel this Agreement.

Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an

Rev. 06/22 Page 16 of 20 Design Professional Service Agreement assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the Agency’s Risk Manager.

Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against Agency, its elected or appointed officers, agents, officials, employees, and volunteers or shall specifically allow University or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. University hereby waives its own right of recovery against Agency and shall require similar written express waivers and insurance clauses from each of its subconsultants.

Enforcement of contract provisions (non estoppel). University acknowledges and agrees that any actual or alleged failure on the part of the Agency to inform University of non-compliance with any requirement imposes no additional obligations on the Agency nor does it waive any rights hereunder.

Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the University maintains higher limits than the minimums shown above, the Agency requires and shall be entitled to coverage for the higher limits maintained by the University. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Agency.

Notice of cancellation. University agrees to oblige its insurance agent or broker and insurers to provide the Agency with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. If any of the University’s insurers are unwilling to provide such notice, then University shall have the responsibility of notifying the Agency immediately in the event of University’s failure to renew any of the required insurance coverages, or insurer’s cancellation or non-renewal.

Additional insured status. General liability, automobile liability, and umbrella/excess liability insurance policies shall provide or be endorsed to provide that Agency and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies.

Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to Agency and approved of in writing.

Rev. 06/22 Page 17 of 20 Design Professional Service Agreement Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that University’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.

Pass through clause. University agrees to ensure that its subconsultants, subcontractors, and any other party who is brought onto or involved in the project/service by University (hereinafter collectively “Subcontractor”), provide the same minimum insurance coverage and endorsements required of University under this Agreement. University agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. However, in the event University’s Subcontractor cannot comply with this requirement, which proof must be submitted to the Agency, University may still be able to utilize the Subcontractor provided University shall be required to ensure that its Subcontractor provide and maintain insurance coverage and endorsements sufficient to the specific risk of exposure involved with Subcontractor’s scope of work and services, with limits less than required of the University, but in all other terms consistent with the University’s requirements under this Agreement. This provision does not relieve the University of its contractual obligations under the Agreement and/or limit its liability to the amount of insurance coverage provided by its subcontractors. This provision is intended solely to provide University with the ability to utilize a Subcontractor who may be otherwise qualified to perform the work or services but may not carry the same insurance limits as required of the University under this Agreement given the limited scope of work or services provided by the subcontractor.

University agrees that upon request, all agreements with Subcontractors, and others engaged in the project and/or services, will be submitted to Agency for review.

Agency’s right to revise specifications. The Agency reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the University ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the University, the Agency and University may renegotiate University’s compensation.

Self-insured retentions. Any self-insured retentions must be declared to and approved by Agency. Agency reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible, or require proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention through confirmation from the underwriter.

Timely notice of claims. University shall give Agency prompt and timely notice of claims made or suits instituted that arise out of or result from University’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.

Rev. 06/22 Page 18 of 20 Design Professional Service Agreement Additional insurance. University shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

Agenda Item Staff Report
To: Honorable Mayor and Members of City Council
For the Meeting of December 12, 2023
From: Chris Constantin, City Manager
Prepared by: Shari Garwick, Director of Public Works
Subject: Approve an Increase to the Contract Limits for Maintenance Contract (MC) 2017- 03 Annual Striping Maintenance Services with Superior Pavement Markings, Inc. to $200,000 for FY 2023-24.
____________________________________________________________________________

SUMMARY
The City’s Annual Striping Maintenance Contract was publicly bid in 2017 and was awarded to the lowest bidder, Superior Pavement Markings, Inc. for an annual amount of $75,000 with an ability to renew for 6 additional years. The contract is typically used to refresh existing pavement striping and markings, or to update striping and markings to meet current legal regulations. Since the contract was awarded there have been several required changes that impact the frequency and cost of pavement striping. To increase the longevity and visibility of striping, Staff is requesting Council increase the Contract Limit for MC 2017-03 Annual Striping Maintenance Service from $75,000 to $200,000. Staff will use funds already allocated in FY 2023-24 Budget in Pavement Preservation and Streets Maintenance Professional Services to pay for the striping.

RECOMMENDATION
City staff recommends that the City Council:
• Approve a contract limit increase to Maintenance Contract (MC) 2017-03 Annual Striping Maintenance Services with Superior Pavement Markings, Inc to $200,000 for FY 2023-

24. FISCAL IMPACT
The increase to authorized spending limits is in line with the adopted 2023-24 budget for pavement preservation and maintenance. Approval of this action is necessary to increase the not to exceed contract limit for MC 2017-03 Annual Striping Maintenance Services from $75,000 to $200,000 in order to complete budgeted expenditures.

Increase of Contract Limit for Annual Striping Services Page 2 For the Meeting of December 12, 2023

BACKGROUND
On November 28, 2017, Council awarded Superior Pavement Markings Incorporated the Maintenance Contract 2017-03 for the Annual Striping Maintenance Services citywide (Attachment 1). This contract was publicly bid with Superior Pavement Marking (Superior) as the lowest responsive bidder.

The contract includes painting of white lane lines, yellow centerlines, arrows, crosswalks, pavement markings, (stop legends, railroad crossings, bike lane markings, etc.), and installation of pavement markers (white and yellow reflector tabs, etc.).

The contract allows for multiple years of renewals of which the last allowable extension period ends in 2024. The funding for this contract is typically allocated from the general fund. However, additional funds have historically been used from the Gas Tax Pavement Preservation Fund for this service.

Work from the contractor has been of high quality and the contract was extended through June 30, 2024.

DISCUSSION/ANALYSIS
There are several factors that result in increased costs for pavement striping and markings. New regulations have been a large factor impacting the formulation of the paint, the amount of paint required, and changes to standards requiring remarking. Additionally, there have been several Traffic Safety items where pavement marking is used to create better visibility of pedestrian or driving conditions.

Historically, restriping of lane lines, centerlines, pavement markings such as arrows and Railroad Crossings and crosswalks were done approximately every 5 to 7 years. However, over the last several years, there have been legislative regulations impacting paint formulations restricting the use of oil (to prevent off-gassing and water runoff contamination). These restrictions have reduced the life of traffic paint to only about 3 years. To offset the reduced life of the paint, staff is moving to installing a longer lasting, but more expensive treatment called thermoplastic.

Thermoplastic lasts several years longer, can be refreshed, and provides a physical change to the surface adding about 1/8 inch in height that is more visible at night and when the pavement is wet. The main cost differential is for the initial placement of the thermoplastic. The thermoplastic can be refreshed with paint.

Another area in which legislation has impacted costs is in the amount of paint required. Federal and State regulations emphasize visibility. Typically, this results in increasing the width of the lane line or stop bar (limit line). For instance, most lane lines are moving from 4 inches to 6 inches and railroad crossing elements are now 24 inches instead of 12 inches. The increased widths result in additional material costs.

To increase visibility, San Dimas repaints crosswalks near schools every year. The City also installs High Visibility crosswalks near schools and at other locations where pedestrian safety would be increased. Attachment 2 shows the difference in a regular crosswalk and a High Visibility crosswalk. High Visibility Crosswalks cost about $20,000 per intersection for the initial installation due to the amount of labor and the thermoplastic materials involved. Subsequent refreshing is less costly due to the use of paint versus thermoplastic.

Increase of Contract Limit for Annual Striping Services Page 3 For the Meeting of December 12, 2023
The combined impacts of legislative requirements and safety practices have increased the City’s striping costs significantly leading to staff’s request for Council to authorize the increase in the contract limit for MC 2017-03 Annual Striping Maintenance Services.

ALTERNATIVES
Council may decide not to increase the amount of the contract. Should Council decide not to grant this contract increase, staff would recommend bidding the pavement striping on several arterial streets, as there are several areas of pavement striping in need of repainting. However, going out to bid on these specific streets would result in delays and additional expense.

ENVIRONMENTAL REVIEW
This item is Categorically Exempt under the California Code of Regulations, Title 14, Section 6, Chapter 3, Article 19, Section 15301 Existing Facilities Class 1 operations which consists of the operation, repair, maintenance or minor alteration of existing public or private facilities involving negligible or no expansion of existing or former use.

Respectfully submitted,
Shari Garwick
Director of Public Works
Attachments:

1. MC 2017-03

2. High Visibility Crosswalk

ATTACHMENT 1

ATTACHMENT 2

Figure 1: Standard Crosswalk
Figure 21: High Visibility Crosswalk

Agenda Item Staff Report
To: Honorable Mayor and Members of City Council
For the Meeting of December 12, 2023
From: Chris Constantin, City Manager
Prepared by: Shari Garwick, Director of Public Works
Subject: Appropriate $40,000 from the Equipment Replacement Fund (Fund 70) and Authorize Contract Expenditures for Outfitting of Unit 28 with California Truck Equipment Company (CTEC) for An Amount Not to Exceed $40,000. ____________________________________________________________________________

SUMMARY
Unit 28 is an F450 Dump Truck used by Parks and Recreation. This truck was originally budgeted for replacement in FY 2021-22. Due to delays from Covid, the truck was not received until November of 2023. The budget for outfitting of the truck was not carried over into FY 2023-24 budget. The cost to outfit the truck for its intended use is now $38,203. Staff is requesting that Council appropriate $40,000 from the Equipment Replacement Fund (Fund 70) and approve a contract with California Truck Equipment Company to outfit Unit 28 in an amount not to exceed $40,000.

RECOMMENDATION
Staff recommends that the City Council:
• Appropriate $40,000 from the Equipment Replacement Fund (Fund 70) • Authorize the City Manager or his designee to enter into a contract with California Truck Equipment Company for an amount not to exceed $40,000 to outfit Unit 28 for use as a Dump Truck

FISCAL IMPACT
The additional appropriation in the amount of $40,000, will utilize reserves from the New Equipment Fund (70) increasing expense account 070-4314-039-013 to outfit Unit 28. There are adequate reserves in the fund to support this appropriation. The proposal from California Truck Equipment Company to complete the work necessary to outfit Unit 28 for its intended use is $38,203. The appropriation of $40,000 leaves a small amount of contingency for changes in cost of materials.

Appropriate $40,000 from General Fund for Outfitting of Unit 28 Page 2 For the Meeting of December 12, 2023

BACKGROUND
Unit 28 is a 2005 Ford F450 used by the Parks and Recreation Department as a Dump Truck.

This unit was originally proposed for replacement in FY 2021-22. Due to delays experienced by automobile manufacturing with chip supply problems resulting from the Covid pandemic, the replacement vehicle was not received until November of 2023.

DISCUSSION/ANALYSIS
In order to be used as a Dump Truck the vehicle must be outfitted with a Dump Truck body. This requires fabrication. The City uses California Truck Equipment Company (CTEC) to install the Dump Truck Body. The proposal from CTEC includes installation of the following items: a dump truck body, a storage cabinet behind the cab, and a traffic lightbar (amber arrows). The cost for materials and labor for this work is $38,203. The price quote is included in Attachment

1. ALTERNATIVES
Council can decide not to appropriate the money for outfitting of Unit 28. This would significantly reduce the ability to use the replacement for Unit 28 for its intended purpose.

ENVIRONMENTAL REVIEW
Pursuant to CEQA guidelines Section 15061 (b)(3), CEQA does not apply to this item because there is no potential for causing a significant effect on the environment. Therefore, no additional environmental review is needed at this time.

Respectfully submitted,
Shari Garwick
Director of Public Works
Attachments:

1. Proposal from CTEC for outfitting Unit 28 as a Dump Truck

QUOTE
Quote Date
10/9/2023
Quote #
14229
City of San Dimas
245 E. Bonita Ave
San Dimas, Ca 91773
Attn: Juan Venadero
909-394-6275
End User
City of San Dimas
245 E. Bonita Ave
San Dimas, Ca 91773
Terms Net 10
Rep EP
FOB Customer
CA
84"
Fuel
N/A
Bed width Compartment depth
N/A
Model Cab
2023 F450 Regular Cab
Rear wheel
DRW
Truck Available
no
Total
Subtotal
Tax (10.0%)
CALIFORNIA TRUCK EQUIPMENT CO.

Sold To:

PH - 562-803-4466 F - 562-803-8795
12351 Bellflower Blvd, Downey CA 90242
ctec-truckbody.com
Print Name _______________________ PO # ___________
Order accepted by: _______________________ Date______
ANY AND ALL WARRANTY WORK WILL BE DONE BY CTEC AT 12351 BELLFLOWER BLVD DOWNEY , CA - CTEC IS NOT RESPONSABLE FOR ANY WORK DONE BY 3RD PARTIES PROUDLY PRODUCED - 100% - IN CALIFORNIA - USA
QUOTE VALID FOR 30 DAYS
Description Qty Total
CTEC 9' Long 'x' 2/3 Yd. Dump Body.

Eliminator Series
CTEC To: FURNISH & INSTALL as follows;
9' Long Rugby Eliminator Dump Body.
10 Ga. Steel Floor.

Side Height: 12" high
Rear Tailgate: 18" tall.

All 'boxed' & 'enclosed' flanges.

Front Cab Guard Shield.

Dump Hoist: 6-Ton Cap. Electric 12 V. Power Motor & Pump, ( Truck Battery 'sourced'.) Dump Style Tailgate
Full underbody hoist. With fill length steel SubFrsme for 'rigidity'.

Easy Use 'Push Button' Control in cab to raise & lower Dump Body.

All FMVSS Std. Req'd Lighting.

Painted Either: Powder Coat BLACK -or- Gloss Enamel Urethane WHITE.

Hitch Plate with Pintle Mount With Removable Ball 1
Fold Down Sides On Dump Body. ( Both sides hinge & drop down 180*.) Std. Cross Rod & Center release & relock handle 'linkage'. 1 Provide and Install Straight Side Black Steel Backpack Truck Tool Box with mounting hardware - Mounted In-between Cab and Dump.
1

ATTACHMENT 1

QUOTE
Quote Date
10/9/2023
Quote #
14229
City of San Dimas
245 E. Bonita Ave
San Dimas, Ca 91773
Attn: Juan Venadero
909-394-6275
End User
City of San Dimas
245 E. Bonita Ave
San Dimas, Ca 91773
Terms Net 10
Rep EP
FOB Customer
CA
84"
Fuel
N/A
Bed width Compartment depth
N/A
Model Cab
2023 F450 Regular Cab
Rear wheel
DRW
Truck Available
no
Total
Subtotal
Tax (10.0%)
CALIFORNIA TRUCK EQUIPMENT CO.

Sold To:

PH - 562-803-4466 F - 562-803-8795
12351 Bellflower Blvd, Downey CA 90242
ctec-truckbody.com
Print Name _______________________ PO # ___________
Order accepted by: _______________________ Date______
ANY AND ALL WARRANTY WORK WILL BE DONE BY CTEC AT 12351 BELLFLOWER BLVD DOWNEY , CA - CTEC IS NOT RESPONSABLE FOR ANY WORK DONE BY 3RD PARTIES PROUDLY PRODUCED - 100% - IN CALIFORNIA - USA
QUOTE VALID FOR 30 DAYS
Description Qty Total
Provide and Install Soundoff Signal nFORCE NXT 48" Lightbar Configured to Provide Amber traffic advisor function, Full Amber Strobe, White Alley Lighting, Front White Solid , Rear White Solid
(Wired To Upfitter Switches)
1 Install OEM camera prep package 1

$38,203.00
$34,730.00
$3,473.00

Agenda Item Staff Report
To: Honorable Mayor and Members of City Council
For the Meeting of December 12, 2023
From: Chris Constantin, City Manager
Prepared by: Michael O'Brien, Director of Administrative Services Subject: Receive and File the November 2023 Investment Report ____________________________________________________________________________

SUMMARY
Monthly Reporting for the City of San Dimas investment of idle funds and cash condition.

RECOMMENDATION
Staff recommends that the City Council:
• Receive and file Investment and Cash Condition report for the month of November 2023.

FISCAL IMPACT
There is no fiscal impact for the recommended action.

DISCUSSION/ANALYSIS
It is the policy of the City of San Dimas to invest public funds in a manner that will provide an optimal combination of security and investment return while meeting the daily cash flow demands of the City and conforming to all State and local statutes governing the investment of public funds.

The priority objectives of the City’s investment activities are as follows: Safety, liquidity and returns.

The City’s investment portfolio as of November 30, 2023, maintained liquid cash in the amount of $9,118,142.90 held between BMO Harris, the City and LAIF which amounts to just under 13% of the portfolio to provide the cash flow necessary for City payroll and operating expenditures as well as large capital project expenses and unforeseen emergencies that may occur come up throughout the year.

The following chart displays the total investments and weighted average yield per investment category:

November 2023 Investment Report Page 2
For the Meeting of December 12, 2023
The City’s Banking Services Provider BMO Harris provides a fully collateralized checking account whose funds are used to make cash payments for City payroll and operational expenses. The city performs daily bank reconciliations to assure adequate cash is held in the checking account for upcoming expenditures. Cash held in the account earns income credits that accumulate at a rate of .55% which offsets banking service charges that are charged each quarter to the city.

Petty Cash is held at City facilities for cashiering purposes and to reimburse small dollar expenditures between $0.01 and $50.00.

The Local Agency Investment Fund (LAIF) is considered a Local Agency Investment Pool and acts much like a money market account. Funds can be deposited and withdrawn without penalty. The pool invests funds in short-term securities and can produce returns at rates like money markets but is considered more secure.

CALTRUST is a public agency that provides investment funds that are liquid, short term, and medium term. The assets held by CALTRUST are managed by State Street Global Advisors.

Since the City first invested with CALTRUST in August of 2010, buying into the Medium-Term Fund. The City has made various contributions throughout the years as well as reinvested any accumulated interest earnings throughout the life of the fund.

In total the weighted average cost of investing in CALTRUST is $9.98. Currently due to increasing interest rates driving market rates down for assets already held, the share price of the fund as of November 30, 2023, was $9.73. Until interest rates decline to the point that the share price increases to $9.98 a share or above, the city would be recognizing a loss on sale.

However, the City could pull out funds at any time if liquidity needs arose.

The City Treasurer also utilizes Brokers to purchase investment securities such as Government Sponsored Enterprises (Agency Bonds), Corporate Bonds, U.S. Treasuries and Negotiable CD’s

November 2023 Investment Report Page 3
For the Meeting of December 12, 2023
The investment policy and California Government Code Section 53600.3 allows the City to invest 30% of its portfolio in Certificates of Deposit and 20% of its portfolio in Corporate Bonds through Brokers. U.S. Treasuries and Government Sponsored Enterprises (Agency Bonds) have no investment limits; however, it is considered a best practice not to invest more than 5% in a single Government Sponsored Enterprises.

The following is a breakdown of the total invested in each type of investment along with its percentage of the portfolio:

Additionally, per the Investment Policy, the City has an established maturity matrix with the investment ranges as follows:

Maturity Range Guideline Portfolio Percentage
1 Day to 1 Year 30% - 100%
1 Year to 3 Years 5% - 60%
3 Years to 5 Years 0% - 40%
The Cities current investment maturity range is as follows:

The weighted average maturity for all City investments is 1.17 years, which is ideal in today’s rising interest rate environment. The short time to maturity of our investments will allow the city to reinvest the matured principal amounts into investments that are likely to be offered at higher yields.

Specific details pertaining to the Cities investment names, CUSIP #’s, coupon and purchase yields, maturity dates, par and book values are included in the Investment and Cash Condition Report attachment.

ENVIRONMENTAL REVIEW
Pursuant to CEQA guidelines Section 15061 (b)(3), CEQA does not apply to this item because there is no potential for causing a significant effect on the environment. Therefore, no additional environmental review is needed at this time.

November 2023 Investment Report Page 4
For the Meeting of December 12, 2023
Respectfully submitted,
Michael O'Brien
Director of Administrative Services
Attachments:

1. Investment and Cash Condition Report

CITY OF SAN DIMAS

MONTHLY CASH BALANCE INVESTMENT REPORT
NOVEMBER 2023

ENDING BALANCE
$1,906,758.05
$2,560.00
$7,208,824.85
$14,104,888.20
CUSIP # COUPON
YIELD

PURCHASE

YIELD MATURITY PAR VALUE BOOK VALUE
FEDERAL FARM CR - 5 YEAR BOND 3133ENGF1 0.50% 4.75% 12/1/2023 $275,000.00 $265,126.95 $265,126.95
WELLS FARGO & CO MEDIUM TERM - 3 YEAR BOND 95001DC40 4.50% 4.50% 7/28/2025 $250,000.00 $250,000.00 CFI- 5 YEAR BOND 17298CK64 1.00% 1.00% 8/28/2025 $500,000.00 $500,000.00 BANK OF AMERICA - 5 YEAR BOND 06048WK25 0.75% 0.75% 10/30/2025 $250,000.00 $250,000.00 GOLDMAN SACHS GROUP - 5 YEAR BOND 38150EH4 0.80% 0.80% 11/24/2025 $290,000.00 $290,000.00 JP MORGAN BOND - 5 YEAR BOND 48128G3G3 1.20% 1.20% 4/30/2026 $285,000.00 $285,000.00 EXXON MOBILE CORP - 7 YEAR BOND 30231GBD3 2.28% 0.98% 8/16/2026 $250,000.00 $264,953.75 GOLDMAN SACHS GROUP - 5 YEAR BOND 38150AJ63 1.70% 1.70% 10/29/2026 $210,000.00 $210,000.00 MORGAN STANLEY FIN GLOBAL - 5 YEAR BOND 61766YGT2 1.35% 1.35% 11/18/2026 $250,000.00 $250,000.00 JP MORGAN CHASE BOND - 5 YEAR BOND 48128G5Y2 2.10% 2.10% 1/29/2027 $270,000.00 $270,000.00 BANK OF AMERICA - 5 YEAR BOND 06048WS84 2.75% 2.75% 3/2/2027 $250,000.00 $250,000.00 MORGAN STANLEY-FIN GLOBAL 5 YEAR BOND 61766YJQ5 3.25% 3.25% 4/13/2027 $250,000.00 $250,000.00 INTEL CORP - 5 YEAR BOND 458140BY5 3.75% 4.25% 8/5/2027 $250,000.00 $244,538.75 $3,314,492.50
UNITED STATES TREASURY BILLS - 6 MONTH 912797FV4 5.25% 5.25% 12/21/2023 $512,000.00 $499,205.12 $499,205.12
TEXAS EXCHANGE- 4 YEAR CD 88241THS2 0.65% 0.65% 6/21/2024 $249,000.00 $249,000.00 GENERAL ELECTRIC CU - 2 YEAR CD 369674BT2 3.25% 3.25% 6/28/2024 $249,000.00 $249,000.00 OCEANFIRST BANK - 2 YEAR CD 67523TBE2 3.25% 3.25% 7/1/2024 $246,000.00 $246,000.00 MORGAN STANLEY PRIVATE BANK - 5 YEAR CD 61760AR76 2.20% 2.20% 8/1/2024 $247,000.00 $247,000.00 AMERICAS CR - 2 YEAR CD 03065AAV5 3.65% 3.65% 9/27/2024 $249,000.00 $249,000.00 SYNCHRONY BK RETAIL - 3 YEAR CD 87164WQ68 3.30% 3.30% 8/26/2025 $245,000.00 $245,000.00 CAPITAL ONE BANK - 4 YEAR CD 14042TFH5 2.65% 2.65% 4/13/2026 $246,000.00 $246,000.00 TOYOTA FINANCIAL SAVINGS - 5 YEAR CD 89235MLC3 0.95% 0.95% 7/15/2026 $248,000.00 $248,000.00 GOLDMAN SACHS BANK USA NEW YORK - 5 YEAR CD 38149M4T7 2.65% 2.65% 4/13/2027 $246,000.00 $246,000.00 STATE BANK OF INDIA - 5 YEAR CD 856285N64 3.30% 3.30% 6/1/2027 $245,000.00 $245,000.00 CENTRAL BANK LITTLE ROCK ARK - 5 YEAR CD 152577BS0 5.30% 5.30% 6/30/2028 $248,000.00 $248,000.00 ENVISION C.U- 5 YEAR CD 29415AAQ8 5.40% 5.40% 7/14/2028 $248,000.00 $248,000.00 $2,966,000.00
FEDERAL HOME LOAN - 6 MONTH BOND 3130AWTX8 6.10% 6.10% 2/28/2024 $500,000.00 $500,000.00 FNMA - FEDL NAT MTG ASSN POOL BALLOON - 5 YEAR BOND 3138L8UV4 2.92% 4.85% 1/1/2025 $300,000.00 $272,755.79 FEDERAL NATIONAL MEETING ASSN- 5 YEAR BOND 3136G4A86 0.50% 0.55% 7/21/2025 $250,000.00 $249,375.00 FEDERAL FARM BANK BOND - 4 YEAR BOND 3133ENEH9 1.13% 1.13% 11/17/2025 $250,000.00 $250,000.00 FEDERAL HOME LOAN BANK -- 5 YEAR BOND 3130AL2G8 0.60% 0.75% 2/18/2026 $250,000.00 $248,250.00 FNMA - DISC BOND - 3YEAR 3138LDPW7 2.68% 4.58% 5/1/2026 $250,000.00 $228,805.98 FEDERAL HOME LOAN BK BD - 5 YEAR BOND 3130ANMH0 1.10% 1.42% 8/20/2026 $250,000.00 $246,400.00 FEDERAL HOME LOAN BK BD - 4 YEAR BOND 3130AUSR6 5.00% 5.03% 2/9/2027 $500,000.00 $499,500.00 FEDERAL FARM CREDIT BANK - 5 YEAR BOND 3133ENSZ4 2.75% 2.75% 4/1/2027 $250,000.00 $250,000.00 FEDERAL HOME LOAN BK (FHLMC) - 5 YEAR BOND 3134GXTZ7 3.25% 3.25% 5/26/2027 $250,000.00 $250,000.00 FEDERAL HOME LOAN BK BD - 5 YEAR BOND 3130ASF53 3.25% 3.41% 6/30/2027 $500,000.00 $499,250.00 FEDERAL HOME LOAN BK BD - 5 YEAR BOND 3130ASZ69 4.05% 4.08% 8/27/2027 $250,000.00 $249,625.00 FEDERAL HOME LOAN - 5 YEAR BOND 3130AWKC3 6.00% 6.00% 7/24/2028 $500,000.00 $500,000.00 FEDERAL HOME LOAN - 5 YEAR BOND 3130AWMJ6 5.75% 5.75% 7/26/2028 $500,000.00 $500,000.00 FEDERAL HOME LOAN - 5 YEAR BOND 3134GYXS6 6.00% 6.00% 7/27/2028 $500,000.00 $500,000.00 FEDERAL HOME LOAN - 5 YEAR BOND 3133EPZK4 6.22% 6.22% 10/24/2028 $500,000.00 $500,000.00 $5,743,961.77
BANK OF AMERICA - 5 YEAR BOND 06048WP20 1.25% 1.25% 9/24/2026 $250,000.00 $250,000.00 APPLE INC - 10 YEAR CORPORATE BOND 037833CR9 3.20% 3.30% 5/11/2027 $250,000.00 $248,850.00 INVESTMENTS HELD WITH TVI:

INVESTMENT HELD WITH STIFEL:

TVI CD'S INVESTMENTS SUBTOTAL :

TVI CORPORATE BONDS INVESTMENTS SUBTOTAL:

CALTRUST INVESTMENT PROGRAM-MEDIUM TERM-SHARES: $9.73 per share 3.87%

SUMMARY OF BANK BALANCES YIELD

3.67%

BMO HARRIS - GENERAL ACCOUNT

SAN DIMAS PETTY CASH - IMPREST FUNDS

LOCAL AGENCY INVESTMENT FUND (LAIF) CA STATE TREASURER
TVI GOVERNMENT SPONSORED ENTERPRISES (GSE) AGENCY BONDS INVESTMENTS SUBTOTAL:

INVESTMENTS
STIFEL GOVERNMENT SPONSORED ENTERPRISES (GSE) AGENCY BONDS INVESTMENTS SUBTOTAL:

TVI TRESURY BILLS INVESTMENT SUBTOTAL:

ATTACHMENT 1

SADDLEBACK VALLEY - 7.75 YEAR BOND (MUNICIPAL BOND) 786318LF0 2.40% 3.41% 8/1/2027 $250,000.00 $238,500.00 $737,350.00
U.S TREASURY BILL - 4 MONTH 912797FV4 5.30% 5.30% 12/21/2023 $3,500,000.00 $3,439,240.00 U.S TREASURY BILL - 5 MONTH 912797GD3 5.31% 5.31% 1/18/2024 $3,500,000.00 $3,425,450.00 U.S TREASURY BILL - 6 MONTH 912797GP6 5.47% 5.47% 2/29/2024 $5,100,000.00 $4,964,850.00 U.S TREASURY BILL - 4 MONTH 912797JK4 5.30% 5.30% 5/23/2024 $1,000,000.00 $983,050.00 U.S TREASURY BILL - 6 MONTH 912797HR1 5.30% 5.30% 5/23/2024 $3,000,000.00 $2,925,000.00 $15,737,590.00
EVANSVILLE TEACHERS FCU - 1.5 YEAR CD 299547BB4 3.10% 3.10% 1/8/2024 $249,000.00 $249,000.00 CITY & CNTY CR UN ST PAUL - 1.5 YEAR CD 177517AB5 3.25% 3.25% 2/26/2024 $249,000.00 $249,000.00 UKRAINIAN FCU - 1 YEAR CD 90372WAB6 5.05% 5.05% 5/8/2024 $248,000.00 $248,000.00 LOCAL GOVT FEDRL CR UN- 1 YEAR CD 53955LAC1 5.15% 5.15% 5/17/2024 $248,000.00 $248,000.00 APPLE BANK FOR SVGS NEW YORK - 2 YEAR CD 03784JTK0 3.20% 3.20% 7/22/2024 $246,000.00 $246,000.00 AUSTIN TELCO FED CR - 2 YEAR CD 052392BM8 3.40% 3.40% 8/12/2024 $249,000.00 $249,000.00 AMERICAS CHRISTIAN CR - 2 YEAR CD 03062CAD4 3.40% 3.40% 8/30/2024 $248,000.00 $248,000.00 FIRST TECH FCU - 18 MONTH CD 33715LEX4 5.25% 5.25% 10/15/2024 $248,000.00 $248,000.00 DART BANK - 2.5 YEAR CD 237412AR2 3.00% 3.00% 12/20/2024 $249,000.00 $249,000.00 DIRECT FEDERAL CREDIT UNION - 2.5 YEAR CD 5460FDD5 3.00% 3.00% 12/23/2024 $249,000.00 $249,000.00 TECHNOLOGY CREDIT UNION - 2 YEAR CD 87868YAG8 5.00% 5.00% 1/21/2025 $249,000.00 $249,000.00 VERIDIAN CREDIT UNION - 2 YEAR CD 92348DAB5 4.75% 4.75% 1/21/2025 $249,000.00 $249,000.00 SAFRA NATL BANK OF NY - 3 YEAR CD 78658RHM6 2.00% 2.00% 3/24/2025 $248,000.00 $248,000.00 LIVE OAK BANK- 5 YEAR CD 538036LD4 1.40% 1.40% 3/31/2025 $249,000.00 $249,000.00 MEDALLION BANK - 5 YEAR CD 58404DGR6 1.60% 1.60% 3/31/2025 $248,000.00 $248,000.00 CLEARPATH FEDERAL CU BURBANK- 2 YEAR CD 18507MAA9 5.15% 5.15% 4/28/2025 $248,000.00 $248,000.00 DISCOVER BK - 3 YEAR CD 254673B70 2.80% 2.80% 4/28/2025 $247,000.00 $247,000.00 UTAH COMMUNITY CU - 2 YEAR CD 917352AB2 4.80% 4.80% 4/28/2025 $248,000.00 $248,000.00 FLAGSTAR BANK - 5 YEAR CD 33847E3D7 1.15% 1.17% 4/29/2025 $248,000.00 $247,876.00 HSBC BANK - 5 YEAR CALLABLE CD 44329ME33 1.30% 1.30% 5/7/2025 $248,000.00 $248,000.00 INSTITUTION FOR SVGS - 3 YEAR CD 45780PBL8 3.10% 3.10% 5/20/2025 $249,000.00 $249,000.00 CARTER FEDERAL C.U 3 YEAR CD 14622LAC6 3.00% 3.00% 6/23/2025 $249,000.00 $249,000.00 HUGHES FED CR - 2 YEAR CD 444425AA0 5.25% 5.25% 6/30/2025 $248,000.00 $248,000.00 MID AMERICAN CU - 2 YEAR CD 59522NAE4 5.25% 5.25% 6/30/2025 $248,000.00 $248,000.00 MERITRUST CR UN - 3 YEAR CD 59001PAS8 3.35% 3.35% 7/8/2025 $249,000.00 $249,000.00 CREDIT UNION OF TEXAS - 3 YEAR CD 22551KAB8 3.30% 3.30% 7/22/2025 $246,000.00 $246,000.00 TVA CMNTY CR UN - 3 YEAR CD 87305MAB6 3.25% 3.25% 8/4/2025 $249,000.00 $249,000.00 RESOURCE ONE CR UN - 3 YEAR CD 76124YAE6 3.30% 3.30% 8/18/2025 $249,000.00 $249,000.00 IDEAL CREDIT UNION - 3 YEAR CD 45157PAY6 4.00% 4.00% 8/29/2025 $249,000.00 $249,000.00 ALABAMA CREDIT UNION - 3 YEAR CD 01025RAB5 3.60% 3.60% 9/22/2025 $249,000.00 $249,000.00 UNIVERSITY CREDIT UNION - 3 YEAR CD 914242AA0 4.00% 4.00% 9/26/2025 $249,000.00 $249,000.00 BARCLAYS BANK - 4 YEAR CD 06740KNT0 1.00% 1.00% 12/15/2025 $248,000.00 $248,000.00 US ALLIANCE FED C.U - 4 YEAR CD 90352RCD5 1.35% 1.35% 1/28/2026 $249,000.00 $249,000.00 FARMERS & MERCHANTS BANK- 3.5 YEAR CD 3078115EL9 3.20% 3.20% 2/5/2026 $249,000.00 $249,000.00 CFG COMMUNITY BANK - 3.5 YEAR CD 12527CFL1 3.80% 3.80% 3/11/2026 $245,000.00 $245,000.00 ALASKA US FEDERAL CREDIT UNION - 3 YEAR CD 011852AH3 5.15% 5.15% 3/23/2026 $248,000.00 $248,000.00 CMNTY COMMERCE BANK- 4 YEAR CD 20033A2Z8 2.60% 2.60% 4/14/2026 $249,000.00 $249,000.00 BAXTER CR UN - 4 YEAR CD 07181JAD6 3.05% 3.05% 6/22/2026 $249,000.00 $249,000.00 CATHOLIC & COMMUNITY CR UNION - 3 YEAR CD 14919NAA8 5.30% 5.30% 6/22/2026 $248,000.00 $248,000.00 INSPIRE FEDERAL CREDIT UNION - 3 YEAR CD 457731AQ0 5.00% 5.00% 6/30/2026 $248,000.00 $248,000.00 NEW YORK COMMUNITY BANK - 5 YEAR CD 649447UZ0 0.70% 0.70% 7/1/2026 $249,000.00 $249,000.00 SALLIE MAE BK SALT LAKE CITY UT - 5 YEAR CD 795451AB9 1.00% 1.00% 7/21/2026 $248,000.00 $248,000.00 FIRST STATE BANK - 4 YEAR CD 33650TAH3 3.60% 3.60% 9/16/2026 $249,000.00 $249,000.00 QUORUM FED CR - 4 YEAR CD 74909LAB6 3.85% 3.85% 9/23/2026 $249,000.00 $249,000.00 PENTAGON FEDERAL CR UN - 5 YEAR CD CUSIP #70962LAS1 70962LAS1 0.90% 0.90% 9/29/2026 $249,000.00 $249,000.00 ONPATH FEDERAL CREDIT UN - 4 YEAR CD 68283MAF3 3.25% 3.25% 9/30/2026 $249,000.00 $249,000.00 HAWAII CENTRAL FCU - 3 YEAR CD 419700AG4 5.50% 5.50% 10/27/2026 $248,000.00 $248,000.00 BANK UNITED NA - 5 YEAR CD 066519RW1 1.35% 1.35% 12/8/2026 $248,000.00 $248,000.00 BANK HAPOALIM BM - 5 YEAR CD 06251A3K4 1.35% 1.35% 12/16/2026 $248,000.00 $248,000.00 CONNEXUS CREDIT UNION - 5 YEAR CD 20825WAR1 1.25% 1.25% 12/23/2026 $249,000.00 $249,000.00 AMERANT BANK - 5 YEAR CD 02357QAQ0 1.60% 1.60% 2/16/2027 $248,000.00 $248,000.00 STIFEL COMMERCIAL & MUNICIPAL BONDS SUBTOTAL:

STIFEL TRESURY BILLS INVESTMENT SUBTOTAL:

PIMA CREDIT UNION- 4.5 YEAR CD 722000AA4 5.15% 5.15% 2/17/2027 $248,000.00 $248,000.00 METRO CREDIT UNION - 5 YEAR CD 59161YAP1 1.70% 1.70% 2/18/2027 $249,000.00 $249,000.00 BEAL BANK PLANO TEXAS - 5 YEAR CD 07371AZQ9 2.05% 2.05% 3/3/2027 $248,000.00 $248,000.00 BEAL BANK USA LAS VEGAS - 5 YEAR CD 07371CK81 2.05% 2.05% 3/3/2027 $248,000.00 $248,000.00 MORGAN STANLEY- 5 YEAR CD 61773TDN0 3.00% 3.00% 4/29/2027 $246,000.00 $246,000.00 GENERATION BANK ROGERS AR CD - 5 YEAR CD 37149CAV9 3.10% 3.10% 5/6/2027 $249,000.00 $249,000.00 DEPARTMENT OF COMMERCE - 5 YEAR CD 24951TAT2 3.25% 3.25% 5/13/2027 $249,000.00 $249,000.00 TRUSTONE FINL CR UN - 5 YEAR CD 89841MAF4 3.40% 3.40% 7/19/2027 $249,000.00 $249,000.00 BMO HARRIS BANK - 5 YEAR CD 05600XHE3 3.55% 3.55% 7/27/2027 $247,000.00 $247,000.00 THIRD FEDL S&L ASSN - 5 YEAR CD 88413QDM7 3.40% 3.40% 7/27/2027 $245,000.00 $245,000.00 CMNTY COMMERCE BANK CLAREMONT- 5 YEAR CD 20367GBH1 3.30% 3.30% 8/10/2027 $249,000.00 $249,000.00 ST VINCENT MED CTR CR - 5 YEAR CD 85279AAA0 3.50% 3.50% 8/12/2027 $249,000.00 $249,000.00 PITTSBURG CITY HALL FCU - 5 YEAR CD 72500MAA3 3.60% 3.60% 8/16/2027 $249,000.00 $249,000.00 SHARONVIEW FCU - 5 YEAR CD 819866BL7 3.50% 3.50% 8/16/2027 $249,000.00 $249,000.00 GHS FEDERAL CREDIT UNION - 5 YEAR CD 36266LAA4 3.80% 3.80% 9/15/2027 $249,000.00 $249,000.00 ROGUE CREDIT UNION - 5 YEAR CD 77535MAG8 5.20% 5.20% 12/23/2027 $249,000.00 $249,000.00 PACIFIC WESTERN BANK - 5 YEAR CD 69506YXD6 5.65% 5.65% 3/22/2028 $243,000.00 $243,000.00 NEW ORLEANS FIREMANS FCU - 5 YEAR CD 647608AH1 5.00% 5.00% 7/17/2028 $248,000.00 $248,000.00 NUMERICA CREDIT UNION - 5 YEAR CD 67054NBK8 5.10% 5.10% 7/31/2028 $248,000.00 $248,000.00 GREEN STATE CREDIT UNION- 5 YEAR CD 39573LEL8 5.00% 5.00% 8/29/2028 $248,000.00 $248,000.00 ALLIANT CREDIT UNION- 5 YEAR CD 01882MAH5 5.35% 5.35% 11/15/2028 $248,000.00 $248,000.00 $17,872,876.00
$47,136,602.34
$70,359,633.44
Amount % of Portfolio Amount % of Portfolio
$1,909,318.05 3% $ 43,449,953.17 63%
$7,208,824.85 10% $ 14,222,416.52 19%
$14,104,888.20 20% $ 12,687,263.75 18%
$6,009,088.72 9% $ 70,359,633.44 100%
$4,051,842.50 6%
$16,236,795.12 23% 1.17
$20,838,876.00 30% 3.87%
$70,359,633.44 100%
Michael O'Brien Administrative Services Director/City Treasurer Prepared by: Jennifer Legaspi

INVESTMENTS BY TYPE INVESTMENTS BY MATURITY

CHECKING ACCOUNTS/CASH ON HAND
Type
TOTAL CD's/GSE BONDS/ CORPORATE BONDS/TREASURY BILLS

TOTAL OF ALL INVESTMENTS
STIFEL CD'S INVESTMENT SUBTOTAL:

Maturity Range
1 Day to 1 Yr.
1 Yr. to 3 Yrs.
3 Yrs. to 5 Yrs.

Total
The above investments have met the requirements as stated in the City's Annual Investment Policy.

CALTRUST

GSE AGENCY BONDS

COMMERCIAL BONDS
U.S TREASURY BILLS

NEGOTIABLE CERTIFICATES OF DEPOSIT

LOCAL AGENCY INVESTMENT FUND (LAIF)

TOTAL OF ALL INVESTMENTS
Weighted Average Maturity in Years
Weighted Average Yield

Agenda Item Staff Report
To: Honorable Mayor and Members of City Council
For the Meeting of December 12, 2023
From: Chris Constantin, City Manager
Prepared by: Michael O'Brien, Director of Administrative Services Subject: Approve an Administrative Services Agreement between the City of San Dimas and the San Dimas Housing Authority in an Estimated Amount of $316,000 ____________________________________________________________________________

SUMMARY
Approval of annual Administrative Services Agreement between the City of San Dimas and the San Dimas Housing Authority in order to recoup costs for Administrative oversight of the Housing Authority program.

RECOMMENDATION
Staff recommends that the City Council:
• Approve the attached Administrative Services Agreement with an estimate of approximately $316,000.

FISCAL IMPACT
The Administrative Services costs were included in the adopted 2023-24 budget.

BACKGROUND
With the dissolution of redevelopment agencies, HSC Section 34176 provided that a City Council could elect to retain the housing assets and functions of a dissolved redevelopment agency. On January 24, 2012 the City Council of the City of San Dimas adopted Resolution No. 2012-06 electing to have the San Dimas Housing Authority retain the housing assets and functions of the dissolved San Dimas Redevelopment Agency.

Shortly after the assets and functions were transferred, many of the programs and functions were curtailed due to the elimination of new funding from tax increment set-aside funds. However, there

Approval of Administrative Services Agreement Page 2
For the Meeting of December 12, 2023
were programs and functions that needed to be maintained for the continued operations of the housing assets. The personnel, equipment, and facilities to maintain the Authority' s functions have been provided by existing City staff and operations. When the Council approved the FY 2023-24 Annual Capital and Operating Budget, they approved the concept of the Housing Authority reimbursing the City for the personnel and expenses for managing the Housing Authority functions. To effectuate the reimbursement the City and Authority need to enter into an annual Administrative Services Agreement.

DISCUSSION/ANALYSIS
The current programs and functions of the Authority include:
• Oversight of management and maintenance of the Monte Vista Apartments. • Mobile Home Rehab Grant program.
• Reconstruction of the house on the Taylor property.
• On-going and expansion of homelessness programs and initiatives. • Monitoring and compliance with low- and moderate-income housing requirements and updates to the Housing element.
• Accounting, treasurer, public meeting coordination, and clerical support for the general Authority functions.
• Future housing developments.

The attached Agreement includes an estimate of the personnel hours and costs of this year's reimbursement. The estimated number of personnel hours is very conservative. The total cost based upon the estimate is just under $300,000 but could be higher based upon housing activities.

The City will be reimbursed based upon the actual costs at the end of the year.

ALTERNATIVES
Deny the agreement and significantly reduce services of the Housing Authority to accommodate the lack of funding available to pay for the services.

ENVIRONMENTAL REVIEW
Pursuant to CEQA guidelines Section 15061 (b)(3), CEQA does not apply to this item because there is no potential for causing a significant effect on the environment. Therefore, no additional environmental review is needed at this time.

Respectfully submitted,
Michael O'Brien
Director of Administrative Services

Approval of Administrative Services Agreement Page 3
For the Meeting of December 12, 2023
Attachments:

1. Administrative Housing Estimates

2. Housing and Administrative Services Agreement

ATTACHMENT 1

ADMINISTRATIVE SERVICES AGREEMENT

BETWEEN

CITY OF SAN DIMAS AND SAN DIMAS HOUSING AUTHORITY
ESTIMATED BUDGET FY 23-24
Administrative Services Hours Productive Hourly
Rate
Cost
City Manager 40 228.65 $ 9,146.00
Assistant City Manager 30 180.08 $ 5,402.40
Administrative Services Director 50 153.86 $ 7,693.00
City Clerk 10 110.48 $ 1,104.80
Accounting Supervisor (2) 30 103.07 $ 3,092.10
Community Development
Director of Development Services 20 150.45 $ 3,009.00
Planning Manager 20 114.94 $ 2,298.80
Senior Planner 20 112.66 $ 2,253.20
Associate Planner (2) 20 92.77 $ 1,855.40
Housing Manager 1040 110.42 $ 114,836.80
Management Analyst 1040 78.65 $ 81,796.00
Management Aide 1040 65.79 $ 68,421.60
Public Works
Public Works Director 20 172.21 $ 3,444.20
Engineering Manager 20 137.84 $ 2,756.80
Parks & Recreation
Parks & Recreation Director 15 164.45 $ 2,466.75
Faciliities Manager 20 111.02 $ 2,220.40
Facilities Supervisor 20 79.37 $ 1,587.40
Facilities Maintenance Worker (3) 20 75.85 $ 1,517.00
Building Maintenance Aide (4) 20 46.03 $ 920.60

TOTAL PERSONNEL
$90,919.15
$ 315,822.25
TOTAL EXPENDITURES $ 315,822.25

RATES ARE PRODUCTIVE

HOURLY NUMBERRATES OF HOURS ARE

ESTIMATES

ATTACHMENT 2

ADMINISTRATIVE SERVICES AGREEMENT
This Agreement entered into this 12th day of December, 2023 by and between the City of San Dimas, hereinafter referred to as "City" and the San Dimas Housing Authority, hereinafter referred to as "Authority".

WITNESSETH
WHEREAS, the City has the personnel, supplies and equipment required for the operation of the Authority's housing properties and program.

WHEREAS, the Authority is desirous of utilizing said personnel, supplies and equipment.

NOW, THEREFORE, in consideration of the foregoing recital, the parties hereby do agree as follows:

1. Authority contracts with the City to provide personnel, supplies and equipment to maintain the effective operation of the Authority' s housing properties and program.

2. City agree to provide Authority with adequate personnel, supplies and equipment.

3. This agreement may be terminated upon 30 days written notice by either party with the incurred charge to date due upon termination.

4. This agreement shall provide for services rendered from July 1, 2023 through June 30, 2024.

5. Authority agrees to pay the City annually based upon the actual hours of work performed by the personnel who provide services to the Authority. Those employees may include City Manager, Assistant City Manager, Administrative Services Director, City Clerk, Accounting Supervisor, Housing Manager, Management Analyst, Management Aide, Community Development Director, Planning Manager, Senior Planner, Associate Planner, Director of Parks and Recreation, Facilities Manager, Facilities Supervisor, Facilities Maintenance Worker and Building Maintenance Aide.

6. The total cost based upon an estimate is $283,567, but could be higher based upon housing activities.

CITY OF SAN DIMAS SAN DIMAS HOUSING AUTHORITY
BY: BY:

Mayor Chairman
ATTEST:

City Clerk

Agenda Item Staff Report
To: Honorable Mayor and Members of City Council
For the Meeting of December 12, 2023
From: Chris Constantin, City Manager
Prepared by: Michael O'Brien, Director of Administrative Services Subject: Receive and File the City’s Annual Independent Audited Financial Statements. ____________________________________________________________________________

SUMMARY
The City’s Independent Audited Annual Comprehensive Financial Report is submitted for the City Council information

RECOMMENDATION
City staff recommends the City Council
• Receive and File the City’s Independent Audited Annual Comprehensive Financial Report.

FISCAL IMPACT
During the 2022-23 fiscal year, the General Fund experienced a notable increase of $3,145,267.

It is crucial to emphasize that this increase was primarily attributable to one-time sources, including a legal settlement of $679,157, a land sale contributing $425,388, and the reallocation of $2,038,261 in key program and service expenses to a federal fund (ARPA). Excluding these one-time sources, our increase would have been a modest $2,461.

The General Fund's spendable reserve increased from $28,151,599 to $32,469,500, of which $15,817,107 is earmarked for various future expenditures, such as capital asset replacement, new equipment, compensated absences, and other post-employment benefits.

The Unassigned Fund balance remains robust, totaling $16,652,393, surpassing the negative unassigned fund balances from the Golf Course fund by $10,621,514. The actual ending fund balance in the General Fund is $2,820,962 higher than what was estimated to be the available fund balance when the 2023-24 budget was adopted on June 27, 2023.

Receive and File the City’s Annual Independent Audited Financial Statements Page 2 For the Meeting of December 12, 2023

BACKGROUND
At the end of each fiscal year, an audit of the City’s financial records is conducted by an outside auditing firm. Within six months of the close of each fiscal year, State law requires that all general‐purpose local governments publish a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants.

The City of San Dimas contracts with Rogers, Anderson, Malody & Scott, LLP to conduct the audit and produce our annual report.

DISCUSSION/ANALYSIS
Per the auditor’s Report on Internal Control Over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; The Auditors consideration of internal control was for the limited purpose as described in their letter. Given those limitations during our Audit they did not identify deficiencies in internal control that they consider to be a material weakness.

Additionally, during the tests performed to ensure compliance with certain provisions of laws, regulations, contracts, and grant agreements, the results disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Based upon the audit, the auditor concluded, there was a reasonable basis for rendering an unmodified opinion that the City of San Dimas’ financial statements for fiscal year ended June 30, 2023. Specifically, the financial statements are deemed to be fairly presented in conformity with Generally Accepted Accounting Principles (GAAP) and present the results of the operations and financial position of the City for fiscal year 2022-23. As management we assert that to the best of our knowledge and belief, these financial statements are complete and reliable in all material respects.

The following is explanation for some of the major financial highlights found in the Management’s Discussion and Analysis.

FINANCIAL HIGHLIGHTS
The City’s net position, also known as the City’s total value of available assets (including cash and capital assets such as land, buildings, infrastructure, and equipment), increased from $112,889,366 to $127,510,805—an increase of $14,621,439 from the prior year.

The detail that makes up the increase in net position that caused revenues to be higher than expenditures in the amount of $14,621,439 can be found in the Reconciliation of Statement of Revenues, Expenditures, and Changes in Fund Balance of Governmental Funds, as recorded in the Statement of Activities (page 17) and flows from the Statement of Net Position (page 16).

The total revenues for all governmental activities were $46,626,054 (page 17).

The cost of governmental activities was $40,626,054 (refer to page 16 for detail). Transfers In and Transfers Out between funds are not shown as revenues and expenditures for financial statement presentation, but they are recorded on the City books and for budget purposes as

Receive and File the City’s Annual Independent Audited Financial Statements Page 3 For the Meeting of December 12, 2023
revenues and expenditures.

The General Fund, as stated on the financial statements, includes Fund 70 New Equipment Fund and Fund 100 Capital Asset Reserve in the total (page 18). The General Fund Balance of $42,028,955 is comprised of:
· Fund Balance General Fund 01 (Non-Spendable) $9,559,455 · Fund Balance New Equipment Fund 70 $1,186,817
· Fund Balance Equipment Rental Fund 100 $6,500,000
· Fund Balance Assigned $8,130,290
· Fund Balance Unassigned $16,652,393
Total General Fund Balance $42,028,955
The Unassigned General Fund Balance and Assigned Fund Balance, which is used for budgeting purposes and represents the cash position of the funds, show an ending balance or surplus of $24,782,683 for Fund 01, $1,186,817 for Fund 70, and $6,500,000 for Fund 100.

These amounts do not include the Non-Spendable General Fund Balances of $9,559,455 for loans owed to the General Fund from the Successor Agency (for the former Redevelopment Agency). When those are factored in, the total General Fund Balance 01.70.100 is $42,028,955, as stated above (see page 17).

Capital Assets at the end of the fiscal year 2022-23 totaled $56,453,099, invested in a broad range of capital assets, including land, buildings, infrastructure, equipment, and right-to-use assets. This amount represents a net increase of $2,589,863 over last year. The increase was mainly due to the completion of a major road project.

As part of GASB 87, which went into effect in the 2021-22 fiscal year, and GASB 96, which went into effect in fiscal year 2022-23, long-term leases and subscriptions are now being displayed on the financial statements. Long-term lease values, less accumulated amortization, totaled $25,352, and remaining subscription values, less accumulated amortization, totaled $345,349.

Total long-term debt decreased from $4,660,731 to $3,858,446 for the City (page 19). The net pension and OPEB liabilities, which amount to $15,541,335 and $2,558,123 respectively, can also be found on (page 18). As highlighted in the previous year's staff report, the investment liability was projected to increase significantly from the $6,807,411 reported last year due to investment returns that came in lower than expected, which triggered CALPERS to decrease the discount rate. The long-term debt for the Successor Agency; a separate entity for the former Redevelopment Agency is $13,004,323, which consists of the previously mentioned City loans, and Bond principal. (page 62). The major factor in the decrease in debt is due to the repayment of bond principal.

City Financial Outlook: Budget and Economic Considerations for Next Year Purpose of the Budget
Our City's budget is more than just numbers—it's a plan that ensures we use our resources efficiently and effectively, prioritizing our most important goals. The City Council shapes our

Receive and File the City’s Annual Independent Audited Financial Statements Page 4 For the Meeting of December 12, 2023
community's direction and priorities through this budget, carefully allocating our financial resources.

Forecasting Our Finances
The 2023-24 budget projections are crafted using economic trends and forecasts specific to our area. These estimates, informed by state agencies and consultants like the Los Angeles County Assessor’s Office, help us predict our income from various sources like taxes and government grants.

During the 2022-23 fiscal year, our General Fund saw a notable increase of $3,145,267.

However, it's important to understand that this increase was largely due to one-time sources: a legal settlement of $679,157, a land sale that brought in $425,388, and shifting $2,038,261 of key program and service expenses to a federal fund (ARPA). Without these, our increase would have been a modest $2,461.

Emerging Financial Challenges
Despite this increase, we are facing potential challenges. Our costs are rising due to increases in contracts (like the L.A. Sheriff contract) and providing the City's programs and services. Our pension program (CalPERS) is expecting a reduced return on investments, which means we'll need to pay more for future benefits. We're also facing growing costs for maintaining our infrastructure—roads, parks, and buildings—which could add millions to our expenses. Each additional mile of infrastructure repair is getting more expensive resulting in less work for the same price or tradeoffs between non-capital and capital priorities.

We expect sales tax, our second-largest revenue source, to stagnate or even decrease as consumer spending drops due to higher costs and reduced consumer spending capacity. This expected flat growth in sales tax revenue, combined with increasing operational and capital expenses, presents a budgetary challenge.

Inflation continues to be a major concern. It pushes up the cost of goods, services, and debt financing. During the 2022-23 fiscal year, the Federal Reserve raised the federal funds rate by

3.75%, which can influence property values and, in turn, property tax revenues—our key source of income. Inflation also has a significant effect on the cost of contracts. As such, we expect major contracts for key operations to result in much higher pricing after the next bidding cycles.

Proactive Financial Strategies
In response, the City Council has updated our fee schedule to generate additional revenue by lessening the significant taxpayer subsidies incurred by the old fee schedule. A recent fee study identified the large disparity between the cost of activity and the fees charged to those who benefit from such activities. The City’s fee schedule did not eliminate the subsidies, but it brought fees more in-line with other cities, and as such, lessens the funding gap expected after the one-time ARPA funds are exhausted up by the end of the 2023-24 fiscal year.

Sustainable Financial Planning
It's crucial for us to monitor and assess our long-term sustainability, balancing major capital needs with essential services. San Dimas is in a relatively strong current financial position by

Receive and File the City’s Annual Independent Audited Financial Statements Page 5 For the Meeting of December 12, 2023
retaining significant reserves and addressing the anticipated gap between revenues and expenditures. However, we must remain vigilant and prepared for rising operational and capital costs, which could outpace our revenue growth. Our aim is to safeguard the exceptional quality of life in our city through prudent financial management.

ALTERNATIVES
The City Council could elect not to adopt the Annual Comprehensive Financial Report until a later date. Adopting the Annual Comprehensive Financial Report at this time allows the City to submit for excellence in financial reporting award consideration.

ENVIRONMENTAL REVIEW
Pursuant to CEQA guidelines Section 15061 (b)(3), CEQA does not apply to this item because there is no potential for causing a significant effect on the environment. Therefore, no additional environmental review is needed at this time.

Respectfully submitted,
Michael O'Brien
Director of Administrative Services
Attachments:

1. 2022-23 City of San Dimas Annual Financial Report

ATTACHMENT 1
City of San Dimas, California

ANNUAL COMPREHENSIVE FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED
JUNE 30, 2023
245 E Bonita Ave, San Dimas CA 91773 Page 375 – 798
This page intentionally left blank.

City of San Dimas, California

ANNUAL COMPREHENSIVE FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED
JUNE 30, 2023
Prepared By

FINANCE DEPARTMENT

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City of San Dimas
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023

TABLE OF CONTENTS

INTRODUCTORY SECTION
Letter of Transmittal ............................................................................................................i Organizational Chart ..........................................................................................................v

FINANCIAL SECTION
Independent Auditor’s Report ..................................................................................................1 Management’s Discussion and Analysis ..................................................................................5 Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position ..........................................................................................16 Statement of Activities ................................................................................................17 Fund Financial Statements
Balance Sheet – Governmental Funds ......................................................................18 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .....................................................................................19 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ............................................................................................20 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................21 Statement of Fiduciary Net Position – Fiduciary Funds .............................................22 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ..........................23 Notes to Financial Statements .........................................................................................24 Required Supplementary Information
Budgetary Comparison Schedule by Department – General Fund ..................................65 Budgetary Comparison Schedule – Golf Course Maintenance and Operation ................66 Budgetary Comparison Schedule – Housing Authority ....................................................67 Notes to Required Supplementary Information ................................................................68 Schedule of Proportionate Share of Net Pension Liability ...............................................69 Schedule of Plan Contributions ........................................................................................70 Schedule of Changes in the Total OPEB Liability and Related Ratios ............................71

City of San Dimas
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
TABLE OF CONTENTS, (Continued)
Supplementary Information
Combining and Individual Fund Statements and Schedules
Combining Balance Sheet – Nonmajor Governmental Funds ...................................72 Combining Statement of Revenues, Expenditures and Changes in Fund Balance – Nonmajor Governmental Funds .................................................78 Budgetary Comparison Schedules –
Gas Tax ................................................................................................................84 Sewer Expansion .................................................................................................85 City Wide Lighting District ....................................................................................86 Landscape Parcel Tax ..........................................................................................87 Infrastructure Replacement ..................................................................................88 Property Development Tax – Community Wide ...................................................89 North & West Park District ....................................................................................90 East Park District ..................................................................................................91 South Park District.................................................................................................92 Housing Authority (Housing Successor) ...............................................................93 Housing & Community Development ...................................................................94 Citizen’s Option for Public Safety .........................................................................95 Air Quality Management District ...........................................................................96 Proposition A Local Transit ..................................................................................97 Transportation Proposition C ................................................................................98 Open Space Maintenance District ........................................................................99 Measure R Transit ..............................................................................................100 Measure M Transit .............................................................................................101 Road Maintenance Rehab Act ...........................................................................102 Measure W Storm Water ....................................................................................103 ARPA ..................................................................................................................104 Civic Center Expansion ......................................................................................105

STATISTICAL SECTION
Net Position by Component ...........................................................................................107 Change in Net Position ..................................................................................................109 Fund Balances of Governmental Funds .........................................................................113 Changes in Fund Balances of Governmental Funds .....................................................115 Top 25 Sales Tax Producers ..........................................................................................117 Taxable Sales by Category ............................................................................................119 Principal Property Tax Payers ........................................................................................120 Direct and Overlapping Property Tax Rates ..................................................................121 Assessed Value of Taxable Property .............................................................................123 2022/23 Use Category Summary ...................................................................................125 Legal Debt Margin Information .......................................................................................126 Direct and Overlapping Debt ..........................................................................................128 Full-time City Employees by Function ............................................................................129 Demographic and Economic Statistics ...........................................................................131

City Council
Emmett Badar, Mayor
Director of Administrative
Services
John Ebiner, Mayor Pro Tem - District 3
Ryan A. Vienna - District 4
Eric Weber - District 1
Michael O’Brien
Director of Community
Development
Henry K. Noh
Eric Nakano - District 2
City Manager
Chris Constantin Director of Parks and
Recreation
Scott Wasserman
Assistant City Manager
Brad McKinney
City Attorney
Jeff Malawy
Director of Public Works
Shari Garwick
December 6, 2023
To the Honorable Mayor, City Council and Citizens of the City of San Dimas State law requires that all general-purpose local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the annual financial report of the City of San Dimas for the fiscal year ended June 30, 2023.

This report consists of management’s representations concerning the finances of the City of San Dimas.

Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City of San Dimas has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of San Dimas’ financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of San Dimas’ comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement.

The City has financial internal controls policies and procedures intended to provide adequate control over the reporting of financial information. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The City of San Dimas’ financial statements have been audited by Rogers, Anderson, Malody & Scott, LLP, a firm of licensed certified public accountants, their first year conducting this financial statement audit. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of San Dimas for the fiscal year ended June 30, 2023, are free of material misstatement.

Auditor’s Opinion on Financial Statements for June 30, 2023 The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation.

The independent auditor concluded based upon the audit, that there was a reasonable basis for rendering an unmodified (clean) opinion that the City of San Dimas’ financial statements for the fiscal year ended June 30, 2023, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of this report.
245 East Bonita Avenue ∙ San Dimas ∙ California 91773-3002 ∙ (909) 394-6200 Page 381 – 798 ∙ Fax (909) 394-6209  sandimasca.gov ii
The independent audit of the financial statements of the City of San Dimas includes the determination as to whether the City will require a Single Audit which is designed to meet the special needs of federal grantor agencies. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A).

This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of San Dimas’ MD&A can be found immediately following the independent auditors report.

Profile of the Government
The City of San Dimas is located about 27 miles east of Los Angeles and near the western boarder of San Bernardino County, at the base of the San Gabriel Mountains. Superior access to freeways offers a centralized location from which to enjoy Southern California’s many excellent cultural and recreational activities. San Dimas currently occupies a land area of 15 square miles and serves a population of 34,003.

The City of San Dimas’ citizens receive a full range of services through the combined efforts of the City’s five departments (City Manager’s Office, Administrative Services, Parks & Recreation, Public Works and Community Development) and many contract services, including services from the County of Los Angeles for police and fire services.

The City of San Dimas was incorporated in 1960 with a Council-Manager form of government. Policymaking and legislative authority are vested in a governing council consisting of the mayor and four council members. The governing council is responsible among other things, for passing ordinances, adopting the budget, appointing commissions, and hiring both the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the governing council, for overseeing the dayto-day operations of the City and for appointing the heads of the various departments. The council is elected on a non-partisan basis. Council members serve four-year staggered terms, with two council members elected every two years. The mayor is directly elected to serve a two-year term. The City of San Dimas is empowered to levy a property tax on both real and personal properties located within its boundaries. It also is empowered by state statute to extend its corporate limits by annexation, which occurs periodically when deemed appropriate by the governing council.

The annual budget serves as the foundation for the City of San Dimas’ financial planning and control. All departments and agencies of the City of San Dimas are required to submit requests for appropriation to the City Manager for the new fiscal year around March of each year. The City Manager uses these requests as the starting point for developing a proposed budget. Once budget sessions are complete, the City Manager then presents this proposed budget to the City Council for review. The City Council is required to adopt a final budget no later than June 30th, which is the close of the City of San Dimas’ fiscal year. The appropriated budget is prepared by fund, function (e.g., public safety), and department (e.g., public works).

Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted.

Factors Affecting Financial Condition
The City’s overall financial position continued to improved during the 2022-23 fiscal year, however much of the additional revenue streams were temporary gains though COVID 19 relief funding, land sales and a law suit settlement – all being temporary additions. Concerns over high inflation persist from the year prior and the potential for a slowing economy are causes for concern as the City evaluates it future revenues streams as ARPA funding will need to be utilized by the end of 2023-24 and anticipated expenditures for operations and capital improvement needs.
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Local economy. Over the past year, the City has been fortunate to receive substantial federal government support through the COVID 19 American Recovery Act which injected billions of dollars into the economy.

This temporary infusion has been a significant factor leading to increased consumer spending, a major generator of local sales tax. The significant federal cash infusions have supported the overall economy, but such support cannot continue indefinitely, and any change may have significant negative impact on economic growth.

For the past two years, direct cash support to residents and businesses have supported taxable purchases which have positively impacted sales tax revenue, one of two significant revenue sources. Further, employment support has resulted in challenges in local businesses obtaining sufficient workforce, and the City and Los Angeles County maintain a 3.9% and 4.5% unemployment rate, respectively. Changes to direct cash support and continued challenges to workforce can have negative pressure on taxable sales, and by extension, sales tax revenue.

While the economy previously gave rise to low interest rates and rising property values, the other significant revenue source, the Federal Reserve has been raising interest rates significantly to combat rampant inflation which is intended to slow economic activity and hiring. As such, 30 year mortgage interest rates hit over 6 and 7 percent which are rates not seen since both the last two economic recessions. While property tax revenue is more stable than sales tax, negative changes in property values do have a longer term negative change in property tax revenue. Proposition 8 recapture of lost property tax can take years, so increases in interest rates are a risk exposure to consider when projecting the impact of the local economy on City revenue. Currently, we have started to see reductions in the number of sales in 2023 from the same months in 2022, but it is too early to tell the trend impacting future property tax revenue.

Long-term financial planning. The City is continuing to develop and enhance its long-term sustainability plans. The City completed its initial review of the City’s future facility, equipment, and IT infrastructure needs and developed a capital asset reserve with sufficient funding for future replacements and capital maintenance. The City is also looking at the five-year and ten-year projections for revenue and expenditures in order to identify the City’s risk for having to draw down reserves in order to sustain current operations and necessary infrastructure improvements. Additionally, the City has been working on how to best prepare for a future downtown, while at the same time, updating its fee schedule and currently funded activities to improve how revenues support planned expenditures. Current reserves adequately protect operations in the short-term, and the City has been evaluating how to best align long-term resources with City priorities. To this end, the City is engaged in its first strategic plan efforts to ensure such alignment.

Cash management policies and practices. Cash temporarily idle during the year was mainly invested in the State Treasurer’s investment pool, CALTRUST, Certificates of Deposit and Corporate Bonds invested through brokers Time Value Investments and Stifel. The strategy for investment is intended to maximize earnings on available funds.

Pension and other post-employment benefits. The City of San Dimas contracts with the Public Employees Retirement System (PERS) for the pension plan for miscellaneous employees. Each year, PERS prepares an actuarial report that calculates the amount of the annual contribution that the City of San Dimas must make to the pension plan to ensure that the plan will be able to fully meet its obligations to retired employees on a timely basis. For fiscal year 2022-23, the City had an employer rate of 10.32% and made an annual lump sum pre-payment of $1,097,843 towards the Cities unfunded accrued liability. The total unfunded liability is equal to $15,541,335. The employee’s contribution is 7% from their pay to the retirement plan in fiscal year 2022-23. The unfunded liability rate is a significant increase from previous 245 East Bonita Avenue ∙ San Dimas ∙ California 91773-3002 ∙ (909) 394-6200 Page 383 – 798 ∙ Fax (909) 394-6209  sandimasca.gov iv
reports due to lower rates of return than is anticipated as well as a reduction in the discount rate which reduces the assumed rate of return on investments.

For Other Post Employee Benefits (OPEB), the City pays the Public Employees’ Medical and Hospital Care Act minimum amount for retiree health benefits and therefore, budgets and disburses payments on a “pay as you go” basis. With the implementation of Governmental Accounting Standards Board (GASB) Standard 75, the City is reporting OPEB liabilities on its 2022-23 government wide financial statements in the amount of $2,558,123, a decrease of $420,809 from the liability measured for 2021-22.

Additional information. The goal of the City of San Dimas’ financial staff is to strive for excellence in the performance of the financial functions and reporting. The requirements of GASB have expanded requirements related to financial reporting. It is our goal to achieve the standards set by these professional organizations and preserve the qualities of financial reporting excellence. As mentioned in the beginning of this letter, the City of San Dimas’ financial statements for the year ended June 30, 2023, were audited by Rogers, Anderson, Malody & Scott, LLP. As mentioned in the beginning of this report, Rogers, Anderson, Malody & Scott, PPL, have issued an unmodified (clean) opinion on the City of San Dimas’ financial statements for the year ended June 30, 2023.

Acknowledgments
The preparation of this report could not have been accomplished without the efficient and dedicated services of the entire staff of the Finance Division and cooperation of all City departments. We would also like to thank the Mayor and members of the City Council for their prudent planning and support in executing the financial operations of the City in a responsible and thoughtful manner.

Chris Constantin,
City Manager
Michael O’Brien,
Administrative Services Director
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Organizational Chart
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EXECUTIVE
TEAM
Council
Member
Mayor
Pro Tem
Council
Member
Council
Member
Eric
Mayor
Emmett
Badar
Eric Ryan John
Nakano Vienna Ebiner Weber
City Attorney
City Manager Jeff Malaway Assistant
City Manager
City Clerk
Debra Black Chris
Constantin
Departmental
Assistant
Lesley Munoz
Management
Analyst
Hildegard
Sebadja
Senior
Management
Analyst
Anissa Livas
Director of Director of Public Director of Interim Director of Community Development
Works Administrative Services
/City Treasurer
Parks & Recreation
Luis Torrico Scott Wasserman
Michael O’Brien Shari Garwick
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ADMINISTRATIVE

SERVICES
Director of Administrative Services /City Treasurer
Michael O’Brien
Accounting
Supervisor
Steven
Accounting
Supervisor
Jennifer
Human
Resources
Manager
Information
Technology
Administrator
Valdivia Legaspi Cecilia Todd John Lee
Human
Resources
Analyst
Christian
Serna
Accounting
Technician
Cari
Accounting
Technician
Liz
Accounting
Technician
Lindsay
IT/GIS Analyst
Jonathan Marin
Chiovare Quintanar McHugh
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COMMUNITY

DEVELOPMENT
Interim Director of Community Development
Luis Torrico
Code Senior
Management
Analyst
Building
& Safety
Manager
Planning
Manager
Housing
Manager
Lilly
Compliance
Supervisor
John Luis
Torrico
Kimberly
Neustice Villalobos Vacant Flores
Code
Compliance
Building
Permit
Technician II
Senior Building
Inspector/Interim
Building & Safety
Manager
Housing
Management
Analyst
Code
Compliance
Officer
Building
Inspector I Officer
Norberto
Garcia Stephanie
Italia
Corrine
Mulhern
Derek
Baldwin
Ryan Hale Jay Thompson
Parking
Enforcement
Officers II or I
(Various)
Housing
Services
Coordinator
Sandra Chacon
Assistant
Planner
Departmental
Assistant
Senior
Planner
Building
Intern Senior
Planner
Planning
Intern
Kenneth
Fichtelman
Victoria
Gutierrez
Marco (Vacant)
Espinoza Anne Moore James Miclat
Housing
Management
Aide
Paige Rode
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PUBLIC
WORKS
Director of Public Works
Shari Garwick
Senior
Management
Analyst
Lauren Marshall
Administrative Secretary
Management
Aide
Genevieve
Amaro
Rhonda Abangan
Management
Analyst
Grant Garcia
Engineering
Manager
Steven
Public Works
Manager
Esau Ramos Barragan
Associate
Engineer
Brandon
Slater
Public Works
Inspector
Chris
Engineering
Intern
Kendra
Bratzler
Public Works
Supervisor
Juan Venadero
Assistant
Engineer
Peter Jacoy Masterson
Street Street Street Street
Maintenance
Worker I
Equipment
Operator
Jose
Equipment
Mechanic
Ruben Ramirez
Maintenance
Worker I
Daniel
Maintenance
Worker I
Arturo
Maintenance
Worker II
Kevin
Alvarenga Vacant Castro Armenta Henderson
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PARKS &

RECREATION
Director of Parks & Recreation
Scott Wasserman
Management Aide
Connie Arellano
Departmental Assistant
Laureen Zwahlen
Landscape
Maintenance
Manager
Recreation
Manager
Joseph
Facilities Manager
Daniel Ford
Steven Farmer Jones
Landscape
Maintenance
Supervisor
Alex Perez
Municipal
Arborist
Jim Robertson
Recreation
Supervisor
Dominique
Borba
Facilities
Supervisor
Chris Murphy
Building
Maintenance
Facilities
Maintenance
Worker II
Facilities Facilities
Maintenance Maintenance
Landscape
Maintenance
Worker I
Landscape
Maintenance
Worker I
Landscape Landscape
Maintenance
Worker I
Landscape
Maintenance
Worker I
Aides Worker I Worker I Maintenance
Worker I
Giovanni
Torres
Pete Lopez (Various) Dennis
Kisella
Harvy Ayala
Martin
Velazquez
Michael Del
Real
Alexander
Escobedo Jaime Ruiz
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on next
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PARKS &

RECREATION
Recreation
Coordinator
(City Hall)
Recreation
Coordinator
(Senior Center)
Orlando Soto
Recreation
Coordinator
Andy Shoup
Kate Boneman
Senior
Recreation
Leader
Recreation
Leaders and
Specialists
Various (Various)
Recreation
Leader and
Specialist
Departmental
Assistant
Alexis Luna
(Various)
Recreation Senior
Leaders and
Specialists
Supervising
Lifeguard
Water Safety
Instructors
Program
Recreation Instructors
Leader
(Various) (Various) (Various) (Various) (Various)
Senior
Lifeguard Lifeguard
(Various) (Various)
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Independent Auditor’s Report
To the Honorable Mayor and Members of City Council
of the City of San Dimas
City of San Dimas, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of San Dimas, 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 City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for one year after the date that the financial statements are issued. -1- Page 393 – 798
Other Matters
As discussed in Note 1 to the financial statements, the City adopted provisions of Governmental Accounting Standards Board Statement No. 96, Subscription based information technology arrangements (SBITA) and Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences. Our opinions are not modified with respect to this matter.

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

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

In performing an audit in accordance with GAAS and government standards, we:


Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.


Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
-2- Page 394 – 798
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about 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 do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The supplementary information as listed in the table of contents is presented for purposes of additional analysis and are not a required part of the basic financial statements.

The accompanying supplementary 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. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information. The other information comprises the transmittal letter and statistical section but does not include the financial statements and our auditor's report thereon.

Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. -3- Page 395 – 798
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 6, 2023 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

San Bernardino, California
December 6, 2023
-4- Page 396 – 798
City of San Dimas
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
As management of the City of San Dimas, we offer readers of the City of San Dimas’ financial statements this narrative overview and analysis of the financial activities of the City of San Dimas for the fiscal year ended June 30, 2023. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal and the City’s financial statements.

Financial Highlights
 The assets and deferred outflows of the City of San Dimas exceeded the liabilities and deferred inflows at the close of the most recent fiscal year by $127,510,805 (net position).

The net position is comprised of (net investment in capital assets) in the amount of $54,042,729 (restricted and unrestricted net position) in the amount of $73,486,077 for public safety, parks & recreation, public works, debt service, housing and the government’s ongoing obligations as listed on the Statement of Net Position.  The Statement of Activities details the program and general revenues in the amount of $49,340,079. The costs of governmental activities were $34,718,639 as shown on the Statement of Activities. Thus, the City’s net position increased by $14,621,440 as a result of the 2022-23 operations
 The General Fund reported excess revenues over expenditures of $4,168,043 excluding transfers in and transfers out. Refer to the Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds. This is offset by a net transfer of $1,947,374 out of the General Fund to support other fund activity, the proceeds from issuance of Subscription based information technology arrangements (SBITAs) of $499,211 and the proceeds from the sale of capital assets of $425,388 for a net change in the General Fund balance of $3,145,267.
 The Budgetary Comparison Schedule by Department shows the General Fund, actual resources available for appropriation (revenue inflows and fund balance) were over the final budget by $3,365,161, and actual appropriations (outflows) were under budget by $2,684,896.
 The City of San Dimas’ total long-term liabilities increased by $7,510,830 during the current fiscal year. The key factor in this increase was due to actuarial Net Pension adjustment. (Refer to Notes 5, 6 and 7).

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis section is intended to serve as an introduction to the City of San Dimas’ basic financial statements. The City of San Dimas’ basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. -5- Page 397 – 798
City of San Dimas
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
Government-Wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of San Dimas’ finances, in a manner similar to private-sector business.

The statement of net position presents information on all of the City of San Dimas’ assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of San Dimas is improving or deteriorating.

The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave.)
Both of the government-wide financial statements distinguish functions of the City of San Dimas that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of San Dimas include General Government, Public Safety, Community Development, Public Works and Parks and Recreation.

The government-wide financial statements include the blending of separate legal entities such as: the Successor Agency for the former San Dimas Redevelopment Agency, San Dimas Public Financing Authority, San Dimas Public Corporation and San Dimas La Verne Facilities Authority. Although legally separate, these “component units” are important because the City of San Dimas is financially accountable for them.

Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of San Dimas, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of San Dimas can be divided into two categories: governmental funds and fiduciary funds.

Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements.

However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. -6- Page 398 – 798
City of San Dimas
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the governmentwide financial statements.

By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City of San Dimas maintains twenty-six individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Golf Course Maintenance and Operation Fund, and Housing Authority Fund, all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report.

The City of San Dimas adopts an annual appropriated budget for all material funds. Budgetary comparison schedules have been provided for the general fund and two other major funds to demonstrate compliance with this budget.

Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City of San Dimas’ own programs. The City has two Fiduciary Funds. 1) The Successor Agency (Private-Purpose Trust Fund) and 2) Walker House, LLC Fund (Custodial Fund). The City budgets for these funds to reflect the operations of the Successor Agency and the Walker House.

Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

Combining Statements. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the notes to required supplementary information.

Government-Wide Financial Analysis
Our analysis focuses on the net position and changes in net position of the City’s governmental activities. No business-type activities are reported in the government-wide statements. -7- Page 399 – 798
City of San Dimas
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
Governmental Activities
Net Position
2023 2022
Current and other assets
Capital and intangible, net
$ 95,059,112
56,453,099
$ 84,078,383
54,669,137
Total Assets 151,512,211 138,747,520
Deferred outflows related to pensions
Deferred outflows related to OPEB items
Deferred charges on refunding
7,961,828
508,434
16,811
2,578,417
601,801
33,624
Total Deferred Outflows 8,487,073 3,213,842
Long-term liabilities outstanding
Other liabilities
21,957,904
5,970,323
14,447,074
4,565,113
Total Liabilities 27,928,227 19,012,187
Deferred inflows related to leases
Deferred inflows related to pensions
Deferred inflows related to OPEB
2,923,726
1,141,432
495,093
3,308,375.00
6,741,974
9,460
Total Deferred Inflows 4,560,251 10,059,809
Net Position:

Net investment in capital assets
Restricted/unrestricted
54,024,729
73,486,077
51,434,866
61,454,500
Total Net Position $ 127,510,806 $ 112,889,366
The City’s net position from governmental activities increased from $112,889,366 to $127,510,806. This increase comes from City operations bringing in more resources than it is using during the fiscal year, as recorded in the Statement of Activities and flows through the Statement of Net Position.

Governmental Activities. Governmental activities increased the City of San Dimas’ net position by a total of $14,621,440.
-8- Page 400 – 798
City of San Dimas
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
Governmental Activities
Changes in Net Position
2023 2022
Revenues
Program Revenues:

Charges for services
Operating contributions and grants
Capital contributions and grants
$ 3,610,403
6,281,459
224,830
$ 3,261,521
6,186,820
29,268
General Revenues:

Taxes:

Property taxes
Sales taxes
12,343,522
11,583,976
2,817,960
3,395,404
50,399
4,589,480
3,727,256
715,390
11,415,585
11,349,279
2,611,805
3,361,595
53,908
Franchise taxes
Other taxes
Motor vehicle in lieu unrestricted
Use of money and property
Gain on sale of capital assets
Other
2,174,085
-
39,913
Total Revenues 49,340,079 40,483,779
Expenses
General government
Public safety
Community development
Parks and recreation
Public works
8,039,072
8,440,191
4,581,529
6,919,256
6,514,247
224,344
7,286,369
8,227,787
3,551,990
7,311,797
5,798,946
Interest on long-term debt 246,468
Total Expenses 34,718,639
14,621,440
32,423,357
Change in Net Position 8,060,422
Net Position - Beginning Balance
Net Position - Ending Balance
112,889,366
$ 127,510,806
104,828,944
$ 112,889,366
The cost of all programs and services are $34,718,639; total revenues are $49,340,079 equals the change in net position of $14,621,440.
-9- Page 401 – 798
City of San Dimas
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
The following presents the cost of each of the City’s six largest programs – General Government, Public Safety, Community Development, Parks and Recreation, Public Works and Interest on Long-Term Debt – as well as each program’s net cost (total cost less revenues generated by the activities). The net cost shows the financial impact that was placed on the City’s resources by each of these functions.
-10- Page 402 – 798
City of San Dimas
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
Governmental Activities
Total Cost
of Services
2023
Net Cost
of Services
2023
General government
Public safety
Community development
Parks and recreation
Public works
$
$
8,039,072
8,440,191
4,581,529
6,919,256
6,514,247
224,344
$
$
7,305,396
7,831,215
(1,231,101)
5,148,427
5,323,666
Interest on long-term debt 224,344
Totals 34,718,639 24,601,947
The net cost of services indicates that the overall cost of government is significantly more than the revenues generated to support it. The City is not fully recovering the cost of these services with program revenues from user fees and other contributions. See the Statement of Activities for further detail on program revenues and general revenues.

FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
The City of San Dimas uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds. The focus of the City of San Dimas’ governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of San Dimas’ financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

As of the end of the current fiscal year, the City of San Dimas’ total governmental funds reported combined ending fund balance of $74,225,138, an increase of $10,530,397 in comparison with the prior year as noted on the Balance Sheet Governmental Funds. -11- Page 403 – 798
City of San Dimas
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
The General Fund is the chief operating fund of the City of San Dimas. At the end of the current fiscal year, excluding operating transfers, the General Fund (Fund 01 & Fund 70) had excess revenues over expenditures of $4,168,043 (see the Statement of Revenues, Expenditures and Changes in Fund Balance). This is offset by a net transfer of $1,947,374 out of the General Fund to support other fund activity, and proceeds from issuance of SBITAs of $499,211 for a net change in the General Fund balance of $3,145,268.

General Fund Budgetary Highlights
The Budgetary Comparison Schedule by Department for the General Fund will detail the final budget for appropriations in the General Fund (Fund 01 & Fund 70) at year-end was $29,806,725. The actual appropriations were $27,121,829 under budget by $2,684,896 for the fiscal year including transfers out. The majority of the budget variance is due to special projects as well as new and replacement capital assets purchases that were budgeted but not completed within the 2022-23 fiscal year. Budgeted costs for other general operating expenses came in under budget as funds set aside for contingencies were not necessary to be expensed within the fiscal year.

The final budget for revenues in the General Fund (Fund 01 & Fund 70) at year end was $26,901,936. The actual revenues were $30,267,097 over the budget by $3,365,161 for the fiscal year including transfers in. The main factor for the increase in revenue was due onetime receipt of funds for a legal settlement and sale of land to the Gold Line Authority.

Additionally, revenues generated from building and development activity which is typically budgeted conservatively due to the unpredictability of construction activity, came in much higher than anticipated.

Capital Asset and Debt Administration
Capital Assets. At the end of fiscal year 2022-23, the City of San Dimas had $56,453,099 invested in a broad range of capital assets, including land, buildings, infrastructure, equipment and right to use assets. This amount represents a net increase of $1,783,962 over last year.

The increase was mainly due to completion of a major road project. -12- Page 404 – 798
City of San Dimas
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
Capital Assets
(Net of Depreciation/Amortization)
Governmental
Activities
2023 2022
Land $ 13,191,817
10,152,101
3,296,432
2,428,122
382,980
$ 14,092,671
11,118,624
3,642,499
1,196,539
437,086
24,139,841
41,877
Buildings and Structures
Improvements Other Than Buildings
Construction in Progress
Furniture and Equipment
Infrastructure 26,630,946
Right-to-use leases 25,352
Right-to-use subscriptions 345,349 -
Totals $ 56,453,099 $ 54,669,137
The City’s Capital Improvement Plan includes expenditures for street improvements, street reconstructions, miscellaneous storm drain improvements, and recreation facilities. Funding will come from current fund balance, projected revenues, and grants. More detailed information about the City’s capital assets is presented in Note 1 and Note 4 to the financial statements.

Right to Use Assets. As part of the GASB 87 which went into effect in the 2021-22 fiscal year, long term leases are now being displayed on the financial statements. The $25,352 represents the total remaining lease value less accumulated amortization. As part of the GASB 96 which went into effect in the 2022-23 fiscal year, long term subscriptions are now being displayed on the financial statements. The $345,349 represents the total remaining subscription value less accumulated amortization.

Long-term Debt. At the end of the current fiscal year, the City of San Dimas had total bonded debt outstanding for the Civic Center Facilities, San Dimas Public Financing Authority, Housing Authority, accrued employee’s benefits for compensated absences, subscription liability, lease liability and accrued pension and OPEB liability in the amount of $21,957,904.

More detailed information about the City’s long-term debt is presented in Notes 11 to the financial statements.
-13- Page 405 – 798
City of San Dimas
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
The major factor for the City of San Dimas’ and Successor Agency’s total debt decrease is repayments of debt during the fiscal year. The City of San Dimas maintains an “AA-” rating from Standard & Poor’s and Fitch for general obligation debt.

State statutes limit the amount of general obligation debt a governmental entity may issue to 10 percent of its total assessed valuation. The current debt limitation for the City of San Dimas is $244,382,998.

City Financial Outlook: Budget and Economic Considerations for Next Year Purpose of the Budget
Our City's budget is more than just numbers—it's a plan that ensures we use our resources efficiently and effectively, prioritizing our most important goals. The City Council shapes our community's direction and priorities through this budget, carefully allocating our financial resources.

Forecasting Our Finances
The 2023-24 budget projections are crafted using economic trends and forecasts specific to our area. These estimates, informed by state agencies and consultants like the Los Angeles County Assessor’s Office, help us predict our income from various sources like taxes and government grants.

During the 2022-23 fiscal year, our General Fund saw a notable increase of $3,145,268.

However, it's important to understand that this increase was largely due to one-time sources: a legal settlement of $679,157, a land sale that brought in $425,388, and shifting $2,038,261 of key program and service expenses to a federal fund (ARPA). Without these, our increase would have been a modest $2,461.

Emerging Financial Challenges
Despite this increase, we are facing potential challenges. Our costs are rising due to increases in contracts (like the L.A. Sheriff contract), employee salaries, and other services. Our pension program (CalPERS) is expecting a reduced return on investments, which means we'll need to pay more for future benefits. We're also facing growing costs for maintaining our infrastructure— roads, parks, and buildings—which could add millions to our expenses. Each additional mile of infrastructure repair is getting more expensive resulting in less work for the same price or tradeoffs between non-capital and capital priorities.

We expect sales tax, our second-largest revenue source, to stagnate or even decrease as consumer spending drops due to higher costs and reduced consumer spending capacity. This expected flat growth in sales tax revenue, combined with increasing operational and capital expenses, presents a budgetary challenge.
-14- Page 406 – 798
City of San Dimas
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
Inflation continues to be a major concern. It pushes up the cost of goods, services, and debt financing. During the 2022-23 fiscal year, the Federal Reserve raised the federal funds rate by

3.75%, which can influence property values and, in turn, property tax revenues—our key source of income. Inflation also has a significant effect on the cost of contracts. As such, we expect major contracts for key operations to result in much higher pricing after the next bidding cycles.

Proactive Financial Strategies
In response, the City Council has updated our fee schedule to generate additional revenue by lessening the significant taxpayer subsidies incurred by the old fee schedule. A recent fee study identified the large disparity between the cost of activity and the fees charged to those who benefit from such activities. The City’s fee schedule did not eliminate the subsidies, but it brought fees more in-line with other cities, and as such, lessens the funding gap expected after the one-time ARPA funds are exhausted up by the end of the 2023-24 fiscal year.

Sustainable Financial Planning
It's crucial for us to monitor and assess our long-term sustainability, balancing major capital needs with essential services. San Dimas is in a relatively strong current financial position by retaining significant reserves and addressing the anticipated gap between revenues and expenditures. However, we must remain vigilant and prepared for rising operational and capital costs, which could outpace our revenue growth. Our aim is to safeguard the exceptional quality of life in our city through prudent financial management.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have any questions about this report or need additional information, contact the City’s Administrative Services Department, Finance Division, at City of San Dimas
245 East Bonita Avenue
San Dimas, California 91773
(909) 394-6225.
-15- Page 407 – 798
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City of San Dimas
Statement of Net Position
June 30, 2023
Governmental
Activities
ASSETS
Cash and investments $ 73,638,552
Receivables:

Accounts
Taxes
Notes and loans
1,336,150
2,260,194
619,389
Accrued interest 300,186
Grants 662,962
Lease 2,962,034
Restricted assets:

Cash with fiscal agent
Due from Successor Agency
Capital assets not being depreciated/amortized
Capital assets, net of depreciation/amortization
847,033
12,432,612
15,619,939
40,833,160
Total Assets 151,512,211

DEFERRED OUTFLOWS OF RESOURCES
Deferred pension related items
Deferred OPEB related items
7,961,828
508,434
Deferred charges on refunding 16,811
Total Deferred Outflows of Resources 8,487,073

LIABILITIES
Accounts payable
Accrued liabilities
3,063,759
182,170
Accrued interest 13,143
Deposits payable
Unearned revenue
1,148,067
1,563,184
Noncurrent liabilities:

Compensated absences - due within one year
Long-term debt - due within one year
Compensated absences - due more than one year
Long-term debt - due in more than one year
Net pension liability
348,393
1,279,664
1,064,872
1,165,517
15,541,335
Total OPEB liability 2,558,123
Total Liabilities 27,928,227

DEFERRED INFLOWS OF RESOURCES
Deferred lease related items
Deferred pension related items
Deferred OPEB related items
2,923,726
1,141,432
495,093
Total Deferred Inflows of Resources 4,560,251

NET POSITION
Net investment in capital assets
Restricted for:
54,024,729
Public safety
Parks and recreation
Public works
217,296
810,031
27,299,351
Debt service 236
Housing
Unrestricted
8,700,411
36,458,752
Total Net Position $ 127,510,806
The accompanying notes are an integral part of these financial statements. -16- Page 409 – 798
City of San Dimas
Statement of Activities
For the Year Ended June 30, 2023
Net
(Expenses)
Revenues and
Change in Net
Program Revenues Position
Operating Capital
Functions/Programs Charges for
Services
Contributions
and Grants
Contributions
and Grants
Governmental
Primary Government: Activities
Governmental Activities
General government
Public safety
Community development
Parks and recreation
Public works
Expenses
$ 8,039,072
8,440,191
4,581,529
6,919,256
6,514,247
224,344
$ 400,000
434,813
1,679,827
950,662
145,101
-
$ 333,676
174,163
4,132,803
820,167
820,650
-
$ - $ (7,305,396)
(7,831,215)
1,231,101
(5,148,427)
(5,323,666)
(224,344)
-
-
-
224,830
Interest on long-term debt -
Total Governmental Activities
Total Primary Government
34,718,639
34,718,639
3,610,403
3,610,403
6,281,459
6,281,459
224,830
224,830
(24,601,947)
$ $ $ $ (24,601,947)
General Revenues
Taxes
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Business licenses tax
12,343,522
1,770,634
11,583,976
2,817,960
555,480
Other taxes 1,069,290
50,399
4,589,480
3,727,256
715,390
Motor vehicle in lieu - unrestricted
Use of money and property
Gain on sale of capital assets
Other revenues
Total General Revenues
Change in Net Position
39,223,387
14,621,440
112,889,366
127,510,806
Net Position at Beginning of Year
Net Position at End of Year $
The accompanying notes are an integral part of these financial statements. -17- Page 410 – 798
City of San Dimas
Balance Sheet
Governmental Funds
June 30, 2023
Special Revenue Funds
Golf Course Other
Governmental
Funds
Total
Governmental
Funds
Maintenance Housing
General and Operation Authority
ASSETS
Pooled cash and investments
Receivables:
$ 33,178,210 $ 1,439,903 $ 5,426,528 $ 33,593,911 $ 73,638,552 Accounts
Taxes
Notes and loans
Accrued interest
Grants
432,723
2,084,140
389,777
294,329
170,000
59,747
7,572,157
-
12,432,612
58,191 -
-
-
-
-
-
845,236
176,054
229,612
1,336,150
2,260,194
619,389
300,186
662,962
2,962,034
7,572,157
847,033
-
-
5,857
-
2,902,287
-
492,962
Lease -
-
-
-
Advances to other funds
Cash and investments with fiscal agents
Due from Successor Agency
-
-
-
-
847,033
- 12,432,612
Total Assets $ 56,613,695 $ 4,406,238 $ 6,273,561 $ 35,337,775 $ 102,631,269

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable
Accrued liabilities
Deposits payable
Advances from other funds
Unearned revenues
$ 1,849,465
182,170
1,148,056
$ 279
-
-
7,572,157
-
$ -
-
-
-
-
$ 1,214,015 $ 3,063,759
182,170
1,148,067
7,572,157
1,563,184
-
11 - -
- 1,563,184
Total Liabilities 3,179,691 7,572,436 - 2,777,210 13,529,337 Deferred Inflows of Resources:

Unavailable revenues
Lease related
11,346,003
59,045
- -
-
607,064
-
11,953,067
2,864,681 2,923,726
Total Deferred Inflows of Resources 11,405,048 2,864,681 - 607,064 14,876,793 Fund Balance (Deficit):

Nonspendable:

Due from Successor Agency
Restricted for:
9,559,456 - - - 9,559,456
Public safety
Parks and recreation
Public works
Debt service
Housing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
217,296
810,031
26,982,704
236
217,296
810,031
26,982,704
236
6,273,561 2,426,850 8,700,411
Committed to:

Parks and recreation
Public works
-
-
-
-
-
-
113,775
1,402,609
113,775
1,402,609
Assigned to:

Risk management
Emergency
New equipment
General plan update
Other Post-Employment Benefits
Compensated absences
NPDES
Capital Assets Replacement
Unassigned
2,036,592
1,000,000
1,186,817
250,000
2,978,932
1,264,766
600,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,036,592
1,000,000
1,186,817
250,000
2,978,932
1,264,766
600,000
6,500,000
16,652,393
6,500,000
(6,030,879) 10,621,514
Total Fund Balances 42,028,956 (6,030,879)
4,406,238
6,273,561 31,953,501 74,225,139
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 56,613,695 $ $ 6,273,561 $ 35,337,775 $ 102,631,269 The accompanying notes are an integral part of these financial statements. -18- Page 411 – 798
City of San Dimas
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2023
Fund balances of governmental funds $ 74,225,139
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets, net of depreciation/amortization, have not been included as financial resources in governmental fund activity. 56,453,099
Deferred outflow of resources reported are:

Pension related items:

Differences between Expected and Actual Experience
Net Difference between Projected and Actual Earnings on Pension Plan Investments Adjustment due to Differences in Proportions
Changes of Assumptions
$ 312,100
2,846,760
1,364,999
1,592,535
Contributions made subsequent to measurement date 1,845,434 7,961,828 508,434
16,811
OPEB related items:

Changes of Assumptions
Difference between expected and actuarial experience
Contributions made subsequent to measurement date
216,781
245,105
46,548
Governmental funds report the effect of gains or losses on debt refundings when the debt is first issued, whereas these amounts are deferred and amortized in the statement of activities.

Unamortized loss on defeasance of debt
Long-term debt, compensated absences, net pension liability and total other post employment liability that have not been included in the governmental fund activity:

Bonds payable
Lease liabilities
(2,100,900)
(24,030)
Subscription liability
Compensated Absences
Net Pension Liability
Total OPEB Liability
(320,251)
(1,413,265)
(15,541,335)
(2,558,123)
Accrued interest payable for the current portion of interest due on bonds has not been reported in the governmental funds. (13,143) Deferred inflow of resources reported are:

Pension related items:

Differences between Expected & Actual Experience
Change in employer's proportion and differences between the employer's contributions and the employer's proportionate share of contributions
(209,031)
(932,401) (1,141,432)
(495,093)
OPEB related items:

Changes of Assumptions
Differences between Expected & Actual Experience
(491,246)
(3,847)
Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. 11,953,067
Net Position of Governmental Activities $127,510,806
The accompanying notes are an integral part of these financial statements. -19- Page 412 – 798
City of San Dimas
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2023
Special Revenue Funds
Golf Course Other
Governmental
Funds
Total
Governmental
Funds
Maintenance Housing
General and Operation Authority

REVENUES
Taxes $ 23,303,856
1,628,251
216,045
1,408,240
778,307
$ -
-
-
$ -
-
-
-
$ 6,871,112
-
5,663,307
100,656
912,408
-
$ 30,174,968
1,628,251
5,879,352
1,508,896
4,461,263
424,025
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
-
779,739
-
1,990,809
-
487,918
424,025
1,231,774 374,096 16,760 2,110,548
Total Revenues 28,990,498 1,153,835 2,478,727 13,564,243 46,187,303

EXPENDITURES
Current:

General government
Public safety
Community development
Parks and recreation
Public works
7,309,155
7,653,710
2,055,012
4,179,742
2,752,058
677,253
-
-
-
-
-
934,220
786,481
1,519,196
1,716,893
4,625,157
3,302,242
8,243,375
8,440,191
4,967,286
6,084,787
7,377,215
3,979,495
1,393,078
188,152 -
-
-
-
Capital outlay -
Debt service:

Principal retirement
Interest and fiscal charges
195,525
-
- 457,400
30,518
669,000
22,330
1,321,925
158,933 211,781
Total Expenditures 24,822,455 347,085 1,880,996 13,575,519 40,626,055 Excess (Deficiency) of Revenues
Over (Under) Expenditures 4,168,043 806,750 597,731 (11,276) 5,561,248

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Proceeds from sale of capital asset
Subscription acquisition
352,000
(2,299,374)
425,388
-
-
-
-
-
-
-
-
2,299,374
(352,000)
4,044,551
-
2,651,374
(2,651,374)
4,469,939
499,211 499,211
Total Other Financing Sources (Uses)
Net Change in Fund Balances
(1,022,775)
3,145,268
- - 5,991,925
5,980,649
25,972,852
31,953,501
4,969,150
10,530,398
63,694,741
74,225,139
806,750 597,731
5,675,830
6,273,561
Fund Balances (Deficit), Beginning of Year
Fund Balances (Deficit), End of Year
38,883,688
42,028,956
(6,837,629)
$ $ (6,030,879) $ $ $
The accompanying notes are an integral part of these financial statements. -20- Page 413 – 798
City of San Dimas
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2023
Net change in fund balances - total governmental funds $ 10,530,398 Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation exceeded capital outlays in the current period.

Capital additions
Capital asset disposals
Depreciation
$ 5,276,294
(931,900)
(2,889,256) 1,455,138
328,824
Intangible right to use assets are reported as expenditures. However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives as amortization expense. This is the amount of intangible assets and related amortization for the current period.

Intangible assets
Amortization
499,211
(170,387)
Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position.

Principal repayments on lease revenue bonds
Subscription acquisition
Principal repayments on lease/subscription liability
Deferred charges on refunding 2010 PFA Bonds
1,126,400
(499,211)
195,525
(16,813) 805,901
4,250
Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period.

Compensated absences expenses report in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (20,429)
2,250,030
(158,192)
Pension obligation expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

OPEB obligation expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. (574,480)
Change in Net Position of Governmental Activities $ 14,621,440 The accompanying notes are an integral part of these financial statements. -21- Page 414 – 798
City of San Dimas
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
PrivatePurpose Trust
Fund Custodial Fund
Successor
Agency of the
Former RDA
Walker House
LLC
ASSETS
Pooled cash and investments
Accounts receivable
Land held for resale
Due from other governments
$ 937,893 $ 183,305
- 150
2,118,502
-
-
571,712
Total Assets 3,056,395 755,167

LIABILITIES
Accounts payable
Retention payable
Deposits payable
Due in one year
358,597 4,291
2,200
6,000
-
-
1,138,644
11,865,679
-
Due in more than one year -
Total Liabilities 13,362,920 12,491

NET POSITION (DEFICIT)
Restricted for:

Other governments and other agencies (10,306,525) 742,676 Total Net Position $ (10,306,525) $ 742,676
The accompanying notes are an integral part of these financial statements. -22- Page 415 – 798
City of San Dimas
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2023
PrivatePurpose Trust
Fund Custodial Fund
Successor
Agency of the
Former RDA
Walker House
LLC

ADDITIONS
Taxes $ 2,079,719 $ -
39,831
-
Rental collection on behalf of other agencies
Miscellaneous
-
21,988
Total Additions 2,101,707 39,831

DEDUCTIONS
Administrative expenses
Contractual services
Interest expense
24,000
726,846
143,421
496,203
-
-
-
Payments to other agencies 348,343
Total Deductions 1,390,470
711,237
348,343
(308,512)
1,051,188
742,676
Changes in Net Position
Net Position (Deficit), Beginning of Year
Net Position (Deficit), End of Year
(11,017,762)
$ (10,306,525) $
The accompanying notes are an integral part of these financial statements. -23- Page 416 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
I. SIGNIFICANT ACCOUNTING POLICIES
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A) Description of the Reporting Entity
The City of San Dimas, California (“City”), was incorporated on August 4, 1960, under the laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. It is governed by an elected five-member board. As required by accounting principles generally accepted in the United States of America, these financial statements present the City of San Dimas (the primary government) and its component units. The component units discussed below are included in the reporting entity because their governing boards are the same as that of the primary government and because of their operational or financial relationships with the City of San Dimas.

Blended component units
The San Dimas - La Verne Recreational Authority was created by a joint exercise of powers agreement between the cities of San Dimas and La Verne dated December 1, 1970. No separate financial statements are prepared.

The San Dimas Public Financing Authority was created by a joint exercise of powers agreement between the City of San Dimas and the former San Dimas Redevelopment Agency on April 23, 1996, to facilitate the issuance of bonds from the former Redevelopment Agency. No separate financial statements are prepared.

The San Dimas Public Facilities Financing Corporation was formed November 12, 1991. It is a nonprofit public benefit corporation, organized and existing under the laws of the State of California, authorized pursuant to Section 5140 of the Corporations Code, to assist the City in financing certain public facilities. No separate financial statements are prepared.

The San Dimas Housing Authority was formed on September 27, 1994, by Resolution No. 94-65. The authority was created in order to establish an entity that could own and operate low- and moderate-income housing facilities. Separate financial statements of the Authority are not prepared.

B) Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all the nonfiduciary activities of the primary government and its component units. All fiduciary activities are reported only in the fund financial statements. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities are normally supported by taxes and intergovernmental revenues. The primary government is reported separately from certain legally separate component units for which the primary government is financially accountable.
-24- Page 417 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
B) Government-Wide and Fund Financial Statements, (continued) The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and fiduciary funds even though the latter are excluded from the government-wide financial statements. The fiduciary funds are reported on the accrual basis of accounting. Major individual governmental funds are reported as separate columns in the fund financial statements.

C) Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, with the exception of grants which have availability period of 90 days.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are accrued and so have been recognized as revenues of the current fiscal period.

Only the portion of special assessments receivable due within the current fiscal period is accrued as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government. -25- Page 418 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
C) Measurement Focus, Basis of Accounting and Financial Statement Presentation, (continued)
In the fund financial statements, fiduciary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned, and expenses are recognized when the related goods or services are delivered. In the fund financial statements, fiduciary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or non-current) associated with their activity are included on their balance sheets. Fiduciary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.

The City reports the following major governmental funds:




The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The Golf Course Maintenance and Operation Fund accounts for the proceeds of the golf course activities that are restricted by law or administrative action to expenditures for specified purposes.

Housing Authority Fund accounts for the operation and maintenance of Charter Oak Mobile Home Estates and the debt service payments of the Mobile Home Park Revenue Refunding Bond.

Additionally, the City also reports the following fund types:

Special Revenue Fund – Account for taxes and other revenues, which are set aside for a specific purpose in accordance with law or administrative regulation.

Capital Projects Fund - Accounts for financial resources used for the acquisition or construction of major capital facilities.

Debt Service Fund - Accounts for the accumulation of resources for and the payment of principal and interest on general long-term debt.

The Private-Purpose Trust Fund - Accounts for the assets, liabilities, and net position of the former redevelopment agency and is allocated revenue to pay estimated installment payments of enforceable obligations until obligations of the former redevelopment agency are paid in full and assets have been liquidated. -26- Page 419 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
C)
D)
Measurement Focus, Basis of Accounting and Financial Statement Presentation, (continued)
The Custodial Fund - Accounts for receipts and expenditures of monies received from the repayment of principal and interest from the Successor Agency and to expenditures associated with the maintenance and operations of the Walker House.

Assets, Deferred Outflows, Liabilities, Deferred Inflows, and Net Position or Equity

1. Deposits and Investments
The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition.

Investments for the City, as well as for its component units, are reported at fair value. The State Treasurer's Investment Pool operates in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the pool shares.

2. Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Advances between funds, as reported in the fund financial statements, are offset by a fund balance non-spendable account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.

All trade and property tax receivables are shown net of an allowance for un-collectibles.
-27- Page 420 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
D) Assets, Deferred Outflows, Liabilities, Deferred Inflows, and Net Position or Equity, (continued)
Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available. Available means then due or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 60 days), to be used to pay liabilities of the current period. The County of Los Angeles collects property taxes for the City. Tax liens attach annually on the first day in January proceeding the fiscal year for which the taxes are levied. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1.

All taxes are delinquent if unpaid on December 10 and April 10, respectively.

Unsecured personal property taxes become due on the first of March each year and are delinquent on August 31.

3. Inventories, Prepaid Items and Land Held for Resale
All inventories are valued at cost using the first-in/first-out (FIFO) method.

Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

Land purchased for resale is capitalized as inventory at acquisition costs or net realizable value, if lower.

4. Policy for Eliminating Internal Activity in Government-Wide Statement of Activities
Administrative overhead charges are made to funds and programs and are thereby included in the direct expenses of those funds and programs -28- Page 421 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
D) Assets, Deferred Outflows, Liabilities, Deferred Inflows, and Net Position or Equity, (continued)

5. Capital Assets
Capital assets which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the governmental activities’ column in the government-wide financial statements. Capital assets other than infrastructure assets are defined by the City as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Infrastructure assets have a capitalization threshold of $50,000.

Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value on the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Property, plant and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives:

Assets Years
Buildings and structures
Equipment
Improvements other than buildings
10-25
3-10
3-25

6. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The government has items that qualify for reporting in this category. The deferred outflows relating to the net pension obligation and related to OPEB are reported in the government-wide statement of net position. These outflows are the results of either the contributions made subsequent to the measurement period, which are expensed in the following year, differences between expected and actual experiences, adjustments due to differences in proportion, the difference between actual contributions made and the proportionate share of the risk pool’s total contributions, net difference between projected and actual earnings on plan investments or change in assumptions. -29- Page 422 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
2) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
D) Assets, Deferred Outflows, Liabilities, Deferred Inflows, and Net Position or Equity, (continued)
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has one item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category.

Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from taxes, grant revenues, and deferred loans. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. In addition, the government has items that qualify for reporting in this category which are deferred inflows relating to the net obligation reported in the government-wide statement of net position. These inflows are the result of either the net difference between projected and actual earnings on plan investments, adjustments due to differences in proportion, differences between expected and actual experiences, changes in assumptions or the difference between actual contributions made and the proportionate share of the risk pool’s total contributions.

Gains and losses related to changes in net pension liability and fiduciary net position are recognized in pension expense systematically over time. Amounts are first recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB or pension and are to be recognized in future OPEB and pension expense.

7. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Vacation pay is payable to employees at the time a vacation is taken or upon termination of employment. Normally an employee cannot accrue more than two and one-half times their regular annual entitlement.

Sick leave is payable when an employee is unable to work because of illness.

Except for retirement, unused sick leave is forfeited upon termination. Upon retirement an employee will be paid for any unused sick leave up to the first 100 hours at full pay and the remainder will be paid at a 50% rate.

All vacation and sick leave pay is accrued when incurred in the government-wide statements. Compensated absences are paid, if matured, out of the General Fund. -30- Page 423 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
D) Assets, Deferred Outflows, Liabilities, Deferred Inflows, and Net Position or Equity, (continued)

8. Net Pension Liability
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms.

Investments are reported at fair value.

GASB 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used.

Valuation Date June 30, 2021
Measurement Date
Measurement Period
June 30, 2022
July 1, 2021 to June 30, 2022

9. Other Post-Employment Benefits (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, have been determined by an independent actuary.

For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date June 30, 2022
Measurement Date
Measurement Period
June 30, 2022
July 1, 2021 to June 30, 2022
-31- Page 424 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
D) Assets, Deferred Outflows, Liabilities, Deferred Inflows, and Net Position or Equity, (continued)

10. Long-Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the governmental activities Statement of Net Position.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

11. Fund Balance
In the fund financial statements, government funds report the following fund balance classification:

Non-spendable includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted includes amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws and regulations of other governments or (b) by law through constitutional provisions or enabling legislation.

Committed includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City’s highest authority, the City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is through a resolution or ordinance.

Assigned includes amounts that are constrained by the City’s intent to be used for specific purposes but are neither restricted nor committed. The City Manager, Assistant City Manager and/or Administrative Services Director are authorized to assign amounts to a specific purpose, which was established by the governing body in a Council action in fiscal year 2020-21.
-32- Page 425 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
D) Assets, Deferred Outflows, Liabilities, Deferred Inflows, and Net Position or Equity, (continued)
Unassigned includes the residual amounts that have not been restricted, committed, or assigned to specific purposes.

An individual governmental fund could include non-spendable resources and amounts that are restricted or unrestricted (assigned or unassigned) or any combination of those classifications. Restricted amounts are to be considered spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Committed, assigned and unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used.

12. Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.

13. Fund Balance Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. -33- Page 426 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued)
D) Assets, Deferred Outflows, Liabilities, Deferred Inflows, and Net Position or Equity, (continued)

14. New Accounting Pronouncements
During the fiscal year ended June 30, 2023, the City implemented the following GASB standard:

GASB Statement No. 96 – The Governmental Accounting Standards Board (GASB) has issued Statement No. 96, Subscription Based Information Technology Arrangements Activities. The primary objective of this statement is to improve guidance regarding the identification of subscriptions activities for accounting and financial reporting purposes and how those activities should be reported.

A SBITA is defined as a contract that conveys control of the right to use another entity's non-financial asset (the underlying asset) as specified in the contract for a period of time in an exchange-like transaction. Any contract that meets this definition should be accounted for under the SBITA guidance, unless specifically excluded in statement No. 96.

Under Statement no. 96 a lessee is required to recognize a subscription liability and an intangible right-to-use asset, thereby enhancing the relevance and consistency of information about governments' SBITA activities.

For the year ended June 30, 2023, the financial statements include the adoption of GASB Statement No. 101 – Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. -34- Page 427 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
II. DETAILED NOTES ON ALL FUNDS
2) CASH AND INVESTMENTS
As of June 30, 2023, cash and investments were reported in the accompanying financial statements as follows:

Statement of net position:

Cash and investments $ 73,638,552
Cash and investments with fiscal agent 847,033
Statement of fiduciary net position:

Cash and investments 1,121,198
Total Cash and Investments $ 75,606,783
The City of San Dimas maintains a cash and investment pool that is available for use for all funds. Each fund type's position in the pool is reported on the combined balance sheet as cash and investments. The City has adopted an investment policy which authorizes it to invest in various investments.

Deposits
At June 30, 2023, cash and investments consist of the following:

Demand Deposits:

Petty cash on hand
Financial institutions
$ 2,640
3,463,038
Total Demand Deposits 3,465,678
Investments:

Investments
Restricted investments
71,294,072
847,033
Total Investments 72,141,105
Total Cash and Investments $ 75,606,783
-35- Page 428 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
2) CASH AND INVESTMENTS, (continued)
The California Government Code requires California banks and savings and loan associations to secure a City’s deposits by pledging government securities with a value of 110% of a City’s deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City's total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state-chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an "Agent of Depository" has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency.

Investments
Under provision of the City’s investment policy and in accordance with the California Government Code, the following investments are authorized:
 U.S. Treasury Securities
 Federal Agency and U.S. Government-Sponsored Enterprise Obligations  Medium Term Notes
 Corporate Bonds
 Commercial Paper
 Time Deposits (including non-negotiable Certificates of Deposit)  Negotiable Certificates of Deposit
 Bankers’ Acceptances
 Local Agency Investment Fund (LAIF)
 Los Angeles County Investment Pool (LACIP)
 Cal Trust
 Shares of Beneficial Interest issued by a Joint Powers Authority  Repurchase Agreements
 Mutual Funds
 Money Market Mutual Funds
 U.S. Supranational Securities
Investments Authorized by Debt Agreements
The above investments do not address investment of debt proceeds held by a bond trustee. Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.
-36- Page 429 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
2) CASH AND INVESTMENTS, (continued)
Investments in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members in accordance with State statute. The State Treasurer's Office audits the fund annually. The fair value of the position in the investment pool is the same as the value of the pool shares.

Fair Value of Investments
Generally accepted accounting principles establishes fair value standards for investments in participating interest earning investment contracts, external investment pools, equity securities, option contracts, stock warrants and stock rights that have readily determinable fair values. Accordingly, the City reports its investments at fair value in the balance sheet.

All investment income including changes in the fair value of investments is recognized as revenue in the operating statement.

Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City’s investment policy does not limit investments in Federal Agency Securities and Treasury Obligations to ratings issued by nationally recognized statistical rating organizations. Presented below are the City’s investments and the actual rating as of fiscal year end for each investment type:

Investment ratings at year end

AAA - AA-F
$ 17,373,636
-
A3 - BBB+ Unrated
2,828,456
25,677,133
Total
$20,202,092
25,677,133
1,781,007
7,171,655
963,339
Certificates of Deposit
Local Agency Investment Fund
Money Market Funds
$ - $
-
1,781,007 -
5,800,900
963,339
2,649,185
53,886
3,785,501
300,121
4,960,280
269,379
-
Corporate Bond 889,700 481,055
U.S. Treasury Obligations
Federal Home Loan Bank
Commercial Paper
Asset–Backed Securities
Municipal Bonds
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,649,185
53,886
3,785,501
300,121
4,960,280
269,379
3,242,842
237,652
Treasury Bonds
U.S. Government Bonds
U.S. Government & Agencies
Non U.S. Government & Agencies
Cash with Fiscal Agents
Money Market Mutual Funds
3,242,842
237,652
- - 847,033 847,033
Total $ 41,417,728 $889,700 $ 29,833,677 $72,141,105
-37- Page 430 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
2) CASH AND INVESTMENTS, (continued)
Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party.

The City Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC.

Concentration of Credit Risk
The City’s investment policy imposes restrictions on the percentage that the City can invest in certain types of investments. As of June 30, 2023, in accordance with GASB No. 40 disclosure requirements, the City has not invested more than 5% of its total investments in any one issuer. Investments guaranteed by the U.S. government and investments in mutual funds and external investment pools are excluded from this requirement.

Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value is to changes in market interest rates. Information about the sensitivity of the fair values of the City's investments to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity:

As of June 30, 2023, the City had the following investments and maturities:

Remaining Investment Maturities
1 year or less 1 to 3 years
$ 11,840,936
-
3 to 5 years Total
$ 20,202,092
25,677,133
1,781,007
7,171,655
963,339
Certificates of Deposit
Local Agency Investment Fund
Money Market Funds
Corporate Bond
U.S. Treasury Obligations
Federal Home Loan Bank
Commercial Paper
$ 1,712,407 $ 6,648,749
25,677,133 -
- 1,781,007 -
2,262,719
229,663
222,540
-
4,221,308
499,256
687,628
234,420
- 2,426,645 2,649,185
53,886 - 53,886
Asset–Backed Securities
Municipal Bonds
Treasury Bonds
U.S. Government Bonds
U.S. Government & Agencies
Non U.S. Government & Agencies
Cash with Fiscal Agents
Money Market Mutual Funds
Total
-
-
3,307,598
71,848
-
477,903
228,273
3,785,501
300,121
4,960,280
269,379
3,242,842
237,652
4,960,280
269,379
-
-
-
-
-
-
-
3,242,842
237,652
847,033
$ 38,240,682
- - 847,033
$ 23,196,805 $ 10,703,618 $ 72,141,105
-38- Page 431 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
2) CASH AND INVESTMENTS, (continued)
Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2023:

Level
Investment by Fair Value Level
Certificates of Deposit
Corporate Bond
U.S. Treasury Obligations
Federal Home Loan Bank
U.S. Government & Agencies
Non U.S. Government & Agencies
Municipal Bonds
Totals
$ 20,202,092
7,171,655
963,339
1 2 3
$ -
-
-
-
-
-
-
-
-
-
-
$ 20,202,092
7,171,655
963,339
$ -
-
-
-
-
-
-
-
-
-
-
2,649,185
3,242,842
237,652
300,121
4,960,280
269,379
2,649,185
3,242,842
237,652
300,121
4,960,280
269,379
Treasury Bonds
U.S. Government Bonds
Asset–Backed Securities
Totals
3,785,501
43,782,046
3,785,501
$ $ 43,782,046 $
Money Market Mutual Funds(1)
Local Agency Investment Fund(1)
Commercial Paper(1)(2)
Cash with Fiscal Agents
1,781,007
25,677,133
53,886
Money Market Funds(1)
Totals
847,033
28,359,059
Total Investments $ 72,141,105
(1)Investment uncategorized and not subject to hierarchy of input valuation techniques under GASB 72. (2)Investment is reported at amortized cost.
3) LEASE RECEIVABLE
The City has entered into leases as a Lessor for the use of a Golf Course, a Restaurant and the Sycamore Canyon Equestrian Center, which are operated by a property manager, for a period of 54 to 126 months. The initial lease receivables were recorded in the range between $106,281 to $2,833,265. The lessee is required to make monthly fixed payments in the range between $2,022 to $23,412. The leases have an interest rate in the range between 1.1770% to 1.3350%.

The Building Improvements estimated useful life have a range between 54 to 126 months as of the contract commencement. The Golf Course and Restaurant have 2 extension options, each for 60 months.

Total lease receivable and deferred inflow of resources at June 30, 2023 were $2,962,034 and $2,923,726, respectively.
-39- Page 432 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
4) CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2023, was as follows:

Beginning Ending
Balance Transfers Additions Deletions Balance
Governmental Activities:

Capital assets, non-depreciable:

Land
City
Housing
$ 7,178,129
6,914,542
14,092,671
$ -
-
-
$ -
-
-
$ 742,683
158,171
900,854
$ 6,435,446
6,756,371
13,191,817
Construction-in-progress
City 1,196,539
1,196,539
(3,907,289)
(3,907,289)
5,138,872
5,138,872
-
-
2,428,122
2,428,122
Total Capital Assets,
Non-Depreciable: 15,289,210 (3,907,289) 5,138,872 900,854 15,619,939 Capital assets, depreciable/amortizable:

Buildings and structures
City
Housing
25,764,035
3,082,114
-
-
-
-
-
-
25,764,035
3,082,114
Equipment
City 5,130,931
16,524,634
135,890,868
-
-
108,688
28,734
-
82,031
358,083
5,157,588
16,195,285
138,503,218
Improvements other than buildings
City
Infrastructure
City 3,907,289 1,294,939
Right-to-use assets
City
Right-to-use leases
Right-to-use subscriptions
57,066
-
-
-
- -
-
57,066
499,211 499,211
Total Capital Assets,
Depreciable/amortizable: 186,449,648 3,907,289 636,633 1,735,053 189,258,517 Less accumulated depreciation/amortization:

Buildings and structures
City
Housing
15,196,575
2,530,950
-
-
919,781
46,742
-
-
16,116,356
2,577,692
Equipment
City 4,693,845
12,882,135
111,751,027
-
-
-
162,794
374,801
82,031
358,083
4,774,608
12,898,853
111,872,272
Improvements other than buildings
City
Infrastructure
City 1,385,138 1,263,893
Right-to-use assets
City
Right-to-use leases
Right-to-use subscriptions
15,189
-
-
-
16,525
153,862
-
-
31,714
153,862
Total Accumulated
Depreciation/Amortization 147,069,721
39,379,927
$54,669,137
-
3,907,289
-
3,059,643 1,704,007
31,046
148,425,357
40,833,160
$56,453,099
Total Capital Assets,
Depreciable/Amortizable, Net (2,423,010)
Governmental Activities
Capital Assets, Net $ $ 2,715,862 $ 931,900
-40- Page 433 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
4) CAPITAL ASSETS, (continued)
Amortization/depreciation expense were charged to functions/programs of the primary government as follows:

Governmental Activities:

General government
Parks and recreation
Public works
$ 217,479
1,492,016
1,350,148
Total Depreciation/Amortization Expense - Governmental Activities $ 3,059,643 5) PENSION PLAN
General Information about the Pension Rate Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan or PERF C) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under generally accepted accounting principles. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools.

The City participates in two rate plans (two miscellaneous). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website, at www.calpers.ca.gov.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of fulltime employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
-41- Page 434 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
5) PENSION PLAN, (continued)
The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board
The Plans’ provisions and benefits in effect at June 30, 2023, are summarized as follows:

PEPRA
Miscellaneous
Rate Plan
Miscellaneous
Rate Plan
Prior to On or after
Hire date
Benefit formula
January 1, 2013

2.0% @ 55
January 1, 2013

2.0% @ 62
Benefit vesting schedule
Benefit payments
Retirement age
5 years of service
monthly for life
50 - 55
5 years of service
monthly for life
52 - 67
Monthly benefits, as a % of eligible
compensation
Required employer contribution rates

1.426% - 2.418%

10.32%

1.0% - 2.5%

7.47%
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2023 were $1,845,434. The actual employer payments of $1,549,294 made to CalPERS by the City during the measurement period ended June 30, 2022, differed from the City’s proportionate share of the employer’s contributions of $2,320,218 by $770,924, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.
-42- Page 435 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
5) PENSION PLAN, (continued)
Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.

Actuarial Methods and Assumptions Used to Determine Total Pension Liability Valuation Date June 30, 2021
Measurement Date
Actuarial Cost Method
Asset Valuation Method
Actuarial Assumptions:

Discount Rate
June 30, 2022
Entry Age Actuarial Cost Method
Fair Value of Assets

6.90%
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Derived using CalPERS' membership data for all funds (1) Mortality Rate Table Post Retirement Benefit
Increase
The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter.
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

All other actuarial assumptions used in the June 30, 2020, valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website, at www.calpers.ca.gov.

Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
-43- Page 436 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
5) PENSION PLAN, (continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.

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

Assumed Asset
Asset Class Allocation Real Return1,2
Global equity - cap-weighted
Global equity - non-cap-weigh
Private equity
Treasury
Mortgage-backed securities

30.00%

12.00%

13.00%

5.00%

4.54%

3.84%

7.28%

0.27%

5.00% 0.50%
Investment grade corporates
High yield

10.00%

5.00%

1.56%

2.27%
Emerging market debt
Private debt
Real assets

5.00%

5.00%

15.00%
(5.00%)

2.48%

3.57%

3.21%
Leverage (0.59%)
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study.

Change of Assumptions
Effective with the June 30, 2021, valuation date (2022 measurement date), 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 long-term 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.
-44- Page 437 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
5) PENSION PLAN, (continued)
Discount Rate
The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members.

Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Subsequent Events
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value. -45- Page 438 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
5) PENSION PLAN, (continued)
Proportionate Share of Net Pension Liability
The following table shows the Plan’s proportionate share of the net pension liability over the measurement period.

Increase (Decrease)
Plan Total
Pension Liability
Plan Fiduciary
Net Position
Plan Net Pension
Liability
Balance at: 6/30/2021 (VD)
Balance at: 6/30/2022 (MD)
Net Changes during 2021-22
$ 58,202,781
60,272,070
2,069,289
$ 51,395,370
44,730,735
(6,664,635)
$ 6,807,411
15,541,335
$ $ $ 8,733,924
Valuation Date (VD), Measurement Date (MD).

The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The City’s proportionate share of the net pension liability for the Miscellaneous Plan as of the June 30, 2021, and 2022 measurement dates was as follows:

Proportionate Share - June 30, 2021
Proportionate Share - June 30, 2022
Change - Increase (Decrease)

0.358511%

0.332135%
-0.026376%
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability of the Miscellaneous Plan as of the measurement date, calculated using the discount rate of

7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate:

Discount Rate - 1%
(5.90%)
Current Discount Rate
(6.90%)
Discount Rate + 1%
(7.90%)
Plan's Net Pension Liability $ 23,757,505 $ 15,541,335 $ 8,781,466 -46- Page 439 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
5) PENSION PLAN, (continued)
Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss:

Net difference between 5-year straight-line amortization projected and actual earnings
on pension plan investments
All other amounts Straight-line amortization over the expected average remaining service lives (EARSL) of all members that
are provided with benefits (active, inactive and retired) as of the beginning of the measurement period
The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C).

The EARSL for PERF C for the measurement period ending June 30, 2022 is 3.7 years, which was obtained by dividing the total service years of 574,665 (the sum of remaining service lifetimes of the active employees) by 153,587 (the total number of participants:
active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2021), the City’s net pension liability was $6,807,411. For the measurement period ending June 30, 2022 (the measurement date), the City recognized pension expense of $409,609. -47- Page 440 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
5) PENSION PLAN, (continued)
As of June 30, 2023, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Outflows
of Resources
Deferred Inflows
of Resources
Difference between expected and actual experience
Net difference between projected and actual earnings
on pension plan investments
Adjustment due to differences in proportions
Change in assumptions
$ 312,100 $ (209,031)
2,846,760
1,364,999
1,592,535
-
-
-
Change in employer's proportion and differences
between the employer's contributions and the
employer's proportionate share of contributions
Pension contributions subsequent to
measurement date
- (932,401)
1,845,434 -
Total $ 7,961,828 $ (1,141,432)
Contributions subsequent to the measurement date of $1,845,434 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Year Ended
June 30,
2024
Deferred Outflows/
(Inflows) of Resources
$ 1,270,944
1,190,327
772,516
1,741,175
-
2025
2026
2027
Thereafter
Payable to the Pension Plan
At June 30, 2023, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year then ended. -48- Page 441 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
6) OTHER POST-EMPLOYMENT BENEFITS (OPEB)
Plan Description
The City provides the minimum required employer contribution under the CalPERS Health Plan (HC Plan) for eligible retirees and surviving spouses in receipt of a pension benefit from CalPERS. An employee is eligible for this employer contribution provided they are vested in their CalPERS pension benefit and commence payment of their pension benefit within 120 days of retirement with the City. Vesting requires at least 5 years of CalPERS total service. The surviving spouse of an eligible retiree who elected spouse coverage under CalPERS is eligible for the employer contribution upon the death of the retiree.

The City does not issue any financial report for the HC plan. A separate financial report is not prepared for the plan.

The minimum required employer contributions are statutorily set under PEMHCA and is scheduled to increase in the future based on the medical portion of CPI. Minimum required employer contributions for the calendar years 2021 and 2022 were $143 and $151, respectively. There are no assets accumulated in a qualifying trust to pay related benefits.

The City participates in the CalPERS Health Program, a community-rated program for its medical coverage.

Employees Covered
As of the June 30, 2021 actuarial valuation, the following current and former employees were covered by the benefit terms under the Plan:

Active 85
Inactive employees or beneficiaries currently receiving benefits 29 114
Contributions
The HC Plan and its contribution requirements are established by the City's Personnel Rules and Regulations which is reviewed by the employees and adopted by the City Council. The Personnel Rules and Regulations may be amended by City Council. The City utilizes the Public Employees' Medical and Hospital Care Act (PEMHCA) minimum contribution limits to contribute to retirees health care. The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2023 (measurement date June 30, 2022), the City’s cash contributions were $46,548 and recognized as a reduction to the OPEB liability.
-49- Page 442 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
6) OTHER POST-EMPLOYMENT BENEFITS (OPEB), (continued)
Total OPEB Liability
The City’s Total OPEB liability was measured as of June 30, 2022, and the total OPEB liability used to calculate the total OPEB liability was determined by an actuarial valuation dated June 30, 2021, based on the following actuarial methods and assumptions.

Discount Rate
When an entity finances retiree benefits on a pay-as-you-go basis, GASB Statement No. 75 requires the use of a discount rate equal to a 20-year high grade municipal bond rate.

The City intends to continue financing its OPEB liability on a pay-as-you-go basis.

Therefore, the City’s discount rate used in this valuation is based on the S&P Municipal Bond 20 Year High Grade Index. The index requires use of discount rates of 3.54% as of June 30, 2022, and 2.16% as of July 1, 2021. The discount rate used to measure the total OPEB liability was 3.54%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. The City does not participate in a trust fiduciary fund as the OPEB plan is unfunded and there are no assets.

Actuarial Assumptions
Actuarial Valuation Date
Contribution Policy
Actuarial Cost Method
Actuarial Assumptions
Discount Rate
June 30, 2022 Measurement Date
June 30, 2021
Pay-as-you-go funding
Entry Age Normal

3.54%
Inflation 2.50%
Salary Increases
Mortality, Retirement, Disability,
Termination

2.75% per annum, in aggregate
According to the rates under the 2017 experience study
for the CalPERS Pension plan.

Medical Trend 4.0% per year
Healthcare Participation 50% of eligible active employees are assumed to elect medical coverage at retirement.
-50- Page 443 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
6) OTHER POST-EMPLOYMENT BENEFITS (OPEB), (continued)
Changes in the Total OPEB Liability
The changes in the Total OPEB liability for the HC Plan are as follows:

Total OPEB
Liability
Balance at June 30, 2022 (measurement date 6/30/2021)
Changes recognized over the measurement period:

Service Cost
Interest on the total OPEB liability
Changes in Assumptions
$ 2,978,932
183,685
64,925
(539,399)
Experience (Gains)/Losses (4,266)
Benefit payments
Net Changes
Balance at June 30, 2023 (measurement date 6/30/2022)
(125,754)
(420,809)
$ 2,558,123
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022:

Current
1% Decrease
(2.54%)
Discount Rate
(3.54%)
1% Increase
(4.54%)
Total OPEB Liability $ 2,940,473 $ 2,558,123 $ 2,286,804 Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the Total OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022. :

Current
Healthcare
Cost
1% Decrease Trend Rates 1% Increase
Total OPEB Liability $ 2,170,942 $ 2,558,123 $ 3,027,661 -51- Page 444 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
6) OTHER POST-EMPLOYMENT BENEFITS (OPEB), (continued)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2023, the City recognized OPEB expense of $283,075.

As of fiscal year ended June 30, 2023, the City reported deferred outflows/inflows of resources related to OPEB from the following sources:

Deferred Outflows
of Resources
Deferred Inflows
of Resources
Changes of assumptions
Difference between expected and actuarial experience
OPEB contributions subsequent to measurement date
$ 216,781
245,105
46,548
$ (491,246)
(3,847)
-
$ 508,434 $ (495,093)
The $46,548 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2022 measurement date will be recognized as a reduction of the Total OPEB liability during the fiscal year ending June 30, 2023. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

Year Ended
June 30,
2024
Deferred Outflows/
(Inflows) of Resources
$ 34,465
2025 39,195
2026 39,191
2027 3,272
2028
Thereafter
(22,865)
(126,465)
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-52- Page 445 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
7) LONG-TERM LIABILITIES
a. The following is a schedule of changes in long-term debt of the City for the fiscal year ended June 30, 2023:

Beginning
Balance
Ending
Balance
Due Within
Additions Deletions One Year
Direct Placements:
2020A MHP Housing Rev. Refunding Bonds $ 1,878,300
1,878,300
$ -
-
$ 457,400
457,400
$ 1,420,900
1,420,900
$ 464,700
464,700
Direct Borrowing:
2020 Refunding Lease
Lease Liability
1,349,000 -
-
669,000
16,565
178,960
680,000
24,030
320,251
680,000
16,710
118,254
40,595
Subscription Liability - 499,211
Total $ 3,267,895 $ 499,211 $ 1,321,925 $ 2,445,181 $ 1,279,664 A description of long-term debt outstanding as of June 30, 2023, follows:

Refunding – October 29, 2020
On October 29, 2020, the City of San Dimas Housing Authority placed a direct refinancing of $2,318,400 Mobile Home Park Revenue Refunding Bond (Charter Oak Mobile Home Estates Refunding Project), Series 2020A with the City National Bank to provide financing for the advance refunding of the City’s Mobile Home Park Revenue Bonds, Series 1998A. The net savings and economic gain (loss) from this current refunding is $486,660.

The Series 2020A bonds mature annually through July 1, 2025, in amounts ranging from $440,100 to $482,400, with and interest rate of 1.850% over the term of the bonds.

The bonds are special limited obligations of the Authority, secured and payable from net operating revenues arising from the operation of the Project and Housing Set-Aside Revenues pledged by the Agency under the Housing Assistance Agreement dated as of June 1, 1998, by and between the Authority and the Agency.

In the event of default, the Trustee will be entitled to sue to enforce payment and receive any and all amounts from any monies available for such purpose in any manner provided by law.
-53- Page 446 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
7) LONG-TERM LIABILITIES, (continued)
Refunding – October 29, 2020, (continued)
The Mobile Home Park Revenue Refunding Bond (Charter Oak Mobile Home Estates Refunding Project), Series 2020A requires:
 (20%) of the mobile home spaces within the Charter Oak Mobile Home Estates are restricted to persons of very low income, as that term is defined in California Health and Safety Code Sections 34213, 50079.5, and 50105, as those sections may be amended from time to time. Accordingly, 37 of the 185 mobile home spaces are restricted to senior citizens age 55 or older of very low income, for the period June 1, 1998 to June 30, 2028  Occupancy of certain designated mobile home spaces within the Charter Oak Mobile Home Park must be for persons of age 55 or older The outstanding principal balance as of June 30, 2023 was $1,420,900. The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2023, including interest, are as follows:
2020A Mobile Home Park
Year Ending
June 30,
2024
Revenue Refunding Bonds
Principal Interest
21,988
Total
$ 464,700
473,800
482,400
$ $ 486,688
487,107
486,862
2025
2026
13,307
4,462
Totals $ 1,420,900 $ 39,757 $ 1,460,657
San Dimas Public Financing Authority Lease Revenue Bonds, 2020 Refunding On March 1, 2020, the City of San Dimas entered into a lease agreement in the amount of $3,258,000 with the Public Property Financing Corporation of California with CN Financing Inc. as the assignee. The lease was entered into to refund the 2010 Public Financing Authority Lease Revenue Bonds through the issuance of a new loan.

The reacquisition price exceeded the net carrying amount of the old debt by $67,250.

This amount is being netted against the new debt and amortized over the remaining life of the refunded debt, which is shorter than the life of the old debt issued. This refunding lowered the variable interest rate to 1.89% which is anticipated to generate a savings of $362,436 in interest costs throughout the remaining terms of the loan. The refunding loan had a cost of issuance that totaled $99,262 which was paid with bond reserves that were held with the prior bond’s fiscal agent U.S. Bank. -54- Page 447 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
7) LONG-TERM LIABILITIES, (continued)
San Dimas Public Financing Authority Lease Revenue Bonds, 2020 Refunding (continued)
In the event of default, the payment of default will continue as an obligation of the City until the amount in default has been paid, and the City agrees to pay the interest rate from the date of default to the date of payment. There is no right to accelerate the Lease Payments or otherwise declare any Lease Payments not then in default to be immediately due and payable.

The annual requirements to amortize the outstanding lease indebtedness as of June 30, 2023, including interest, are as follows:

Year Ending
June 30,
2024
2020 Refunding Lease
Principal Interest Total
689,639
689,639
$
$
680,000
680,000
$
$
9,639
9,639
$
Totals $
Lease Liabilities
On July 1, 2021, the City entered into leases as a Lessee for the use of Sharp Copiers - 245 E Bonita Ave and Postage Meters - 245 E. Bonita Ave, which have a range between 39 and 60 months. The initial lease liability was recorded in the range between $8,778 and $48,288. As of June 30, 2023, the value of the lease liability is $24,030. The City is required to make monthly fixed payments in the range between $150 to $1,255. The leases have an interest rate between 0.8450% and 1.1300%. The Equipment estimated useful life have a range between 39 and 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2023 is $57,066 with accumulated amortization of $31,714, which is detailed in Note 4.

Year Ending
June 30,
Lease liability
Principal Interest
16,710
Total
16,863
5,568
1,803
24,234
2024
2025
2026
Totals
$
$
$ 153
38 $
$
5,530
1,790
24,030
13 $ 204
-55- Page 448 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
7) LONG-TERM LIABILITIES, (continued)
Subscription Liabilities
On July 1, 2022, the City entered into numerous subscriptions for the use of various intangible assets, which have a range between 12 and 56 months. The initial subscription liability was recorded in the range between $8,096 and $281,945. As of June 30, 2023, the value of the subscription liability is $320,251. The City is required to make annual fixed payments in the range between $8,096 to $72,123. The subscriptions have an interest rate between 2.0240% and 3.1440%. The value of the right to use asset as of June 30, 2023 is $499,211 with accumulated amortization of $153,862, which is detailed in Note 4.

Year Ending
June 30,
2024
Subscription liability
Principal Interest
118,254
122,437
79,560
Total
$
$
$ 7,398
4,687
$
$
125,652
127,124
81,438
334,214
2025
2026
Totals
1,878
320,251 $ 13,963
Compensated Absences
The City's policy relating to compensated absences is described in Note 1 of the Notes to Financial Statements. This liability will be paid in future years from future resources.

The outstanding liability for compensated absences accrued was $1,413,265.

Beginning
Balance
$ 1,392,836
Ending
Balance
$ 1,413,265
Due Within
One Year
$ 348,393
Additions
$ 776,054
Deletions
Compensated Absences $ 755,625
-56- Page 449 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
8) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Advances To/From Other Funds
Advances from
Other Funds
Golf Course
Maintenance
Advances to Other Funds
General Fund
and Operations
$ 7,572,157
The City of San Dimas has outstanding loans that were made in the 1980’s to the Golf Course Maintenance and Operations Fund that bear interest at 2% per annum. The annual payments are based on the cash available, once excess revenue over expenditures is calculated at year-end. As of June 30, 2023, principal and accrued unpaid interest owed on those loans was $7,572,157.

Interfund Transfers
Transfers Out
General
Fund
Nonmajor
Transfers In Funds Total
General Fund
Nonmajor Funds
$ - $ 352,000
-
$ 352,000
2,299,374 2,299,374
Total $ 2,299,374 $ 352,000 $ 2,651,374
The City uses the Civic Center Expansion, Landscape Parcel Tax, North & West Park District, East Park District, South Park District, Housing Authority (Housing Successor), and the Community Wide Fund to account for some of its capital projects. The funding sources for those projects were reported as transfers from the General Fund in the amount of $2,299,374.

The General Fund transferred $234,527 to the Housing Authority (Housing Successor) for the ROPS approved payment on the Walker House Loan.

The non-major funds transferred $352,000 to the General Fund for eligible administrative costs associated with maintaining those funds and capital projects. -57- Page 450 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
9) COMMITMENTS AND CONTINGENCIES
a. Litigation
At June 30, 2023, the City was involved as a defendant in a lawsuit arising out of the ordinary conduct of its affairs. It is the opinion of City management that settlements of these lawsuits, including losses for claims that are incurred but not reported, if any, will not have a material effect on the financial position of the City. b. Construction Commitments (Outstanding Purchase Orders) The following material construction commitments existed at June 30, 2023:

Remaining Commitments
Fund as of June 30, 2023
General Fund 852,210
Housing Authority
$
$
7,659
2,732,870
3,592,739
Aggregate Remaining Funds
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-58- Page 451 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
III. OTHER DISCLOSURES
10) SELF-INSURANCE OBLIGATIONS
a. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of San Dimas is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority). The Authority is composed of 116 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee. b. Primary Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary selfinsurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risksharing pool.

Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.

The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses have a sub-limit of $50 million per occurrence. The coverage structure includes retained risk that is pooled among members, reinsurance, and excess insurance. More detailed information about the various layers of coverage is available on the following website: https://cjpia.org/coverage/risk-sharing-pools/. -59- Page 452 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
10) SELF-INSURANCE OBLIGATIONS, (continued)
Primary Workers’ Compensation Program
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members. c. Purchased Insurance
Pollution Legal Liability Insurance
The City of San Dimas participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of San Dimas. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has a $5 million limit per member.

Property Insurance
The City of San Dimas participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies.

City of San Dimas property is currently insured according to a schedule of covered property submitted by the City of San Dimas to the Authority. City of San Dimas property currently has all-risk property insurance protection in the amount of $54,060,809. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

Crime Insurance
The City of San Dimas purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority.
-60- Page 453 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
10) SELF-INSURANCE OBLIGATIONS, (continued)
d. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage.

There were also no significant reductions in pooled or insured liability coverage in 2022-23.
11) SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provided for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of San Dimas that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provided that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 10, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 2012-02.

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

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

In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City. -61- Page 454 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
11) SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, (continued)
a. Cash and investments
Cash and investments reported in the accompanying financial statements consisted of the following:

Cash and investments pooled with the City
b. Long-Term Debt
$ 937,893
The following debt was transferred from the Redevelopment Agency to the Successor Agency as of February 1, 2012, as a result of the dissolution.

A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2023, follows:

Beginning
Balance
Ending
Balance
Due Within
Fiduciary Funds: Additions Deletions One Year
Notes and Loans from Direct Borrowings
and Direct Placements
City Loans $ 13,495,358
670,649
$ 14,166,007
$
$
109,888
-
109,888
$
$
1,172,634
98,938
1,271,572
$ 12,432,612
571,711
$ 13,004,323
$ 1,034,760
103,884
$ 1,138,644
Walker House Loan
Total
City Loans
The City of San Dimas made loans to the Former Redevelopment Agency that bear interest at rates up to 5.5%. On September 23, 2015 Governor Jerry Brown signed SB 107 which adjusted all interest on loans to the Former Redevelopment Agency to a max simple interest of 3%. As of June 30, 2023, principal and interest owed on those loans was $12,432,612. Loans include non-housing projects with a remaining principal of $7,736,534 for the Creative Growth project area, $964,200 for the Rancho San Dimas project area and, $3,731,878 for the Walker House Loan. Repayment approval is pending a review of additional documentation from the City for the Creative Growth and the Rancho San Dimas Project on the City of San Dimas’ Recognized Obligation Payment Schedule (ROPS). The California Department of Finance approved repayment of $1,034,760 for fiscal year 2023/24 through the ROPS.

Walker House Loan
The Walker House LLC loaned the Agency $1,650,000 for Agency operations. The note bears interest of 5% with annual principal and interest payments due June 30th each year with the first payment date of June 30, 2009. The term of the note is 20 years. The balance outstanding at June 30, 2023, is $571,711. This liability was transferred to the Successor Agency upon dissolution of the redevelopment agency. -62- Page 455 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
11) SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, (continued)
The following schedule illustrates the debt service requirements to maturity as of June 30, 2023:

Fiscal Year
Ending June 30,
2024
Walker House Loan
Principal Interest
$ 103,884 28,586
$
$
2025
2026
2027
2028
109,079
114,533
120,260
123,955
571,711
23,391
17,937
12,211
6,198
Totals $ 88,323
c. Insurance
The Successor Agency is covered under the City of San Dimas’s insurance policies.

Therefore, the limitation and self-insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be seen in Note 10.
d. Commitments and Contingencies
At June 30, 2023, the Successor Agency was involved as a defendant in a lawsuit arising out of the ordinary conduct of its affairs. It is the opinion of management that settlements of these lawsuits, including losses for claims that are incurred but not reported, if any, will not have a material effect on the financial position of the Successor Agency.
12) TAX ABATEMENT
The Former Redevelopment Agency entered into a tax abatement agreement of sales and use tax revenue (including without limitation any reimbursement paid to Agency or City from the sales and use tax in-lieu fund as provided by Section 97.68 of the California Revenue and Taxation Code) with a local retailer under the authority of the City Council of the City of San Dimas. This agreement created a performance-based incentive from revenue that is generated from sales, property, and business license taxes for the retailer, however, also included leased parking lot space for public use for the City. Tax abated each year is a calculation of the product of fifty percent (50%) multiplied by the portion of the Sales Tax in excess of $200,000 during the year. For the fiscal year ended June 30, 2023, the now Successor Agency to the Former RDA, abated tax increment totaling $726,846 under this agreement. This tax abatement is scheduled to end in the 2023-24 fiscal year, however, if the note is not fulfilled, it will be extended by three years. -63- Page 456 – 798
City of San Dimas
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2023
13) STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
The following major governmental fund and fiduciary fund reported a deficit fund balance at June 30, 2023:

Deficit Fund
Balance
Government Funds:

Major Governmental Funds:

Golf Course Maintenance and Operation $ (6,030,879)
$(10,306,525)
Fiduciary Funds:

Successor Agency of the Former RDA
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